The EU is poised to spend up to €800billion (£660billion) on defence thanks to a new major continental funding drive, European Commission chief Ursula von der Leyen has vowed.
On Tuesday, Von der Leyen proposed a borrowing drive worth €150billion to lend to EU Governments - which, alongside a bloc-wide military spending hike, could put together nearly one trillion Euros to spend on defence.
The announcement came after last night's bombshell news that the US would be halting its military aid to Ukraine, ramping up the pressure on Europe to deliver as a result.
Von der Leyen said that funding needed to be increased "urgently now but also over a longer period of time over this decade", with air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems all on the EU's spending agenda.
Von der Leyen's Commission also proposed that defence spending be exempted from limits imposed by EU rules on Government spending.
"If member states would increase their defence spending by 1.5 per cent of GDP on average, this could create fiscal space of close to €650billion," Von der Leyen said.
Alongside that, Brussels would also be open to redirecting EU funds ring-fenced for "equalising standards of living across Europe" towards defence projects, she added.
"Europe is ready to assume its responsibilities. Europe could mobilise close to €800billion for a safe and resilient Europe," Von der Leyen vowed.
EUROPE STEPS UP - READ MORE:
"We will continue working closely with our partners in Nato. This is a moment for Europe - and we are ready to step up."
But within the continental bloc, Russia-aligned Hungarian Prime Minister Viktor Orban and Slovak counterpart Robert Fico are going against the grain.
On Sunday, ahead of Sir Keir Starmer's landmark summit in London, Orban wrote to European Council President Antonio Costa demanding that the EU engage directly with Vladimir Putin in US-style ceasefire negotiations.
Meanwhile, Fico said Slovakia would refuse financial or military support to Ukraine - and has thrown out the West's "peace through strength" approach.
Costa later appeared to "concede defeat" in his campaign to convince Orban on the benefits of the Ukrainian aid package, Politico reported.
"I note that there is a divergence on the path to achieve peace and, in particular, the 'peace through strength' approach," Costa wrote to the Hungarian PM on Monday.
In Germany - whose next Chancellor Friedrich Merz is pushing for Europe to "really achieve independence from the USA" - Von der Leyen's address has been met with glee.
Foreign Minister Annalena Baerbock said: "Two things are now essential for peace through strength: additional aid - military and financial - for Ukraine, which is defending our freedom. And a quantum leap to strengthen our EU defence."
Find Out More...
On Tuesday, Von der Leyen proposed a borrowing drive worth €150billion to lend to EU Governments - which, alongside a bloc-wide military spending hike, could put together nearly one trillion Euros to spend on defence.
The announcement came after last night's bombshell news that the US would be halting its military aid to Ukraine, ramping up the pressure on Europe to deliver as a result.
Von der Leyen said that funding needed to be increased "urgently now but also over a longer period of time over this decade", with air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems all on the EU's spending agenda.
Von der Leyen's Commission also proposed that defence spending be exempted from limits imposed by EU rules on Government spending.
"If member states would increase their defence spending by 1.5 per cent of GDP on average, this could create fiscal space of close to €650billion," Von der Leyen said.
Alongside that, Brussels would also be open to redirecting EU funds ring-fenced for "equalising standards of living across Europe" towards defence projects, she added.
"Europe is ready to assume its responsibilities. Europe could mobilise close to €800billion for a safe and resilient Europe," Von der Leyen vowed.
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"We will continue working closely with our partners in Nato. This is a moment for Europe - and we are ready to step up."
But within the continental bloc, Russia-aligned Hungarian Prime Minister Viktor Orban and Slovak counterpart Robert Fico are going against the grain.
On Sunday, ahead of Sir Keir Starmer's landmark summit in London, Orban wrote to European Council President Antonio Costa demanding that the EU engage directly with Vladimir Putin in US-style ceasefire negotiations.
Meanwhile, Fico said Slovakia would refuse financial or military support to Ukraine - and has thrown out the West's "peace through strength" approach.
Costa later appeared to "concede defeat" in his campaign to convince Orban on the benefits of the Ukrainian aid package, Politico reported.
"I note that there is a divergence on the path to achieve peace and, in particular, the 'peace through strength' approach," Costa wrote to the Hungarian PM on Monday.
In Germany - whose next Chancellor Friedrich Merz is pushing for Europe to "really achieve independence from the USA" - Von der Leyen's address has been met with glee.
Foreign Minister Annalena Baerbock said: "Two things are now essential for peace through strength: additional aid - military and financial - for Ukraine, which is defending our freedom. And a quantum leap to strengthen our EU defence."
Find Out More...