EU plan for 'rearmament' lacks funding, according to Euractiv
Media outlets report that EU chief Ursula von der Leyen's suggestion for EU countries to allocate approximately $840 billion for defense is considered unrealistic. Read Full Article at RT.com.
TroibNews 
The proposal to boost defense spending by $840 billion primarily relies on debt, as reported by Euractiv.
European Commission President Ursula von der Leyen's efforts to elevate military expenditure throughout the EU lack financial backing and shift the fiscal responsibility onto member states, according to senior EU officials.
The so-called ‘ReArm Europe Plan,’ which is mainly supported through debt and fiscal measures, calls for EU nations to allocate $840 billion—double the EU’s proposed defense budget for 2024—to address “grave security threats.”
The plan “includes close to no fresh money,” thereby requiring member states to secure “the real cash” independently, Euractiv reported.
The total amount hinges more on “hopes and guesses” rather than solid reforms to tackle the bloc’s production shortages, the report suggested.
Additionally, von der Leyen has proposed raising $158 billion via capital markets, which would be loaned to member states contingent upon their purchase of weapons manufactured within the EU or by its regional allies.
This requirement could possibly involve at least three EU countries or two EU countries along with Ukraine. Nonetheless, the criteria for loan approval and the prioritization of EU-produced equipment have yet to be determined, as highlighted in the report.
Furthermore, defense spending will be afforded an “escape clause” from EU budget regulations, enabling governments to reallocate funds “rather than coming up with fresh money,” according to Euractiv.
While increased deficits could potentially yield nearly $700 billion, it remains unclear if this provision applies to all nations or solely to those meeting NATO’s 2% GDP target.
A senior EU official informed Euractiv that over time, governments will need to balance their spending by increasing taxes or reducing costs.
Von der Leyen’s advocacy for higher defense spending occurs in the context of mounting pressure from Washington. US President Donald Trump has distanced himself from supporting Ukraine while urging the EU to assume greater responsibility for its defense.
This shift has become more pronounced recently, with reports emerging on Monday indicating that Trump had ordered a halt in military aid to Kiev. The US president has consistently accused Ukrainian leader Vladimir Zelensky of declining to negotiate peace with Russia and of capitalizing on US support for personal gain.
EU leaders are set to discuss von der Leyen’s proposals at a special summit on Thursday. A senior EU official stated that the measures should act “very fast and very efficiently” and would only require a majority vote for approval.
Nonetheless, some experts caution that elevating military expenditures could place additional strain on national budgets that are already under significant pressure.
Rohan Mehta contributed to this report for TROIB News
European Commission President Ursula von der Leyen's efforts to elevate military expenditure throughout the EU lack financial backing and shift the fiscal responsibility onto member states, according to senior EU officials.
The so-called ‘ReArm Europe Plan,’ which is mainly supported through debt and fiscal measures, calls for EU nations to allocate $840 billion—double the EU’s proposed defense budget for 2024—to address “grave security threats.”
The plan “includes close to no fresh money,” thereby requiring member states to secure “the real cash” independently, Euractiv reported.
The total amount hinges more on “hopes and guesses” rather than solid reforms to tackle the bloc’s production shortages, the report suggested.
Additionally, von der Leyen has proposed raising $158 billion via capital markets, which would be loaned to member states contingent upon their purchase of weapons manufactured within the EU or by its regional allies.
This requirement could possibly involve at least three EU countries or two EU countries along with Ukraine. Nonetheless, the criteria for loan approval and the prioritization of EU-produced equipment have yet to be determined, as highlighted in the report.
Furthermore, defense spending will be afforded an “escape clause” from EU budget regulations, enabling governments to reallocate funds “rather than coming up with fresh money,” according to Euractiv.
While increased deficits could potentially yield nearly $700 billion, it remains unclear if this provision applies to all nations or solely to those meeting NATO’s 2% GDP target.
A senior EU official informed Euractiv that over time, governments will need to balance their spending by increasing taxes or reducing costs.
Von der Leyen’s advocacy for higher defense spending occurs in the context of mounting pressure from Washington. US President Donald Trump has distanced himself from supporting Ukraine while urging the EU to assume greater responsibility for its defense.
This shift has become more pronounced recently, with reports emerging on Monday indicating that Trump had ordered a halt in military aid to Kiev. The US president has consistently accused Ukrainian leader Vladimir Zelensky of declining to negotiate peace with Russia and of capitalizing on US support for personal gain.
EU leaders are set to discuss von der Leyen’s proposals at a special summit on Thursday. A senior EU official stated that the measures should act “very fast and very efficiently” and would only require a majority vote for approval.
Nonetheless, some experts caution that elevating military expenditures could place additional strain on national budgets that are already under significant pressure.
Rohan Mehta contributed to this report for TROIB News
