EU stands firm: the ReArm Europe Plan

We look today at the Press statement of the Commission President on the defence package, where landmark proposals were announced, to be discussed at today’s (6th of March) Extraordinary European Council. The statement references the letter written by the President to Leaders ahead of the European Council. In the letter she outlines the ReArm Europe Plan. The plan focuses on how to use all the financial levers to help Member States to increase expenditures in defence capabilities. There are five proposals: (i) the activation the national escape clause of the Stability and Growth Pact; (ii) a new instrument to provide EUR 150 billion of loans to Member States for defence investment; (iii) voluntary use of cohesion policy programmes to increase defence spending; (iv) mobilising private capital by accelerating the Savings and Investment Union; (v) mobilising the European Investment Bank.