European Commission proposes borrowing $212b in big rearmament push

The European Commission proposed on March 4 to borrow up to €150 billion (S$212 billion) to lend to EU governments under a rearmament plan driven by Russia's war in Ukraine and fears that Europe can no longer be sure of US protection.

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BRUSSELS - The European Commission proposed on March 4 to borrow up to €150 billion (S$212 billion) to lend to EU governments under a rearmament plan driven by Russia's war in Ukraine and fears that Europe can no longer be sure of US protection.

"We are living in the most momentous and dangerous of times," European Commission president Ursula von der Leyen said. "We are in an era of rearmament. And Europe is ready to massively boost its defence spending."

The announcement came after US President Donald Trump paused military aid to Ukraine, highlighting a growing divergence between European leaders and Washington over the continent's security and how to handle Russia.