Europe must defend peace by arming itself: EU unveils defence White Paper

A European Commission White Paper launched on Thursday aims to enhance the bloc’s readiness for worst-case scenarios, by improving military mobility, stockpiling and strengthening external borders.

The European Commission on Thursday unveiled draft legislation for European Defence – Readiness 2030 and the ReArm Europe Plan.

The proposed measures aim to respond to the short-term urgency of supporting Ukraine, but also to address the pressing long-term need to boost Europe’s security and defence. The plan enables spending of over €800 billion.

“The era of the peace dividend is long gone. The security architecture that we relied on can no longer be taken for granted. Europe is ready to step up. We must invest in defence, strengthen our capabilities, and take a proactive approach to security,” European Commission President Ursula von der Leyen said on Thursday.

She said the White Paper presents solutions to close critical capability gaps and build a strong defence industrial base.

It proposes ways for member states to massively invest in defence, procure defence systems and build up the readiness of the European defence industry over the long run.

“We are taking decisive action, presenting a roadmap for 'Readiness 2030', with increased defence spending, important investments in European defence industrial capabilities. We must buy more European. Because that means strengthening the European defence technological and industrial base. That means stimulating innovation. And that means creating an EU-wide market for defence equipment,” she said.

The White Paper outlines a number of key lines of action, which includes simplifying regulation to deepen the EU-wide defence market.

It also speaks about 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 strengthening external borders, notably the land border with Russia and Belarus, and strengthening partnership with like-minded countries around the world.

The closing of capability gaps, with a focus on critical capabilities identified by member states, as well as supporting the European defence industry through aggregated demand and increased collaborative procurement, are also outlined in the draft legislation.

The White Paper also lays out supporting Ukraine through increased military assistance and deeper integration of the European and Ukrainian defence industries.

ReArm Europe plan

Member States have been encouraged to activate the national escape clause under the Stability and Growth Pact, allowing them to increase defence spending while staying within EU fiscal rules.

This deviation will be limited to an increase in defence expenditure of up to 1.5% of GDP per year for a maximum of four years.

A key element of the plan is the Security Action for Europe (SAFE) initiative, which will raise up to €150 billion through capital markets. These funds will be provided to member states through long-term loans, backed by the EU budget, to support large-scale defence investments.

The initiative aims to promote joint procurement from the European defence industry, ensuring cost savings, interoperability, and strengthening the region’s defence sector. Countries outside the EU, including Ukraine and EFTA/EEA nations, will also be able to participate in these joint procurements.

SAFE will extend participation to EU candidate countries and those with security partnerships, allowing them to contribute to joint defence procurement and negotiate agreements for their industries. This broader cooperation is expected to enhance Europe's overall defence capabilities and reinforce strategic partnerships beyond the bloc.

Additionally, the plan leverages the European Investment Bank (EIB) Group to expand its lending to defence and security projects while maintaining financial stability. To supplement public investment, the Savings and Investments Union Strategy will encourage private capital to flow into the defence sector, supporting both start-ups and established companies in meeting Europe's security needs.