Commission unveils the white paper for european defence and the rearm europe plan readiness 2030
The report outlines the EU’s White Paper on European Defence and the ReArm Europe Plan, targeting defence readiness by 2030 through closing capability gaps, strengthening the defence industrial base, and mobilising over €800 billion via public, EU, and private funding mechanisms.
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OVERVIEW
White paper for European defence: Readiness 2030
The report sets out a revised EU defence framework in response to prolonged underinvestment, fragmented capability development, and a worsening European security environment. It identifies structural gaps in military capabilities and inefficiencies in national defence spending, arguing that current arrangements are insufficient to ensure security by 2030. The White Paper frames defence readiness as a shared EU responsibility, linking military preparedness with industrial capacity, innovation, and fiscal coordination.
A central objective is to close critical capability gaps identified by Member States. The report emphasises the need for more coordinated investment and procurement to avoid duplication and improve value for money. Aggregated demand and collaborative procurement are highlighted as mechanisms to strengthen the European defence technological and industrial base, improve interoperability, and provide greater predictability for defence manufacturers. Simplifying regulations and deepening the EU-wide defence market are presented as necessary steps to enable cross-border cooperation.
Innovation is positioned as a long-term driver of defence readiness. The White Paper highlights accelerating the adoption of disruptive technologies, including artificial intelligence and quantum technologies, to modernise defence systems and enhance operational effectiveness. It also stresses the importance of preparedness for worst-case scenarios through improved military mobility, stockpiling, and strengthened external borders, particularly along land borders with Russia and Belarus.
Support for Ukraine is embedded throughout the framework. The report prioritises continued military assistance and deeper integration between European and Ukrainian defence industries, presenting this as both an immediate security response and a contributor to long-term European defence resilience. Strengthening partnerships with like-minded countries is also identified as an important element of collective security.
ReArm Europe plan readiness 2030
The ReArm Europe Plan translates the strategic objectives of the White Paper into a financial framework designed to rapidly scale up defence investment. The report states that the plan could enable over €800 billion in defence-related spending by 2030 through a combination of national, EU-level, and private financing measures. The approach aims to address urgent security needs while maintaining fiscal sustainability and encouraging more efficient, coordinated investment.
Unleash the use of public funding in defence at national level
The first pillar invites Member States to activate the national escape clause under the Stability and Growth Pact. This provides temporary additional fiscal space to increase defence expenditure within EU fiscal rules. The permitted deviation is limited strictly to defence spending as defined under COFOG classifications, capped at up to 1.5% of GDP per year, and for a maximum duration of four years.
The report presents this as a targeted and time-bound measure to address exceptional security circumstances. Safeguards are included to protect fiscal sustainability while allowing Member States to respond more rapidly to identified capability gaps.
A new dedicated instrument for Security Action For Europe: SAFE
The second pillar establishes the Security Action for Europe (SAFE) instrument. Under SAFE, the European Commission will raise up to €150 billion on capital markets using its unified funding approach. Funds will be provided to interested Member States as competitively priced, long-maturity loans backed by EU budget headroom.
SAFE is designed to support large-scale common procurement from the European defence industry, with a focus on priority capabilities. The report highlights expected benefits such as improved interoperability, lower costs, and increased predictability for industry. Participation is open to EU Member States as well as Ukraine, EFTA/EEA countries, candidate and potential candidate countries, and selected partners, subject to agreed conditions.
Leveraging on the EIB group and mobilising private capital by accelerating the savings and investments union
The third pillar focuses on mobilising financing beyond public budgets. The report outlines an expanded role for the European Investment Bank Group, allowing it to widen lending to defence and security projects while safeguarding its overall financing capacity. This is intended to unlock additional funding and send a positive signal to financial markets.
The report also notes that public investment alone will not meet the defence industry’s financing needs. It links defence investment to the Savings and Investments Union Strategy, which aims to mobilise private savings and channel capital into priority sectors, including defence, for investors willing to participate. This combined approach is intended to support industrial scaling, innovation, and job creation while maintaining fiscal sustainability.