The 7 ‘Thorns’ in the Path of von der Leyen’s New Defense Fund

Paved with at least seven ‘thorns’ is the path to implementing the plan announced on March 4, 2025, by European Commission President Ursula von der Leyen to strengthen EU defense. The plan has two main pillars: the first envisions a new common European fund (modeled after the SURE fund for the pandemic) worth up to €150 billion to boost defense spending, equipping member states quickly and financing new arms deliveries to Ukraine. The second pillar involves exempting increased defense spending from the excessive deficit procedure for each EU member state individually. Von der Leyen emphasized that ‘this is Europe’s moment, and we must rise to it.’ However, with the U.S. halting military aid to Ukraine, pressure mounts on Europeans to step in. Analysts highlight challenges such as differing purposes between pandemic and war funds, lack of loan advantages for Germany, uncertainties about conflict outcomes, fiscal constraints, restrictions on EU funds usage, undefined loan terms, and disagreements over additional aid packages for Ukraine. The success of this initiative could determine the future of a united Europe, with failure potentially undermining its credibility or even signaling its end.