Canadian Prime Minister Mark Carney and Luxembourg's Luc Frieden have proposed creating a NATO bank.
According to the Financial Times, the initiative aims to bolster military power with financial strength.
Carney and Frieden stated: "Our ability to mobilize capital must be as reliable as our armed forces. The solution is a bold multilateral decision: establishing the Defence, Security and Resilience Bank (DSRB)."
NATO's expansion plans require an additional €850 billion annually from allied states. The bank would be modeled on the World Bank or the European Bank for Reconstruction and Development.
The mechanism is simple: member states provide paid-in and callable capital. The bank will guarantee loans to private financial institutions to fund the defense industry, including drone startups.
The leaders believe the bank can be created within a year and will be discussed at the July summit in Ankara. The project requires consensus from all NATO members.
