In response to growing concerns about Europe’s security and its reliance on U.S. defense, the European Commission proposed a plan to raise up to €150 billion in loans for European Union (EU) member states. The proposal, announced on Tuesday, aims to increase European defense spending, fueled by the ongoing war in Ukraine and fears that Europe can no longer fully rely on the United States for protection.
The initiative is focused on enhancing Europe’s defense capabilities, prioritizing areas such as air defense, missile systems, and drones. European Commission President Ursula von der Leyen emphasized that Europe is prepared to significantly increase its defense spending, highlighting that the continent is entering a new era of armament.
The €150 billion fund, along with a potential mobilization of up to €800 billion, is designed to strengthen Europe’s defense posture. EU leaders will discuss this proposal at a special summit on Thursday.
Furthermore, the European Commission is encouraging EU member states to boost their defense spending and make use of existing funds, rather than seeking new financial resources from the EU. The proposal does not include the option for joint debt issuance for defense grants, a concept supported by countries like the Baltic states and France but opposed by Germany and the Netherlands.
This move follows a day after former President Donald Trump’s suspension of military aid to Ukraine, further highlighting the widening divide between European leaders and Washington on issues of security and the approach to Russia.
