NATO considers setting up ‘defense spending bank’ in case of Trump victory
This recommendation comes from a report by the New Diplomacy Project, an initiative advised by former UK Ambassador to the United States David Manning and the Friedrich Ebert Foundation, which is affiliated with German Chancellor Olaf Scholz’s Social Democratic Party, according to Ukrinform, citing The Guardian.
The report by British and German think-tanks warns that if Donald Trump wins the U.S. presidential election next month, he may quickly reduce U.S. defense spending in Europe, attempt to pressure Ukraine into a peace deal that leaves parts of its territory under Russian control, or even consider withdrawing from NATO altogether.
Such steps would have significant consequences for intelligence sharing and the viability of Article 5, NATO’s core principle of collective self-defense, the report notes.
Trump has stated that, if re-elected, he would urge Ukraine to negotiate with Vladimir Putin. “There are only three months left to convince him that the price of peace the Kremlin is likely to demand is unacceptable,” the report says.
They predict that Trump’s peace plan for Ukraine is likely to fail, as “Russia wants more than Trump realizes.”
“While Trump will have limited political room to manoeuvre on Ukraine policy when it comes to the provision of lethal aid, strategic ambiguity, and diplomatic leverage, he could seek to undermine the NATO alliance and use his ‘peace plan’ to limit further lethal aid to Ukraine,” commented one of the report’s authors, Dr. Jade McGlynn.
To mitigate the impact of a potential second Trump presidency, NATO countries should support the creation of an allied multilateral lending institution, effectively a NATO Bank, the report suggests. This bank could “save nations millions on essential equipment purchases, offer low interest rates on loans to alliance members and introduce a new line of financing with longer repayment timeframes.” The bank would be funded by initial subscriptions from NATO members in return for authorized capital stock.
According to Ukrinform, Republican vice-presidential candidate J.D. Vance indicated that Trump’s plan to end Russia’s war in Ukraine could include establishing a “demilitarized zone” on currently Russian-occupied Ukrainian territory and requiring Ukraine to renounce NATO membership.
