The European Union Proposes A Loan Of 150 Billion Euros For Weapons

President of the European Commission Ursula von der Leyen. (Wikimedia Commons/men's

JAKARTA - The European Commission on Tuesday proposed loans of up to 150 billion euros (IDR 2,603,280,000,000,000) to be loaned to the EU government under Russia's war-driven weapons plan in Ukraine and Europe's concerns could no longer believe in the protection of the United States.

"We live in the most important and dangerous times," European Commission President Ursula von der Leyen said.

"We are in an era of weaponry. And Europe is ready to massively increase its defense spending," he added.

The announcement came a day after US President Donald Trump stopped military aid to Ukraine, highlighting the growing dissent between European leaders and Washington over the security of the continent and how to deal with Russia.

Von der Leyen filed 150 billion euros in priority for pan-European defense such as air defense, missiles, and drone as part of a broader package of proposals that he said could mobilize up to 800 billion euros for European defense.

EU leaders will hold initial discussions on the proposal at a special summit aimed at defense and Ukraine on Thursday. Several elements of the package will require approval from the EU government.

It is known, President Trump accused European countries of failing to spend enough on their own defenses and instead relying on the United States for protection through the NATO alliance.

European leaders themselves insist they are now rapidly increasing defense spending.

Most Commission packages are focused on encouraging EU member states to spend more on defense and reuse existing funds than providing new EU funds.

That does not include proposals for joint loans to grants - rather than loans - to defense projects, which have been recommended by countries such as Baltic and French countries but opposed by Germany and the Netherlands.

Polish Defense Minister Wldyslaw Kosiniak-Kamysz said grants would be a better choice.

"I'm sure it will be more effective," he told reporters.

Meanwhile, German Foreign Minister Annalena Baerbock welcomed the package as an "important first step".

As part of the plan, the European Investment Bank said it would lift funding restrictions for defense projects and expand eligible coverage, although the ban on arms and ammunition funding would remain in effect.

As previously required, the Commission also proposed that defense spending be exempt from restrictions imposed by EU regulations on government debt.

"If member states increase their defense spending by 1.5 percent of GDP on average, this could create fiscal space close to 650 billion euros over four years," said von der Leyen.

European leaders are under great pressure to step up defense spending, as Trump's return to power has assured many of them that they are unsure of being able to rely on US protection through NATO, as it has been going on for decades.

EU members spent 326 billion euros on defense in 2024 - about 1.9 percent of GDP, according to the European EU Defense Agency. European leaders have stated that spending should increase further in the coming years.

French Finance Minister Eric Lombard said on Tuesday Paris "must move faster and harder" in defense spending.

The Commission also proposed that the money received by countries from the so-called EU cohesion funds - designed to equalize living standards across Europe - could also be used for defense purposes.

Separately, Lucas Guttenberg, a European economist at Bertelsmann think tank Stiftung, said the Commission was "trying to ensure fiscal policy does not hinder defense policy".

"However, this is done in a fairly short-term way which will only have a small impact on the real problem, namely the availability of long-term funding," he said on social media platform BlueSky.