EU chief unveils 800 billion euros arms plan

EU chief Ursula von der Leyen on Tuesday presented a five-part plan to mobilise some 800 billion euros for Europe's defence -- and help provide "immediate" military support for Ukraine after Washington suspended aid.

The move came hours after US President Donald Trump announced the aid freeze, intensifying Washington's push for a peace deal with Russia and confirming its pivot away from its European allies and partners in backing Kyiv's war effort.

"A new era is upon us," the European Commission president said in a letter presenting the plan to EU leaders, two days before a summit aimed at cementing joint action on support for Ukraine and boosting Europe's defences.

"'ReArm Europe' could mobilise close to 800 billion euros of defence expenditures for a safe and resilient Europe," von der Leyen told reporters as she outlined the plan, which includes a 150-billion-euro loan facility along with steps to free up large-scale defence investments.

It was not immediately clear how fast funds could be made available under the proposals — which need approval by member states -- nor how quickly this could translate into battlefield support for Kyiv.

"It can help finance or accelerate certain purchases," Camille Grand of the European Council on Foreign Relations told AFP.

"The results will be visible more likely in weeks or months rather than 'immediately' but it makes a difference, since that is when the American restrictions will start to bite."

The plan includes five points:

It proposes that the EU ease strict budget rules -- which oblige states to keep public deficits below three percent of gross domestic product — to allow them to ramp up spending on defence.

Von der Leyen suggested this measure could free up 650 billion euros over four years.

Secondly, the plan calls for a new "instrument" to provide 150 billion euros of loans to member states for defence investment.

"We are talking about pan-European capability domains — for example: air and missile defence, artillery systems, missiles and ammunition drones and anti-drone systems," said von der Leyen.

"With this equipment, member states can massively step up their support to Ukraine. So, immediate military equipment for Ukraine," she said.

The third component would involve using the existing EU budget "to direct more funds towards defence-related investments."