Rearm Europe: von der Leyen proposes mobilising up to €800 billion for defence
European Commission president Ursula von der Leyen on Tuesday proposed a "Rearm Europe" plan to mobilise up to 800 billion euros to help EU member states invest in Europe's defence and provide emergency aid to Ukraine.
Two days before an extraordinary European summit on Ukraine and European defence, the head of the European executive outlined five main funding options in a letter to EU leaders.
The first proposal is to give member states greater budgetary flexibility by ensuring that their defence spending does not contribute to excessive deficit procedures for a period of four years. This would involve activating a derogation clause from the rules of the Stability and Growth Pact at national level.
Redirecting loans and funds
The Commission president also proposes redirecting 150 billion euros in loans to member states towards pan-European air defence, missile defence, ammunition, drone capabilities and other joint procurement to ensure interoperability of military equipment.
It also suggests that member states could redirect funds they receive from the EU's cohesion policy - designed to support the socio-economic development of less prosperous regions - towards their defence policies.
The fourth and fifth proposals focus on mobilising private capital through an accelerated push for a savings and investment union and through European Investment Bank programmes.
© Nicolas TUCAT / AFP
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