EU unveils €800bn defense plan for Europe — Ursula von der Leyen

European Commission President Ursula von der Leyen presented the European Union's ReArm Europe Plan, which aims to increase spending on defense. The plan consists of five parts and also provides for increased support for Ukraine.

Von der Leyen published her speech on X and the European Commission's website on Tuesday, March 4. 

European Commission presents the ReArm Europe Plan

The EC President emphasized that Europe must take more responsibility for its own security.

Ursula von der Leyen explained that the ReArm Europe Plan is a set of proposals on how to use all the financial levers at the EU's disposal to help member states to increase spending on defense capabilities quickly and significantly now, as well as over a longer period of time within a decade. 

Therefore, the plan for rearmament of Europe contains five parts. 

The first part of this plan is to introduce the use of public financing and defense at national level.

The EC President noted that this would allow member states to significantly increase their defense spending without triggering the excessive deficit procedure. 

According to her, if member states increase their defense spending by an average of 1.5% of GDP, this could create a fiscal space of about 650 billion euros over four years. 

The second part is a new instrument that will provide 150 billion euros in loans to member states for defense investments. 

"This is basically about spending better – and spending together. We are talking about pan-European capability domains. For example: air and missile defence, artillery systems, missiles and ammunition drones and anti-drone systems; but also to address other needs from cyber to military mobility for example. It will help Member States to pool demand and to buy together,"  EC President said. 

According to von der Leyen, with this equipment, member states can significantly increase their support for Ukraine. In addition, this joint procurement approach will reduce costs. 

The third point of the plan is to use the powers of the EU budget. Von der Leyen said that additional opportunities and incentives will be offered to member states to decide whether they want to use cohesion policy programs to increase defense spending. 

At the same time, the last two parts are aimed at mobilizing private capital by accelerating the creation of a savings and investment union and through the European Investment Bank. 

"To conclude: Europe is ready to assume its responsibilities. And we are ready to step up," EC President stressed. 

She also added that ReArm Europe could mobilize about 800 billion euros in defense spending for a secure and resilient Europe.

As a reminder, Trump says he is ready to continue talks with Ukraine but with one condition. 

Also, Zelensky claims he is ready to resign, but set a condition to do so.