The European Union is preparing an €800 billion re-armament initiative. Within this project, €150 billion in credit will be provided to member states for defense investments. President of the European Commission Ursula von der Leyen introduced the EU’s new defense package and re-armament plan. Pointing out the crucial and perilous times being faced, von der Leyen emphasized that facing the consequences without preparation could be devastating. Speaking at a press conference in Brussels, von der Leyen stressed that Europe’s security is truly under threat and that Europe needs to take more responsibility for its own security. Emphasizing the importance of Europe taking resolute and swift action, von der Leyen stated, “We are clearly in an era of re-armament. Europe is ready to significantly increase defense expenditures.” Highlighting the need for Europe to consider immediate needs, continue support for Ukraine, and take greater responsibility for security in the long term, von der Leyen mentioned that she sent a letter to the leaders before the EU Summit on Thursday summarizing the plan to re-arm Europe. In her letter, von der Leyen outlined a series of proposals focusing on how to utilize all available financial tools to help member countries rapidly and significantly increase defense spending both urgently and in the long term. Defense expenditures will be exempted from financial rules. Von der Leyen explained that the first part of Europe’s re-armament plan will unleash the use of public funds for national defense. She described that countries are ready to invest more in their security if their financial situations permit. She noted that they will propose activating the opt-out clause in EU financial rules, meaning member countries’ increase in defense spending won’t be considered a violation of financial regulations, allowing them to comfortably raise defense expenditures. Von der Leyen stated, “If EU member countries raise defense spending on average by 1.5% of their GDP, it could create an economic space of around €650 billion over a four-year period.” The second proposal is to provide a new tool that will offer member states a €150 billion credit for defense investments. Von der Leyen said this would focus on making joint defense expenditures, encompassing a variety of capacities such as air and missile defense, artillery systems, missiles, ammunition, drones, and anti-drone systems to be increased across Europe. She mentioned that this would help member countries pool their demands, collectively make purchases, and provide urgent military equipment to Ukraine. The third aspect of the plan involves leveraging the power of the EU budget to allocate funds to defense investments swiftly. Von der Leyen stated that they will offer options including compliance policy programs for member countries to increase defense spending. She expressed their aim to accelerate efforts for savings and investment unity within the EU for defense contributions and mobilize more private capital through the European Investment Bank (EIB). Von der Leyen affirmed, “Europe is ready to take on responsibilities. Europe’s re-armament plan could trigger approximately €800 billion in defense spending.” Moreover, an extraordinary EU Leaders Summit on Ukraine and defense will be held in Brussels on March 6th.