EU Plans to Strengthen Defence Spending Could Raise €800bn, Says von der Leyen
The European Union (EU) plans to strengthen Europe’s defence industry and increase military capabilities could mobilise close to €800bn ($841.4bn), EU Commission president Ursula von der Leyen said on Tuesday in Brussels.
To achieve this goal, the EU will propose giving member states more fiscal space for defence investments, as well as €150bn euros in loans for those investments. The bloc will also aim to mobilise private capital, according to Reuters reports.
The ‘ReArm Europe‘ package, presented by von der Leyen, includes €150bn of new joint EU borrowing that would be lent to EU governments to fund pan-European capabilities in areas such as air and missile defence, artillery systems, missiles, ammunition, drones, and other needs.
‘This will help member states to pool demand and buy together. This will reduce costs, reduce fragmentation, increase interoperability, and strengthen our defence industrial base,’ von der Leyen said.
The EU’s plan is expected to provide immediate military equipment for Ukraine, which has been affected by the US decision to suspend military aid. ‘With this equipment, member states can massively step up their support to Ukraine,’ von der Leyen added.
Ukraine is a country located in Eastern Europe, bordered by Russia to the east, Belarus to the north, Poland and Slovakia to the west, and Romania and Moldova to the south.
With a population of approximately 42 million people, Ukraine is the second-largest country in Europe by area.
The capital city is Kiev (officially known as Kyiv), which has a rich history dating back over 1,500 years.
Ukraine gained independence from the Soviet Union in 1991 and has since been working towards integrating with the European Union.
The UK government has reiterated its commitment to supporting Ukraine after the Donald Trump administration suspended US military aid. In a statement, Downing Street said: ‘We remain absolutely committed to securing a lasting peace in Ukraine and are engaging with key allies in support of this effort.‘
The UK has bolstered Ukrainian military capabilities through its commitment to provide £3bn-a-year in military aid for as long as it takes and through a £2.26bn loan using sanctioned Russian assets.
Poland‘s prime minister, Donald Tusk, has posted on social media that Poland is safer if Ukraine is ‘sovereign, pro-western, and able to defend itself against Russian aggression.‘ He added: ‘A sovereign Ukraine, pro-western, and able to defend itself against Russian aggression means a stronger and safer Poland.‘
The Kremlin welcomed the US decision to suspend military aid to Ukraine, claiming it could push Kyiv to the negotiating table. ‘If this is true, then it is a decision that could genuinely push the Kyiv regime towards a peace process, ‘ Kremlin spokesperson Dmitry Peskov said.
Von der Leyen’s statement marked a significant shift in the EU’s approach to defence spending. The bloc has been under pressure to increase its military capabilities and reduce its reliance on US aid. The ‘ReArm Europe‘ package is expected to provide a framework for member states to pool resources and invest in pan-European capabilities.
The European Union's defence spending has been a topic of discussion among member states.
According to the NATO guidelines, EU countries aim to spend at least 2% of their GDP on defence.
In 2020, only four out of 27 member states met this target.
Germany and Italy spent around 1.3%, while France and the UK spent above 2%.
The 'EU's defence budget is expected to increase in the coming years, with a focus on joint operations and capabilities.'
The plan is part of a broader effort by the EU to strengthen its defence industry and increase military spending. The bloc’s leaders have been pushing for greater coordination and cooperation on defence issues, including the development of a European Defence Fund.
Ukrainian officials have expressed concern over the US decision to suspend military aid. Oleksandr Merezhko, chair of Ukraine’s parliamentary foreign affairs committee, compared the move to the appeasement of Adolf Hitler in 1938. ‘To stop aid now means to help Putin, ‘ he said.
The suspension of US military aid has sparked tensions between Washington and Kyiv. Volodymyr Zelenskyy, Ukrainian president, has been under pressure from Trump to engage in peace talks with Russia. The US decision has also raised concerns among European leaders, who have called for greater coordination and cooperation on defence issues.
The United States provides military aid to various countries worldwide, with the goal of promoting regional stability and security.
According to the US Department of Defense's Foreign Military Financing (FMF) program, in 2020, the US allocated $5.6 billion for foreign military assistance.
The largest recipients include Israel ($3.8 billion), Egypt ($1.4 billion), and Jordan ($376 million).
Military aid includes sales of defense equipment, training, and logistics support.
