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The European Union is taking concrete steps to increase its defense spending in response to growing geopolitical uncertainty. European leaders recognize the need for stronger security mechanisms, and European Commission President Ursula von der Leyen has made it clear that no option is off the table when it comes to funding defense. The war in Ukraine and the unpredictable stance of the United States, particularly under Donald Trump’s leadership, have intensified the push for a more autonomous European security strategy. The latest defense initiative, known as “ReArm Europe,” aims to mobilize up to €800 billion over the next four years. President von der Leyen has emphasized that this is necessary both in the short term, to continue supporting Ukraine, and in the long term, to ensure Europe takes on greater responsibility for its own security.

This ambitious funding strategy is structured across several key areas. The suspension of certain EU budgetary constraints will allow member states to increase military spending without breaching fiscal rules, unlocking approximately €650 billion. An additional €150 billion in low-interest loans is dedicated to joint procurement projects, particularly for air and missile defense systems. Existing EU funds, such as cohesion funds, may also be redirected to support defense initiatives, while the European Investment Bank is expected to adjust its lending policies to facilitate investments in the defense sector.

Beyond traditional military spending, the EU is expanding its focus to include cybersecurity and medical preparedness, acknowledging that modern security challenges extend beyond the battlefield. A proposal to use defense funds for critical medical supplies is gaining traction, emphasizing the EU’s broader approach to resilience. Investment will also target artillery and precision weapons, drones, and cyber defense, strengthening Europe’s ability to counter hybrid threats.

At the same time, concerns have been raised by civil society regarding the rapid rearmament process. One of the most debated aspects is the flexibility for Member States to reallocate Cohesion Funds towards defense spending. Cohesion funds are financial instruments of the European Union budget aimed at reducing economic and social disparities between regions. They support infrastructure projects, job creation, environmental sustainability, and economic development, particularly in less developed areas. Their goal is to promote balanced growth across the EU by improving living standards and economic opportunities. This potential budget shift has sparked fears that cohesion social funds may be reduced, affecting citizens directly. Critics warn that prioritizing military spending over social investments could create tensions within the EU, especially in regions that rely heavily on cohesion policy.

Despite Hungary’s resistance to approving the full defense package, momentum is building toward a large-scale initiative that could redefine European security for years to come. The EU’s increasing self-reliance in defense spending signals a fundamental shift in its strategic posture. With a more independent and better-funded security framework, Europe is positioning itself to protect its interests in an increasingly unstable global landscape.

Written by: Cristina Ceccarelli