Von der Leyen aims for fast EU rearmament

Ursula von der Leyen, President of the European Commission, presented a plan for the EU’s rapid military buildup, using ‘all available’ financial options to support member states’ rearmament. The plan proposes easing EU budget rules to allow for increased defense investments, potentially exceeding the limit of 3% of GDP deficit and 60% of GDP debt. Member countries are ready to spend more on defense with the financial latitude, which could mean an average increase in defense spending by 1.5% of GDP and secure nearly 650 billion euros over four years. The plan includes a new financial instrument aimed at raising 150 billion euros for joint defense purchases and the use of EU cohesion funds for defense investments. Von der Leyen’s proposals also aim to mobilize private funds through the creation of a savings and investment union, and the European Investment Bank. Leaders will review the plan at an EU summit later this week.