EU Commission president unveils €800 billion EU rearmament and Ukraine support plan

European Commission President Ursula von der Leyen has presented a five-step plan for the rearmament of the European Union and support for Ukraine, stressing that the key question is no longer whether Europe’s security is under threat or whether more must be done, but whether Europe is ready to act decisively and swiftly.

"We have long known the answers to those questions. The real question in front of us is whether Europe is prepared to act as decisively as the situation dictates and whether Europe is ready and able to act with speed and with the ambition that is needed," Von der Leyen said at a briefing in Brussels.

Von der Leyen reiterated her earlier call for Europe to rearm itself to meet its own defence needs and to support Ukraine.

To this end, she has sent a letter to European leaders ahead of the EU summit outlining a five-step rearmament plan.

The first part of the plan involves freeing up state funds for national defence spending.

"Member states are ready to invest more in their own security if they have the fiscal space. So, we must enable them to do so. And this is why we will propose to activate the national escape clause of the Stability and Growth  Pact. This will allow member states to significantly increase their defence expenditures without triggering the excessive deficit procedure." 

This measure could release up to €650 billion over four years.

The second element is a new instrument providing €150 billion in loans to EU member states for defence investments in air defence systems, artillery, missiles and ammunition, drone and anti-drone systems and joint procurement of equipment.

"With this equipment, member states can massively step up their support to Ukraine. Immediate military equipment for Ukraine," she added.

The third component is leveraging the EU budget. "There’a a lot we can do in this domain in the short term to direct more funds towards defence-related investments," she said, announcing a proposal allowing member states to use cohesion funds to increase defence spending. Notably, using cohesion funds does not require unanimity, meaning Hungary or Slovakia cannot veto such decisions.

The final two steps involve mobilising private capital by expanding the investment market and using the European Investment Bank.

"Europe is ready to assume its responsibilities. Rearm Europe could mobilise close to €800 billion of defence expenditures for a safe and resilient Europe," von der Leyen said.

A new EU security architecture will begin taking shape at an emergency EU leaders’ meeting on 6 March. On 19 March, Commissioner for Defence and Space Andrius Kubilius and High Representative for Foreign Affairs and Security Policy Kaja Kallas will present a new defence and industrial strategy.

Kubilius has previously expressed hope that around €100 billion will be allocated for defence in the next seven-year EU budget.

During a visit to Kyiv, von der Leyen announced plans to boost European arms production, which will also benefit Ukraine.