The plan is called ReArm Europe. It involves increasing defense spending, issuing loans for defense procurement, and mobilizing private capital, as Ursula von der Leyen announced, emphasizing that we are currently in an “era of rearmament,” and Europe is ready to significantly increase defense spending—for its own protection and to support Ukraine.
It is proposed to provide €150 billion in loans to EU member states for defense investments.
In four years, a fiscal space of around €650 billion can be created if countries increase their defense spending by an average of 1.5% of GDP, explains the President of the European Commission.
Von der Leyen has already sent a letter to EU leaders with this five-step plan for Europe’s rearmament: “The EU is ready to take responsibility. The rearmament plan could mobilize about €800 billion for defense spending to ensure a safe and resilient Europe.”
Tags: EU europe european union Politics
