EU’s Von Der Leyen Proposes $840 Billion European ‘Rearmament’ Plan as Zelensky Caves on Ceasefire Talks
European Commission President Ursula von der Leyen proposed an $840 ‘rearmament’ plan for Europe, while President Volodymyr Zelensky on Tuesday made a U-turn, agreeing to a negotiated end to the war in Ukraine.
“We are in an era of rearmament,” Von der Leyen declared, “And Europe is ready to massively boost its defence spending.”
Von der Leyen’s “ReArm Europe” plan will require massive borrowings, as the EU’s two biggest economies, France and Germany, have been shrinking due to negative growth numbers.
“The European Commission proposed on Tuesday to borrow up to 150 billion euros ($157.76 billion) to lend to EU governments under a rearmament plan driven by Russia’s war in Ukraine and fears that Europe can no longer be sure of U.S. protection,” Reuters reported. “The announcement came the day after U.S. President Donald Trump paused military aid to Ukraine, highlighting a growing divergence between European leaders and Washington over the continent’s security and how to handle Russia.”
The multi-billion plan seeks to overhaul the military capabilities of the EU’s 27 member states, investing in the bloc’s abilities to field larger armies and boost defense manufacturing. “The five measures she outlined, which she details in a letter to EU leaders ahead of an extraordinary summit on Thursday, include a “new instrument” to provide €150 billion in loans to member states to finance joint defence investments in pan-European capabilities including air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems,” France’s Euronews TV channel reported.
Germany’s state-run DW TV reported the details of the proposed EU plan:
European Commission President Ursula von der Leyen on Tuesday presented a plan to bolster Europe’s defense industry and increase military capabilities.”We are in an era of rearmament, and Europe is ready to massively boost its defense spending,” Von der Leyen said.She said the plan, dubbed “ReArm Europe,” could mobilize around €800 billion ($841.5 billion).The announcement comes after Washington suspended all military aid to Ukraine, days after US President Donald Trump clashed with Ukraine’s Volodymyr Zelenskyy at the Oval Office.Von der Leyen had suggested the rearmament plan after emerging from the closed-door meeting on Ukraine at Lancaster House in London over the weekend.Von der Leyen outlined the five-point plan at a critical time for the future of Europe’s security.One of them is a proposal to suspend strict budget rules to allow member states to ramp up “their defence expenditures without triggering the excessive deficit procedure,” Von der Leyen said.She referred to a mechanism designed to ensure public finance stability as it forces governments to lower deficit levels if the 3% GDP threshold is breached.
After decades of reneging on promises to meet NATO spending targets and making U.S taxpayers foot the bill for the continent’s defense, European powers appear to have suddenly found the political will and necessary funds for a massive rearmament plan.
The EU proposal came as President Trump announced the suspension of all military aid to Ukraine on Monday night.
President Zelensky on Saturday declared that the end of the war between Ukraine and Russia was “still very, very far away,” a statement seen as a rebuff to Washington’s diplomatic efforts to secure a ceasefire between the two countries. President Trump reacted sharply to the statement. “America will not put up with it for much longer,” he said on X.
Following Trump’s decision to pause all military aid to Kyiv, Zelensky appears to have had a ‘change of heart.’ On Tuesday, Zelensky announced on X that he would return to the negotiating table.
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