The President of the European Commission (EC), Ursula von der Leyen, presented a plan aimed at mobilizing nearly 800 billion euros for defense spending in the European Union. This plan, named 'Rearm Europe', includes the creation of a new instrument that will provide 150 billion in loans to member states, with the possibility of also being used for Ukraine.
In a statement to the media and in a letter sent to the heads of state and government of the European Union, von der Leyen explained that "we live in dangerous times" and that Europe's security is threatened. The plan consists of five parts, highlighting a new instrument that will facilitate investment in defense.
Among the proposals is the joint acquisition of military equipment to reduce costs and increase interoperability. There is also a proposal to allocate more EU funds to defense investments through cohesion policy programs.
Additionally, the activation of the "national escape clauses" of the Stability and Growth Pact is mentioned, which will allow member states to exclude defense investments from the deficit calculation, thereby providing more room for public investment in defense at the national level. Von der Leyen emphasized that it is important to allow member states to increase their defense spending in a more secure environment if they have the necessary fiscal space.
