Update
The ‘rearmar to Europe’ plan foresees the mobilization of about 800 billion euros and the flexibility of budget rules to encourage investment in defense.
The president of the European Commission, Ursula Von Der Leyen, announced on Tuesday the new plan to strengthen the defense industry and increase the military capabilities of the European Union, which includes the mobilization of about 800 billion euros and the flexibility of budget rules to encourage investment.
At a press conference in Brussels, the said the plan “rearmar to Europe” works mobilize “800 billion euros in defense expense for a safe and resilient Europe”.
The plan also foresees available 150 billion euros of financing to the 27 Member States, which may reafferate funds for defense and rearmament.
Brussels even proposes to give more tax space to the 27 member states for defense investments, without triggering a procedure for excessive deficit.
“If Member States increased their defense expenses in 1.5% of GDP, on average, this could create a budget margin of about 650 billion euros over a period of four years (…) This measure will allow Member States to significantly increase their defense expenses without triggering the procedure by excessive deficit. “
Ursula von der Leyen added that “Europe is prepared to act with the required decision and speed” and must respond to short and long term needs.
The plan, which will be sent to the Member States later and debated on Thursday at the Extraordinary European Council, will allow “immediate” help to Ukraine.
