Brussels to Mobilize Nearly €800 Billion to Strengthen European Defense and Support Ukraine
Ursula von der Leyen has introduced a large-scale plan aimed at mobilizing nearly €800 billion to reinforce Europe’s defense and provide immediate support to Ukraine.
On Tuesday, the European Commission unveiled a strategic initiative called “Rearming Europe,” designed to boost the continent’s defense capabilities with a budget of nearly €800 billion. This plan also includes urgent assistance for Ukraine, following the suspension of U.S. military aid.
“Europe is facing a clear and immediate threat of a magnitude that none of us have experienced in our adult lives,” stated European Commission President Ursula von der Leyen in a letter addressed to the leaders of the 27 EU member states. She stressed that “the future of a free and sovereign Ukraine, as well as the security and prosperity of Europe, is at stake.” The letter outlines a five-pillar plan focused on strengthening European defense.
Immediate Military Support
Von der Leyen emphasized her commitment to encouraging EU countries to increase their military spending without being constrained by fiscal rules that limit public deficits to 3% of GDP. “This will allow member states to significantly boost their defense expenditures without triggering excessive deficit procedures,” she explained, noting that €650 billion will be allocated over four years for this purpose.
The second pillar of the plan involves making €150 billion in loans available to EU member states for purchasing military equipment and investing in defense infrastructure.
These funds will primarily be used for urgent defense needs, such as air defense systems, missiles, drones, anti-drone technology, and artillery systems.
“With these resources, EU nations will be able to dramatically increase their military support for Ukraine,” von der Leyen assured. However, some experts believe that the results will not be immediate.
“This could help finance or accelerate certain military acquisitions,” said Camille Grand, a defense expert at the ECFR and former NATO official. However, he added, “The effects will likely become visible in weeks or months rather than immediately. But this is crucial, as the impact of U.S. aid restrictions will also be felt in the coming months.”
Enhancing EU Defense Financing
One of the key challenges facing Europe is its limited production capacity for military equipment. For example, the EU had pledged to supply Ukraine with one million artillery shells by 2024 but was only able to meet this target after several months of delay.
The European Commission is also looking to utilize regional development funds, known as cohesion funds, to finance defense-related projects. While the total budget for these funds stands at €392 billion for 2021-2027, von der Leyen did not specify how much might be redirected to military investments.
Additionally, the Commission aims to facilitate access to financing from the European Investment Bank (EIB) for defense projects. Currently, the EIB is not authorized to fund projects directly related to military activities, but its president, Nadia Calviño, has called for an expansion of eligible defense investments. According to an EU official, this would allow financing for strictly military projects.
Finally, Brussels is seeking greater private sector involvement in financing European defense initiatives. Many banks remain hesitant to invest in military projects due to concerns about credit ratings and financial risks.
EU leaders will discuss this plan at a special summit in Brussels on Thursday.
They will also consider a proposal from EU foreign policy chief Kaja Kallas to enhance military aid to Ukraine. Several funding options have been proposed, with amounts ranging up to €30 billion, though a final decision is unlikely to be reached at this meeting, according to a Brussels-based diplomat.
Le7tv
