EU Leaders Back €800 Billion Defense Spending Plan Amid Shifting US Alliance
European Union leaders endorsed an ambitious €800 billion ($863 billion) defense spending initiative Thursday in Brussels, marking a historic shift toward military self-reliance as traditional US security guarantees appear increasingly uncertain [1].
European Commission President Ursula von der Leyen presented the 'ReArm Europe' plan, which aims to unlock significant defense funding through loans, new funds, and revised financing rules. 'Europe faces a clear and present danger, and therefore Europe has to be able to protect itself,' von der Leyen stated [1][3].
The plan includes:
- Loosening budget restrictions for military spending
- A €150 billion ($162 billion) loan package for military equipment
- Measures to facilitate defense spending at national levels
Ukrainian President Volodymyr Zelenskyy, attending the summit, welcomed the initiative and expressed hope it could bolster Ukraine's defense industry. His presence came days after US President Trump ordered a pause in American military supplies to Ukraine [1].
French President Emmanuel Macron signaled additional security measures, including discussions about extending France's nuclear deterrent to protect European allies. The proposal received positive responses from Baltic nations, with Lithuania's President Gitanas Nauseda calling it a 'very interesting idea' [2].
The initiative faces challenges, including high debt levels in several EU member states. France currently struggles with a 5% GDP deficit, while five other eurozone countries maintain debt levels exceeding 100% of GDP. Germany, with lower debt at 62% of GDP, has more flexibility for increased spending [1].
European leaders emphasized the urgency of the situation, with likely German Chancellor Friedrich Merz describing it as 'five minutes to midnight for Europe.' The plan represents a significant departure from decades of declining military spending following the Cold War [4].