European Commission President Ursula von der Leyen has unveiled a comprehensive plan aimed at significantly boosting Europe’s defense capabilities, which could mobilize nearly €800 billion ($841.4 billion). She emphasized the urgency of this move in response to the ongoing conflict in Ukraine and Europe's broader security needs.

Speaking on Tuesday, von der Leyen declared that Europe is entering an era of rearmament, with the EU committed to massively increasing defense spending. The plan is designed to address both the immediate requirements of supporting Ukraine and the longer-term necessity for Europe to take greater responsibility for its own defense.

The proposed strategy includes freeing up budgets for EU member states to invest in defense, as well as facilitating loans of up to €150 billion to support these investments. Von der Leyen also highlighted that the European Commission would work to harness private capital to further bolster defense capabilities. She mentioned that she had outlined the "Rearm Europe Plan" in a letter to the leaders of the European Council, ahead of a meeting scheduled for Thursday.

The announcement comes in the wake of a significant shift in U.S. policy. U.S. President Donald Trump revealed that he would be suspending all military aid to Ukraine, following a tense public fallout with Ukrainian President Volodymyr Zelenskyy in the Oval Office. In response to this, U.S. Vice President JD Vance dismissed the idea of deploying 20,000 British and French troops to Ukraine as a peacekeeping force, claiming that such an effort would not be enough to secure lasting peace.

Von der Leyen’s proposal aims to leverage all available financial tools to ensure EU member states can quickly and significantly increase their defense spending, reflecting Europe's readiness to address the pressing security challenges of the current geopolitical climate.