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EU Leaders Approve Increased Defense Spending Amid Fears Over US Policy Shifts

EU Leaders Approve Increased Defense Spending Amid Fears Over US Policy Shifts
Source: Reuters
  • PublishedMarch 7, 2025

European Union leaders have agreed to increase defense spending, prompted by growing uncertainty surrounding the United States’ policy towards European security under President Donald Trump, Al Jazeera reports.

The decision was made during a summit on Thursday, where the 27 EU leaders signed off on a plan to ease budget restrictions, allowing willing member states to allocate more funds to their militaries.

The move comes after recent statements and actions by President Trump that have raised concerns among European allies, including Trump’s stance on Russia, reduced US support for Ukraine, and his questioning of long-standing transatlantic partnerships.

The EU leaders also called on the European Commission to explore new methods to “facilitate significant defense spending at the national level in all Member States,” according to a statement released after the summit. The EU’s executive branch estimates that approximately 650 billion euros ($702 billion USD) could be made available through this loosening of budget constraints.

Furthermore, the leaders acknowledged a European Commission proposal for a loan package of 150 billion euros ($162 billion USD) aimed at supporting the procurement of new military equipment. They have urged EU staff to “examine this proposal as a matter of urgency.”

Hungarian Prime Minister Viktor Orban, known for his close ties to both President Trump and Russian President Vladimir Putin, declined to endorse a portion of the summit statement supporting Ukraine.

The discussions also highlighted the challenges the EU faces in filling the potential void left by the US. Decades of reliance on US protection, differing opinions on funding mechanisms, and debates surrounding the potential role of France’s nuclear deterrent underscore the complexities involved in establishing a stronger, more independent European defense capability.

According to NATO, the United States provided over 40 percent of military aid to Ukraine last year.