Brussels, 4 March 2025 (dpa/MIA) - European Commission President Ursula von der Leyen proposed on Tuesday a new fund that could mobilize close to €800 billion ($841.5 billion) for defence investments in the European Union, including for military aid for Ukraine.

"We're living in the most momentous and dangerous of times," von der Leyen told journalists in Brussels.

Pressure on the EU to significantly increase defence spending and aid to Ukraine intensified further after US President Donald Trump's administration announced on Monday that it would temporarily suspend US military aid to Ukraine.

"This is Europe’s moment and we must live up to it."

The money is to be spent on support for Ukraine and to "take on more responsibility for our own European security," she said.

"We are in an era of rearmament, and Europe is ready to massively boost its defence spending," the commission president said.

The commission is to provide €150 billion in loans to be used on air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems, and to address other needs from cyber to military mobility, von der Leyen said.

"With this equipment, member states can massively step up their support to Ukraine," she said.

Von der Leyen hopes that together with private capital and additional funding for the European Investment Bank, her proposal could mobilize close to €800 billion for defence.

The new fund is part of a proposal von der Leyen pitched to EU countries ahead of Thursday's special EU leaders' summit.

In her plan to rearm the bloc, the commission president also proposed giving member states more leeway for defence spending under the EU's usually strict debt and deficit rules, and reallocating available regional development funds for military investments.

Photo: epa