European Commission President Ursula von der Leyen (main image) on Tuesday presented a five-part plan to mobilise some €800 billion for Europe’s defence – and help provide ‘immediate’ military support for Ukraine after the United States suspended aid.
‘A new era is upon us,’ the EU president said in a letter presenting the plan to the bloc’s leaders. The proposal comes just two days before a crucial summit focused on strengthening collective efforts to support Ukraine and enhancing Europe’s long-term security. ALSO READ: Keir Starmer hosts world leaders in London to get Ukraine peace talks back on track.
‘Europe faces a clear and present danger on a scale that none of us has seen in our adult lifetime,’ she warned, as she outlined potential approaches to finance a significant increase in European defence measures.
She introduced the ‘ReArm Europe‘ initiative, which could generate approximately €800 billion in defence spending to ensure a ‘safe and resilient Europe’. Speaking to reporters in Brussels, von der Leyen elaborated on the details of her plan.
The first proposal involves suspending the EU’s strict budgetary rules to enable member states to increase defence spending. ‘This will allow member states to significantly increase their defence expenditures without triggering the excessive deficit procedure,’ she explained, referencing the mechanism that typically requires governments to reduce deficit levels if they exceed EU limits.
A second component includes the creation of a new financial ‘instrument’ that would offer €150 billion in loans to member states for defence-related investments.
‘This is basically about spending better – and spending together,’ von der Leyen said. She highlighted areas of focus, including ‘pan-European capability domains – for example: air and missile defence, artillery systems, missiles and ammunition drones and anti-drone systems’.
She added that these measures would allow member states to ‘massively step up their support to Ukraine. So, immediate military equipment for Ukraine’.
The third aspect of the plan seeks to redirect existing EU budget funds toward defence investments. This would allow member states to repurpose ‘cohesion’ funds – originally intended to support the development of less wealthy European regions – for defence purposes.
Further proposals involve leveraging the European Investment Bank to increase lending to defence firms by removing existing restrictions and establishing a savings and investments union to enhance companies’ access to capital.
These initiatives come against the backdrop of growing uncertainty over the United States’ long-term support for Ukraine and its European allies.
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 summit in Brussels follows emergency talks over the weekend that included the United Kingdom and NATO, as Europe grapples with the potential shift in US policy.
‘We are living in the most momentous and dangerous of times,’ von der Leyen declared. ‘This is a moment for Europe, and we are ready to step up.’
We are living in dangerous times.
Europe‘s security is threatened in a very real way.
Today I present ReArm Europe.
A plan for a safer and more resilient Europe ↓ https://t.co/CYTytB5ZMk
— Ursula von der Leyen (@vonderleyen) March 4, 2025
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