EU plans $842bn defence strategy to strengthen Europe's security

Tuesday 04 March 2025 - 15:06

By: Zahouani Ilham

EU plans $842bn defence strategy to strengthen Europe's security

The European Commission (EC) President, Ursula von der Leyen, has put forward a comprehensive five-point plan to mobilize approximately 800 billion euros ($842 billion) to enhance Europe’s defense capabilities. This plan is also designed to provide "immediate" military support to Ukraine following the suspension of aid by the United States.

In a letter to 27 European Union (EU) leaders, two days before a key summit on Ukraine and Europe’s long-term security, von der Leyen emphasized that Europe is facing unprecedented threats, stressing that the danger is more immediate than ever before. "A new era is upon us," she stated.

EU leaders face growing pressure to ramp up defense spending, especially after US President Donald Trump’s return to power, signaling that Europe cannot rely solely on Washington for protection. The proposed funds would be used to strengthen areas such as air and missile defense, artillery systems, missiles, drones, and cyber defense. The EC also highlighted the importance of increasing military mobility across the continent.

As part of the strategy, von der Leyen recommended a new joint EU borrowing initiative of 150 billion euros ($158 billion) to provide loans to EU governments for defense spending. While the timeline for these investments is not fully detailed, she stressed that funding needs to be urgently increased both now and over the next decade.

"Europe is ready to assume its responsibilities," von der Leyen affirmed. The plan signals Europe’s readiness to step up its defense efforts while continuing close cooperation with NATO. Her proposal came shortly after President Trump ordered a pause in military aid to Ukraine amidst ongoing tensions with President Volodymyr Zelenskyy. Trump has also urged European NATO members to allocate 5 percent of their GDP to defense, a target that none of them, including the US, currently meets.

For years, EU nations have been reluctant to significantly increase defense spending, relying on the US nuclear umbrella and grappling with economic challenges. However, under this new proposal, EU member states would be required to boost their military spending, which currently stands below 2 percent of GDP. NATO Secretary-General Mark Rutte has urged members to swiftly raise their defense budgets to over 3 percent.