Ursula von der Leyen Unveils Five-Step Plan to Strengthen European Defense and Support Ukraine

March 04, 2025

12:23 PM

Reading time: 5 minutes


European Commission President Ursula von der Leyen has unveiled a bold new five-step plan aimed at rearming the European Union and enhancing military support for Ukraine in its ongoing struggle against Russian aggression. With rising concerns about Europe’s security and the need for a swift, decisive response, von der Leyen emphasized that the EU must act urgently to protect its interests and support Ukraine.

“We already know the answers to these questions,” von der Leyen stated, referring to the pressing security risks facing Europe. “The real question is whether Europe is prepared to act with the determination the situation requires, and whether Europe is ready to act quickly.”

The comprehensive strategy outlined by von der Leyen focuses on modernizing Europe’s defense capabilities while ensuring continued and enhanced military assistance to Ukraine. Below is a breakdown of the five steps proposed by the European Commission to bolster defense spending:

1. Unlocking Government Funds for Defense Initiatives

Von der Leyen’s plan proposes creating mechanisms to allow member states to increase defense spending without triggering the excessive deficit procedure. This will enable EU countries to unlock up to €650 billion over four years, giving them the fiscal space to modernize their armed forces and strengthen their defense infrastructure.

2. New Financial Instrument for Military Investments

A new financial instrument will provide €150 billion in loans to EU member states for investments in critical military technologies, including air defense systems, artillery, missiles, ammunition, drones, and anti-drone capabilities. This funding aims to ensure the immediate supply of advanced military equipment to Ukraine, increasing Europe’s capacity to support the war effort.

3. Channeling EU Budget Funds into Defense Investments

The plan proposes the strategic use of the EU budget to finance defense investments, including allowing member states to use cohesion funds for military spending. Crucially, this decision does not require unanimous approval, meaning countries like Hungary or Slovakia, which have previously opposed such measures, would not be able to block them.

4. Mobilizing Private Capital for Defense

Von der Leyen emphasized the importance of tapping into private capital to boost defense-related funding. The expanded investment market, along with the involvement of the European Investment Bank, would help mobilize private sector investments in defense technologies, further boosting Europe’s military capabilities.

5. Mobilizing €800 Billion for Defense Spending

The five-step plan is designed to mobilize around €800 billion in total defense spending, ensuring a secure and resilient Europe in the face of ongoing geopolitical threats.

By introducing this comprehensive strategy, von der Leyen hopes to address the urgent needs of European defense while also supporting Ukraine’s efforts against Russia. The proposal represents a significant shift in EU defense policy, reflecting the growing recognition of the need for a united, robust response to regional security threats.

“The EU is ready to take responsibility,” von der Leyen concluded. “The European rearmament plan could mobilize around €800 billion for defense spending, ensuring a secure and resilient Europe.”

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