New plans from the European Union to increase defense spending could potentially mobilize as much as 800 billion euros ($841 billion), European Commission President Ursula von der Leyen said Tuesday.

&ldquo Europe is ready to massively boost its defense spending. Both, to respond to the short-term urgency to act and to support Ukraine but also to address the long-term need to take on much more responsibility for our own European security,&rdquo she said in a press statement.

Europe is in its &ldquo era of rearmament,&rdquo she noted.

Von der Leyen said she had written to European leaders ahead of the European Council meeting later this week to propose the &ldquo ReArm Europe Plan,&rdquo designed to enable EU member states to increase spending in defense capabilities. She added that this was needed &ldquo urgently now but also over a longer time.&rdquo

&ldquo ReArm Europe could mobilise close to EUR 800 billion for a safe and resilient Europe,&rdquo she said. &ldquo This is a moment for Europe. And we are ready to step up.&rdquo

The plan will include 150 billion euros of  loans that  member states can access to invest in what von der Leyen described as &ldquo pan-European capability domains.&rdquo

&ldquo For example: air and missile defence, artillery systems, missiles and ammunition drones and anti-drone systems but also to address other needs from cyber to military mobility for example,&rdquo she added.

In the letter sent to EU leaders, and seen by CNBC, von der Leyen said the new loan instrument would be backed by the EU budget.

The ReArm Europe plan would also enable EU member states to use public funding for defense on a national level by activating the national escape clause in the EU&rsquo s Stability and Growth Pact. First announced at the Munich Security Conference last month, this move would give countries more flexibility on how they spend their money.

Von der Leyen also pointed to options such as making changes to the EU&rsquo s budget and mobilizing private capital to boost defence spending.

The 27 EU leaders will gather in Brussels on Thursday for a meeting dedicated to defense and support for Ukraine where the ReArm Europe proposals will be discussed.

Trump has repeatedly pushed for European countries and other NATO allies to increase their defence spending above the current NATO target of 2% of their gross domestic product each year.

A number of countries have struggled to meet even this target and have  voiced concerns  about increasing their spending closer to Trump&rsquo s preferred 5%. Others, like Poland, have called for major increases in spending, especially given Russia&rsquo s invasion of Ukraine.

The way the Trump administration has responded to the ongoing conflict in recent days and weeks &mdash including  the spat  with Ukrainian President  Volodymyr Zelenskyy  at the White House last week, as well as reports that the U.S. has  halted military aid to Ukraine  &mdash has increased pressure on Europe to act.