European Commission President Ursula von der Leyen on Tuesday presented a plan to bolster Europe’s defense industry and increase military capabilities.
“We are in an era of rearmament, and Europe is ready to massively boost its defense spending,” Von der Leyen said.
She said the plan, dubbed “ReArm Europe,” could mobilize around €800 billion ($841.5 billion).
The announcement comes after Washington suspended all military aid to Ukraine, days after US President Donald Trump clashed with Ukraine’s Volodymyr Zelenskyy at the Oval Office.
Von der Leyen had suggested the rearmament plan after emerging from the closed-door meeting on Ukraine at Lancaster House in London over the weekend.
What is the ‘ReArm Europe’ plan?
Von der Leyen outlined the five-point plan at a critical time for the future of Europe’s security.
One of them is a proposal to suspend strict budget rules to allow member states to ramp up “their defence expenditures without triggering the excessive deficit procedure,” Von der Leyen said.
She referred to a mechanism designed to ensure public finance stability as it forces governments to lower deficit levels if the 3% GDP threshold is breached.
“So if member states would increase their defense spending by 1.5% of GDP on average, this could create fiscal space of close to €650 billion over a period of four years,” Von der Leyen told reporters.
As part of the plan, the commission will also provide €150 billion in loans to EU governments for defense.
Von der Leyen also highlighted the need to improve military equipment which includes air and missile defense, artillery systems, missiles and ammunition, drones and anti-drone systems and cyber preparedness.
Why is Europe boosting defense?
Trump’s direct outreach to Russian President Vladimir Putin on ending the war in Ukraine has destabilized transatlantic relations.
The March 6 emergency meeting of EU leaders, on the heels of the London summit over the weekend, comes as Europe navigates the US shifting priorities — including the possibility of Washington withdrawing support from Kyiv and its European allies.
Germany’s outgoing Foreign Minister Annalena Baerbock called Von der Leyen’s plan “an important first step.”
“Two things are now essential for peace through strength: additional aid — military and financial — for Ukraine, which is defending our freedom. And a quantum leap to strengthen our EU defense,” Baerbock wrote in a post on X.
“We are living in the most momentous and dangerous of times,” Von der Leyen told reporters in Brussels.
“We will continue working closely with our partners in NATO. This is a moment for Europe and we are ready to step up,” she added.
Edited by: Farah Bagat
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