The proposals are part of an acute five-point plan, Uprust EU, ahead of the member states' summit in Brussels on Thursday.
Europe is ready to massively increase its defense spending, both in the short term to support Ukraine, but also in the long term to take responsibility for our own security, says Commission President Ursula von der Leyen at a press conference.
The plan includes, above all, easing the EU's otherwise strict budget rules so that countries do not have to risk fines and austerity measures for investments and loans to defense. In total, it could amount to up to 650 billion euros (7,200 billion kronor) for defense – if all countries increase their defense spending by an average of 1.5 percent of GDP.
New Billion Fund
The Commission is also proposing a new EU fund where 150 billion euros (1,600 billion kronor) will be opened up for loans that member states can use for joint investments in, for example, air defense, artillery, drones, and ammunition.
With this equipment, member states will be able to increase their support for Ukraine enormously, immediately, says von der Leyen.
Point three is that EU countries will have the opportunity to use regional support funds for defense purposes, while points four and five deal with getting more private money into defense through the European Investment Bank, EIB, and accelerating the EU's savings and investment union.
No from Hungary?
At the same time, EU Foreign Minister Kaja Kallas is trying to get a separate proposal through to also help Ukraine acutely with at least 200 billion kronor in support.
According to the news site Politico Europe, however, Hungary and Slovakia are saying a flat no, which has led to the formulation about the support being temporarily removed from the statement that EU countries hope to agree on at the summit on Thursday.
There are still hopes of circumventing the opposing countries by making it voluntary for member states to participate.
"Europe must take care of its own deterrence and defense", writes EU Commission President Ursula von der Leyen in a letter to EU countries about her five-point plan to uprust EU.
Much is still unclear – for example, where the money will come from for a new EU fund of 150 billion euros. Speculations have been heard that the Commission wants to transfer over 90 billion euros that have not been applied for from the EU's large coronavirus fund. Such a solution risks not being approved by, for example, Germany's constitutional court.
Nothing has been made public about the conditions for easing budget rules. Here, different countries have different views on whether all should be given exemptions or whether tougher tags should apply to countries that have chosen to save the most on their defense.
