EUROPEAN COMMISSION PRESIDENT URSULA VON DER LEYEN: “WE ARE REARMING TO THE TUNE OF $840 BILLION”

This is Europe’s moment, and we must live up to it

Statement by President von der Leyen on the ReArm Europe Plan
©European Union
Source: European Commission

 Brussels, 4 March 2025

Excerpts

Von der Leyen delivering statement on European rearmament

We are living in the most momentous and dangerous of times. I do not need to describe the grave nature of the threats that we face. Or the devastating consequences that we will have to endure if those threats would come to pass. Because the question is no longer whether Europe’s security is threatened in a very real way. Or whether Europe should shoulder more of the responsibility for its own security. . . The real question in front of us is whether Europe is prepared to act as decisively as the situation dictates. And whether Europe is ready and able to act with the speed and the ambition that is needed. . . We are in an era of rearmament. And Europe is ready to massively boost its defence 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.

“Securing Our Future,” the Summit of international leaders held in London 2 March 2025. Left, Spanish Prime Minister Pedro Sanchez with Ukraine President Volodymyr Zelensky. Right, looking on: Canadian Prime Minister JustinTrudeau.

This is why today I have written a letter to Leaders [i.e., Heads of State or Government of the EU Member States] ahead of Thursday’s European Council*. . . I have outlined in this letter the ReArm Europe Plan, [a] set of proposals [which] focuses on how to use all of the financial levers at our disposal – in order to help Member States to quickly and significantly increase expenditures in defence capabilities. . . There are five parts to this.

The first part of this ReArm Europe plan is to unleash the use of public funding in defence at national level. Member States are ready to invest more in their own security. . . [On the other hand,] we will shortly propose to activate the national escape clause of the Stability and Growth Pact [that will] allow Member States to increase significantly their defence expenditures without triggering the Excessive Deficit Procedure. . .

The second proposal will be a new instrument. It will provide EUR 150 billion of loans to Member States for defence investment. This is basically about spending better – and spending together. We are talking about pan-European capability domains [which] will help Member States to pool demand and to buy together. . . This approach of joint procurement will . . . reduce costs, reduce fragmentation, increase interoperability and strengthen our defence industrial base. And it can be to the benefit of Ukraine. . . This is Europe’s moment, and we must live up to it.

“The power of the EU budget to direct more funds towards defence-related investments”

Third point is using the power of the EU budget. There is a lot that we can do in this domain . . . to direct more funds towards defence-related investments. . . We will propose additional possibilities and incentives for Member States [if they decide] to increase defence spending.

The last two areas of action aim at mobilising private capital by accelerating the Savings and Investment Union and through the European Investment Bank.

To conclude: Europe is ready to assume its responsibilities. ReArm Europe could mobilise close to EUR 800 billion for a safe and resilient Europe. We will continue working closely with our partners in NATO. This is a moment for Europe. And we are ready to step up.

Full text: https://ec.europa.eu/commission/presscorner/detail/en/statement_25_673

Video: https://www.facebook.com/EuropeanCommission/videos/1310105520247167

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Photos
Featured image (Guidepost composition): Explosion, AI generated/Chusaengri, Pixabay. EU flag/EU
Von der Leyen/©European Union
Euro bills/kahll, cropped, edited, Pixabay
London Summit/Pool Moncloa/Fernando Calvo

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*European Council: the body of leaders (heads of state or government) of the 27 EU member states