EU presents 800 mld euro plan for Europe arming

She said that the plan for Europe's <x0-drugm could reach the figure of around 800 billion euros”.

The plan includes a new 150 billion-euro joint loan to help European Union member states improve their defence capacities.

The initiative is part of Europe's vaster 800 billion-euro financial package, which aims to strengthen Europe's security and defence capabilities.

According to the Commission, funds will be used for the development of air and missile defence systems, artillery, rockets and ammunition, fears and anti-dronic systems, as well as other strategic needs such as cyber security and military mobility.

“This will help member states join demand and make joint purchases, lower costs, reduce fragmentation, increase interoperability and strengthen the industrial defence base,” said European Commission President Ursula von der Leyen.

European Union leaders will review this proposal during a special summit on defence spending, to be held Thursday.

In addition to joint borrowing, the Commission also proposed lifting restrictions on government spending imposed on EU regulations, in cases where investments go to defence. According to von der Leeyen, an average 1.5% GDP increase in defence spending by member states could create a fiscal space of 650 billion euros.

Similarly, the Commission suggested that EU funds, which are usually used for equalising living standards in different regions of Europe, could be used for defence investments.

At the conclusion of the plan's presentation, von der Leenen stressed the importance of Europe's greater commitment to its security.

Europe is willing to take on its responsibilities. We can mobilise about 800 billion euros for a safer and more flexible Europe. We will continue to cooperate closely with NATO. This is a crucial moment for Europe and we are ready to act,” she said.