The European Commission has introduced a comprehensive five-step plan aimed at strengthening the European Union’s defence capabilities and providing significant support to Ukraine.
The proposal, presented by European Commission President Ursula von der Leyen in Brussels, is set to mobilise up to €800 billion in defence spending over the coming years.
Strengthening European Security
Speaking at a briefing, von der Leyen emphasised that the urgency of the situation necessitates swift and decisive action.
“The question is not whether European security is at risk or whether we need to do more. We already know the answers to these questions. The real issue is whether Europe is ready to act decisively and quickly,” she stated.
The plan is structured around five key components, designed to facilitate defence investment at both national and EU levels while ensuring continued military support for Ukraine.
Key Elements of the Plan
1. Easing Fiscal Constraints for Defence Spending
The first measure involves allowing EU member states to bypass fiscal restrictions to increase their defence budgets. By permitting exceptions to the EU’s Stability and Growth Pact, countries will be able to expand defence expenditures without triggering excessive deficit procedures. This is expected to unlock up to €650 billion over four years.
2. New EU Defence Investment Instrument
A second element of the plan includes the establishment of a €150 billion loan programme for member states to invest in critical military capabilities. These funds will support purchases in key areas such as air defence systems, artillery, missiles, ammunition, and drone technology. This initiative will also enable the large-scale provision of military equipment to Ukraine, ensuring immediate reinforcement of its defence capabilities.
3. Utilisation of EU Budget for Defence
Von der Leyen highlighted the role of the EU budget in supporting defence investments. A proposed mechanism would allow member states to use cohesion funds for military spending. Importantly, such allocations do not require unanimous approval, meaning potential opposition from countries such as Hungary and Slovakia cannot block these initiatives.
4. Mobilising Private Capital
To further boost funding, the EU aims to expand the European defence investment market, encouraging greater private sector involvement. This will help finance research, innovation, and development within the defence industry.
5. Role of the European Investment Bank (EIB)
The final component involves leveraging the European Investment Bank to finance large-scale defence projects. This will provide additional liquidity for military procurement and defence-related industries.
Strategic Implications
Von der Leyen underscored the strategic importance of the plan, stating:
“The EU is ready to take responsibility. This rearmament initiative could mobilise nearly €800 billion for defence spending, ensuring a safer and more resilient Europe.”
The plan comes amid increasing geopolitical tensions and growing concerns about Europe’s security landscape. EU leaders are set to discuss the proposal at an emergency summit on 6 March, with further details to be outlined by Defence Commissioner Andrius Kubilius and High Representative for Foreign Affairs Kaja Kallas on 19 March.
Future Defence Commitments
The initiative aligns with broader efforts to enhance Europe’s defence capabilities. Kubilius has previously advocated for a €100 billion allocation to defence in the next seven-year EU budget. Meanwhile, von der Leyen had already indicated in Kyiv that plans were underway to expand European arms production, benefiting both EU states and Ukraine.
With the unveiling of this ambitious strategy, the EU is taking a significant step towards fortifying its defence framework and reinforcing its commitment to Ukraine.
Image source: European Commission
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