ReArm Europe? Capital Declares War on the People

Communist Liberation / Greece, May 2025

The EU's decision to rearm Europe sends shockwaves across the continent. The global rearmament frenzy, driven by the interests of capital, inevitably paves the way for widespread conflict. The struggle for global dominance has firmly entered its war phase—because war is born of capitalism. It emerges as a way to escape crises, through a brutal cycle of massive, bloody investments that offer far greater returns than “peaceful production.” The European Union now reveals itself for what it truly is: a Union of War.

The EU's militarization is not driven by a U.S. “withdrawal” or a supposed “Russian threat,” but by the strategic interests of European capital. The Brussels bureaucracy, along with national governments, is dragging Europe's people into a new, dark era.

EU Commission President Ursula von der Leyen made it crystal clear:

“The era of low defense spending is over... Europe is ready to increase its defense budget... We are taking decisive action, presenting a roadmap for ‘Readiness by 2030’, with increased spending and significant investment in European defense capabilities.”

European capitalism is restructuring—not just military production, but the entire economic base—around war. The green transition gives way to militarization. An unprecedented €800 billion will be spent over four years, reflecting the EU’s ambition to play a more aggressive role in global competition and to reignite a stagnating capitalist economy.

The Objectives of "ReArm Europe"

The EU’s rearmament strategy focuses on:

• Closing military capability gaps, based on priorities set by member states

• Boosting Europe’s military-industrial base

• Increasing military support for Ukraine and integrating Ukrainian defense production

• Deepening a unified European defense market

• Accelerating military innovation (AI, quantum tech, etc.)

• Preparing for worst-case scenarios, with improved mobility, stockpiling, and fortified external borders (especially with Russia and Belarus)

• Expanding military partnerships globally

This is a blueprint for elevating Europe’s political, economic, and military role in a rapidly changing world—primarily in rivalry with the Russia-China bloc, but also with the United States. The fate of Ukraine is tied to the fate of Europe. And Europe is expanding its "neighborhood" from the Arctic and the Baltic to the Middle East and North Africa. China is painted as a major threat. Meanwhile, traditional allies like the U.S. are shifting their focus elsewhere. So, the EU declares, “It is time to rearm.”

The war in Ukraine is not just a battlefield—it’s the frontline of Europe’s broader geopolitical ambitions. Increased arms shipments, air defense systems, drones, and direct support for Ukraine’s defense industry are now core policy.

But the second major priority is internal: reorganizing the entire European economy around the military-industrial complex. “Investing in defense,” the EU says, “boosts industrial competitiveness.” Traditional sectors like auto, metals, aluminum, and chemicals are being pulled into war production—no longer building tractors, medical tools, or eco-friendly fertilizers, but tanks, drones, smart missiles, and cyberwarfare systems.

Infrastructure for War

The EU’s infrastructure upgrades are focused squarely on military needs.

“Troop movements require access to critical transport infrastructure, designed for dual use.”

That’s why the EU is fast-tracking 500 “priority” projects across four military corridors—road, rail, sea, and air. The same officials who ignored safety in Europe’s railways are now prioritizing military logistics over civilian needs.

How Will This Be Funded?

The €800+ billion price tag will be covered through:

1. Increased national defense budgets – expected to contribute €650 billion

2. Joint borrowing through the SAFE Program (Security Action For Europe) – €150 billion in loans for military industry, adding to national debts

3. Financing via the European Investment Bank

And what about the EU’s Stability and Growth Pact? It will be suspended—for military spending only. A special “Escape Clause” allows governments to exceed deficit limits by 1.5% over 2021 levels, for the next four years, if the funds go to armaments.

Who Benefits?

There’s been fierce debate over who gets access to these funds. Arms-producing countries, especially France, want to keep the money within the EU. For now, the 27 member states, plus Norway and Ukraine, are eligible. The U.S., UK, and Turkey are excluded—for now—but could benefit through partnerships. Other countries must sign defense agreements with the EU to join. Brussels is especially eager to bring Britain and Turkey into the fold.

Key Political Takeaways

1. EU militarization is not about Trump or Biden. Defense spending was already on the rise before Russia invaded Ukraine and continued to increase under Biden. The EU is following its own imperialist trajectory.

2. War is a lifeline for European capitalism.

   • Defense stocks are soaring: Steyr Motors (+300%), Rheinmetall (+126%), Thales (+81%), Leonardo (+81%).

   • Rheinmetall has even overtaken Volkswagen in market value.

   • As they say: in wartime, better to build tanks than cars.

3. Anti-Russian hysteria is being deliberately stoked.

   • The EU has a GDP of €20 trillion; Russia’s is €2 trillion.

   • EU defense spending in 2024 was €457 billion, three times Russia’s (€146 billion).

   • Germany leads with €86 billion, followed by the UK, France, Italy, and Poland.

   • The U.S. spends $968 billion; China $235 billion.

So, who’s really escalating the arms race?

Disarm the Capitalists!

It is vital to build a unified, international workers’ anti-war movement—to oppose militarization, reject NATO and the EU, and overthrow the capitalist war agendas. A truly independent working-class politics must stand apart from all imperialist blocs—West or East.

The need for a modern anti-capitalist and communist Left has never been greater. The only way to defend the rights of the people is through a break with the EU, from an anti-capitalist, class-conscious, and internationalist perspective. One cannot oppose capitalism while remaining loyal to its most advanced political-economic structure: the EU.

The EU has always been:

• An engine of exploitation, austerity, and privatization

• A destroyer of labor rights and rural economies

• A promoter of racist Fortress Europe policies

• A servant of public debt profiteers

• A system that undermines democracy and sovereignty

• A space where liberalism and the far-right converge to protect capitalist interests

Therefore, the struggle must link together:

• Peace and demilitarization—against NATO, war economies, and imperialist alliances

• Workers’ rights—for better wages, pensions, job stability, public services

• Abolition of public debt—via nationalization under democratic control

• Democracy from below—against EU technocracy and corporate rule

• Open borders—solidarity with refugees and migrants, against fascism

• Climate justice—against the destruction caused by capitalist greed

• Liberation from oppression—fighting sexism, racism, and anti-LGBTQ bigotry

An Era of Wars, An Era of Revolutions

The people’s movement must intervene—demanding withdrawal from NATO and the EU, and uniting the anti-war front with the fight for bread, peace, health, and freedom.

The EU has revealed its bloodstained, reactionary nature. Disobedience, rupture, and disengagement from this imperialist mechanism are urgent tasks—now more than ever.

War can be stopped—only by the working class, by revolutionary struggle, and by transforming imperialist war into class war. As in 1914, this is the path forward:

“Do not vote for war credits. Do not feed the chauvinism of your own ruling class. Fight first and foremost the nationalism of your own bourgeoisie. Do not cling to legality when the crisis begins and the ruling class itself abandons it. This is the path that leads to revolution.”— Vladimir Lenin

Communist Liberation / Greece, May 2025