BRUSSELS, March 4 (Reuters) - 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 EU will propose to give member states more fiscal space

for defence investments, as well as 150 billion euros in loans

for those investments, and will aim to mobilize private capital

as well, von der Leyen said.

($1 = 0.9508 euros)