EU Chief Unveils 800 Billion Euros Arms Plan to Support Ukraine

March 5, 2025 – European Commission President Ursula von der Leyen presented a comprehensive five-part plan on Tuesday, aimed at mobilizing 800 billion euros for Europe’s defense and providing immediate military support for Ukraine after Washington’s suspension of aid.

The plan, known as ‘ReArm Europe’, comes just hours after US President Donald Trump announced a freeze on military aid to Ukraine, signaling a shift in Washington’s approach towards a peace deal with Russia and distancing itself from European allies in the effort to support Kyiv.

Von der Leyen emphasized that the initiative could help bolster Europe’s defense capabilities, stating, “ReArm Europe could mobilize close to 800 billion euros of defense expenditures for a safe and resilient Europe.”

The plan includes:

1. Easing Budget Rules: It proposes relaxing strict EU budget regulations, which currently require member states to keep public deficits under 3% of GDP. This measure could potentially free up 650 billion euros over the next four years for defense spending.
2. Defense Loan Facility: A new mechanism will be created to provide 150 billion euros in loans to EU member states, aimed at defense investment. These funds will focus on enhancing air and missile defense, artillery systems, missiles and ammunition, as well as drones and anti-drone systems, enabling European countries to accelerate their support for Ukraine.
3. Reallocating EU Budget: Von der Leyen proposed using existing EU funds to direct more resources toward defense-related investments, facilitating immediate military aid for Ukraine.

While the full impact of the plan remains unclear, especially regarding the speed at which the funds can be accessed, experts suggest that the effects will likely be felt in the coming weeks or months, particularly as US restrictions on military aid begin to take hold.

The plan will be discussed further at a European Union summit later this week, where leaders will aim to solidify joint actions on Ukraine’s defense and Europe’s security.

Source: AFP