The commission is proposing to loosen EU spending rules to allow governments to boost their military. According to von der Leyen, allowing countries to increase defense spending equivalent to 1.5 percent of gross domestic product over four years would translate into about €650 billion across the bloc.
While planned for sometime, her press announcement on Tuesday was designed as a reaction to the U.S. decision to pull the plug on aid to Ukraine, two EU officials said. The European Investment Bank has also announced that it is proposing to change its rules to make it easier to finance defense projects.
EU diplomats and officials are still poring over the details of the proposals, but overall it has been described as a first step in the right direction.
“Von der Leyen is trying to take the bull by the horns,” said a French minister, who, like others quoted here, was granted anonymity to speak candidly. “But will the technocratic EU structure follow?”
Leaders are also expected to discuss how to use Russian assets that have been frozen since the start of the Ukraine war. While the interest generated by the €200 billion worth of assets is already being used to help fund aid, countries including France are warming to the more controversial idea of seizing the the assets themselves even though opponents of the plan say it will run up against legal obstacles and may cause financial instability.
Hungary’s refusal
There is already a battle brewing over sending more military support to Ukraine. Officials were expecting the inclusion in the summit’s statement a plan announced last month by EU foreign affairs chief Kaja Kallas to ship Ukraine at least 1.5 million rounds of artillery ammunition this year, as well as other equipment like air defense systems, missiles and drones.
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