This plan includes €650 billion ($702 billion) in projected increases in national defense spending by EU member states and €150 billion ($162 billion) in loans for defense procurement.

Only EU member states can access the €150 billion loan, which is intended for joint procurement efforts with Ukraine, particularly benefiting its defense industry.

For the first time, the initiative places Ukraine's defense sector on equal footing with the EU's defense industry.

Oleksandr Kamyshin, an advisor to the Ukrainian president, noted that the Ukrainian defense industry is now capable of producing a diverse range of modern weaponry, including unmanned systems and missile systems.

European Commissioner for Defense Andrius Kubilius announced the initiative in an interview published on May 12, 2025.

The ReArm Europe initiative follows the European Commission's presentation of a European Defense White Paper in March, which called for significant defense investments and enhanced production capabilities among EU countries.

Von der Leyen's plan to generate €650 billion involves increasing defense spending by 1.5% across EU member states.

Some of the €650 billion allocated for national military spending may also be directed towards arms deliveries to Ukraine.

The initiative is part of a broader plan that allocates over €800 billion ($860 billion) to support military efforts in Ukraine.

In March 2025, European Commission President Ursula von der Leyen unveiled the ReArm Europe initiative, aimed at bolstering air defense systems and expanding weapons production for Ukraine.