Rearming Europe: EU launches £714bn defence strategy

Ursula von der Leyen wrote to EU leaders, "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 at stake. This, she noted, should shape the way decisions are approached, 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 called for Europe to take responsibility for its deterrence and defense. She introduced the "ReArmy Europe" plan, which aims to allocate approximately £714 billion toward the remilitarization of Europe. The initiative is built on five key pillars, each designed to comprehensively enhance the continent's defense capabilities.

The first pillar is the relaxation of EU spending rules, allowing member states to manage defence budgets flexibly without fear of breaching EU budget deficit limits. The second pillar is introducing a loan package worth £134 billion. These funds will be used to purchase modern technologies and equipment, including air and missile defence, artillery systems, missiles and ammunition, drones, and anti-drone systems.

The third pillar allows using cohesion policy funds from the EU budget for defence purposes. This will enable member states to allocate part of the funds initially planned for regional development to security and defence-related investments. The fourth pillar of the plan mobilises private capital by accelerating the union of savings and investments.

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

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

The security analyst explains that the plan illustrates how the European Union is becoming an increasingly significant player in European security matters. This role truly expanded in 2022. At that time, 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, which has enabled around 77,000 Ukrainian soldiers to be trained so far, she adds.

The international situation compels us to move away from the concept of soft power. For years, essentially since the end of the Second World War, we believed that no conventional conflict or major war in Europe awaited us. We allowed ourselves to be seduced by the notions of the end of history, globalisation, and international trade, which were intended to replace all conflicts in the world. However, this Russian invasion has revealed that complex security and defence issues remain critical. Therefore, European states, along with the European Union, must find a new footing in this situation and develop solutions that will enable us to realise the core idea behind the founding of the European Union: the pursuit of peace in Europe, the expert summarises.