“The peace in our Union can no longer be taken for granted. We are facing a crisis in European security. But we know that it is in crises that Europe has always been built. So, this is the moment for peace through strength. It is the moment for a common defense. In the coming weeks and months, more courage will be needed. And more difficult choices await us. The time for illusions is over.” This was stated by the President of the European Commission, Ursula von der Leyen, speaking at the Plenary on RearmEU.
“At the European Council, I saw a level of consensus on European defense that not only unprecedented, it was entirely unthinkable just a few weeks ago. There is a new awareness that we must think differently and act accordingly,” observed von der Leyen, adding: “The European security order has been shaken and many of our illusions are shattering. After the end of the Cold War, some believed that Russia could be integrated into Europe’s economic and security architecture. Others hoped to indefinitely rely on America’s full protection. And so, we let our guard down. We reduced defense spending from an average of over 3% to less than half.” Von der Leyen then quoted Alcide de Gasperi emphasizing the need for a common defense “as a deterrent” to those who threaten a united Europe.
“We want to leverage every financial lever we have to strengthen and accelerate our defense production. With the Rearm Europe plan, we can mobilize up to 800 billion euros,” reiterated the President of the European Commission, who then focused on some points of RearmEU. “Firstly, the national safeguard clause. I would like to start with why it is crucial to mobilize national budgets. Today we spend just under 2% of our GDP on defense. All analyses agree that we need to move to more than 3%. The entire European budget only reaches 1% of our GDP. It is therefore obvious that most new investments can only come from Member States. That is why we are activating the national safeguard clause. This is a new tool created just last year. And we propose to activate it in a controlled, time-limited, and coordinated manner for all Member States. This can transform our defense budgets quickly and effectively. Member States could mobilize up to 650 billion euros in the next four years, adding 1.5% of GDP to their defense budgets in four years,” she emphasized. “Secondly, the European Council has approved our proposal for a new financial instrument. We have called it Safe. Security Action for Europe. We offer Member States up to 150 billion euros in loans – to invest following some basic principles. They could focus on selected strategic capability domains, from air defense to drones, from strategic tools to cyber, to maximize the impact of our investments. These loans should finance purchases from European producers, to contribute to the revival of our defense industry,” she added.
Using cohesion funds for RearmEU “is an option we are offering to Member States. Member States will have the opportunity to redirect some of their unspent funds towards defense-related projects. This could be infrastructure or research and development. It is a voluntary choice. It will be up to the Parliament and the Council to decide on this additional option,” von der Leyen added, speaking at the Plenary of the European Parliament. “For the same reason, Rearm Europe also includes measures to mobilize private investments, with the European Investment Bank and the upcoming Savings and Investment Union. Let me add that all of this will have positive implications for our economy and competitiveness,” von der Leyen emphasized. “We would all like to live in quieter times. But I am confident that, if we unleash our industrial power, we can restore deterrence against those who seek to harm us.
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