President of the European Commission Ursula von der Leyen arrives to give a press conference on the “Defence package” at the EU Commission headquarters in Brussels on March 4, 2025. (Photo by Nicolas TUCAT / AFP) (Photo by NICOLAS TUCAT/AFP via Getty Images)
Nicolas Tucat | Afp | Getty Images
New plans from the European Union to increase defense spending could potentially mobilize as much as 800 billion euros ($841 billion), European Commission President Ursula von der Leyen said Tuesday.
“Europe is ready to massively boost its defense spending. Both, to respond to the short-term urgency to act and to support Ukraine but also to address the long-term need to take on much more responsibility for our own European security,” she said in a press statement.
Von der Leyen said she had written to European leaders ahead of the European Council meeting later this week to propose the “ReArm Europe Plan,” designed to enable EU member states to increase spending in defense capabilities.
“ReArm Europe could mobilise close to EUR 800 billion for a safe and resilient Europe,” she said. “This is a moment for Europe. And we are ready to step up.”
The plan will include 150 billion euros of new joint EU borrowing for member states to invest in what von der Leyen described as “pan-European capability domains.”
“For example: air and missile defence, artillery systems, missiles and ammunition drones and anti-drone systems; but also to address other needs from cyber to military mobility for example,” she added.
The bloc last took the controversial step of common borrowing in 2020 in the wake of the pandemic.
The 27 EU leaders will gather in Brussels on Thursday for a meeting dedicated to defense and support for Ukraine where the ReArm Europe proposals will be discussed.
This is a developing story, please check back for updates.
— CNBC’s Silvia Amaro contributed to this report.
