The European Commission's ReArm Europe Plan/Readiness 2030, presented in March 2024, proposes to leverage over €800 billion in defence spending through national fiscal flexibility, a new €150 billion loan instrument (SAFE) for joint procurement, potential redirection of cohesion funds, and expanded European Investment Bank support. It also aims to mobilise private capital through the savings and investments union. ReArm Europe has sparked debate. While many welcome its ambition and the EU's growing role in defence, concerns remain about democratic oversight, defence market fragmentation, and economic sustainability. Alternative ideas, such as creating a new Rearmament Bank, or a Defence, Security and Resilience Bank, have gained traction. These could offer low-interest loans and risk guarantees to support European and allied defence investment. Experts caution that, while the ReArm Europe Plan is an important political signal, it must be followed by practical measures to ensure impact. They stress the need to pool procurement, prioritise European-made equipment, and build a more integrated defence industrial base. Others argue the plan should go further, including options for grant-based financing and more robust governance structures. The coming months will be crucial in determining whether ReArm Europe can deliver a truly coordinated and resilient European defence effort. During a March 2025 debate, the majority of political groups in the European Parliament voiced strong support for boosting Europe's defence, backing the ReArm Europe Plan while calling for a long-term strategy. Many urged enhanced strategic autonomy, secure access to resources, and continued aid to Ukraine. Concerns were raised over the sidelining of Parliament through use of Article 122 TFEU and the risk of over-reliance on emergency measures. Some warned that defence spending must not come at the expense of green, social, and R&D funding. Source : © European Union, 2025 - EP Read more