Member states must spend more, better and European, EU Commissioner for Defence Andrius Kubilius and the EU’s top diplomat Kaja Kallas urge in a draft of the upcoming White Paper on the Future of European Defence, seen by Euronews. 

“Rebuilding European defence requires a massive investment over a sustained period,” the Commissioners argue, adding that only through joint initiatives and coordination will EU countries be able to make a difference. 

In 2024, member states reached a record investment of €326 billion, but the latest estimates indicate that at least €500 billion will be needed to plug the bloc’s critical capability gaps over the next decade. 

European Commission President Ursula von der Leyen presented a five-point plan last week to rearm the continent, detailing how to mobilise up to €800 billion over the coming years. This includes a new instrument of €150 billion in loans for member states to spend on joint procurement for defence and security. 

Now, the EU executive will also consider reviewing the bloc’s Sustainable Finance Disclosures Regulation (SFDR) to assess whether defence can be considered “an investment goal in the sustainability framework.” 

Creating a single market for defence, simplifying rules, and benefiting from economies of scale by working together are additional ways the Commission proposes to make more efficient use of the available funds. 

“Coordinating spending boosts member states’ bargaining power, lowers prices per unit, and strengthens industrial consolidation,” the 20-page document says. 

Kallas and Kubilius advocate for collaborative procurement and large-scale pan-European defence projects to go hand in hand in the coming years, leaving member states the power to decide on the format and purpose – i.e., to address which critical capability shortfalls. 

The Commission has identified seven key critical capability projects, covering areas such as military mobility, drones and counter-drone systems, AI, quantum, cyber and electronic warfare, and air and missile defence. 

The EU executive will also consider introducing a European preference into public procurement rules for strategic defence-related sectors and technologies, likely to be reviewed in 2026. 

The ultimate goal of simplifying rules, cutting red tape, and promoting more joint purchases and production is to create a true European single market for defence, addressing the long-standing fragmentation of a predominantly national-focused market. 

Von der Leyen’s second-mandate aspirations include creating “one of the largest domestic defence markets in the world,” aimed at boosting competitiveness, defence readiness, and industrial scale to help the bloc compete with global players such as China and the US. 

The white paper – still subject to change – also asserts that Europe must urgently rearm itself, as it faces medium-term challenges beyond Russia’s potential military aggression, particularly in the unstable greater Middle East. 

As the new US administration increasingly shifts its attention towards the Indo-Pacific, “Europe cannot take the US security guarantee for granted and must substantially step up its contribution to preserve NATO strong,” the paper reads. 

Reducing dependencies on third countries, especially in the global technology race, is another priority highlighted by the EU Commissioners. 

Disruptive technologies such as AI, cloud and quantum computing, and autonomous systems are already shaping the battlefield, the paper warns, adding that the EU’s strategic competitors are heavily investing in these areas. 

“While dependencies from Russia have been significantly reduced, many member states still heavily depend on technologies from third countries, including China and the US,” the paper says.