"Europe is ready to massively boost its defense spending," European Commission President Ursula von der Leyen said Tuesday.

Ursula von der Leyen said the measures would allow EU countries to significantly increase their defense budgets and make it easier to provide urgent military equipment to Ukraine.

The euro hit a fresh year-to-date high versus the greenback amid renewed bets that a ramp-up in European defense spending will provide a much-needed boost to the region’s economy.

NATO Secretary General Mark Rutte said that some European leaders had privately set out new plans on defence spending during a meeting in London, but he declined to give details, saying it was for individual leaders to set them out.

The European Union will boost its military capability to defend the continent and continue its steadfast support for Ukraine, said Michael McGrath in an interview with CNA presenter Loke Wei Sue.

The European Commission on Tuesday proposed a new joint EU borrowing initiative of €150 billion ($157.76 billion) to provide loans to EU governments for defence, as part of a broader €800 billion effort to enhance Europe’s defense capabilities,

The chief of the European Union’s executive is proposing an 800 billion-euro ($841 billion) plan to beef up EU defenses

New EU plans to strengthen Europe's defence industry and increase military capabilities could mobilize close to 800 billion euros ($841.4 billion), EU Commission President Ursula von der Leyen said on Tuesday.

The European Commission proposed on Tuesday new joint European Union borrowing of 150 billion euros ($157.76 billion) to lend to EU governments for defence as part of an overall 800 billion financing effort to boost Europe's defence capabilities.