EU plans $870 billion defense boost with 'reArmy Europe' plan

In a letter to EU leaders, Ursula von der Leyen noted, "A new era is upon us. Europe faces a clear and present danger on a scale that none of us have seen in our adult lifetime." She emphasized that the future of a free and sovereign Ukraine and a secure and prosperous Europe is in jeopardy. This, she noted, should shape the way decisions are made, the boldness of actions taken, and the urgency with which they are implemented in the coming days and weeks.

The President of the European Commission also emphasized, "Europe must be responsible for its own deterrence and defense." The plan she announced to arm Europe—"ReArmy Europe"—aims to allocate approximately 870 billion US dollars to remilitarize Europe and includes five key pillars designed to comprehensively strengthen its defense capabilities.

The first pillar involves relaxing EU spending rules, giving member states greater flexibility in managing defense budgets without the concern of exceeding EU budget deficit limits. The second pillar introduces a loan package totaling 164 billion US dollars. These funds are designated for acquiring modern technologies and equipment, including air and missile defense systems, artillery systems, missiles and ammunition, as well as drones and anti-drone systems.

The third pillar permits the use of cohesion policy funds from the EU budget for defense purposes. This will allow member states to reallocate part of the funds initially intended for regional development to investments related to security and defense. The fourth pillar involves mobilizing private capital by speeding up the integration of savings and investments.

The European Union plans to create favorable conditions for private investors to encourage their involvement in defense-related projects. Meanwhile, the fifth pillar involves utilizing the European Investment Bank (EIB) to finance defense projects. The EIB is expected to play a key role in providing additional funds for developing defense infrastructure and military technologies, thereby supporting the goals of the ReArmy Europe plan.

Aleksandra Kozioł explains, "The ReArmy Europe plan presented by European Commission President Ursula von der Leyen highlights primarily the European Commission's determination to quickly strengthen European defense capabilities while maintaining military support for Ukraine. Von der Leyen's proposal was not accidental, as it coincided with announcements of the suspension of U.S. military aid to Ukraine and partially responds to Donald Trump’s calls for allies to take greater responsibility for security in Europe."

Kozioł explains that the plan illustrates the European Union's evolving role as a pivotal player in European security matters. "This role really increased in 2022 when the EU responded in an unprecedented manner to Russia’s aggression against Ukraine, providing support to Ukraine in the form of military equipment and ammunition, and establishing a training mission that has trained approximately 77,000 Ukrainian soldiers to date," she adds.

"The international situation compels us to move away from the concept of soft power. For years, particularly since the end of World War II, we believed that no conventional conflict and no major war in Europe awaited us. We allowed ourselves to be seduced by the notions of the end of history, globalization, and international trade, which were supposed to eliminate all conflicts in the world. However, this Russian invasion has demonstrated that issues of hard security and defense remain critically important. Therefore, European states, along with the European Union, must find a new footing in this context and develop solutions that will enable us to realize the founding principle of the European Union, specifically the idea of peace in Europe," the expert concludes.