The EC is set to unveil a plan to rearm Europe, while Germany prepares to spend on its military and infrastructure.

European Commission President Ursula von der Leyen has emphasized the importance of enhancing Europe’s defense capabilities. Following the European security summit in London, she asserted that Europe urgently requires rearmament and a significant boost in defense readiness.

Von der Leyen remarked, “Member states need more fiscal flexibility to increase defense spending. We want the US to know that we are prepared to defend democracy.”

Meanwhile, the incoming German government is considering large-scale investment packages for the military and infrastructure that could amount to hundreds of billions of euros. Specifically, discussions have touched on establishing two funds: a fund for the Bundeswehr and another for infrastructure renewal. Both funds could contribute significantly more than €100B, as leading German economists estimate defense needs at €400B and infrastructure projects at up to €500B. A potential reform of Germany’s debt brake – a law designed to limit public debt – is also under consideration.