The European Commission has presented two strategic initiatives to strengthen the Union’s security and defence capability: the White Paper on European Defence – Readiness 2030 and the ReArm Europe/Readiness 2030 Plan. These tools aim to respond both to the immediate need to support Ukraine, and to the need to strengthen the strategic autonomy and resilience of the European defence industry in the long term. The President of the Commission, Ursula von der Leyen, emphasised that the era of the ‘peace dividend’ is now over and that Europe must invest decisively in its security and defence capabilities, reducing its dependence on external actors and creating a true common European armaments market.
The White Paper on European Defence – Readiness 2030 provides a strategic framework for addressing the main shortfalls in the EU’s military capabilities and for defining the investments needed to fill them. In recent years, a chronic insufficiency of investment in defence and a fragmentation of expenditure among the various member states has clearly emerged, which has prevented the full development of an efficient and interoperable European defence system. The White Paper therefore proposes a series of key actions to strengthen European security. Among these, it highlights the need to close the critical gaps in military capabilities identified by the Member States, promoting the joint purchase of defence systems and the strengthening of the European defence industry. Furthermore, the document emphasises the need for increasing integration between the European and Ukrainian defence industries, to guarantee a continuous flow of military support to Ukraine and, at the same time, stimulate technological innovation in the sector.
Another key aspect of the White Paper is the acceleration of the technological transformation of defence, with particular attention to disruptive innovations such as artificial intelligence and quantum technologies. The EU also aims to improve its military readiness for crisis scenarios, enhancing the mobility of the armed forces, increasing the stockpiles of strategic materials and strengthening the external borders, especially the land borders with Russia and Belarus. Finally, the document emphasises the importance of strengthening partnerships with like-minded countries, in order to create a common front against threats to global security.
In parallel, the ReArm Europe/Readiness 2030 Plan introduces a series of financial instruments to support increased defence spending and stimulate investment in the sector. The plan envisages the mobilisation of over 800 billion euros, distributed over three main pillars. The first pillar allows Member States to activate an exemption from the Stability and Growth Pact, enabling them to increase military spending up to 1.5% of GDP for a maximum period of four years. This measure will ensure greater budgetary flexibility for defence investments without compromising European fiscal equilibrium.
The second pillar of the ReArm Europe Plan introduces a new financial instrument called Security Action for Europe (SAFE), through which the Commission will raise up to 150 billion euros on the financial markets to offer subsidised loans to member states. These funds will be used for the joint purchase of military equipment and for strengthening the European defence industry, with the aim of ensuring greater interoperability and predictability, and a reduction in costs thanks to economies of scale. SAFE will also allow candidate countries, EFTA/EEA states and EU security partners to participate in joint procurement, facilitating a cooperative approach to European defence.
The third pillar of the plan focuses on mobilising private capital for the defence sector, through greater involvement of the European Investment Bank (EIB) and the implementation of the Strategy for the Union of Savings and Investments. This latter initiative aims to make the European capital market more efficient, incentivising private investors to allocate resources to strategic sectors, including defence. The objective is to fill the financial gaps in the defence industry, supporting both start-ups and already established companies in the sector.
The approach outlined by the Commission with the White Paper for European Defence and the ReArm Europe Planmarks a significant change in EU security policy. These measures aim not only to strengthen the continent’s defensive capability in the short term, but also to build a more competitive and autonomous defence industry in the long term. The idea of ‘buying more European’ and developing a common armaments market is not just an economic strategy, but a fundamental step towards guaranteeing the EU’s strategic sovereignty in an increasingly unstable geopolitical context.
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