The five key points of the Rearm Europe Plan for increasing defense spending in European countries were announced on Tuesday morning by Ursula von der Leyen, who spoke of the “era of rearmament.”

Describing the contents of a letter she sent to the leaders of the EU-27, von der Leyen explained that it involves the mobilization of up to €800 billion to boost defense spending, as well as the activation of the escape clause to allow European states to invest in defense without triggering the excessive deficit procedure.

“This is Europe’s moment, and we must rise to the occasion,” emphasized the President of the European Commission.

Our goal, explained the President of the European Commission, is for Europe to respond both to the short-term need to support Ukraine and, in the long term, to take responsibility for the security of the Old Continent.

The five points of von der Leyen’s plan:

• First, we must free up fiscal space for defense spending at the national level. We propose activating the escape clause so that member states can increase their defense expenditures without triggering the excessive deficit procedure. If member states increase defense spending by an average of 1.5% of GDP, a fiscal space of €650 billion will be created over four years.
• Second, a new €150 billion loan instrument will be introduced to help countries invest in defense—allowing for better and joint spending, such as on air defense systems, ammunition, and drones. This will support Ukraine while also reducing costs for EU member states. This is Europe’s moment.
• Third, we will use the EU budget to channel resources into defense investments.
• Fourth, we will mobilize private capital through the Savings and Investment Union.
• Fifth, we will mobilize private capital through the European Investment Bank.

“Europe is ready to take on its responsibilities and mobilize €800 billion for a safer Europe. We will work closely with our NATO allies,” concluded the President of the European Commission.