European Commission President Ursula von der Leyen presented a broad proposal to increase European defense spending by up to 800 billion euros, including a 150 billion euro loan program for weapons and technology. The move comes as President Trump has shifted away from supporting Ukraine and towards Russia, leaving Europe feeling vulnerable.
The new defense fund would provide loans for air and missile defense, drones, cybertechnologies, and more. To fund the program, the EU would raise money in capital markets and rely on an emergency provision. Von der Leyen also suggested exempting defense investments from strict EU deficit rules and implementing a budget “escape clause” to allow for increased spending without fines.
While European defense spending has risen, it remains below the levels needed for independence from the US, and many member states are already facing budget limitations. The proposal also aims to redirect other EU programs towards defense, like cohesion funding and support from the European Investment Bank.
However, the proposal lacked details on collaboration with non-EU countries like Britain and Norway and specific plans for Ukraine. Analysts believe more information will come after a meeting of heads of state and government on Thursday and a paper on defense in March.
Von der Leyen’s proposal is seen as a starting point, with more details anticipated in the future. The urgency of the situation, with Ukraine facing a critical shortfall in weaponry, highlights the need for quick action on European defense rearmament initiatives.
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