Brussels coordinating plan for EU "defence bonds"

The European Commission is working on an initiative to issue "defence bonds" to finance investment for an increase in military coordination among EU member states, according to vice-president of the body Jyrki Katainen.

As part of a concerted effort to tackle terrorism and reinforce the bloc's borders, EU countries will contribute billions to the scheme to finance the development of drones, cyber-defence and ships, Katainen told the Financial Times.

Security within Europe has come under increased scrutiny following multiple terror attacks in Belgium and France, and with the expected withdrawal of Britain from the organisation, a restructuring of its defence structure will be necessary.

"Security has always belonged to member states and the reality has changed," Kaitanen said. "In order to defend the principles of a single monetary system, free movement and everything, in order to defend liberal democracy values, taking into account the changed nature of the threats, the EU and Europe should be more capable than today to address these difficult threats.”

The UK had traditionally been providing a block for the development of the EU as a military force before its vote to leave, and now that resistance has been removed, the likes of France and Germany are wasting no time with plans to proceed with the issue.

"It doesn’t mean that the EU would become a global warrior," added Katainen. "But just to defend our citizens and our liberties and freedoms we have to address terrorism and make sure that our border guards are well maintained."

The objective in the medium-term, according to the former Finland prime minister, is to pool capital and raise investment through the so-called "European defence bonds".