European Commission President Ursula von der Leyen has rolled out an ambitious €150 billion ($158 billion) loan program designed to fortify the EU’s defense industry and enhance military readiness across member states.
Dubbed “ReArm Europe,” this initiative aims to make the bloc more secure and resilient in an increasingly volatile world, von der Leyen emphasized during her speech on Tuesday.
“This is a brand-new tool,” she declared. “It will make €150 billion in loans available to member states, empowering them to invest in defense.”
With growing threats looming over Europe, she stressed the urgency of “spending smarter and working together” to build stronger military capabilities. According to von der Leyen, the security landscape has shifted dramatically, demanding a collective and strategic approach to safeguarding Europe’s future.
The proposed loans would help member states expand crucial military assets across the continent. Key areas of focus include air and missile defense, ammunition and missile production, drone and anti-drone technology, cybersecurity, and military mobility, among others.
“Europe is prepared to ramp up defense spending significantly—not just to address immediate concerns like supporting Ukraine, but also to ensure long-term security by taking greater responsibility for our own defense,” von der Leyen asserted.
EU Considers Relaxing Military Spending Limits
In a bold move, the European Commission president also suggested lifting EU-imposed restrictions on government expenditures related to defense. Under her proposal, member states could redirect funds typically used to level economic disparities across the bloc toward military initiatives. This adjustment, she argued, could unlock up to €800 billion for defense investments.
EU leaders are set to deliberate on von der Leyen’s proposals at a special summit on Thursday, where the future of Europe’s defense strategy will take center stage.
