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EU Defense Plan: 800 Billion Euros

by AI | 06.Mar 2025 | Europe in brief AI

The President of the Commission presented a plan for the armament of Europe which could theoretically reach 800 billion euros.

March 4, 2025, Belgium, Brussels: President of the European Commission, Ursula von der Leyen, speaks during a media conference on the defense package at the EU headquarters. Photo: Virginia Mayo/AP/dpa

BRUSSELS – European Commission President Ursula von der Leyen on Tuesday presented a five-point plan for arming Europe that could mobilize close to 800 billion euros for defense.

“Europe is ready to take responsibility, it can mobilize close to 800 billion euros for defense spending for a secure and resilient Europe,” said von der Leyen, presenting the plan to EU member state leaders who will meet at an extraordinary summit on Thursday.

She emphasized that now is the time for arming and that Europe is ready to massively increase its investments in defense, in the short term to help Ukraine, but also in the long term to take responsibility for its own security.

The first point of the plan is to allow member states to exceed the rules stipulating that the budget deficit must not exceed 3 percent of GDP. Therefore, member states will be able to exceed the budget deficit limit if these funds are spent on defense.

“If member states increase defense spending by an average of 1.5 percent of their GDP, it would create a fiscal space of close to 650 billion euros over a four-year period,” von der Leyen said.

The second point of the plan envisages a new instrument of 150 billion euros in loans to member states for defense investments.

These funds would be used for air and missile defense, artillery systems, drones with missiles and ammunition, and anti-drone systems, as well as addressing other needs from cyber to military mobility. 

“This will help member states purchase together, and with this equipment, they can massively strengthen their support for Ukraine,” said the Commission President.

Joint procurement would enable lower costs, reduce fragmentation, increase interoperability, and strengthen the defense industrial base.

The third point concerns the use of the EU budget for defense investments. Von der Leyen announced that she would propose to member states to decide for themselves if they want to use cohesion funds for defense.

The fourth and fifth points relate to attracting private capital by establishing the Union of savings and investment more quickly and through the European Investment Bank, said the Commission President. (March 4, 2025)