– We are in an era of rearmament, and Europe is ready to significantly increase its defense spending, both to act quickly and support Ukraine, but also to take greater responsibility for our own security, says Ursula von der Leyen.
One of the proposals is to activate the exemption clause in the Stability and Growth Pact to allow member states to increase their defense spending without triggering deficit procedures. An increase of an average of 1.5 percent of GDP could, according to von der Leyen, free up approximately 650 billion euros over four years.
The Commission also proposes a new loan instrument of 150 billion euros for investments in defense capacity, which includes areas such as air and missile defense, artillery systems, ammunition, drones, and cyber defense.
– This is about spending better and spending together. Member states can strengthen their defense industry and reduce fragmentation through joint procurement, continues von der Leyen.
She also highlighted the possibility of using the EU's budget to direct more funds to defense-related investments and measures to mobilize private capital.
– Europe is ready to take its responsibility. ReArm Europe can mobilize nearly 800 billion euros for a secure and resilient Europe, concludes von der Leyen.