EU unveils €800 bln plan to boost defense spending and support Ukraine
Photo: Facebook / European Commission
The European Union has unveiled a comprehensive five-step strategy to enhance EU defense capabilities and support Ukraine. This ambitious plan involves mobilizing €800 billion, including a €150 billion loan designated for defense needs. The allocated funds will focus on producing air defense systems and modernizing defense infrastructure across EU member states.
European Commission President Ursula von der Leyen announced this at a briefing in Brussels, according to Sky News and European Pravda.
As noted, the European Commission has announced a significant initiative to strengthen Europe's defense potential against the backdrop of threats facing the continent.
"We actually already know the answers to these questions. The real question for us is whether Europe is ready to act decisively, as the situation requires. And whether Europe is ready to act quickly," the head of the European Commission emphasized.
She repeated her previous statement about the need for Europe to rearmament to ensure its own needs and support Ukraine.
One of the main aspects of this plan is the expansion of public funding in the defense sector, which will allow EU countries to make large-scale investments in the development and production of new defense technologies.
"This is a moment for Europe, and we must justify it," von der Leyen stressed.
According to her, this is why she sent a letter to European leaders before the EU summit outlining a five-step plan for rearmament in Europe.
The first part of the plan is to free up public funds to finance defense at the national level.
"Member states are ready to invest more in defense if they have the fiscal space. So we should allow them to do so. That is why we will propose bypassing the Growth and Stability Pact, allowing states to increase defense spending without triggering the excessive deficit procedure," the European politician explained.
According to her, this will free up to 650 billion euros over four years.
The second element is a new instrument that will provide 150 billion in loans to member states for defense investments in air defense systems, artillery systems, missiles and ammunition, drone and anti-drone systems, and joint procurement of equipment.
"With this equipment, member states can significantly increase their support for Ukraine. This is about the immediate supply of military equipment to Ukraine," von der Leyen said.
The third point is to use the power of the EU budget.
The European Commission president also said, "In the short term, we will be able to direct money to defense investments. "
She announced a proposal for member states to use cohesion funds to increase defense spending. It is worth noting that cohesion funds do not require unanimity, so Hungary or Slovakia cannot block such decisions.
Two other points include mobilizing private capital by expanding the investment market and through the European Investment Bank.
"The EU is ready to take responsibility. The European Rearmament Plan could mobilize around 800 billion euros in defense spending for a secure and resilient Europe," von der Leyen stressed.
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It should be noted that after the summit of European leaders on Ukraine in London, European Commission President Ursula von der Leyen said the Commission would present a plan for rearmament soon.
Von der Leyen added at the time that "we must urgently rearmament Europe" and that the European Commission would propose a plan for this at the European Council meeting on March 6, because, according to her, "we really need to take a significant step forward."
She also said that Europeans need to work to "essentially turn Ukraine into a steel porcupine that potential invaders will not be able to digest."
