Thank you, Andrzej. Good afternoon, everyone.

In the current geopolitical climate, Europe is committed to taking greater responsibility for its security by mobilizing substantial investments in defense capabilities and the defense industry.

Its particularly fitting that we hold this discussion here in Warsaw, as Poland leads in investing to enhance defense and security capabilities.

EU Member States bordering Russia or its satellite state Belarus understand the threats to the European Union better than anyone else.

They have experienced hybrid warfare, such as the instrumentalization of migration, and have been targets of Russian disinformation campaigns and sabotage acts.

It was reassuring to see the broad agreement among ministers today that Europe must take more responsibility for its defense.

Rebuilding Europes defense capabilities requires urgent and significant investments.

This was the focus of todays meeting.

Last month, the Commission presented the ReArm Europe Plan and the Readiness 2030 initiative to facilitate and encourage such investments.

The aim is to boost defense funding to unlock up to €800 billion.

This can be a game-changer for Europes defense capabilities.

Today provided an important opportunity to present ministers with this package and engage with them on its contents.

Allow me to briefly present the three main elements discussed in todays meeting.

Firstly, we proposed the coordinated activation of the national escape clause of the Stability and Growth Pact.

This will facilitate a rapid increase in defense spending by allowing Member States to temporarily deviate from normal fiscal requirements.

I emphasized that it will be crucial for Member States to safeguard fiscal sustainability at the same time.

For this reason, the deviation is limited in scope, duration, and volume.

From todays discussion, we can see that most Member States, a large majority, are considering triggering the clause.

From the Commissions side, we want this to be coordinated and synchronized.

We have invited Member States to submit their requests to activate the national escape clause by the end of April.

Its not a deadline, but to ensure coordination.

The Commission stands ready to swiftly assess the requests received and adopt recommendations in June, for adoption by the Council in July.

The second main element we presented was the new €150 billion loan instrument Security Action for Europe, or “SAFE.”

This will provide loans to Member States to invest in key defense areas like ammunition, missiles, drones, and cybersecurity.

The funds will be raised on capital markets and disbursed to interested Member States upon demand, based on their national plans.

SAFE will encourage Member States to spend better, together, and European by providing loans on very favorable terms.

The third and final element we presented concerns better channeling of private financing towards the defense sector, also with the help of the European Investment Bank Group and the Savings and Investments Union.

A short word on the economic impact of these measures.

Beyond enhancing Europes security, we expect additional defense spending to also boost competitiveness and economic growth, drive innovation, and create new jobs.

The precise impact will eventually depend on the spending trajectory of Member States over time and its composition.

It can also enhance the capabilities and capacities of Europes defense industries.

As you know, the EU is working intensively to diversify our trade with new and existing partners across the world.

We also expect to find new markets for a resurgent European defense industry, as our allies and strategic partners across the world seek reliable suppliers.

To conclude, the Commission looks forward to continuing to engage closely with Member States in the weeks ahead on the next steps in rebuilding Europes defense capabilities.

Together, we can and will take responsibility for defending our freedoms and values.

Before I finish, I would like to once again thank the Polish Presidency for their hospitality and for the excellent organization of the meeting.

Thank you very much.