EU officials are discussing ways to mobilize hundreds of billions of euros for defense spending amid the U.S.'s foreign policy shift away from Europe, Bloomberg reported on Feb. 27, citing undisclosed officials.
U.S. Donald Trump has said he expects Europe to take responsibility for its own security, leading some to doubt his commitment to NATO and mutual defense.
This led to calls for a rapid increase in defense spending across the continent as Russia continues to wage its full-scale war against Ukraine, the largest conflict in Europe since World War II.
The EU faces major challenges in this effort, namely an undersized defense industry and empty stocks after delivering billions in arms and ammunition to Ukraine, Bloomberg reported.
To address the issue, European Commission President Ursula von der Leyen proposed a three-step plan to ramp up defense spending, officials told the outlet.
This reportedly includes allowing member states to spend more by loosening fiscal rules – potentially freeing up at least 160 billion euros ($168 billion) – creating a joint EU instrument for defense investment, and loosening investment constraints on the European Investment Bank.
Separately, von der Leyen also reportedly proposed redirecting the largely unused 392-billion-euro ($410 billion) Covid recovery fund to finance defense projects, Bloomberg wrote.
EU officials are expected to discuss joint security during an emergency meeting on March 6, with the new defense industrial strategy to be unveiled on March 16.
Individual European countries are also taking steps to boost defense spending. Germany's incoming leaders are reportedly in talks on a special defense spending fund of 200 billion euros ($210 billion).
Outside the EU, the U.K. has committed to raising defense spending to 2.5% of GDP by April 2027.
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