Brussels (Brussels Morning Newspaper) – EU Commission President Ursula von der Leyen said that new European Union plans to boost Europe’s defence industry and improve military capabilities could mobilise near to 800 billion euros.
As reported by the European Commission, in the press statement, Von der Leyen emphasised that Europe faces severe threats. According to her, the real issue now is whether it is prepared to act quickly and decisively.
She says European capitals have clearly committed to increasing defense spending, both to support Ukraine and to strengthen Europe’s long-term security. She outlined the
“ReArm Europe Plan,”
Which aims to use financial resources to rapidly and significantly boost defense capabilities.
How will the EU finance its defence investments?
Von der Leyen said that the European Union will propose to give member nations more fiscal space for defence investments, as well as 150 billion euros in loans for those investments, and will seek to mobilise private capital as well.
The first part of this ReArm Europe project is to unleash the usage of public funding in defence at national level. The second proposal will be a new mechanism. It will provide EUR 150 billion of loans to Member nations for defence investment.
We are living in dangerous times.
— Ursula von der Leyen (@vonderleyen) March 4, 2025
Europe‘s security is threatened in a very real way.
Today I present ReArm Europe.
A plan for a safer and more resilient Europe ↓ https://t.co/CYTytB5ZMk
How is Von der Leyen pushing for more military funding?
A month ago, President von der Leyen stressed her determination to find the standards to properly finance the EU defence needs. She also emphasised the importance of tapping the potential of joint procurement to profit from economies of scale and increased interoperability of Europe’s defence supplies.
President von der Leyen, who presented the European Commission’s Competitiveness Compass, stated that the EU must simplify its legislation, employ defence investments to also make know-how and good jobs in Europe, and foster European innovation in the field of defence, including through boosted cooperation with Ukraine.
