Rearming Europe with €800bn: European Commission President Presents 5-Point Plan
President of the European Commission Ursula von der Leyen today presented the EU's defence plan to increase defence spending. According to her, a rearmed Europe can mobilise around €800 billion in defence spending for a secure and resilient Europe.
The European Rearmament Plan consists of five points. It is a set of proposals on how to use all the financial levers at the EU's disposal to help member states to rapidly and significantly increase spending on defence capabilities, immediately, and over a longer period of time during this decade.
In her speech, von der Leyen stressed that Europe must take more responsibility for its own security.
The first point is that rearming Europe is about untangling the use of public funding and defence at the national level.
‘We will activate the national withdrawal clause from the Stability and Growth Pact,’ von der Leyen said.
She stressed that this would allow member states to significantly increase their defence spending without triggering an excessive deficit procedure.
The second point will provide €150 billion in loans to member states for defence investment.
‘This will help member states to pool demand and buy together,’ the European Commission President explained. This includes air and missile defence, artillery systems, missiles and ammunition, and drones.
The third point includes the use of the EU budget. Additional opportunities and incentives will be offered to member states to decide whether they want to use cohesion policy programmes to increase defence spending.
The fourth and fifth points of the plan are aimed at mobilising private capital for defence by accelerating the creation of a savings and investment union, including through the European Investment Bank.
‘So, to sum up, Europe is ready to take responsibility,’ von der Leyen concluded.