The European Commission has unveiled a sweeping €800 billion defense initiative aimed at bolstering Europe's military capabilities and increasing support for Ukraine.
European Commission President Ursula von der Leyen introduced the "ReArm Europe" plan on March 4 in Brussels, outlining a multi-step strategy to enhance Europe's security in response to growing global threats.
This development was presented in an EU press statement earlier today.
Suspending Budget Rules
The first step in the plan involves relaxing strict EU budget rules to allow member states to increase defense spending by an average of 1.5% of GDP without triggering financial penalties.
Von der Leyen estimates that this measure alone would free up €650 billion over four years, giving countries more flexibility to invest in their military.
Additionally, the European Commission intends to provide €150 billion in loans to help EU nations ramp up the production of air defense systems, artillery, drones, missiles, and cybersecurity infrastructure.
This financing will be aimed at joint weapons procurement and ensuring better interoperability among European forces while maintaining strong support for Ukraine.
The plan also seeks to attract private capital by accelerating the creation of a Savings Union and leveraging the European Investment Bank to encourage defense-sector investment.
Furthermore, von der Leyen highlighted the need to explore EU budget opportunities to support defense spending through additional incentives.
A Turning Point for European Security
Von der Leyen emphasized that Europe can no longer afford delays in strengthening its defenses, urging leaders to act swiftly:
“We are living in an era of rearmament… ReArm Europe will help mobilize around €800 billion for a secure and resilient Europe. We will continue to work closely with our partners in NATO. This is a key moment for Europe, and we are ready to take action.”
The proposal will be discussed at an extraordinary summit in Brussels on March 6, where European leaders will debate the specifics of the package.
France Pushes for Even Greater Defense Spending
A day before von der Leyen’s announcement, French President Emmanuel Macron called for an initial investment of €200 billion in European defense and proposed that EU countries increase military spending to 3-3.5% of GDP.
Currently, European defense spending stands at 1.9% of GDP—a total of €326 billion in 2024.
Since Russia's full-scale invasion of Ukraine in 2022, EU countries have significantly increased their military budgets, though spending levels vary widely. Poland leads the pack, having spent 4.12% of GDP on defense in 2023, while Spain lags behind at just 1.12%.
Meanwhile, NATO allies—including 23 EU member states—are in discussions to raise their official defense spending target from 2% to a potentially higher benchmark.
A final decision is expected at the NATO summit in The Hague in June.
