To do their bit, Britain won't join Canadian-led defense bank Xinhua News Agency, Beijing, October 26. The British and Canadian Treasury issued a joint statement on the 25th saying that the "Multilateral Defense Mechanism" established by the United Kingdom and the "Defence, Security and Resilience Bank" led by Canada will operate as two different but complementary partnership mechanisms. According to British media reports, the two sides originally intended to merge the two mechanisms, but Britain later decided to go it alone. The statement said that the two countries jointly determined that the best solution is for the two different mechanisms to operate independently and support each other around emerging industries, investment opportunities and strategic financing. According to the Financial Times, British Prime Minister Burnham spoke with Canadian Prime Minister Carney about Britain's participation in the Security Bank in September, but subsequent discussions between the two sides revealed many differences. The British finance minister, John Healy, intends to increase investment in the "multilateral defense mechanism" to fill the gap in the British defense budget. The "Multilateral Defense Mechanism" was jointly established by Britain, Finland, the Netherlands and Poland, and Britain invested about 400 million pounds (about 3.57 billion yuan) in this effort. This mechanism was originally proposed by former British Chancellor of the Exchequer Rachel Reeves with the intention of strengthening military procurement and inventories. However, Reeves failed to provide upfront funding for this purpose, resulting in a shortfall of around 4.7 billion pounds (about 41.95 billion yuan) earlier this year. Haley, then defense secretary, clashed with Reeves and resigned in June after the latter refused to commit to increasing UK defense spending to 3% of GDP by 2030. The "Bank of Defense, Security and Resilience" headed by Canada is a financing institution modeled after the World Bank. Carney issued a statement during the NATO summit held in Ankara, the capital of Turkey, in July this year, saying that nine countries, including Canada, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine, intend to jointly establish this bank and promise to provide "long-term, low-cost financing" for defense projects. It is expected to go into operation as early as 2027. As the US government threatens to withdraw US forces stationed in Europe, Canada and many NATO countries have increased defense cooperation to reduce their dependence on the US. According to the Financial Times, according to estimates, these countries need to invest an additional 850 billion euros (about 7,586.25 billion yuan) in strengthening defense every year. However, the United Kingdom, Canada and the European countries participating in the two mechanisms were unable to reach an agreement on the location of the headquarters, the rate of joint procurement, the manner in which the member states would lend money and the acceptance of new member states when negotiating the merger of the mechanisms. People familiar with the matter told Reuters that the "Multilateral Defense Mechanism" would focus on accelerating defense investments, funding joint procurement and coordinating the needs of NATO allies to reduce procurement costs in the future, while the "Defense, Security and Resilience Bank" would help support the defense industry and supply chain investments, focusing more on one sovereign nation.

To do their bit, Britain won't join Canadian-led defense bank Xinhua News Agency, Beijing, October 26. The British and Canadian Treasury issued a joint statement on the 25th saying that the "Multilateral Defense Mechanism" established by the United Kingdom and the "Defence, Security and Resilience Bank" led by Canada will operate as two different but complementary partnership mechanisms. According to British media reports, the two sides originally intended to merge the two mechanisms, but Britain later decided to go it alone. The statement said that the two countries jointly determined that the best solution is for the two different mechanisms to operate independently and support each other around emerging industries, investment opportunities and strategic financing. According to the Financial Times, British Prime Minister Burnham spoke with Canadian Prime Minister Carney about Britain's participation in the Security Bank in September, but subsequent discussions between the two sides revealed many differences. The British finance minister, John Healy, intends to increase investment in the "multilateral defense mechanism" to fill the gap in the British defense budget. The "Multilateral Defense Mechanism" was jointly established by Britain, Finland, the Netherlands and Poland, and Britain invested about 400 million pounds (about 3.57 billion yuan) in this effort. This mechanism was originally proposed by former British Chancellor of the Exchequer Rachel Reeves with the intention of strengthening military procurement and inventories. However, Reeves failed to provide upfront funding for this purpose, resulting in a shortfall of around 4.7 billion pounds (about 41.95 billion yuan) earlier this year. Haley, then defense secretary, clashed with Reeves and resigned in June after the latter refused to commit to increasing UK defense spending to 3% of GDP by 2030. The "Bank of Defense, Security and Resilience" headed by Canada is a financing institution modeled after the World Bank. Carney issued a statement during the NATO summit held in Ankara, the capital of Turkey, in July this year, saying that nine countries, including Canada, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine, intend to jointly establish this bank and promise to provide "long-term, low-cost financing" for defense projects. It is expected to go into operation as early as 2027. As the US government threatens to withdraw US forces stationed in Europe, Canada and many NATO countries have increased defense cooperation to reduce their dependence on the US. According to the Financial Times, according to estimates, these countries need to invest an additional 850 billion euros (about 7,586.25 billion yuan) in strengthening defense every year. However, the United Kingdom, Canada and the European countries participating in the two mechanisms were unable to reach an agreement on the location of the headquarters, the rate of joint procurement, the manner in which the member states would lend money and the acceptance of new member states when negotiating the merger of the mechanisms. People familiar with the matter told Reuters that the "Multilateral Defense Mechanism" would focus on accelerating defense investments, funding joint procurement and coordinating the needs of NATO allies to reduce procurement costs in the future, while the "Defense, Security and Resilience Bank" would help support the defense industry and supply chain investments, focusing more on one sovereign nation.