The European Union announced an ambitious €800 billion defense plan on Tuesday, just hours after US President Donald Trump announced a freeze on aid to Ukraine, signaling a major shift in Washington’s support for Kyiv.
European Commission President Ursula von der Leyen announced the ‘ReArm Europe’ initiative ahead of Thursday’s European Council meeting, which follows weekend crisis talks on security concerns.
“Europe faces a clear and present danger on a scale that none of us has seen in our adult lifetime,” von der Leyen said. “We are ready to step up.”
The five-point plan includes easing budget rules to allow member states to spend an additional 1.5% of GDP on defense over four years, potentially freeing up €650 billion, and creating a new €150 billion loan facility for targeted defense investments.
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“We are talking about pan-European capability domains. For example: air and missile defence, artillery systems, missiles and ammunition drones and anti-drone systems,” von der Leyen said.
The plan also proposes allowing member states to repurpose EU “cohesion” funds for defense purposes and aims to mobilize private capital through a savings and investments union and the European Investment Bank.
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The initiative comes as Europe contemplates the stark prospect of the US withdrawing longer-term support from Ukraine and more broadly from its European allies, as Trump intensifies Washington’s push for a peace deal with Russia.
Several European capitals responded positively to the proposal, with German Foreign Minister Annalena Baerbock calling it “an important first step” toward the “quantum leap to strengthen our EU defense.”
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