"Von der Leyen comes with a astronomical amounts for European defense: ‘Rearm Europe’" (
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Brussels – EU chief Ursula von der Leyen wants to mobilize hundreds of billions for defense investments. She calls her plan ‘Rearm Europe.’
The President of the European Commission proposes making an exception in the European budget rules for defense expenditures. Member states would then not be penalized if their budget deficit and national debt rise too much. “If member states were to increase their defense spending by an average of 1.5% of GDP, this would create nearly 650 billion euros over a period of four years,” said Von der Leyen.
Additionally, Brussels wants to make 150 billion euros in loans available for joint investments in, among other things, air defense, ammunition, drones, and cybersecurity. Furthermore, she wants to make it possible in the short term for the existing cohesion fund, a multi-billion pot for strengthening poorer regions, to be used for defense-related expenditures.
Von der Leyen is also focusing on stimulating more private money for defense and a greater role for the European Investment Bank. “All together, we arrive at a total of 800 billion euros,” said Von der Leyen on Tuesday morning during a press moment. “Europe is ready to take its responsibility. We will continue to work closely with our partners in NATO. This is Europe’s moment. And we are ready to take a step further.”
Her plan raises many questions about the details, but the unelected top bureaucrat did not want to answer any questions from the press. In a letter to heads of state and government leaders, the Commission President writes
that the loans will be covered by the EU budget, but exactly how that will work remains unclear.
EU Summit
Von der Leyen is launching her ideas in the run-up to an extra EU summit this coming Thursday. It is likely too short notice for heads of state and government leaders to make decisions already. However, on March 20 and 21, there will be another EU summit, where decisions could potentially be made.
Behind the scenes, it is said that Von der Leyen and her team worked on defense plans on their own, without involving the new European Commissioner for Defense. She also did not include all member states in her thinking process.
It is certain that a heated political discussion will follow. Some EU countries, for example, do not want an exception to the budget rules for frugal member states that still do not meet NATO’s 2 percent standard.
