The latest Eurobarometer survey confirms record-high trust in the European Union, with 52% of Europeans expressing trust in the EU, the highest since 2007, particularly among young people aged 15-24 (59%). Support for the euro is at an all-time high, with 83% in the euro area and 74% EU-wide favoring the common currency. Additionally, 81% of Europeans support a common defense and security policy, the highest since 2004, driven by concerns over Russia’s invasion of Ukraine (77% see it as a threat to EU security). Security and defense (39%) are seen as the top priority for EU action in the medium term, with 44% believing peace and stability will have the greatest positive impact on their lives in the short term. This aligns with the Readiness 2030 plan’s focus on strengthening EU defense capabilities, as public support reflects a desire for a more assertive and independent EU amid global challenges.
The ReArm Europe Plan, also referred to as Readiness 2030, is a European Union initiative launched in March 2024 to significantly enhance the EU’s defense capabilities in response to a deteriorating strategic environment, including threats like Russia’s invasion of Ukraine, geopolitical instability, cyberattacks, and sabotage. The plan, outlined in the White Paper for European Defence, aims to mobilize over €800 billion in defense spending by 2030 to close critical capability gaps, strengthen the European defense industry, and ensure long-term security autonomy. It was rebranded from “ReArm Europe” to “Readiness 2030” after criticism from leaders like Italy’s Giorgia Meloni and Spain’s Pedro Sánchez, who found the original name too provocative.
A €150 billion loan instrument, backed by the EU budget, to fund joint procurement of European-made defense equipment, focusing on areas like air and missile defense, drones, cyber security, and artillery. At least 65% of funds must be spent on European products to boost the domestic defense industry.
Activation of the Stability and Growth Pact’s escape clause allows Member States to increase defense spending without breaching EU fiscal rules, potentially unlocking €650 billion over four years if each state spends 1.5% of GDP on defense.
The plan encourages private capital mobilization through the European Investment Bank (EIB) and the Savings and Investment Union, with EIB funding for defense-related projects rising to €2 billion in 2025.
The White Paper identifies seven priority areas: air and missile defense, artillery, ammunition, drones and counter-drone systems, military mobility infrastructure, AI and electronic warfare, and strategic enablers like airlift and tanker aircraft. Emphasis is on “buying European” to enhance interoperability, reduce costs, and stimulate economic growth through innovation, with the defense sector already supporting 600,000 jobs
The plan prioritizes continued and increased aid to Ukraine, including 2 million artillery shells annually, air defense systems, and training. It also envisions post-conflict support through technology transfers and procurement from Ukraine’s defense industry.
Investments in dual-use infrastructure (e.g., railways, highways, bridges) to facilitate rapid troop and equipment movement across the EU, particularly benefiting Central and Eastern Europe. A Strategic Dialogue with the defense industry is planned by June 2025 to simplify regulations via the Defence Omnibus Simplification Proposal. Temporary VAT exemptions and procurement flexibilities will accelerate joint procurements under SAFE.
The initiative responds to a perceived reduction in U.S. security guarantees, especially under the Trump administration, and growing concerns about Russia and China. The EU aims to reduce reliance on American military technology and infrastructure, though experts warn that achieving full autonomy could take 5–10 years due to dependence on U.S. systems for detection, targeting, and precision munitions. The plan also seeks to complement NATO priorities while fostering a more integrated European defense industrial base.
All 27 EU Member States, including Hungary and Slovakia, approved the plan, with 13 countries (e.g., Belgium, Denmark, Estonia, Finland, Germany) requesting the fiscal escape clause by May 2025. Expert feel that Plan has a risks of democratic oversight, market fragmentation, and economic sustainability, especially given high national debts. Not all countries will fully utilize the fiscal flexibility, and replacing U.S. capabilities is seen as a costly, long-term challenge. Recruitment and retention of skilled personnel also pose issues amid demographic declines.
The plan is expected to boost innovation and economic growth, similar to NASA’s role in the U.S., by channeling investments into AI, quantum computing, and cyber security startups. However, Europe’s high debt levels and fiscal constraints may limit its ambition. The focus on European procurement aims to strengthen strategic autonomy while maintaining economic benefits within the EU.
Galactik Views