The Defense, Security and Resilience Bank (DSR) has chosen the group of banks that will support the first investments in the defense and armaments sector in Europe, after the start of the European Plan for Resto. A nucleus of five continental and American credit institutions, which should expand already in the coming months.
Inside, however, there is no Italian bank. The possibility that the credit institutions of our country will become part of this project remains open. At the moment, however, in a very delicate phase of the so -called banking risk, none of them was chosen.
DSR banks
There are five investment banks that will accompany the DSR in its work to finance European rearm projects, both within the EU initiatives and in the new 5% goal of the GDP indicated by NATO. These are:
- Commerzbank (Germany);
- Ing Group (Netherlands);
- JP Morgan Chase (United States);
- Landesbank Baden-Württemberg (Germany);
- RBC Capital Markets (Canada).
These credit institutions will provide contributions to the project through sovereign debt tools and capital structuring, involving investors and giving them greater access to the capital market. They will therefore take care of the entire part dedicated to the mobilization of private capital, on which Europe focuses a lot for its rearm project.
However, Italian banks are not included in the list. Although the credit institutions in our country are among the largest and most important on the European continent, for the moment none of them are part of the project, however expanding. Unicredit, however, is part of Commerzbank’s shareholders, and has been aiming to acquire it for some time.
What is Defgence, Security and Resilience Bank
The Defgence project, Security and Resilience Bank was born with the support not only of EU countries, but also of the United Kingdom, Norway, Japan, Canada and Australia. Allied countries of the United States and in many cases committed to increasing their military expenditure to 5% of GDP, as required by Washington to NATO members.
The initiative received a momentum with a recent resolution voted by the European Parliament, which asked for its creation. It has an initial equipment of 20 billion pounds, almost 23 billion euros, but also has a coordination role. In fact, European rearmament does not only aim to improve individual national armies, but also to equip them with integrated equipment, which favors collaboration in the event of an attack.
Military expenditure and public debt
One of the problems of the European rearmament plan and the increase in military spending requested by NATO is the weight that these expenses will have on countries with a very high public debt, such as Italy. To invest in defense you have to spend public money and then ask for loans. For our country, however, this is a very expensive operation. Just think that to date the only interests on debt cost Italy every year between 80 and 100 billion euros.
The DSR, however, may issue obligations guaranteed by all the states that support it, with AAA rating and very low interests. In this way he can guarantee a flow of low -cost credits, decreasing the expenditure on military investments.
