London is considering launching a UK-led “defence bank” (JEF Bank). The goal is to help 10 Northern European NATO nations (Joint Expeditionary Force) rearm faster and at lower cost in the face of the Russian threat.
According to The Telegraph, the new mechanism would allow member states to borrow money jointly at low interest rates for:
weapons procurement;
joint defence projects;
scaling up production;
support for Ukraine.
The idea is similar to the EU’s SAFE programme (€150 billion). In March 2026, the United Kingdom, Finland, and the Netherlands had already agreed to begin work on this mechanism.
The initiative fits within Prime Minister Keir Starmer’s government plans to raise defence spending to 2.5% of GDP by 2027 and beyond. No final decision has been made yet, but the proposal is being actively discussed among Northern European allies.
The “JEF Bank” could become an important tool for strengthening NATO’s northern flank and supporting Ukraine without placing excessive strain on national budgets.