EU chief unveils bold 800-billion-euro plan to strengthen Europe’s defence
On Tuesday, March 4, European Commission President Ursula von der Leyen revealed a powerful new five-part plan to mobilize 800 billion euros to enhance Europe’s defences and provide immediate military support to Ukraine. This announcement came after the United States suspended aid to Ukraine, heightening the urgency for Europe to step up its support.
“A new era is upon us,” von der Leyen stated in a letter introducing the plan to EU leaders, just days before a key summit on joint action for Ukraine and strengthening Europe’s defence capabilities.
The “ReArm Europe” plan aims to boost Europe’s military readiness with a significant financial commitment. “It could mobilize close to 800 billion euros of defence expenditures for a safe and resilient Europe,” von der Leyen told reporters, detailing the plan’s elements, including a 150-billion-euro loan facility to help fund critical defence investments.
However, it remains uncertain how quickly these funds can be accessed and how fast they can translate into tangible support for Ukraine on the battlefield. Experts suggest it may take weeks or months before the full impact is felt, especially as the United States adjusts its position.
Five-point plan to bolster Europe’s defences
Von der Leyen’s plan includes five key actions:
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Easing budget rules: The proposal suggests relaxing strict EU budget rules that limit public deficits, freeing up 650 billion euros over four years to be spent on defence.
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New loan facility: A new “instrument” will provide 150 billion euros in loans to EU member states for defence investments, focusing on pan-European capabilities such as air defence, artillery, missiles, drones, and anti-drone systems. This will allow member states to ramp up their military support for Ukraine.
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Reallocating EU funds: The plan also proposes using the EU’s existing budget to direct more resources toward defence-related projects, including repurposing cohesion funds meant for poorer regions to finance defence investments.
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Expanding the European Investment Bank’s role: The European Investment Bank (EIB) would be asked to lift its lending limits for defence companies, enabling large-scale strategic defence projects to move forward without restrictions.
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Supporting non-dual-use defence projects: The EIB would also broaden its investment criteria to support pure defence projects, such as helicopters, which currently don’t meet the bank’s investment guidelines.
A ‘clear and present danger’ for Europe
Von der Leyen’s announcement comes amid growing concerns that the United States may reduce its support for Ukraine and European security. The European Union is under pressure to urgently provide more key weaponry to Ukraine, though it remains uncertain if a deal will be finalized at the upcoming Brussels summit.
“We are living in the most momentous and dangerous of times,” von der Leyen wrote, stressing the importance of Europe stepping up to defend itself against the clear and present danger posed by Russia.
As Europe faces these critical challenges, von der Leyen’s ambitious plan marks a significant step toward ensuring the continent’s security and readiness for the future.
