Ursula von der Leyen Unveils a Five-Step Plan to Fund Defense Investments in the EU
European Commission President Ursula von der Leyen has shared details of a five-step plan aimed at increasing defense funding across the European Union. The plan seeks to give member states more financial flexibility, allowing them to invest immediately and significantly in defense, free from strict debt and deficit targets.
Key Steps in von der Leyen’s Plan
On Thursday evening, von der Leyen revealed that the defense funding plan will offer temporary exemptions from the EU’s debt and deficit targets for some member states. This exemption will let those countries allocate more funds to defense without compromising their financial stability.
She also announced the creation of a new fund, backed by loans of up to €150 billion, to finance joint defense procurement from European producers. A portion of these purchases will support Ukraine in its current situation.
Redirecting Funds and Supporting the Private Sector
Under the plan, EU member states can redirect regional development funds toward defense investments, improving their military capabilities. Von der Leyen also hopes to attract more private capital to boost Europe’s defense industries, particularly innovative start-ups and medium-sized companies.
Simplifying Defense Investment Rules
The plan includes reviewing and simplifying the rules governing defense investments in the EU. This will make it easier for member states to take swift action in modernizing and strengthening their defense forces.
Next Steps
Von der Leyen plans to present legislative proposals to EU member states before the next EU summit, set to take place within two weeks.
Sources:
- Statements from European Commission President Ursula von der Leyen at a press conference.
- Reports from the European News Agency and EU communications.