{"id":69508,"date":"2025-03-04T10:43:12","date_gmt":"2025-03-04T10:43:12","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2025\/03\/04\/eu-pitches-plan-to-free-up-800-billion-for-defense-spending\/"},"modified":"2026-08-08T01:20:22","modified_gmt":"2026-08-08T01:20:22","slug":"eu-pitches-plan-to-free-up-800-billion-for-defense-spending","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2025\/03\/04\/eu-pitches-plan-to-free-up-800-billion-for-defense-spending\/","title":{"rendered":"EU pitches plan to free up \u20ac800 billion for defense spending"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">PARIS \u2014 The European Commission, the executive arm of the European Union, proposed a plan that could free up around \u20ac800 billion ($841 billion) in defense spending over the next four years, as the continent prepares to face Russian aggression and help Ukraine to defend itself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Commission President Ursula von der Leyen proposed a five-point plan, dubbed ReArm Europe, to help pay for more security spending ahead of a meeting of EU leaders in Brussels on Thursday. She said the world is seeing an era of rearmament, and the 27-nation bloc is ready to \u201cmassively\u201d boost defense spending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The plans include \u20ac150 billion in loans to member states to build up pan-European capacities in areas like air defense and ammunition, and activating a fiscal escape clause to let countries spend more on defense without triggering the bloc\u2019s excessive-deficit procedure, Von der Leyen said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If member states were to use the clause to raise defense spending by 1.5% of GDP on average, that would create fiscal space of nearly \u20ac650 billion over a period of four years, according to the commission president.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The spending proposal comes as U.S. President Donald Trump has <a href=\"https:\/\/www.defensenews.com\/pentagon\/2025\/03\/04\/trump-pauses-military-aid-to-ukraine-after-oval-office-blowup\/\">pulled military and financial support<\/a> for Ukraine and appears ready to walk away from NATO security guarantees for Europe, as he aligns with Russia\u2019s Vladimir Putin. Trump has repeatedly criticized European NATO members for not spending enough on defense.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re living in the most momentous and dangerous of times,\u201d Von der Leyen said. \u201cThe real question in front of us is whether Europe is prepared to act as decisively as the situation dictates, and whether Europe is ready and able to act with speed and with the ambition that is needed.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Von der Leyen said various meetings of European leaders in recent weeks, most recently in London, show the answer to the question whether Europe is ready to spend is \u201cresounding and clear.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Only a handful of NATO members in Europe spent more than 2.5% of GDP on defense in 2024, and nearly a third didn\u2019t meet the 2% target set by NATO in 2014, according to data from the alliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is a short-term need to support Ukraine, and a long-term need for Europe to take on more responsibility for its own security, Von der Leyen said. She said member states are ready to invest in their own security if they have the fiscal means, hence the proposal to activate the national escape clause of the EU\u2019s Stability and Growth Pact.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposed loans will be a new instrument, focused on joint armament spending to reduce costs and increase interoperability in Europe, the council president said. Areas of investment could include air and missile defense, artillery systems, missiles and ammunition, drones, cyber and military mobility, according to Von der Leyen.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The commission also plans to study how more of the EU budget can be directed towards defense spending. Also on the table are measures aimed at accelerating the bloc\u2019s savings and investment union and spending by the European Investment Bank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cEurope is ready to assume its responsibilities,\u201d Von der Leyen said. \u201cReArm Europe could mobilize close to \u20ac800 billion of defense expenditures for a safe and resilient Europe.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe will, of course, continue working closely with our partners in NATO. This is a moment for Europe, and we are ready to step up.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The spending proposal comes as U.S. President Donald Trump has pulled military and financial support for Ukraine.<\/p>\n","protected":false},"author":7,"featured_media":119470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":46,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,46,11,36],"tags":[],"coauthors":[3427],"class_list":["post-69508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-europe","category-global","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"LZD5TO5VFNGXHDTEAWHSXOEXGI","arc_canonical_url":"\/global\/europe\/2025\/03\/04\/eu-pitches-plan-to-free-up-800-billion-for-defense-spending\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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