EU has approved the White Paper on Defence and details of the ReArm Europe plan: what is envisaged for Ukraine
Kyiv • UNN
The European Commission has approved the White Paper Readiness 2030 and the ReArm Europe plan. This is a major step towards a safer Europe, aimed at deterring Russia and supporting Ukraine.
The European Commission has approved the White Paper on European Defence, as well as the ReArm Europe plan. This was announced by European Commissioner for Defence Andrius Kubilius on Wednesday, reports UNN.
Details
"Today, the European Commission approved the White Paper on European Defence – Readiness 2030 and the ReArm Europe/Readiness 2030 plan. A big first step towards a safer Europe," Kubilius wrote on X.
As reported by the European Commission, the White Paper on European Defence – Readiness 2030 was presented today. The European Commission also presented, as part of the ReArm Europe/Readiness 2030 plan, an ambitious defence package that provides EU member states with financial leverage to increase investment in defence capabilities.
While the ReArm Europe/Readiness 2030 plan strengthens pan-European defence capabilities through new financial means, the White Paper, as stated, defines a new approach to defence and identifies investment needs.
European Commission President Ursula von der Leyen said on the matter: "We need to buy more European defence equipment. This means stimulating innovation."
These measures, as stated, are aimed at addressing the short-term urgency of supporting Ukraine, as well as addressing the urgent long-term need to strengthen Europe's security and defence.
White Paper on European Defence – Readiness 2030
"The White Paper presents solutions to address critical capability gaps and build a strong defence industrial base. It proposes ways for Member States to invest massively in defence, procure defence systems and build the readiness of the European defence industry in the long term. This is important for Europe's security. Europe must invest in the security and defence of the continent, while continuing to support Ukraine to protect itself from Russian aggression," the European Commission said. To effectively address these challenges, the White Paper reportedly outlines a number of key areas for action:
- Addressing capability gaps, with a focus on critical capabilities identified by Member States.
- Supporting the European defence industry through aggregate demand and increased joint procurement volumes.
- Supporting Ukraine by increasing military assistance and deepening the integration of the European and Ukrainian defence industries.
- Deepening the pan-European defence market, including by simplifying rules.
- Accelerating defence transformation through disruptive innovations such as AI and quantum technologies.
- Increasing Europe's preparedness for worst-case scenarios by improving military mobility, building up stockpiles and strengthening external borders, in particular the land border with Russia and Belarus.
- Strengthening partnerships with like-minded countries around the world.
ReArm Europe/Readiness 2030 Plan
As announced by President von der Leyen, the ReArm Europe/Readiness 2030 plan envisages expenditure of over EUR 800 billion, structured around the following components:
- Unlock the use of public funding for defence at national level.
The European Commission has proposed that Member States activate the safeguard clause at national level with regard to the Stability and Growth Pact, which will give them additional budgetary space to increase defence spending within the EU's fiscal rules. To ensure fiscal sustainability, the derogation will be limited to:
- an increase only in defence spending, taking as a starting point the statistical category 'defence' in the Classification of Functions of Government (COFOG);
- a maximum of up to 1.5% of GDP for each year the opt-out is activated at national level;
- a period of four years.
- A new special security instrument for Europe – SAFE.
In the light of the current extraordinary circumstances, the European Commission will raise up to EUR 150 billion on the capital markets, building on its well-established unified funding approach, to help EU Member States rapidly and substantially increase investment in Europe's defence capabilities. These funds will be disbursed to interested Member States on demand, based on national plans.
The disbursements will take the form of long-term loans at a competitive price and an attractive structure, which are to be repaid by the beneficiary Member States. The loans will be secured by a reserve from the EU budget. SAFE will enable Member States to immediately and massively increase their investment in defence through joint procurement from the European defence industry, focusing on priority capabilities. This will help ensure interoperability, predictability and lower costs for a strong European defence industrial base.
"Ukraine and EFTA/EEA countries will be able to join joint procurements, and it will be possible to buy from their industries. SAFE will also allow joining countries, candidate countries, potential candidates and countries that have signed a security and defence partnership agreement with the EU to join joint procurements and contribute to aggregate demand. They can also agree on specific mutually beneficial arrangements for the participation of their respective industries in such procurements," the European Commission said.
- Using the EIB Group and mobilising private capital by accelerating the creation of the Savings and Investments Union.
The ReArm Europe/Readiness 2030 plan also relies on the European Investment Bank Group to expand the scope of lending to defence and security projects, while maintaining its financial capacity. In addition to unlocking significant funding, this will send a positive signal to the markets, the European Commission noted.
At the same time, it is stated that public investment is not enough to meet the investment needs of the defence industry, from start-ups to large established companies. "To this end, the Savings and Investments Union Strategy, adopted today by the European Commission, will make it easier to mobilise private savings in more efficient capital markets and channel investment into critical sectors of the economy, such as defence, for those who wish to invest in them," the statement said.
Addition
Politico previously reported that the EU aims to launch a large-scale project to build up its defence industry, aimed at deterring Russia and supporting Ukraine, at a time when the US is "retreating" from the continent, according to a draft of the so-called White Paper on Defence.
The EU previously presented the ReArm Europe plan for €800 billion to strengthen defence, which is also aimed at Ukraine.
