EU launches ‘ReArm Europe Plan’ with EUR 150 billion for defense

European Commission President Ursula von der Leyen on Tuesday announced the ‘ReArm Europe Plan’ to significantly boost defense spending across the European Union. She highlighted the grave nature of threats facing Europe and emphasized the need for urgent military investment.

Ahead of Thursday’s European Council meeting, Von der Leyen outlined a proposal that aims to mobilize up to EUR 800 billion for defense, reinforcing Europe’s security while maintaining cooperation with NATO. A key aspect of the plan includes providing EUR 150 billion in loans to EU member states to enhance military capabilities.

She also proposed activating the national escape clause of the Stability and Growth Pact, allowing nations to increase defense budgets without triggering fiscal penalties. The plan prioritizes investments in missile defense, artillery, cyber security, and military mobility, urging member states to pool resources for collective defense readiness.