First of all, I want to thank António for convening this extraordinary EUCO. Today, we are making history. We are leaving this European Council determined to ensure Europes security and to act with the necessary scale, speed, and resolve. We are determined to invest more, better, and faster together. From Paris to London to Brussels, we have shown that we are willing and able to step up our joint efforts and coordinate effectively.

Europe faces a clear and present danger. That is why I presented the REARM Europe Plan to leaders today, a plan to give Europe the military capability it needs to face todays threats. It could mobilize up to EUR 800 billion. It is about shouldering more responsibility for our own security because the urgency is real.

We agreed that with the support of the leaders, the Commission will present the detailed legal proposals before the next European Council, the regular European Council in March. Let me explain the five different elements. First, we will propose to activate the national escape clause of the Stability and Growth Pact in a controlled, coordinated, and time-bound manner. This will allow Member States greater fiscal flexibility and give them the space to invest in defence immediately and substantially. This is unprecedented. If fully utilized, this could unlock up to EUR 650 billion in defence expenditure. Second, we will propose a new financial instrument: We will provide Member States with EUR 150 billion in loans to accelerate joint procurement. This is an exceptional measure, but it is the right measure for exceptional times. These funds could be used for European capabilities in selected domains. Deliveries must be swift; these loans should finance purchases from European producers, and the loans can be invested in multiannual contracts – that is very important for the defence industry. This is also a way to enhance interoperability in joint procurement, so less fragmentation; it will, of course, reduce costs because it will enable scaling up that is so important for production. All at once and very fast. The third element is voluntary. It is about the possibility to redirect the existing EU budget towards defence. Here, the focus is on cohesion funds. Again, it is a voluntary possibility. If you want to flexibilize the cohesion funds, you can redirect them into defence matters. Then, besides todays discussion about public funding, we also had a discussion about how to attract more private capital. Here, it is very important that we push forward the European Savings and Investment Union. It is crucial for private investment, but it is also crucial that the European Investment Bank changes and updates its lending patterns. We must make sure that our defence industry, particularly our innovative start-ups and midcaps, have full access to financing.

We will soon present the White Paper on the Future of European Defence. This will take place on 19 March, right before the regular European Council. And we will present a simplification omnibus for defence.

Let me very briefly finish with the fact that we had a very important exchange with President Zelenskyy at lunch. We spoke about how to achieve a just and lasting peace. Our support for Ukraines armed forces has never been more urgent. Therefore, we will work very closely with Ukraine and the defence industry to ensure that Ukraines military needs are met. This discussion is important for the Member States and for our partners. This is why tomorrow in the morning, after this European Council, the two of us will also debrief with our partners.