Opening remarks by President von der Leyen at the joint press conference with President Costa following the meeting of the European Council of 6 March 2025

First of all, I want to thank you, António, for having convened this extraordinary EUCO. Because I think that today, history is being written. We are coming out of this European Council very determined to ensure Europe's security and act with the scale, speed and resolve that the situation demands. We are determined to invest more, better and faster together. From Paris to London to Brussels, we have shown that we are willing and able to step up our joint efforts and to coordinate effectively.

The fact is that Europe is facing a clear and present danger. This is why I presented the REARM Europe Plan to the leaders today, a plan to give Europe the military capability it needs to face today's threats. It could mobilise up to EUR 800 billion. It is about shouldering more responsibility for our own security. Because the urgency is real.

Therefore, we agreed that with the support of the leaders, the Commission will present before the next European Council, the regular European Council in March, the detailed legal proposals. Let me explain the five different elements. First, we will propose to activate the national escape clause of the Stability and Growth Pact in a controlled, coordinated and time-bound manner. This will allow Member States greater fiscal flexibility that they need and give them the space to invest in defence – immediately and substantially. This is unprecedented. If fully utilised, this could unlock up to EUR 650 billion in defence expenditure. Second, we will propose a new financial instrument: We will provide to Member States EUR 150 billion in loans to accelerate the joint procurement. This is an exceptional measure, but it is the right measure for exceptional times. These funds could be used for European in capabilities in selected domains. Deliveries must be swift, these loans should finance purchases from European producers, and the loans can be invested in contracts that are multiannual – that is very important for the defence industry. This is also a way to enhance interoperability in the joint procurement, so less fragmentation; it will of course reduce costs because it will enable scaling up that is so important for the production. All at once and very fast. The third element is a voluntary one. It is about the possibility to redirect the existing EU budget towards defence. Here, the focus is on the cohesion funds. Again, it is a voluntary possibility. If you want to have the cohesion funds flexibilised, you can redirect them into defence matters. Then, besides today's discussion about the public funding, we also had a discussion about how to attract more private capital. Here, it is very important that we push forward the European Savings and Investment Union. It is crucial for private investment, but it is also crucial that the European Investment Bank changes and updates its lending patterns. We must make sure that our defence industry, particularly our innovative start-ups and midcaps, have full access to financing.

We will soon present the White Paper on the Future of European Defence. This will take place on 19 March, right before the regular European Council. And we will present a simplification omnibus for defence.

Let me very briefly finish with the fact that we had a very important exchange with President Zelenskyy at lunch. We spoke about how to achieve a just and lasting peace. Our support for Ukraine's armed forces has never been more urgent. Therefore, we will work very closely with Ukraine and the defence industry to ensure that Ukraine's military needs are met. This discussion is important for the Member States and for our partners. This is why tomorrow in the morning, after this European Council, the two of us will also debrief with our partners.