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European Commission President Ursula von der Leyen presented a five-step plan for rearming the European Union and supporting Ukraine.
She made this statement at a briefing in Brussels.
According to her, the issue is no longer whether Europe’s security is under threat and whether more needs to be done.
“In reality, we 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,” said von der Leyen.
She reiterated her previous statement about the need to rearm Europe to meet its own needs and support Ukraine.
For this reason, she said she had sent a letter to European leaders ahead of the EU summit with a five-step plan for rearming Europe.
The first part of the plan is to release government funds to finance defense at the national level.
“Member states are already ready to invest more in defense if they have fiscal space. So, we need to allow them to do so. Therefore, we will propose the possibility of bypassing the Growth and Stability Pact, which will allow countries to increase defense spending without triggering an excessive deficit procedure,” explained the president.
According to her, this will free up to €650 billion over the next 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, rockets and ammunition, drone and anti-drone systems, and joint equipment procurement.
“With this equipment, member states will be able to significantly increase their support for Ukraine. This is about the immediate supply of military equipment to Ukraine,” said von der Leyen.
“The third point is the use of the EU budget’s strength. In the short term, we will be able to direct funds toward defense investments,” she also said, announcing a proposal that will allow member states to use cohesion funds to increase defense spending. It is worth noting that the use of cohesion funds does not require unanimity, so Hungary or Slovakia cannot block such decisions.
The two other points involve mobilizing private capital through expanding the investment market and the European Investment Bank.
“The EU is ready to take responsibility. The European rearmament plan can mobilize about €800 billion for defense spending to ensure a safe and resilient Europe,” emphasized the European Commission president.
As previously reported, a new EU security architecture will begin to take shape at an emergency EU leaders’ meeting on March 6. Then, on March 19, Defense Commissioner Andrius Kubilius and the head of diplomacy, Kaja Kallas, will present a new defense-industrial strategy.
Earlier, Kubilius expressed hope that the upcoming EU seven-year budget will allocate around €100 billion for defense.
Earlier, Ursula von der Leyen announced in Kyiv that she would present a plan to increase European arms production, which would benefit Ukraine as well.
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