The European Union is preparing to give its member states more leeway to ramp up their defense budgets—without being penalized for breaching the usual deficit limits. If the plan moves forward, nations exceeding the 3% budget deficit threshold won’t be held accountable for it.
European Commission President Ursula von der Leyen is urging swift action. “The real question in front of us is whether Europe is prepared to act as decisively as the situation dictates. And whether Europe is ready and able to act with the speed and the ambition that is needed.”
800 billion euro’s
Under the proposal, EU nations could collectively raise an additional €650 billion for defense over the next four years. On top of that, a €150 billion loan would be made available to countries investing in pan-European projects—ranging from air defense and artillery to missile systems and drones.
“This is Europe’s moment”
These investments could also support Ukraine, von der Leyen emphasized. “This approach of joint procurement will also reduce costs, reduce fragmentation, increase interoperability, and strengthen our defense industrial base. And it can be to the benefit of Ukraine, as I have just described. So this is Europe’s moment, and we must live up to it.”
European leaders will meet in Brussels this Thursday for an emergency session to discuss the proposal.
