Following the expulsion of US support, European Union commander Ursula von der Leyen unveiled a five-part strategy to galvanize 800 billion euros for Europe’s protection and provide quick military assistance to Ukraine.
ReArm Europe anticipates mobilizing close to 800 billion euros for a secure and adaptable Europe. Our companions in Nato may keep working with us. This is a crucial time for Europe. And we’re prepared to take action,” Leyen said in a speech.
The 800-billion-euro schedule has FAQs here.
What does the EU’s 800 billion defense strategy serve to accomplish?
Following the expulsion of US support, the plan,” ReArm Europe,” aims to increase Europe’s defense capabilities and provide Ukraine with quick military support. In response to growing dangers, it is intended to safeguard German protection.
How will this strategy benefit Ukraine?
The program will enable EU nations to take defense gear to Ukraine right away, including anti-drone systems, artillery, rockets, drones, and air and missile defence systems.
Why is this idea being considered right then?
According to von der Leyen, the growing security threat poses a” clear and present danger” for the EU. Also, uncertainty over US assistance for Ukraine, particularly after Washington stopped providing support and former US president Donald Trump’s remarks about Nato, has prompted Europe to get stronger action.
Leyen argued that” Europe is in a clear and present danger on a level that none of us have experienced in our adult lives.”
How does EU nations provide for the country’s increased defense spending?
Countries may raise investing without triggering increased deficit procedures by suspending rigid budgetary regulations. Furthermore, EU loans and moved funds will support defense investments financially.
What part does the European Investment Bank ( EIB ) play in this strategy?
Leaders of the EU are considering removing restrictions on the EIB so it can fund defense companies, making it easier to get funding for projects involving the military.
What does this mean for Europe’s long-term protection?
This effort represents a major shift in EU self-reliance in terms of defense, reducing US reliance while strengthening Europe’s military readiness and endurance.
President von der Leyen’s whole speech on the defense deal is available here.
We are currently living in the most risky and significant of circumstances. I don’t need to define the seriousness of the threats we face. or the wretched consequences that may result from those dangers. Since the question is no longer whether Europe’s protection is in danger of doing so in a very real manner. Or whether Europe ought to bear more of the cost of its own safety. In reality, those issues have long been known. The real issue is whether Europe is willing to take the necessary actions quickly. And whether Europe is capable of acting with the urgency and passion that are required. The response from Western capitals has been as clear as it has been during the different meetings over the past few weeks, most recently in London, which was last two days. Modernisation is a current state. And Europe is prepared to significantly increase its defense budget. To solve the short-term need to work and to support Ukraine as well as the long-term need to assume many more responsibility for our own Western security.
In order to prepare for Thursday’s Western Council, I have written a text to leaders today. This is the reason we are sitting up right now. And I’ve given the officials the ReArm Europe Plan a brief description in this text. Making the most of all of the financial tools at our disposal, as stated in this set of proposals, is a key part of this effort to aid Member States in fast and considerably boosting defense capabilities expenditures. Increasingly today, but also over a longer period over the course of this century. This has five sections.
The purpose of this ReArm Europe program is to encourage the use of public funds for national defense. If they have the macroeconomic room, the member states are willing to invest more in their own protection. And we must make it possible for them. We will soon make the recommendation to make the Stability and Growth Pact’s regional avoid clause effective. It will prevent Member States from triggering the Excessive Deficit Procedure and allow them to significantly improve their defense spending. For instance, if Member States increased their defense spending by 1 % of GDP on average, this would result in a fiscal space of nearly EUR 650 billion over the course of four years.
The next idea will be a novel device. It may grant Member States 150 billion euros in loans for defense projects. It’s really about spending more and spending more up. We’re referring to the capabilities of Europe as a whole. For instance, air and missile defense, artillery systems, drones and ammunition, and anti-drone systems, but also to target needs like those related to freedom, such as military flexibility. It does enable Member States to combine demand and purchase up. Of course, Member States can significantly increase their support for Ukraine with this technology. But Ukraine has quick military equipment. This joint procurement strategy will also lower costs, lessen fragmentation, improve connectivity, and enhance our defense industry base. And it might be beneficial for Ukraine, as I only mentioned. Therefore, we may live up to the expectations of Europe.
Next level: utilizing the budget’s authority. There are many things we can do in this area in the near future to put more money into investments in defense-related matters. In light of this, I am happy to let you know that we will offer Member States extra options and incentives so that they can determine whether or not to use unity policy initiatives to raise defense spending.
The next two activity areas aim to increase private capital mobilization, using the European Investment Bank and the Savings and Investment Union to accelerate this process.
To argue: Europe is prepared to discharge its obligations. ReArm Europe may raise close to 800 billion euros to create a secure, tenacious Europe. We will keep in touch with our NATO companions. This is a crucial time for Europe. And we’re prepared to take the lead.
