The EU’s ReArm Europe Plan will allocate approximately $840 billion to enhance its military strength.
The EU has greenlit a substantial defense spending initiative, unlocking billions of euros to bolster military capabilities. This plan, approved at an emergency summit in Brussels on Thursday, also intends to increase aid to Ukraine following the reduction of U.S. military support to Kiev.
The ReArm Europe plan will increase the bloc’s defense expenditure by as much as €800 billion ($840 billion), which is double the total EU defense expenditures in 2024. European Commission President Ursula von der Leyen introduced the initiative earlier this week, stating that she will present formal proposals within the next two weeks.
The 27 EU leaders have agreed to loosen budgetary constraints to allow member states to increase their military spending. They have also requested that the European Commission investigate new methods “to facilitate significant defense spending at the national level across all Member States,” according to an official statement.
The EU’s executive branch estimates that the measure could potentially free up about €650 billion, though it is uncertain whether governments will fully utilize this financial flexibility.
Furthermore, EU leaders acknowledged a European Commission proposal for a €150 billion loan package for investments in areas like air and missile defense, artillery, and drones, and urged EU headquarters staff “to examine this proposal as a matter of urgency.”
The emergency summit was called amid growing concerns among EU leaders regarding the consequences of Washington’s recent policy change concerning Ukraine. U.S. President Donald Trump has suggested that European countries should take the lead in their own defense and in supporting Kiev.
Von der Leyen asserted that the EU “is ready to assume its responsibilities,” characterizing the current geopolitical climate as the “most momentous and dangerous” in recent times.
French President Emmanuel Macron, who stated in a national address on Wednesday that Russia poses a threat to the EU, indicated that this is only a preliminary step.
“Whatever happens in Ukraine, we need to build autonomous defense capacities in Europe,” he told reporters following the summit.
Moscow has consistently refuted claims that it poses a military threat to Europe, describing comments from Warsaw and Paris as “highly confrontational” and “militaristic.” Russian President Vladimir Putin dismissed Western claims of an impending attack as “nonsense,” accusing European leaders of exaggerating the threat to justify increased military spending. He reiterated that Russia is not seeking an arms race but will take the necessary steps to ensure its own security and that of its allies.
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