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The President of the European Commission, Ursula von der Leyen, on Tuesday proposed a new fund that could mobilize nearly 800 billion euros for defense investments across the European Union, including military aid for Ukraine. “We are in an era of rearmament and Europe is ready to massively increase its defense spending,” she said in Brussels.

Her proposal, aimed at strengthening the EU’s defense capabilities, suggests allowing member states more flexibility in defense spending, relaxing the EU’s usually strict rules on debt and deficit, and reallocating regional development funds to military investments.

The plan also includes 150 billion euros in loans for critical defense areas such as air and missile defense, artillery systems, drones, and military mobility, explained von der Leyen. “With this equipment, member states can greatly boost their support to Ukraine,” she added.

The Commission hopes that, together with private capital and additional funds from the European Investment Bank (EIB), this proposal could mobilize a total of 800 billion euros for defense.

“We are living in the most momentous and dangerous times,” said von der Leyen. EU leaders are expected to discuss the proposal at a special summit in Brussels on Thursday.

However, the proposal faces internal resistance. Hungarian Prime Minister, Viktor Orbán, and Slovak Prime Minister, Robert Fico, have indicated they will block any EU decision to arm Ukraine, preferring bilateral agreements.

“We have to rise to the occasion”: Europe’s challenge to rearm

“This is Europe’s moment, and we must rise to the occasion,” said Von der Leyen when announcing her new plan to rearm Europe. But even after three years of war in Ukraine, European countries have struggled to spend more on defense.

Despite calls for greater defense investment, many European countries have been slow to commit. NATO’s goal of allocating at least 2% of the gross domestic product (GDP) to defense, which has been driven by the United States, remains a benchmark that many countries find difficult to meet. For example, Portugal has committed to reaching this goal only by 2030.

Slovenia, one of the lowest defense spenders in NATO, currently allocates around 1.35% of GDP, and plans to increase this figure to 2% by 2030. On the other hand, countries like the Czech Republic are pushing to exceed the 2% threshold, with Prime Minister Petr Fiala aiming to reach 3% in the coming years.

In North Macedonia, a NATO ally and aspiring EU member, the government also plans to allocate more than 2% of GDP to defense.

While this is a positive step, it remains a struggle for many EU countries, especially those with limited defense budgets and outdated military infrastructure.

Bulgaria, a NATO and EU member, produces and exports defense equipment but faces challenges in modernizing its Soviet-era military. Despite plans to increase defense spending to 2.5% of GDP by 2025, experts predict the actual budget will be closer to 2.1%, limited by financial realities.

Europe backs Ukraine

The announcement of a significant increase in defense spending and military aid to Ukraine comes after the administration of US President Donald Trump announced on Monday that it would temporarily suspend US military aid to Ukraine.

Trump’s decision to withdraw aid followed his verbal attack on Ukrainian President, Volodymyr Zelenskyy, in the White House in front of journalists, increasing fears that he intends to force Kiev into a peace deal that gives Russian President, Vladimir Putin, what he wants.

While Trump, recently re-elected, has presented himself as a mediator between Putin and Zelensky, his approach has sidelined Kiev and Europe as he seeks rapprochement with the Russian leader.

This shift was fully revealed in the Oval Office meeting with Zelenskyy, whom Trump accused of not being sufficiently grateful for US aid and not being “prepared” for peace with Russia.

But European leaders closed ranks in support of Kiev and a previously organized summit in London by UK Prime Minister, Keir Starmer, to present a peace plan to the United States became a recovery session for Zelenskyy after the painful visit to the White House.

Zelenskyy met with King Charles III on Sunday in an attempt to show London’s desire to bolster the Ukrainian leader’s status after Trump’s criticism.

Zelenskyy said afterwards that the summit consolidated his commitment to work for peace. “We need peace, not an endless war,” he said on Telegram. “In the near future, all of us in Europe will define our common positions: the lines we must achieve and the lines we cannot yield on,” he added. “These positions will be presented to our partners in the United States.”

Starmer also said that Britain, France, “and others” would work with Ukraine on a plan to stop the fighting, which they would then present to Washington.

French President Emmanuel Macron, returning from the summit, told the newspaper Le Figaro that France and Britain wanted to propose a partial one-month truce “in the air, at sea, and in energy infrastructure.”

Polish Prime Minister, Donald Tusk, called on the United States and Europe to show Putin “that the West has no intention of capitulating to his blackmail and aggression.”

“Heavy lifting”

Italian Prime Minister, Giorgia Meloni, highlighted the importance of avoiding the division of the West over Ukraine in talks held in London with Starmer. “I think it is very, very important that we avoid the risk of the West being divided,” said Meloni. “And I think in this the UK and Italy can play an important role in building bridges,” said Meloni.

Meloni, leader of the far-right Brothers of Italy party, enjoys favorable relations with Washington and is seen as an option to mend ties with Trump after the White House dispute.

However, faced with an intransigent Russia and wavering United States, Europe’s challenges to stay united behind Ukraine are significant.

Starmer and Macron have said they are willing to deploy British and French troops to Ukraine to help preserve any truce. Without guarantees of US involvement, “Europe must do the heavy lifting,” said Starmer. However, this is the sticking point for many European parties.

Swedish Prime Minister, Ulf Kristersson, does not rule out sending Swedish troops to Ukraine but clearly wants US involvement. “It must be built on American protection and on credible structures,” said Kristersson in London.

Acting President of Romania, Ilie Bolojan, stated that the security guarantees to be granted to Ukraine will actually be for “the whole eastern flank, from the Baltic to the Black Sea,” noting they cannot be provided without US support.

Another European supporter of Ukraine, Spain, wants to see the outlines of the peace to be maintained in Ukraine before committing to maintaining a ceasefire.

Spanish Foreign Minister, José Manuel Albares, told Spanish media on Monday that Spain “has no problem” sending troops abroad, but at the moment in Ukraine “the effort remains mainly political and diplomatic” to ensure a just and lasting peace and not a mere temporary ceasefire.

The special summit of EU leaders to be held on Thursday in Brussels will be the next big meeting to define the path Ukraine should take. Zelenski has been invited to attend, as the debate on greater EU military aid to Ukraine is even more important in the new era of Trump.

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