A five-part plan to strengthen Europe’s defense industry and enhance its military capabilities, proposed by the head of the European Commission, Ursula von der Leyen, could mobilize nearly €800 billion. This proposal aims to provide urgent military support to Ukraine following the U.S. suspension of aid to Kyiv. Key components of the plan include granting member states more fiscal flexibility for defense investments, providing €150 billion in loans for these investments, and encouraging private sector investment. The plan also includes using joint EU borrowing to fund pan-European defense capabilities and potentially easing fiscal constraints on defense spending to allow for an average increase of 1.5% of GDP spent on defense among member states. The proposal is set to be discussed by EU leaders at a special summit on defense spending in Brussels, though immediate decisions may not be made.

Source: https://www.theguardian.com/world/2025/mar/04/eu-plan-to-bolster-europes-defences-could-raise-800bn-for-ukraine