The European Commission has revealed a comprehensive strategy to bolster the EU’s defense capabilities and provide substantial support to Ukraine, totaling 800 billion euros. This five-step initiative was presented by European Commission President Ursula von der Leyen during a briefing in Brussels.
She emphasized that the key issue is no longer whether Europe’s security is under threat or if more actions are required. “We already know the answers to these questions. The real question for us is whether Europe is ready to act decisively, as the situation requires. And is Europe ready to act quickly?” von der Leyen remarked.
She reiterated her previous calls for the rearmament of Europe to address its own security needs and continue aiding Ukraine. In light of this, she shared a letter with European leaders prior to the EU summit outlining the five-step defense strategy.
The first element of the plan involves the allocation of public funds to support national defense. “Member states are already ready to invest more in defense if they have fiscal space. Therefore, we must allow them to do so. We will propose the possibility of bypassing the Stability and Growth Pact, which will allow states to increase defense spending without triggering the excessive deficit procedure,” von der Leyen explained. This move is expected to release up to 650 billion euros over the next four years.
Next, a new instrument will be introduced to provide 150 billion euros in loans to EU member states for defense-related investments. These funds will be directed toward air defense systems, artillery, rockets, ammunition, and anti-drone systems, as well as joint procurement of military equipment. “With this equipment, member states will be able to scale up their support for Ukraine on a large scale. We’re talking about the immediate delivery of military equipment to Ukraine,” von der Leyen added.
The third step involves leveraging the EU budget to direct funds into defense projects. This includes a proposal allowing member states to use cohesion funds to increase defense spending. Notably, this proposal doesn’t require unanimity, meaning countries like Hungary or Slovakia will not be able to block it.
The final two points of the plan focus on mobilizing private capital, expanding the investment market, and utilizing the European Investment Bank for defense financing. “The EU is ready to take responsibility. The plan for the rearmament of Europe can mobilize about 800 billion euros for defense spending to ensure a safe and sustainable Europe,” von der Leyen concluded.
