The European Defence Agency (EDA) has locked down the final component of its planned Cooperative Financial Mechanism (CFM) after the European Investment Bank (EIB) signed on to the financing scheme during ceremonies at the agency on 9 December.
"The CFM is a way of putting oil in the engine of co-operative initiatives that will flow from the European Defence Fund, PESCO [Permanent Structured Cooperation in defence among 25 EU countries], and other initiatives," Jorge Domecq, the agency's CEO, told reporters after the EIB's signature. "The CFM adds a very powerful instrument to our toolbox for defence co-operation."
Conceived three years ago and negotiated with national defence and finance ministries across the European Union, the CFM will help overcome the recurrent problem of unsynchronised defence budgets between capitals that often impede the launch of collaborative defence projects.
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