Europe 'is in an era of re-armament', says Ursula Von Der Leyen announcing 800 billion euro boost to defence spending
4 March 2025, 09:01 | Updated: 4 March 2025, 09:25
European Commission president Ursula Von Der Leyen has laid out plans to "Re-arm Europe" as she voiced that the continent has now entered "an era of re-armament".
Listen to this article
Loading audio...
Speaking on Tuesday, Von Der Leyen highlighted that the EU defence plans set out could mobilise around 800 billion euros for defence.
"We are in an era of re-armament. Europe is ready to massively boost its defence spending. Both to respond to the short term urgency to support Ukraine, but also the long-term need for more responsibility for our own European security," she said in her speech.
The comments comes as Donald Trump announced he would be suspending all aid to Ukraine following his very public Oval Office fallout with Volodymyr Zelenskyy.
Hours after the suspension, US Vice President JD Vance dismissed the idea of sending 20,000 British and French troops to Ukraine as a peacekeeping force.
Under the plans, the EU will propose to free up budgets for member states where defence investments are concerned.
It also authorised around 150 billion euros in loans for those investments, highlighting that the European Commission will aim to harness private capital as well, Von der Leyen said.
"I have outlined in a letter to leaders of the European Council the Rearm Europe Plan," she said ahead of a planned meeting on Thursday.
Read more: Twenty thousand troops from 'some random country' won't bring peace to Ukraine, says JD Vance
Read more: US tariffs on Canada and Mexico to go ahead as Trump says 'no room left' for negotiation
"This centres on how to use all the financial levers at our disposal in order to help member states quickly and significantly increase expenditures in defence capabilities."
It comes as a White House official, speaking anonymously on Tuesday, said: "President [Trump] has been clear that he is focused on peace.
"We need our partners to be committed to that goal as well. We are pausing and reviewing our aid to ensure that it is contributing to a solution."
Hours later, US Vice President JD Vance dismissed the idea of sending 20,000 British and French troops to Ukraine as a peacekeeping force.
He said that a military presence from "some random country" won’t be enough to secure peace.
It comes as Von der Leyen outlined that member states are ready to invest more if they have the fiscal space to do so.
The plan, when enacted, will see Europe activate the "national escape clause" of the stability and growth pact.
She explained that if member states increase spending by 1.5 per cent on average, the additional measures could create around 650 billion euros in funding within four years.
The move is set against an increasingly uncertain backdrop where global affairs are concerned, with many insisting the world is seeing a "new world order" emerge.
