European Commission President Ursula von der Leyen has introduced a five-step plan to rearm the European Union and enhance support for Ukraine.
She emphasized that the issue is no longer whether Europe’s security is at risk or if more action is needed, but rather whether Europe is ready to act decisively and swiftly in response to the current situation.
“We already know the answers to these questions,” von der Leyen stated. “The real question is whether Europe is prepared to act with the determination the situation requires, and whether Europe is ready to act quickly.”
According to von der Leyen, the European Commission has outlined a comprehensive strategy to modernize Europe’s defense capabilities while ensuring continued military assistance to Ukraine. She had previously sent a letter to European leaders ahead of the EU summit detailing the proposal.
The first component of the plan involves unlocking government funds to finance national defense initiatives. “Member states are already willing to invest more in defense if they have the fiscal space. We must enable them to do so. That is why we will propose a mechanism to bypass the Stability and Growth Pact, allowing states to increase defense spending without triggering an excessive deficit procedure,” she explained. This adjustment could free up to €650 billion over four years.
The second element introduces a new financial instrument to provide €150 billion in loans to member states for investments in air defense systems, artillery, missiles, ammunition, and drone and anti-drone technologies. “With this equipment, member states will be able to significantly scale up their support for Ukraine, ensuring the immediate supply of military equipment,” von der Leyen said.
A third aspect of the plan leverages the EU budget to channel more funds into defense investments. In the short term, the proposal would allow member states to use cohesion funds for military spending. Notably, utilizing these funds does not require unanimous approval, meaning opposition from Hungary or Slovakia would not be able to block such measures.
The final two steps focus on mobilizing private capital through an expanded investment market and engaging the European Investment Bank to boost defense-related funding.
“The EU is ready to take responsibility. The European rearmament plan could mobilize around €800 billion for defense spending, ensuring a secure and resilient Europe,” von der Leyen stated.
The proposal marks a shift in the EU’s approach to defense policy, reflecting growing concerns over regional security and the need to maintain military support for Ukraine in its ongoing conflict with Russia.