EU countries agree on big defense fund, diplomat says

PHOTO CAPTION: Illustrative photo — Dutch soldiers train with a machine gun from an entrenched position during Exercise Rising Griffin 2022. (NATO photo via Flickr)

BRUSSELS  -  EU countries have in principle agreed on the proposals for a 150 billion euro ($168.3 billion) fund aimed at boosting Europe's defence, known as Security Action for Europe (SAFE), an EU diplomat said on Monday.  

The plan, proposed by the European Commission in March, will be financed through joint borrowing and give loans to EU members and certain other countries such as Ukraine for projects that bolster their defences and boost Europe's arms industry.

($1 = 0.8913 euros)

 (Reporting by Jan Strupczewski and Bart Meijer;Editing by Sudip Kar-Gupta)