By Ana Andrade, Bloomberg Markets Live reporter and strategist

The European Commission reckons it can mobilize €800 billion - or about 4.5% of the bloc’s GDP - with its latest measures to bolster defense spending. But a look at the details suggests the package is far less revolutionary than it may seem. While it works for Germany, which has already launched its own massive defense plan, it will do little to help countries with limited fiscal space. For those governments, the bond market remains the main obstacle to rearmament.

The biggest chunk of the money, around €650 billion, is set to come from additional spending at the national level in response to a temporary suspension of the EU rules. The remaining €150 billion will be granted to governments in the form of loans.