Why we need to act today
In an era of rapid geopolitical shifts, the European Union is stepping up to protect its citizens and strengthen its defence capabilities.
Preparedness is key - taking responsibility for our own security means investing in robust defence, safeguarding our people, and ensuring we have the resources to act when needed.
The White paper for European defence - Readiness 2030 sets out a vision to rearm Europe by:
- ensuring the European defence industry can produce at the requested speed and volume
- facilitating rapid deployment of military troops and assets across the EU
The increase in defence spending will be ‘made in Europe’: ensuring both our long-term security and economic benefits for all EU countries. It will also help the EU to respond to the short-term urgency of supporting Ukraine.
White paper for European defence - Readiness 2030
The white paper paves the way for a true European defence union in which EU countries will remain in the driving seat for defence whilst benefitting from the added value offered by being in the EU.
It offers solutions to strengthen the defence industry by closing important gaps and ensuring long-term readiness. It also suggests ways for Member States to invest heavily in defence, buy necessary equipment, and support the industry’s growth over time.
The white paper outlines 3 key areas of action:
- Closing capability gaps and supporting the European defence industry, including simplifying regulations and streamlining industrial programmes.
- Deepening the single defence market and accelerating the transformation of defence through disruptive innovations such as AI and quantum technology.
- Enhancing European readiness for worst-case scenarios, by improving military mobility, stockpiling, and fostering operational cooperation across the EU.
Investing in European defence means investing in lasting peace and long-term stability for both current and future generations. But not only. It also means boosting technological innovation, supporting European competitiveness, promoting regional development and powering economic growth.
However, simply spending more is not enough. Member States need to spend better, work together, and prioritise European companies. The EU can support this by helping Member States coordinate their investments and develop defence equipment within Europe.
Because security challenges affect the entire world, working closely with our allies, is the only way to ensure that security remains our shared commitment.
ReArm Europe Plan/ Readiness 2030: the plan to finance EU defence
The ReArm Europe Plan/ Readiness 2030 will boost defence funding by giving EU countries more financial flexibility.
It will achieve this by:
- activating the national escape clause of the Stability and Growth Pact, allowing Member States to increase defence spending. A 1.5% GDP increase in defence budgets could create nearly EUR 650 billion in fiscal space over four years.
- launching a EUR 150 billion loan instrument - Security Action for Europe (SAFE) - that will help countries invest in key defence areas like missile defence, drones, and cyber security. The funds will be raised on capital markets and disbursed to interested Member States upon demand, based on national plans. SAFE will encourage Member States to spend better, together and European.
- supporting the European Investment Bank Group in widening the scope of its lending to defence and security projects and accelerating the Savings and Investment Union to mobilise private capital so that the European defence industry is not reliant on public investment alone
Fully leveraging these financial tools will have positive effects for our economy and competitiveness. This includes building new factories and production lines essential for generating good jobs in Europe.
Background
The political guidelines of President von der Leyen announced a new approach to strengthen the EU’s defence industry. The White paper for European defence - Readiness 2030 helps shape this approach by identifying investment needs and promoting smarter, joint spending to build EU defence capabilities.
The Paper complements key reports, including the ‘Niinistö Report’ on strengthening EU’s civil and military preparedness and readiness, the Draghi report, and the upcoming Preparedness Union Strategy.