European Commission President Ursula von der Leyen has presented proposals for the “rearming of Europe”. The total amount of nearly 800 billion euros could be mobilized for a “safe and resilient Europe”, according to the CDU politician on Tuesday.
Her proposals are summarized in a five-point plan, which also involves relaxing the debt rules. The goal is, for example, to free up the use of public funds for defense at the national level, von der Leyen said. “The member states are ready to invest more in their own security if they have the financial leeway. And we must put them in a position to do so.”
For this reason, the EU Commission President will soon propose activating the national escape clause of the Stability and Growth Pact, she said. “It will enable member states to significantly increase their defense expenditures without triggering the excessive deficit procedure.” If member states were to increase their defense expenditures by an average of 1.5 percent of GDP, this could create a fiscal space of nearly 650 billion euros over a period of four years, von der Leyen said.
In addition, she proposes a new fund of 150 billion euros for defense investments. “It’s mainly about spending more money – and doing so together” the CDU politician said. “We are talking about comprehensive European capabilities. For example: air and missile defense, artillery systems, missiles and ammunition, drones and drone defense systems, but also other areas, such as cyberspace and military mobility.” It will help member states to bundle the demand and buy together.