Readiness 2030: Europe’s Ambition Plan to Ramp Up its Defence Industrial Capacity
By Sam Paquette
On March 18th, 2025, the European Commission presented the White Paper for European Defence and the ReArm Europe/Readiness 2030 aimed at bolstering European defence capabilities in the face of an increasingly isolationist posture from United States.
This initiative marks a significant turning point in European defence policy. The prolonged fighting in Ukraine and strained relations with the US have compelled the EU to seriously consider enhancing its own defence capabilities. Since 2015, Russia’s annexation of Crimea, the UK’s decision to leave the EU, and pressure from Trump have transformed NATO’s 2 percent GDP defence spending from guidelines into a real commitment. Readiness 2030 is the EU’s response to ramp up its defence industry. More specifically, the 23-page White Paper frames the importance of building its defence-industrial base in light of the numerous threats Europe faces, including danger of losing territory from the Russian invasion of Ukraine and a gradually isolated Europe as the US withdraws its security guarantees.
To address these threats, the Readiness 2030 plan intends to mobilize €800 billion by 2030 to strengthen the EU’s defence autonomy by reducing reliance on non-European suppliers. It will also fill gaps in the EU’s critical capabilities, such as through the acquisition of artillery systems and drone technology. Investment in these capabilities allows the EU to address shortfalls exposed in recent conflicts. The policy initiative also aims to build multimodal corridors (rail, road, sea, and air) to facilitate rapid troop deployment across Europe and provide support for member states to integrate Ukraine’s defence industry with the EUs to advance Ukraine’s porcupine strategy. These objectives aim to enhance the EU’s deterrence posture and leverage the expertise of innovative Ukrainian defence companies.
The Readiness 2030 plan intends to accomplish these objectives through three pillars. First, the European Commission invites member states to activate the national escape clause of the Stability and Growth Pact, allowing member states to breach their debt limits as a means to fund rearmament. Second, through a new instrument called Security Action for Europe (SAFE), the commission also intends to borrow €150 billion in the form of long-maturity loans to fund European defence investments, leveraging Europe’s strong creditworthiness. Thirdly, Readiness 2030 relies on the European Investment Bank (EIB) to widen its scope of lending for defence projects and plans to acquire private capital from the newly adopted Savings and Investments Union.
Despite its comprehensive framework, the success of Readiness 2030 still relies on member states to overcome certain challenges and inefficiencies. Since the COVID-19 pandemic, economies in the EU have shrunk, which has deepened deficits and led to more debt, making EU states ill-equipped to take on more of it. Historic under-investment in Europe’s defence has also reduced cooperation between member states, while the EU’s previous initiatives to bolster defence have not successfully resulted in real capability changes.
Additionally, initial momentum in Europe’s defence build-up from Russia’s invasion is waning. Member states are slow to allocate funds and have sluggish national procurement systems, like Germany. EU members also prefer, at times, to support their domestic defence industries and may resist joint procurement efforts. Lastly, scaling up the EU’s defence industrial capacity faces numerous bottlenecks, such as labour shortages, dependencies on foreign suppliers, and a restrictive permitting environment. The implementation of Readiness 2030 requires coordinated action to ensure these challenges are addressed.
In conclusion, the EU’s Readiness 2030 is an ambitious plan that seeks to enhance Europe’s defence industrial capacity and address capability gaps through sustained efforts. The plan is designed to support Ukraine while providing the necessary funding for substantial investments in research and development as well as economic growth in the European defence market, enabling the EU to strengthen its resilience and strategic autonomy in a turbulent geopolitical environment.