Latest news with #GermanTroops
Reuters
15 hours ago
- Business
- Reuters
EU to lift EIB lending limit to 100 billion euros in defence push, sources say
LONDON/BRUSSELS, June 20 (Reuters) - EU governments have agreed to lift the annual spending of the bloc's powerful European Investment Bank (EIB) lending arm to 100 billion euros ($115 billion) this year and treble its funding for the EU's defence industry, said sources briefed on the plans. The sources said the decision was approved at an EIB board meeting in Luxembourg ahead of a formal sign off expected by EU finance ministers later on Friday. They spoke on condition of anonymity because the information was not yet public. The new 100 billion euro annual spending ceiling is more than 10 billion euros above the amount the EIB lent last year and 5 billion higher than 95 billion euros the bank's President Nadia Calvino set as a target at the start of the year. It will also allow it to more than treble its funding for defence-related projects. The amount will go up 3.5 billion euros from 1 billion euros last year and be well above the 2 billion euros it had flagged would be spent back in January, the sources said. The EIB is prohibited from investing directly in weapons or ammunition but it can lend for so-called "dual use" purposes, such as GPS systems or buildings and infrastructure for army bases. It has signed off on funding for one such base in Lithuania near the border with Belarus where German troops are due to be permanently deployed on foreign soil for the first time since the Nazi military in World War II. European nations are scrambling to ramp up their defence spending amid ongoing pressure from U.S. President Donald Trump who has signalled plans to reduce the decades-long U.S. security backstop for the continent. It also comes just days before a NATO summit in The Hague where the alliance's members are under pressure to raise their defence commitments. The increased EIB lending is set to funnel money into other areas as well, the sources said, including technology innovation and renewable energy. It follows a mid-year review of its operational plan and comes after it got approval last year to raise its so-called gearing ratio, which sets out a nominal maximum for the amount of loans on its balance sheet as a percentage of its subscribed capital. ($1 = 0.8727 euros)
ABC News
23-05-2025
- Politics
- ABC News
German troops to be based in Lithuania
Samantha Donovan: For the first time since World War II, German troops are to be based in another country. About 5,000 soldiers make up a new unit that will be stationed in Lithuania. After Russia's invasion of Ukraine, the unit's purpose is to bolster the defence of Lithuania and the neighbouring Baltic republics Latvia and Estonia. Isabel Moussalli prepared this report. Isabel Moussalli: In Lithuania's capital Vilnius, soldiers march through the streets while dozens of military helicopters fly above. This is a momentous occasion, the inauguration of a new German brigade. German Chancellor Friedrich Merz addresses the crowds. Friedrich Merz: We must be able to defend ourselves against such attacks at all times. Freedom is not for free and we are aware of our own responsibility. Isabel Moussalli: Germany has had troops in Lithuania since 2017, but this new unit represents a significant change as Germany works to strengthen its military in the face of Russian aggression. Lithuania borders the Russian area of Kaliningrad, which is detached from the rest of Russia, and Belarus, which is an ally to Moscow. Friedrich Merz: More than ever before, we depend on solidarity and friendship among liberal democracies. Peace in Europe has been broken. Each and every day, Russia is violating the order that we collectively adopted as a lesson from the horrors of the Second World War. With a criminal war of aggression against Ukraine, but also with attacks and murders in numerous European cities, with acts of espionage and sabotage. Isabel Moussalli: On these Lithuanian streets, residents take a closer look at the tanks moving through their neighbourhood. This man welcomes their arrival. Opinion: It really gives us more safety, more precaution and we are just, as a country, we are more ready about it. So I'm very happy that Germans are here. I'm very happy that my country is collaborating with Germany. Isabel Moussalli: But another resident, Nicole Zinkova, has mixed feelings. Nicole Zinkova: You need to defend yourself, so this is important to have. But at the same moment, it makes me sad pretty much, because we need it. Isabel Moussalli: Maria Rost Rublee is a professor of international relations at the University of Melbourne. Prof Maria Rost Rublee: This is pretty historic. This is the first time since World War II that Germany is going to have a permanent foreign troop deployment. And it's historic because of course, World War II, you know, the German loss and concerns about German aggression. Germany had taken a very low profile in terms of defence and military spending. But now, with concerns about Russia's aggression, you know, Germany has taken on a new role. Isabel Moussalli: While it may be a significant move, Professor Rublee says it's not significant in terms of numbers. Prof Maria Rost Rublee: Essentially, this is a German brigade, which is about 5,000 troops and supporting civilians. And so it's not as though that this is going to turn the tide against any Russian invasion if Russia did decide to invade Lithuania. But what this says is that Germany is taking on a new role that sees that Lithuania's security is German security, that NATO security is German security, and that they're essentially going to, you know, stand up and move past the backseat role that it's been taking in defence and security for a long time. Isabel Moussalli: And this isn't the only change. Prof Maria Rost Rublee: Another historic first in terms of defence and security for Germany. They've just amended the country's basic law, essentially their constitution, allowing them to exempt defence spending from Germany's strict debt rules. And so Germany is taking on a much more, a much more leadership role in Europe in terms of defence spending, military positioning and thinking as well. Isabel Moussalli: The new unit is expected to reach its full strength by the end of 2027. Samantha Donovan: Isabel Moussalli reporting.
