This clause can be activated when “exceptional circumstances outside the control of the Member State lead to a major impact on the public finances” of a country, according to EU spending rules that were revamped last year.
Von der Leyen, however, did not lay out the specific conditions she will attach to prevent rampant spending from highly indebted countries.
As part of the plan, she also offered cheap loans for defense to EU countries in a further attempt to mobilize funding.
The new instrument will be worth €150 billion and finance EU-wide defense capabilities including artillery, missiles, ammunition, drones and anti drone systems. This money will also free up space for EU countries to send weapons for Ukraine.
“With this equipment, member States can massively step up their support to Ukraine,” von der Leyen added.
In her statement, however, she was tight-lipped on where this funding will come from.
