European Commission Unveils €800bn EU Rearmament Plan

European Commission President Ursula von der Leyen has unveiled a five-step plan to rearm the EU and support Ukraine. She said this at a briefing in Brussels, reports European Pravda. The issue now, she said, is not that Europe’s security is under threat and that more needs to be done. “Indeed, we already know the answers to these questions. The real question for us is whether Europe is ready to act decisively as the situation demands. And whether Europe is ready to act quickly,” von der Leyen said. She repeated her previous statement about the need to rearm Europe to meet its own needs and support Ukraine. That is why, she said, she sent a letter to European leaders ahead of the EU summit with a five-step plan to rearm Europe. The first part of the plan is to free up public money to fund defense at a national level. “Member states are already willing to invest more in defense if they have fiscal space. Therefore, we must allow them to do so. That is why we will propose the possibility of avoiding the Stability and Growth Pact, allowing states to increase defense spending without triggering an excessive deficit procedure,” the EC head explained. This would free up to €650bn over four years, she said. The second element is a new instrument that will provide 150 billion in loans to member states for investments in air defense systems, artillery systems, missiles and munitions, drone and anti-drone systems and joint equipment procurement. “With this equipment, member states will be able to increase their support for Ukraine on a large scale. We are talking about the immediate delivery of military equipment for Ukraine,” von der Leyen claimed. “The third point is to use the strength of the EU budget. In the short term, we will be able to channel funds into defense investments,” she also said, announcing a proposal under which member states will be able to use cohesion funds to increase defense spending. It is worth noting that the use of cohesion funds does not require unanimity, so Hungary or Slovakia cannot block such decisions. The other two points are to mobilize private capital by expanding the investment market and through the European Investment Bank. “The EU is ready to take responsibility. The European Rearmament Plan can mobilize around €800 billion in defense spending for a secure and sustainable Europe,” the EC President underlined.