European Commission President Ursula von der Leyen introduced the ReArm Europe plan on Tuesday. The new strategy aims to enhance defense capabilities across the bloc by providing a €150 billion loan instrument to help countries invest in joint defense projects.
Today's plan allows member states to expand their defense spending without affecting their national deficits. Additionally, it will redirect a larger portion of the EU budget toward defense-related programs, providing countries with extra financial support for capability development. This approach also aims to foster closer cooperation among EU nations in defense production.
According to Von der Leyen, if member states raise their defense budgets by an average of 1.4% of GDP, it could generate up to €800 billion over four years. "To conclude, the EU is ready to assume its responsibilities," she concluded.
