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“We all want a fair and lasting peace through strength, and this is also in the interest of American President Donald Trump,” said European Commission President Ursula von der Leyen late in the evening, referring to the war in Ukraine.
“If President Trump wants to achieve this, it is only possible with the support of the EU and its member states,” continued the Commission President during a press conference after the conclusion of the extraordinary Summit in Brussels.
She argued that the EU is the one that secured Ukraine’s economic survival for 2025, the EU is the one currently investing funds in the Ukrainian defense industry and providing the military capabilities Ukraine needs, as well as the one ensuring the country’s energy system survives winter.
“There are many examples showing how important it is for Europe to reach a positive outcome, which means peace through strength that is in everyone’s interest,” added the European Commission President.
European Commission President Ursula von der Leyen referred to Europe’s defensive armament, claiming that “history is being made” as Europe is determined to invest more, faster, and better in its defense.
“Together, from Paris to London and Brussels, we have shown that we are willing and able to step up our joint efforts and coordinate effectively. The fact is that Europe faces a clear and immediate threat, and this is why I presented today to the leaders the ‘REArm Europe’ plan, a plan for Europe to acquire the military capabilities it needs to deal with today’s threats.”
As Ursula von der Leyen mentioned, the plan will mobilize up to 800 billion euros for the plan’s implementation, which will be presented at the next regular European Council in March, with detailed legal proposals.
Financing loans for European manufacturers
She explained referring to five elements the decisions made by the leaders participating in the Summit.
“The first element is that we will propose activating the national escape clause of the Stability and Growth Pact in a controlled, coordinated, and time-bound manner. This will allow member states the greater fiscal flexibility they need and will give them the room to invest directly and substantially in defense. This is unprecedented for defense. If fully leveraged, it could unlock up to 650 billion euros in defense spending. The second element is that we will propose a new financing instrument. We will provide 150 billion euros in loans to member states for accelerating joint procurements.”
The European Commission President emphasized that the financing will be for European markets, an important element for Europe. “Deliveries must be fast and loans must fund purchases from European manufacturers, and the loans can be invested in multi-year contracts. This is very important for the defense industry.”
Regarding financing from the cohesion fund, she said it is a voluntary option, while the summit discussed how Europe can attract more private investments, private capital, by activating the European Union of Savings and Investments. “It is vital for private investments, but also that the European Investment Bank will change and update its lending standards,” she deemed. She also mentioned the White Paper on the future of European defense, stating that it will be presented in the coming weeks. (7/3/2025)