European crisis fund worth over $500 billion could be used for defense

FRANKFURT –

A European crisis fund with more than €430 billion ($514 billion) of firepower could lend money to countries for defense, the head of the European Stability Mechanism said, as the bloc scrambles to reinforce its military.

Pierre Gramegna, managing director of the European Stability Mechanism, said the ESM could give credit lines for defense and would not demand stringent economic reform in return, in part to dispel any stigma that might arise from ​asking the emergency euro zone fund for money.

“In these times of geopolitical turmoil, which have triggered higher expenditure, defense costs for all countries, we must use ‍the full ⁠potential of the ESM,” said Gramegna.