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President of the European Commission, Ursula von der Leyen, arrives to give a press conference on the “defense package” at the headquarters of the EU commission in Brussels on March 4, 2025. (Photo by Nicolas Tucat / AFP) (photo of Nicolas Tucat / AFP through Getty images)
Nicolas Tucat | AFP | Getty images
The new European Union plans to increase defense expense could mobilize up to 800 billion euros ($ 841 billion), the president of the European Commission, Ursula Von Leyen on Tuesday.
“Europe is ready to massively boost its defense expense. Both, to respond to the short -term urgency of acting and supporting Ukraine, but also to address the long -term need to assume much more responsibility for our own European security,” he said in a press release.
Europe is in its “era of rearme,” he said.
Von der Leyen said that he had written to European leaders before the European Council meeting at the end of this week to propose the “Europe Roarm Plan”, designed to allow EU Member States to increase spending on defense capabilities. He added that this was necessary “now urgently, but also for a longer time.”
“Roarm Europe could mobilize about 800 billion euros for a safe and resistant Europe,” he said. “This is a time for Europe. And we are ready to step forward.”
The plan will include 150 billion euros of new EU joint loans so that Member States invest in what Von der Leyen described as “paneurpea capacity domains.”
“For example: aerial and antimile defense, artillery systems, missiles and drones of anti-Drone ammunition and systems; but also to address other needs from cyber mobility to military mobility, for example,” he added.
In a letter sent to EU leaders, and seen by CNBC, von der Leyen said that the new loan instrument would be supported by the EU budget.
The ROARM Europe Plan would also allow EU Member States to use public funds for defense nationwide by activating the national exhaust clause in the EU stability and growth pact. Announced for the first time at the Munich Security Conference last month, this movement would give the countries more flexibility on how they spend their money.
Von der Leyen also pointed out options such as making changes in the EU budget and mobilizing private capital to boost defense expense.
The 27 EU leaders will meet in Brussels on Thursday for a meeting dedicated to defense and support to Ukraine, where Rearm Europe’s proposals will be discussed.
– Silvia Amaro of CNBC contributed to this report.
