KEY POINTS
- EU chief unveils a five-part plan to bolster Europe’s defence and provide immediate military aid to Ukraine
- Proposal to allow EU states to increase defence spending
- Investment in air and missile defence, artillery, and drones
- Proposal to redirect cohesion funds to defence-related investments
- Plans to ease European Investment Bank lending restrictions and create an investment union
BRUSSELS: European Commission President Ursula von der Leyen on Tuesday outlined a five-part plan to mobilise nearly 800 billion euros for Europe’s defence, aiming to strengthen the continent’s security and provide “immediate” military aid to Ukraine after the United States suspended its support.
“A new era is upon us,” the European Commission president said in a letter presenting the plan to EU leaders, two days before a summit aimed at cementing joint action on support for Ukraine and European security longer term.
“Europe faces a clear and present danger on a scale that none of us has seen in our adult lifetime,” she wrote, as she outlined options for funding a European defence surge.
“‘ReArm Europe’ could mobilise close to 800 billion euros of defence expenditures for a safe and resilient Europe,” she told reporters in Brussels as she outlined the contents of her plan.
“Europe is ready to assume its responsibilities.
ReArm Europe could mobilise close to €800 billion for a safe and resilient Europe.
This is a moment for Europe. And we are ready to step up.”
— President @vonderleyen on the defence package pic.twitter.com/OiE8kH8FnK
— European Commission (@EU_Commission) March 4, 2025
Part one involves proposing that the EU suspend strict budget rules to allow member states to ramp up their spending on defence.
“This will allow member states to significantly increase their defence expenditures without triggering the excessive deficit procedure,” she said, referring to a procedure that forces governments to bring deficit levels down if they violate the rules.
The second proposal will be a new “instrument” that will provide 150 billion euros of loans to member states for defence investment.
“This is basically about spending better — and spending together,” said von der Leyen. “We are talking about pan-European capability domains — for example: air and missile defence, artillery systems, missiles and ammunition drones and anti-drone systems.”
“With this equipment, member states can massively step up their support to Ukraine. So, immediate military equipment for Ukraine,” she said.
The third component would involve using the existing EU budget “to direct more funds towards defence-related investments.”
That would include allowing member states to repurpose so-called “cohesion” funds targeted at helping the development of poorer European countries — and using them for defence.
ALSO READ: Trump Stops Aid to Ukraine After Zelensky Clash
The last two areas of action would involve the bloc’s lending arm the European Investment Bank — which EU states want to drop limits on lending to defence firms — and a savings and investments union to help companies access capital.
US President Donald Trump’s direct outreach to Russia on ending the Ukraine war has thrown the country’s future into question and left Europe reeling on the sidelines.
Thursday’s Brussels summit — on the heels of weekend crisis talks also involving Britain and NATO — comes as Europe contemplates the stark prospect of the United States withdrawing longer-term support from Ukraine and more broadly from its European allies.
“We are living in the most momentous and dangerous of times,” von der Leyen said. “This is a moment for Europe, and we are ready to step up.”
“Europe is ready to assume its responsibilities.
ReArm Europe could mobilise close to €800 billion for a safe and resilient Europe.
This is a moment for Europe. And we are ready to step up.”
— President @vonderleyen on the defence package pic.twitter.com/OiE8kH8FnK
— European Commission (@EU_Commission) March 4, 2025
US aid cut for Ukraine comes just days after a stunning public clash between Zelensky and Trump, who is seeking a rapid end to the war.
Trump earlier on Monday had declined to rule out a pause when quizzed by reporters, but any disruption in the flow of US arms to the front line would rapidly weaken Ukraine’s chance of beating back Russia’s invasion.
“The President has been clear that he is focused on peace. We need our partners to be committed to that goal as well,” a White House official told AFP, speaking on condition of anonymity.
