Brussels, 24 April 2025 — The European Commission and the High Representative today presented a major step forward in strengthening Europe’s defence capabilities with the unveiling of the White Paper for European Defence – Readiness 2030 and the ReArm Europe Plan. Together, these initiatives frame a new approach to defence policy and aim to drive a substantial investment surge in the continent’s military preparedness.

Presenting the package, Commission President Ursula von der Leyen underlined the urgency of the moment. „The era of the peace dividend is long gone,” she declared. „The security architecture that we relied on can no longer be taken for granted. Europe is ready to step up.”

The White Paper outlines the strategic needs and investment priorities necessary to address Europe’s critical defence capability gaps. Simultaneously, the ReArm Europe Plan provides fresh financial instruments intended to unleash over €800 billion in defence spending across EU Member States, reinforcing Europe’s industrial and operational readiness.

Von der Leyen emphasized the importance of building a robust European defence base. „We must buy more European,” she stated. „That means strengthening the European defence technological and industrial base, stimulating innovation, and creating an EU-wide market for defence equipment.”

The measures aim to respond not only to the immediate needs posed by Russia’s ongoing aggression against Ukraine but also to Europe’s long-term security requirements.

White Paper for European Defence – Readiness 2030

As foreseen in the President’s political guidelines, the White Paper highlights Europe’s chronic underinvestment in military capabilities over recent decades. It proposes targeted actions to close critical capability gaps, support the European defence industry, and deepen integration with Ukraine’s defence sector.

The document calls for aggregated demand and collaborative procurement to strengthen the EU-wide defence market, simplifying regulations, and fostering disruptive innovations such as artificial intelligence and quantum technologies. It also proposes boosting military readiness, including improvements in stockpiling, military mobility, and reinforcing Europe’s external borders, particularly those with Russia and Belarus.

Furthermore, the White Paper advocates for stronger defence partnerships with like-minded countries globally.

ReArm Europe Plan / Readiness 2030

The ReArm Europe Plan sets a framework to enable over €800 billion in new defence investments, structured around several pillars.

Firstly, Member States are invited to activate the national escape clause of the Stability and Growth Pact, creating additional budgetary space exclusively for defence spending. Under this mechanism, Member States can increase defence expenditure by up to 1.5% of GDP annually, for a period of four years.

Secondly, the Commission announced the creation of a new financial instrument – SAFE (Security Action for Europe). Through SAFE, the Commission will raise up to €150 billion on capital markets to provide competitively priced, long-term loans to Member States. These funds will support the immediate scale-up of investments in defence capabilities through common procurement from European defence manufacturers. Ukraine and EFTA/EEA countries will also be able to participate.

Thirdly, the European Investment Bank Group will widen its lending activities to cover defence and security projects, reinforcing the sector’s financing capacity.

Finally, recognising that public funding alone will not suffice, the Commission’s newly adopted Savings and Investments Union Strategy aims to mobilise private savings into critical sectors such as defence, facilitating investments from start-ups to major industrial actors.

The combined initiatives are intended to ensure that Europe not only meets the immediate challenge of supporting Ukraine but also builds a stronger, more resilient defence framework capable of addressing future security threats.