The European Commission has proposed a plan that could mobilize up to €800 billion for European defense, including providing up to €150 billion ($157.76 billion) in loans to EU governments for defense spending, citing growing security concerns following Russia’s war in Ukraine and uncertainty over U.S. support.
European Commission President Ursula von der Leyen described the current geopolitical climate as “the most momentous and dangerous of times,” emphasizing the need for Europe to significantly increase its defense spending. The proposed fund aims to finance key defense initiatives such as air defense, missiles, and drones. The plan also suggests exempting defense spending from EU debt rules and repurposing existing funds rather than introducing new EU money. The proposal is set for discussion at an upcoming EU summit.
The plan comes a day after U.S. President Donald Trump paused military aid to Ukraine, further highlighting tensions between Europe and Washington over security strategy.
