Updated March 04, 2025 at 12:22 PM ET
BERLIN — The head of the European Union's executive branch proposed an $840 billion plan to quickly build up defense budgets in Europe, as President Trump pauses military aid to Ukraine and signals his administration could pull back from a long-standing U.S. commitment to protect allies on the continent.
European Commission President Ursula von der Leyen said Tuesday she will present her "ReArm Europe" proposal to the leaders of the EU's 27 member countries.
"I do not need to describe the grave nature of the threats that we face," von der Leyen said in a statement. "We are in an era of rearmament. And Europe is ready to massively boost its defence spending."
The announcement followed news late Monday that the White House said it is "pausing and reviewing" U.S. military aid to Ukraine, as Trump accused Ukrainian President Volodymyr Zelenskyy of being unthankful and "not ready for peace" after the heated exchange between Ukraine's leader, Trump and Vice President Vance in the Oval Office Friday.
Zelenskyy said on social media on Tuesday that the White House meeting "did not go the way it was supposed to be. It is regrettable that it happened this way."
"Nobody wants peace more than Ukrainians," he said, and that his country is ready to sign a deal on minerals and security with the U.S.
The United Kingdom and France say they're also working with Ukraine on a ceasefire plan, which could include deploying British peacekeepers.
Trump and previous administrations have long asked NATO allies to increase their defense spending. But the Trump administration's tough approach with allies, and moves toward Russian President Vladimir Putin, have raised alarm in Europe as Russia's full-scale invasion of Ukraine enters its fourth year.
Von der Leyen was already working on an EU defense buildup plan before Trump's decision to halt aid to Ukraine was announced.
She said a new fund worth more than $150 billion would support EU members' investing in defense, while relaxing the bloc's debt rules to free up more than $680 billion over the next four years.
She also said member states could use funding intended for other EU programs to increase defense spending.
Details of the plan were outlined in a letter she sent to EU leaders ahead of a summit scheduled for Thursday. The letter referenced "financial levers at our disposal," including activating what's called the "national escape clause" of the EU's Stability and Growth Pact, which would allow member states to run larger budget deficits than typically allowed in order to significantly increase their defense expenditures.
For example, mentioned von der Leyen, "If Member States would increase their defense spending by 1.5% of GDP on average, this could create fiscal space of close to EUR 650 billion over a period of four years."
EU member states spent an estimated 326 billion euros ($325 billion) on defense last year combined, about 1.9% of their combined gross domestic product, according to the European Defence Agency.
EU leaders are expected to discuss von der Leyen's proposal at a leader summit in Brussels on Thursday.
"This is Europe's moment, and we must live up to it," Von der Leyen said.
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