Von der Leyen rolls out EUR 800B ReArm Europe plan
As Ukrinform reports, this is stated in the text of von der Leyen's statement posted on the European Commission's website.
Von der Leyen said Europe is ready to significantly increase its defense spending, both to respond to the short-term need to act and support Ukraine, and to address the long-term need to assume much greater responsibility for its own European security.
That is why, she said, she sent a letter to European leaders on Tuesday ahead of Thursday’s European Council, setting out a five-step plan for Europe’s rearmament.
The first part of the plan is to unleash the use of public funding in defense at the national level.
“Member States are ready to invest more in their own security if they have the fiscal space. And we must enable them to do so. This is why we will shortly propose to activate the national escape clause of the Stability and Growth Pact. It will allow Member States to increase significantly their defence expenditures without triggering the Excessive Deficit Procedure,” von der Leyen said.
According to the Commission president, this will help free up to EUR 650 billion over four years, provided that EU member states increase their defense spending by an average of 1.5% of GDP.
The second part of the plan involves providing EUR 150 billion in loans to EU member states for defense investments, including for air and missile defense, artillery systems, missiles and ammunition drones and anti-drone systems
“Of course, with this equipment, Member States can massively step up their support to Ukraine. So, immediate military equipment for Ukraine. This approach of joint procurement will also reduce costs, reduce fragmentation increase interoperability and strengthen our defence industrial base,” von der Leyen noted.
The third part of the plan is to use the power of the EU budget. According to the head of the European Commission, in this area the EU can do a lot in the short term to channel more money into defense-related investments.
“This is why I can announce that we will propose additional possibilities and incentives for Member States that they will decide, if they want to use cohesion policy programmes, to increase defense spending,” the head of the European Commission said.
Von der Leyen also announced that the last two lines of action, according to the plan, are aimed at mobilizing private capital by accelerating the creation of the Savings and Investment Union through the European Investment Bank.
“ReArm Europe could mobilise close to EUR 800 billion for a safe and resilient Europe. We will continue working closely with our partners in NATO. This is a moment for Europe. And we are ready to step up,” she concluded.
As Ukrinform reported, on March 2, European Commission President Ursula von der Leyen, after a summit of European leaders on Ukraine in London, stated that the European Commission would soon present a plan for Europe’s rearmament.
Photo: PAP/EPA
