Ursula von der Leyen, the President of the European Commission, announced a plan to increase defense spending that could raise 800 billion euros (approximately 1,228 trillion won). According to Reuters and AFP, von der Leyen presented the “ReArm Europe” project, which is composed of five parts, on the 4th of the month.
She stated, “Now is the time for Europe to take action,” and mentioned that this project could secure about 800 billion euros in defense funds for a “safe and resilient Europe.” She further explained that if each member country increases defense spending by an average of 1.5% of their GDP, a total of 650 billion euros could be raised.
The remaining 150 billion euros would be jointly borrowed and used to build pan-European defense capabilities, including air and missile defense, artillery systems, missiles and ammunition, as well as drones and drone defense systems, or to meet other needs such as cyber and military mobility.
Von der Leyen also said that each member country would be allowed to use funds from the EU’s cohesion policy programs to increase defense spending. This program is a long-term investment initiative aimed at reducing economic disparities and enhancing economic and social integration among EU member states.
Furthermore, von der Leyen mentioned that defense spending can be covered by loans from the European Investment Bank (EIB) and that defense budgets could be excluded from member governments’ spending regulations. These regulations were introduced to prevent excessive government borrowing and maintain the value of the euro.
This announcement came after former U.S. President Donald Trump halted weapon support to Ukraine. Von der Leyen stated that the funds raised would allow for immediate military support to Ukraine, emphasizing that “Europe is ready to fulfill its responsibilities.”