EU Commission proposes fund to mobilise €800bn for defence

Credit: dpa/NAN

European Commission President, Ursula von der Leyen, proposed a new fund that could mobilise 800 billion euros ($841.5 billion) for defence investments in the European Union, including military aid for Ukraine.

Von der Leyen told journalists in Brussels on Tuesday that “we’re living in the most momentous and dangerous of times.’’

Pressure on the EU to significantly increase defence spending and aid to Ukraine intensified further after U.S. President Donald Trump’s administration announced Monday that it would temporarily suspend U.S. military aid to Ukraine.

“This is Europe’s moment and we must live up to it.’’

The money is to be spent on support for Ukraine and to “take on more responsibility for our European security,’’ she said.

“We are in an era of rearmament, and Europe is ready to massively boost its defence spending,’’ the commission president said.

The commission is to provide 150 billion euros in loans to be used on air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems, and to address other needs from cyber to military mobility, von der Leyen said.

“With this equipment, member states can massively step up their support to Ukraine,’’ she said.

Von der Leyen hopes that together with private capital and additional funding from the European Investment Bank, her proposal could mobilize close to 800 billion euros for defence.

The new fund is part of a proposal von der Leyen pitched to EU countries ahead of Thursday’s special EU leaders’ summit.

In her plan to rearm the bloc, the commission president also proposed giving member states more leeway for defence spending under the EU’s usually strict debt and deficit rules and reallocating available regional development funds for military investments.