Europe to allocate 800 billion euros for rearmament

The European Commission unveils a five-point plan to boost defense spending.

EU Commission President Ursula von der Leyen holds a press conference on a defense package aimed to secure Ukraine and Europe, at the European Commission in Brussels, Belgium, 04 March 2025. US President Donald Trump announced to put on hold military aid to Ukraine.

Foto: Photo: OLIVIER MATTHYS/PAP/EPA

Ursula von der Leyen, President of the European Commission, presented on Tuesday a five-point plan aimed at strengthening Europe’s defense capabilities, with potential funding of up to 800 billion euros.

A key aspect of the plan is the relaxation of budget rules, allowing EU member states to increase defense spending without triggering excessive deficit procedures. It is estimated that this could generate nearly 650 billion euros in additional defense investments over four years.

The plan also includes a 150-billion-euro loan fund to support defense projects, including air defense systems. EU leaders will discuss the proposal at an extraordinary summit on Thursday.

ReArm means:

• More fiscal space for national public funding for defence through the escape clause

• A new instrument for loans to EU countries for defence capabilities most needed

• More flexible use of EU funding towards defence investment

• More private capital… pic.twitter.com/aa6JaoeuaY

— Ursula von der Leyen (@vonderleyen) March 4, 2025

Meanwhile, Polish Foreign Ministry spokesperson Paweł Wroński stated that the government would address the U.S. decision to halt military aid to Ukraine during today’s meeting, calling the move "very serious" and noting that it was made without consulting NATO or the Ramstein group countries.

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Source: IAR/PAP/X/@vonderleyen