The EU should take on joint debt to finance defence spending, Gediminas Simkus, board chairman of the Bank of Lithuania, stated, BNS reports. Speaking in an interview with Politico, Simkus called for “more unity in defence” in the EU, noting that the European defence industry market was still very fragmented. He said that the “time of peace dividends was over,” while acknowledging that many EU countries were struggling to square reducing budget deficits with boosting military spending. At the same time, increased defence spending could create new economic opportunities and foster innovation, Simkus added. Lithuania is now preparing to apply for loans under the EU’s joint SAFE instrument.
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