BRUSSELS — European Union leaders are trumpeting their endorsement of a plan to free up hundreds of billions of euros to inject into their defense budgets after the Trump administration warned that the continent must look after its own security, including Ukraine, in future.
After more than 12 hours of talks on Thursday, the 27 leaders signed off on a scheme that would ease budget restrictions for defense spending, funnel some of the EU’s unused funds toward security priorities and provide 150 billion euros ($162 billion) in loans for military purchases.
As a priority, the funds would be spent on air and missile defense, artillery systems, ammunition, drones and air transport, as well as cyber systems, artificial intelligence and electronic warfare.
The three-year war in Ukraine was also top of the agenda, but no obvious short-term solutions were found to keep the country in the fight, after the U.S. halted military support and intelligence sharing. No new weapons were pledged, no ready cash identified.
Hungary also vetoed a joint statement on support to Ukraine, notably the stance of the 26 other member countries that their war-ravaged partner can only achieve “peace through strength.”
All 27 leaders agreed that the EU’s executive branch, the European Commission, should loosen budget restrictions so countries that are willing can increase their military spending. The commission monitors whether members are keeping their debt under control.
It estimates that around 650 billion euros ($702 billion) could be freed up that way, and could allow each country to spend at least 3% of their gross domestic product on defense. NATO’s current guideline is that allies should spend at least 2%.
Seven EU countries fall short of that figure, including heavyweights Italy and Spain.
It remains to be seen whether countries that pledged to hit 2% more than a decade ago and still haven’t are now willing, or even able, to dig deeper into their pockets.
The commission also tabled a proposal for an offer of loans worth 150 billion euros ($162 billion) to buy new military equipment, with material priorities to be based on lessons learned from the battlefield in Ukraine. Ai