Brussels (Reuters)-The European Commission has proposed on Tuesday a loan of up to 150 billion euros for European governments, in a rearmament plan motivated by the Russian war in Ukraine and fears that Europe can no longer be sure of the protection of the United States.
“We are living the most important and dangerous moment of all,” said the president of the European Commission, Ursula von der Leyen. “We are in a rearmament era. And Europe is ready to massively increase its defense spending. ”
The announcement was made a day after US President Donald Trump paralyzes military aid to Ukraine, highlighting increasing differences between European and Washington leaders on the mainland security and how to deal with Russia.
Von der Leyen presented the 150 billion euros fund for Pan-European defense priorities such as air defenses, missiles and drones, as part of a broader package of proposals that, according to her, can mobilize up to 800 billion euros for Europe’s defense.
European Union leaders will hold initial discussions about proposals in a special summit dedicated to defense and Ukraine on Thursday. Some elements of the package will require the approval of EU governments.
Trump has accused European countries to depend on United States protection through the NATO alliance instead of spending enough on their own defenses. European leaders insist that they are now rapidly increasing defense spending.
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Much of the committee’s package focuses on encouraging the bloc members to spend more in defense and reorient existing funds instead of providing new EU features.
It does not include a joint loan proposal for grants – instead of funding – for defense projects, as countries such as Baltic States and France defended, but rejected by Germany and the Netherlands.
Polish Defense Minister Wladyslaw Kosiniak-Kamysz said grants would be a better option. “I believe it would be more effective,” reporters told reporters. Germany Foreign Minister Annalena Baerbock said the package was “an important first step.”
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As part of the plan, the European investment bank – the EU’s governments bank – said it will suspend funding boundaries for defense projects and expand the scope of what is eligible, although it maintains a prohibition on the financing of weapons and ammunition.
