Ahead of Thursday’s European Council meeting, European Commission President Ursula von der Leyen unveiled the ReArm Europe plan, a bold initiative aimed at strengthening the continent’s defense capabilities, with a focus on mobilizing up to €800 billion.
In a letter addressed to EU leaders, von der Leyen emphasized the urgency of the current geopolitical climate, stating, “We are living in the most momentum and dangerous of times, we are in an era of rearmament.” She added that member states would be willing to invest more in their defense if they have the fiscal flexibility to do so.
One of the plan’s key proposals includes a 1.5% average increase in defense spending, which could generate up to €650 billion over the next four years. Additionally, von der Leyen introduced a new instrument offering €150 billion in loans to EU member states for defense investments, aimed at bolstering the continent’s collective security.
“This is about spending better and spending together,” von der Leyen said, stressing the importance of joint procurement in key defense areas such as air and missile defense systems, artillery, and drones. This approach is intended to reduce costs, improve interoperability, and strengthen Europe’s defense industrial base while providing continued support for Ukraine.
The Commission president also announced new funding possibilities, including additional incentives for member states to allocate funds for defense investments under the EU’s cohesion policy programs.
Von der Leyen concluded her remarks by reaffirming EU’s commitment to securing its future. “This is Europe’s moment, and we must live up to it,” she said, signaling a new chapter in Europe’s rearmament strategy aimed at safeguarding the continent’s security and resilience in the face of global challenges.