STORY
Chancellor John Healey is considering whether the United Kingdom should become a founding member of a proposed international bank intended to finance defence and security projects. Healey is expected to discuss the Defence, Security and Resilience Bank with Canadian finance minister François Philippe Champagne, whose Government is leading work on the proposal.
Supporters envisage the bank raising as much as €100 billion for projects undertaken by participating countries and defence companies. It could use capital provided by its members to borrow at comparatively low rates, allowing allies to finance military infrastructure, equipment production and greater resilience against security threats. Britain, Ukraine and Turkey are among the countries reportedly invited to participate.
The Government has not decided whether the UK will join, and the prospective cost to the Treasury has not been disclosed. Britain is also supporting a separate Multilateral Defence Mechanism developed with the Netherlands, Finland and Poland, towards which the Government has pledged £600 million. Ministers will need to decide whether the proposed bank complements that programme and offers sufficient value for public money.