Von der Leyen hopes to turn EU into 'defense union' for $867bln
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ReArm Europe has received unanimous support at a EU leaders' conference on defense.
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Activists unfurl a large banner in support of Ukraine outside the European Council building ahead of an EU summit in Brussels, Belgium, on March 5, 2025. (AP)
European Commission President Ursula von der Leyen stated that she believes her proposed new 800 billion euro ($867 billion) military plan will transform the European Union into a "defense union".
During Thursday's EU leaders' conference on defense, ReArm Europe received unanimous support, according to von der Leyen.
"You are familiar with the 800 billion [euro] package for defense, and that is historic, this can be the foundation of a European defense union," she said.
"We will drive the ReArm Europe plan forward with full force," she stated at a news conference in Brussels marking the first 100 days of her second term as President of the European Commission.
Von der Leyen went on to say that the EU should "team up with other like-minded countries," such as the United Kingdom, Norway, and Canada, to "unleash the full potential in the face of concrete threats."
Von der Leyen recently put forward an initiative to attract loans of up to 150 billion euros to the defense industry over the next four years and to allow EU countries to free up another 650 billion euros to increase defense purchases and develop the defense industry.
"Europe is ready to assume its responsibilities.
— European Commission (@EU_Commission) March 4, 2025
ReArm Europe could mobilise close to €800 billion for a safe and resilient Europe.
This is a moment for Europe. And we are ready to step up."
— President @vonderleyen on the defence package pic.twitter.com/OiE8kH8FnK
The European Union is ramping up efforts to develop its military-industrial sector, drawing insights from the Ukraine war. A statement issued following a European Council meeting on Thursday outlined key areas for defense investment, particularly in air defense, advanced drone technology, and precision-guided weaponry.
According to the European Council's conclusions, the bloc is focusing on strengthening its military capabilities in coordination with NATO and the European Defence Agency. The document specified that priorities include air and missile defense, long-range artillery, missile stockpiles, and anti-drone technologies.
"[The European Council] identifies the following first list of priority areas for action at EU level in the field of capabilities taking into account the lessons learned from the war in Ukraine, in accordance with the work already done in the framework of the European Defence Agency and in full coherence with NATO: air and missile defence; artillery systems, including deep precision strike capabilities; missiles and ammunition; drones and anti-drone systems…," the statement read.
This move comes as part of a broader strategy known as ReArm Europe, an initiative aimed at significantly boosting the EU's defense capabilities while reducing reliance on external allies. Under this plan, EU leaders have proposed unlocking up to €800 billion to finance military advancements, primarily through defense loans, budget repurposing, and private capital mobilization. The European Investment Bank (EIB) may also lift restrictions on lending to defense firms to support this push.
Von der Leyen has described this as a necessary response to "a clear and present danger" facing the region, marking a shift in the EU's traditional defense posture. The initiative also aligns with recent calls from the US for Europe to take greater responsibility for its own security, especially amid concerns about potential shifts in American foreign policy under a future administration.
