EU plans to mobilise €800bn for European defence and support for Ukraine, - von der Leyen
The President of the European Commission, Ursula von der Leyen, presented five key points of the "Rearm Europe" plan, which will allow to mobilise around €800 billion for EU defence spending and support for Ukraine.
She said this in a press statement in Brussels on Tuesday, Censor.NET reports citing I-U.
"We live in an era of rearmament. And Europe is ready to increase defence spending significantly, both to respond to the short-term need to act and to support Ukraine, but also to address the long-term need to take more responsibility for our own European security. And that is why today I have written a letter to leaders ahead of the European Council meeting on Thursday. That is why we are here together today. In this letter to the leaders, I set out a plan to 'Re-arm Europe'," said von der Leyen.
Five key points of the plan:
- Increased national defence spending - it is proposed to activate the mechanism for exiting the Stability and Growth Pact, which will allow member states to increase defence spending without risking breaching budgetary norms. This is expected to provide fiscal space of €650 billion over four years.
- Creation of a new financial instrument - it is proposed to provide €150 billion in loans to EU countries to invest in the defence sector. This will facilitate joint procurement and strengthen the defence industry, in particular in the areas of air defence, artillery, unmanned systems and cyber security.
- Involvement of the EU budget - it is planned to create additional mechanisms and incentives for the use of cohesion policy programmes to increase defence spending.
- Mobilise private capital through the accelerated formation of a Savings and Investment Union.
- Use of the European Investment Bank's resources to support the defence sector and develop military mobility infrastructure.
"Europe is thus ready to take responsibility. 'Rearm Europe' could mobilise around €800 billion in defence spending for a secure and resilient Europe," von der Leyen said.
