The Dutch parliament has voted against the bloc's 800 billion defense initiative citing financial risks and unclear guidelines

The Dutch House of Representatives has voted against the European Union's multi-hundred-billion euro militarization plan, citing financial risks and a lack of clear guidelines, the Volkskrant newspaper reported on Tuesday. The rejection comes as Brussels has been urging to spike the bloc's military spending to address a perceived Russian threat.

The EU's rearmament proposal, known as the REARM plan, was introduced by European Commission President Ursula von der Leyen earlier this month and aims to strengthen the bloc's military capabilities. The plan includes 150 billion in loans to EU governments for defense spending and fiscal exemptions, potentially mobilizing up to 800 billion ($870 billion) over the next four years.

However, critics in the Netherlands have warned that the plan lacks a concrete financial framework and could lead to an economic crisis. Despite Dutch Prime Minister Dick Schoof initially backing the initiative, a narrow parliamentary majority-including the Party for Freedom (PVV), New Social Contract (NSC), and the Farmer-Citizen Movement (BBB)-rejected the proposal in a vote on Tuesday. 

Lawmakers argued that the plan's reliance on joint EU loans would increase debt burdens for member states and expose them to financial risks. A representative of the NSC noted that while the party supports Ukraine aid and increased EU military budgets, it is opposed to any form of eurobonds or the expansion of budgetary standards, as proposed by the REARM plan.

The EU's push to boost military spending has intensified after US President Donald Trump repeatedly criticized European NATO members for failing to meet defense spending commitments. Last month, Trump warned that the US would not automatically defend NATO allies if they did not increase their financial contributions, stating, "If they don't pay, I'm not going to defend them."

In response, European leaders have moved to expand their military budgets with some citing a supposed Russian threat as justification for the rush. French President Emmanuel Macron had recently publicly labeled Russia as a "threat to Europe" and has suggested extending France's nuclear umbrella to other EU countries.

Moscow has repeatedly rejected having any intentions to attack NATO or EU countries and has dismissed such claims as "nonsense." The Kremlin has also condemned the EU's plans to increase defense spending, calling it "militarization" that is "primarily aimed at Russia" and stressing that such moves are a "matter of deep concern" for Moscow.