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President of the European Commission Ursula von der Leyen comes to a press conference on the “Defense Package” at the EU Commission Headquarters in Brussels on March 4, 2025 (photo by Nicolas Tucat / AFP) (photo by Nicholas Tucata / AFP via Getty Images)
Nicholas Tatku | AFP | Gets the image
The President of the European Commission Ursul von der Leyen said that the new European Union plans to increase the cost of defense can potentially mobilize as much as 800 billion euros ($ 841 billion), president of Ursula von der Leyen.
“Europe is ready for a mass increase in defense costs. Both to respond to short-term urgency to act and support Ukraine, but also decide the long-term need to take much more responsibility for our own European security,” the press statement said.
Europe is in its “load era,” she said.
Von der Leyen said she wrote to the European leader ahead of the European Council meeting at the end of this week to propose a “background plan”, designed to allow EU -member states to increase defense costs. She added that it was “urgent, but also for a longer time.”
“A sharp Europe can mobilize almost 800 billion euros for a safe and sustainable Europe,” she said. “This is a moment for Europe. And we’re ready to step up.”
The plan will include 150 billion euros of a new joint EU borrowing for Member States to invest in what background der Leyen called “common European opportunities”.
“For example: Air and missile defense, artillery systems, missiles and ammunition and anti-draft systems; but also to resolve other needs from cyber to military mobility, for example,” she added.
In a letter sent by EU leaders and with CNBC swamps, von der Leyen said the new loan tool would be backed up by the EU budget.
The Earkm European Plan will also allow EU member states to use state financing at the national level by activating the national escape point in stability and EU pact. For the first time announced at the Munich Security Conference last month, this step will give countries more flexibility in how they spend their money.
Von der Leyen also pointed to options such as making changes to the EU budget and mobilizing private capital to increase defense costs.
27 EU leaders will gather in Brussels on Thursday at a meeting dedicated to the defense and support of Ukraine, where proposals for Europe will be discussed.
– Sylvia Omar CNBC contributed to this report.
