UK Declines Canada-Led Defence Bank, Backs Separate Initiative

The United Kingdom has declined to join Canada’s proposed Defence, Security and Resilience Bank, which aims to lower the cost of military spending by pooling allied borrowing capacity. Instead, Britain is backing its own Multilateral Defence Mechanism, while the two countries plan to establish a framework for cooperation and develop what they called distinct but complementary institutions. Reports say the sides differed over how the initiatives might be combined, including whether the Canadian-led bank should have headquarters in both Canada and Europe. The U.K. has committed an initial £400 million to its initiative, which is also backed by the Netherlands, Poland and Finland; it is intended to support defence procurement and stockpiling. Both governments say they will work closely on defence investment and NATO spending goals.