Ahead of Thursday’s European Council meeting, European Commission President Ursula von der Leyen on Tuesday unveiled the “ReArm Europe” plan, an ambitious strategy to strengthen Europe’s defense capabilities that could mobilise up to €800 billion, AA writes.
“Member states are ready to invest more in their own security if they have the fiscal space,” she wrote in a letter to EU leaders.
“We are living in a time of great challenges and dangers, an era of rearmament.”
Von der Leyen stressed that an average increase of 1.5 percent in defense spending could generate up to €650 billion over the next four years.
Another key initiative envisages a new instrument that would provide €150 billion in loans to member states for defense investments.
“This is a question of smarter and more joint investment,” von der Leyen said, highlighting the importance of joint procurement of air and missile defense systems, artillery systems and drones.
She stressed that the new approach would help reduce costs, boost interoperability and strengthen the European defence industry, and thus support Ukraine.
Von der Leyen also announced new funding opportunities from EU funds, stating: “We will propose additional opportunities and incentives so that member states can use cohesion funds to increase defence investment.”
The move aims to redirect more funds to defence investment in the short term.
The final two elements of the plan focus on mobilising private capital, in particular through the Savings and Investment Union and the European Investment Bank.
“This is a European moment and we must seize it,” von der Leyen said, calling for greater responsibility in ensuring a safe and resilient Europe.
“Europe is ready to take responsibility,” she added, hinting at a new era of rearmament for the continent’s security.
