Europe Plans to Rearm: EU Unveils Large-Scale Plan

4 March, 2025 Boxer wheeled combat vehicle with RCT30 module. Photo: KNDS European Commission President Ursula von der Leyen has outlined a comprehensive plan aimed at enhancing Europe's military capabilities while providing continued support to Ukraine.

Her speech was shared on the social media platform X. Europe has the potential to mobilize up to EUR800 billion to bolster its defense capabilities. The first phase of the plan focuses on unlocking public funds to support national defense investments.

"Member states are prepared to invest more in defense, provided they have the fiscal flexibility. Our role is to enable this. Therefore, we will offer the option to temporarily bypass the Growth and Stability Pact, allowing countries to boost defense spending without triggering the excessive deficit procedure," the European Commission President explained.

Illustration photo of military personnel of European countries with the EU flag.

Photo from open sources

According to her, if EU member states raise their defense spending by an average of 1.5% of GDP, it could unlock approximately EUR650 billion over the next four years. The second part of the plan introduces a new instrument designed to provide EUR150 billion in loans to member states for defense-related investments. This includes air defense systems, artillery, missiles and ammunition, drones, anti-drone systems, and joint arms procurement.

Ursula von der Leyen emphasized that these weapons will not only enhance Europe's defense capabilities but will also strengthen support for Ukraine. Furthermore, joint procurement will help reduce costs for member states. The third element of the plan focuses on leveraging the EU budget to invest in defense capabilities.

To facilitate this, she proposed allowing member states to use cohesion funds to boost their defense spending.

155mm ammunition for the Ukrainian military's PzH 2000 self-propelled howitzer. July 2022. Frame from Radio Svoboda video

It is also expected to attract private capital by expanding the investment market and through the European Investment Bank.

As previously reported, Estonian Foreign Minister Margus Tsakhkna believes that Europe should fill the gap in military aid to Ukraine after the United States decided to suspend its supplies.