European Commission (EC) President Ursula von der Leyen on Tuesday unveiled a five-part plan to mobilise around 800 billion euros for European defence and help provide urgent military support to Ukraine after Washington suspended aid.
"A new era has begun," the EC president said in a letter presenting the plan to EU leaders, two days before a summit aimed at cementing joint action on support for Ukraine and Europe's long-term security.
"Europe faces a clear and present danger that none of us have seen in our adult lives," she wrote, outlining funding options for strengthening European defense.
"We are living in the most significant and dangerous time," said U. von der Leyen.
"This is an important moment for Europe, and we are ready to take action," von der Leyen announced in Brussels.
"ReArm Europe could mobilize almost €800 billion in defense spending for a secure and resilient Europe," she added.
The first part proposes that the EU suspend the application of strict budgetary rules and allow member states to significantly increase their defense spending.
"This will allow member states to significantly increase their defense spending without triggering the excessive deficit procedure," she said, referring to the procedure that forces governments to reduce deficit levels if they break the rules.
The second proposal is a new instrument that will provide Member States with €150 billion in loans for defence investments.
"It's basically about spending money better and spending money together," said von der Leyen.
"We are talking about pan-European capability areas, such as air and missile defense, artillery systems, missiles and ammunition, drones and counter-drone systems," she said.
"With this equipment, member states can significantly increase their support to Ukraine. So this is urgent military equipment for Ukraine," she said.
The third component would involve using the existing EU budget "to allocate more funds to defence-related investments".
Among other things, member states would be allowed to reallocate so-called cohesion funds, intended for the development of poorer European countries, and use them for defense.
The latter two areas of activity would involve the EU's lending arm, the European Investment Bank (EIB), whose restrictions on lending to defence companies EU countries are seeking to lift, and a savings and investment union that would help companies access capital.
JAV President Donald Trump's diplomatic efforts with Russia over war in Ukraine The EU's postponement of the completion of the deal has raised doubts about Ukraine's future, and also casts doubt on Washington's commitment to Europe.
