The European Union is taking a different approach from the US, as the Commission President, Ursula von der Leyen, has proposed a plan to increase the EU’s military spending. The “ReArm Europe” program aims to mobilize up to 800 billion euros, which will be allocated to the member states for military purposes.
Von der Leyen has outlined a multi-level plan, including the temporary suspension of the EU’s stability mechanism to provide member states with more financial leeway. This would allow for increased military investment, with an estimated 650 billion euros over a four-year period.
The European Commission will also provide 150 billion euros in earmarked credits to the member states to support military spending in specific areas. A centralized procurement process is planned, similar to the COVID-19 vaccine procurement, to negotiate better prices on the arms and defense markets.
This could enable member states to immediately increase their military support for Ukraine, according to von der Leyen and also put an end to the fragmentation within the EU, as each national army currently has its own weapon systems.
The Commission is also proposing to use the EU’s Cohesion Fund, which has previously financed environmental and infrastructure projects in poorer member states, to support military projects. This measure is likely to prioritize the financial support of Baltic states in their arms procurement.
Furthermore, von der Leyen plans to attract private investors through the European Investment Bank and the Savings and Investment Union, offering attractive investment opportunities for those who want to invest in the EU’s military buildup.
In total, the “ReArm Europe” program could mobilize up to 800 billion euros, which would make the EU “safer and more resilient” according to von der Leyen. This signals the EU’s intention to resolve the Ukraine conflict primarily through military means, rather than diplomatic ones.