European Commission President Ursula von der Leyen proposed on Tuesday a new fund that could mobilize nearly 800 billion euros for defense investments across the European Union, including military aid to Ukraine, writes the European Newsroom (ENR) – a platform for cooperation between 23 European news agencies, BTA reported.
"We are in an era of rearmament and Europe is ready to massively increase its defense spending," Von der Leyen said in Brussels.
Her proposal, aimed at strengthening the EU's defense capabilities, proposes to allow member states more flexibility in defense spending, to ease the EU's usually strict rules on debt and deficit and to reallocate funds from regional development funds to military investments.
The plan also includes 150 billion euros in loans for critical defense areas such as air and missile defense, artillery systems, drones and military mobility, Von der Leyen explained. "With this equipment, member states can massively increase their support for Ukraine," she added.
The commission hopes that, together with private capital and additional funds from the European Investment Bank (EIB), this proposal can mobilise a total of 800 billion euros for defence.
"We are living in the most crucial and dangerous times," said von der Leyen. EU leaders will discuss the proposal at a special summit in Brussels on Thursday.
But the proposal faces internal resistance. Hungarian Prime Minister Viktor Orbán and Slovak Prime Minister Robert Fico have indicated that they will block any EU-wide decision to arm Ukraine, preferring bilateral agreements.
"We must rise to the occasion": Europe's challenge to rearm
"This is Europe's moment and we must rise to it," von der Leyen said in announcing her new plan to rearm Europe. But even after three years of war in Ukraine, European countries are struggling to spend more on defense.
Despite calls for increased defense spending, many European countries have been slow to commit. NATO's goal of spending at least 2 percent of gross domestic product (GDP) on defense, which the United States has insisted on, is still a benchmark that many countries are struggling to meet. Portugal, for example, has committed to achieving this goal only by 2030.
Slovenia, which is one of the lowest-spending countries in NATO, currently spends around 1.35% of GDP on defense, with plans to increase this to 2% by 2030. On the other hand, countries such as the Czech Republic are aiming to exceed the 2% threshold, with Prime Minister Petr Fiala aiming to reach 3% in the coming years.
In North Macedonia, a NATO member and EU aspirant, the government also plans to spend more than 2 percent of GDP on defense.
While this is a positive step, it remains difficult for many EU countries, especially those with limited defense budgets and outdated military infrastructure.
Bulgaria, a member of NATO and the EU, produces and exports defense equipment, but faces challenges in modernizing its Soviet-era military. Despite plans to increase defense spending to 2.5 percent of GDP by 2025, experts predict the actual budget will be closer to 2.1 percent, constrained by fiscal realities.
Europe stands with Ukraine
The announcement of a significant increase in defense spending and military aid to Ukraine comes after U.S. President Donald Trump's administration announced on Monday that it would temporarily suspend U.S. military aid to Ukraine.
Trump's decision to suspend aid followed his verbal attack on Ukrainian President Volodymyr Zelensky at the White House in front of reporters, which heightened concerns that he intends to force Kiev to sign a peace deal that would give Russian President Vladimir Putin what he wants.
While the newly re-elected president has presented himself as a mediator between Putin and Zelensky, his approach has sidelined Kiev and Europe as he seeks rapprochement with the Russian leader.
This change was fully evident in the Oval Office meeting with Zelensky, whom Trump accused of not being grateful enough for US aid and not being "ready" for peace with Russia.
However, European leaders united in support of Kiev, and the summit in London, previously organized by the UK Prime Minister Keir Starmer, at which a peace plan was to be presented to the US, turned into a recovery session for Zelensky after the insulting visit to the White House.
On Sunday, Zelensky met with King Charles III, a move that London has shown a desire to bolster the Ukrainian leader's status after Trump's blow to him.
Zelensky then said the summit had reaffirmed the countries' commitment to work for peace. "We need peace, not endless war", he said on Telegram. "In the near future, all of us in Europe will form our common positions - the lines we need to achieve and the lines we cannot compromise on", he added. "These positions will be presented to our partners in the United States."
Starmer also said that Britain, France "and others" will work with Ukraine on a plan to halt the fighting, which they will then present to Washington.
French President Emmanuel Macron, who returned from the summit, told the newspaper "Figaro" that France and Britain want to offer a partial one-month ceasefire "in the air, at sea and in terms of energy infrastructure".
Polish Prime Minister Donald Tusk called on the United States and Europe to show Putin "that the West has no intention of capitulating to his blackmail and aggression".
"Overcoming difficulties"
Italian Prime Minister Giorgia Meloni stressed the importance of preventing the West from being divided over Ukraine during talks with Starmer in London. "I think it is very, very important to avoid the risk of the West being divided," Meloni said. "And I think that in this respect the UK and Italy can play an important role in building bridges," Meloni said.
Meloni, leader of the far-right Brothers of Italy party, enjoys a favorable relationship with Washington and has been seen as an option to repair ties with Trump after the scandal in the White House.
However, faced with an intransigent Russia and a wavering United States, the challenges for Europe to remain united behind Ukraine are considerable.
Starmer and Macron have said they are ready to send British and French troops to Ukraine to help keep the ceasefire. Without guarantees of U.S. involvement, "Europe must take on the heavy lifting," Starmer said. This is, however, a contentious point for many European countries.
Swedish Prime Minister Ulf Kristersson does not rule out the possibility of sending Swedish troops to Ukraine. But he clearly wants the US to participate. “They [the forces] must be built on the basis of American support. "They must be built on reliable structures," Kristershon said in London.
Romania's interim president, Ilie Bolojan, said the security guarantees to be provided to Ukraine would in fact be for "the entire eastern flank, from the Baltic to the Black Sea," noting that they could not be provided without US support.
Another European backer of Ukraine, Spain, wants to see the contours of the peace that will be secured in Ukraine before committing to guarding the ceasefire.
On Monday, Spanish Foreign Minister José Manuel Álvarez told Spanish media that Spain "has no problem" with sending troops abroad, but right now in Ukraine "the effort is still primarily political and diplomatic" to secure a just and lasting peace, not just a temporary ceasefire.
A special summit of EU leaders in Brussels on Thursday will be the next major meeting to chart the way forward for Ukraine. Zelensky has been invited to attend, with the debate over more EU military aid to Ukraine all the more crucial in the new Trump era.