BRUSSELS: The European Union is considering a sweeping €800 billion ($842 billion) defence investment plan after the United States’ decision to pause military aid to Ukraine, European Commission President Ursula von der Leyen said.
In a letter addressed to the leaders of all 27 EU member states, von der Leyen stated that Europe faced a “clear and present danger on a scale that none of us has seen in our adult lifetime.”
The proposal is set to be discussed at a Brussels summit later this week, where European leaders aim to forge a long-term security strategy for the continent.
EU push for defence autonomy
According to von der Leyen, the proposed defence package would include €150 billion ($158 billion) in joint EU borrowing to provide loans to member states for military investment.
The funds would be directed towards bolstering Europe’s air and missile defence systems, artillery capabilities, drone and anti-drone technologies, cyber defences, and military mobility.
“The plan details how to use all the financial levers at our disposal to help member states quickly and significantly increase expenditures in defence capabilities—urgently now, but also over the longer period of this decade,” von der Leyen stated, as quoted by Reuters.
Von der Leyen also suggested that strict EU debt rules be relaxed for defence spending, allowing countries to increase military budgets without triggering excessive deficit penalties.
Response to US policy shift
The proposal follows Washington’s decision to temporarily suspend all military aid to Ukraine, pending a review of Kyiv’s commitment to peace negotiations.
The move was ordered by US President Donald Trump after his recent meeting with Ukrainian President Volodymyr Zelenskyy, The Financial Times reported.
A senior White House official, quoted by Fox News Digital, confirmed that the pause would apply to all aid not yet delivered, while remaining previously approved funds—amounting to $3.86 billion—would be assessed before disbursement.
The aid package includes Guided Multiple Launch Rocket Systems (GMLRS), anti-tank weapons, thousands of artillery rounds, and armoured vehicles.
Trump’s decision has raised alarm among European leaders, who fear it signals a shift away from transatlantic security commitments.
The US president has also called on NATO’s European members to increase defence spending to 5 per cent of their gross domestic product (GDP), a target no NATO member currently meets.
European leaders’ reactions
European leaders gathered in London over the weekend for an emergency summit to discuss alternative support mechanisms for Ukraine.
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Discussions focused on maintaining military assistance, increasing economic pressure on Russia, and forming a “coalition of the willing” among European nations to deter further Russian aggression.
Speaking on the EU’s role in global security, von der Leyen stressed the need for European nations to assume greater responsibility for their own defence.
“This is a moment for Europe, and we are ready to step up,” she said, as reported by Euronews. “We will continue working closely with our partners in NATO, but Europe must be prepared to defend itself.”
French far-right leader Marine Le Pen, known for her nationalist stance, criticised the US decision to suspend aid to Ukraine, calling it an act of “brutality.”
“I consider the brutality of this decision to be reprehensible,” Politico quoted Le Pen as saying. “It is very cruel for Ukrainian soldiers engaged in a patriotic defence of their country. It is also very questionable that they were not given prior warning.”
For years, EU nations have maintained relatively low defence budgets, relying on NATO’s collective security and the US nuclear umbrella.
NATO Secretary-General Mark Rutte has urged member states to raise defence spending beyond 3 per cent of GDP, while the EU’s current defence contributions remain below 2 per cent.
