LONDON, U.K. — Canadian Prime Minister Mark Carney spoke to British Prime Minister Keir Starmer directly about proposals for a multilateral defense bank as pressure builds for the U.K. to take part in the set-up.

The Defense Security and Resilience Bank is being pitched as a multilateral, AAA-rated bank providing loans to allied governments, allowing countries to borrow directly for military procurement at a lower cost.

The British government has previously ruled out backing the initiative, but is coming under renewed pressure to join as defense financing moves up the international agenda.

Carney raised the subject in a call with Starmer Monday, in which he “emphasized the DSR Bank’s potential to unlock private capital to fund defense and security firms across the supply chain – creating massive opportunities for workers and businesses,” according to the Canadian readout.

The readout added that the two men “agreed to task their teams to work together to advance this objective and ensure alignment of Canadian and U.K. efforts.”

Starmer is facing increasing calls to sign up from his own party and the British defense industry.

Two Labour MPs on the House of Commons Defence Committee told POLITICO the government ought to seize on the opportunity as it seeks to ramp up military spending.

Alex Baker said “this could be as significant as creating a modern-day NATO, as Labour did 77 years ago,” while Luke Charters said the initiative would help “build a prosperous, globally engaged U.K. while keeping our country safe, a vision the prime minister has rightly championed as Europe looks for stability in uncertain times.”

Make UK Defence, a trade body representing manufacturers, has been advocating the move, which it said ought to be even more urgent in light of Starmer’s comments at the Munich Security Conference.

In the prime minister’s speech to allies last week he said: “We are stepping up work with like-minded allies on options for a collective approach to defense financing.”

However, the government has so far refused to confirm any proposals under active consideration, with one official suggesting ministers were more attracted to the idea of a multilateral defence mechanism.

Carney’s overture comes as Canada seeks deeper partnerships with European countries on defense, while Starmer faces criticism that he is failing to match his rhetoric on moving to “war readiness” with cold hard cash.

Promised higher defense spending is not due to kick in until 2027, while a separate plan to fund more immediate capabilities is currently deadlocked.

Noah Keate contributed reporting.