EU leaders agree to step up defense efforts

Festivaldefense summit

"A lot has been done, but we need to do more. We need to do better, stronger, faster - and we need to do it together," Antonio Costa, President of the European Council, said after a defence summit in Brussels.

However, leaders have yet to clearly answer questions about how the planned increase in defense spending will be paid for.

European countries have increased defense spending in recent years, responding to the conflict in Ukraine and a growing realization that they cannot rely too heavily on the United States to protect the continent in the coming years.

Their efforts are fueled by questions about US President Donald Trump's commitment to the NATO security alliance and his demands that European nations spend more on the continent's defense.

The start of the EU summit was overshadowed by Mr Trump’s announcement over the weekend that he would soon impose tariffs on imports from the EU, after already ordering similar measures on goods from Canada and Mexico (which were postponed on 3 February) and from China.

EU leaders agreed to focus on filling key gaps in their defence capabilities, such as air and missile defence, missiles, ammunition and military transport, Costa told reporters.

The leaders discussed how such priorities could be funded but failed to reach a detailed agreement. However, the European Commission agreed to seek flexibility in the rules it oversees for EU countries’ public finances to make defence spending easier.

"Europe fundamentally needs a defence boost. And to do that, our defence industrial base must be strengthened," European Commission President Ursula von der Leyen told reporters after the summit.

“For many years, we have underinvested in defense. Therefore, there is great urgency to increase defense spending significantly,” she added.

NATO Secretary General Mark Rutte and British Prime Minister Keir Starmer also took part in the discussions in Brussels.

Increase spending

Last year, according to EU estimates, EU countries spent an average of 1.9% of GDP on defense, or about 326 billion euros ($334.5 billion) — up 30% from 2021.

However, many EU leaders have said they will need to spend much more. The EU Commission, the EU's executive body, estimates the bloc could need to spend an additional €500 billion over the next decade to fill critical gaps in Europe's defence capabilities.

US President Trump has said that European members of NATO should spend 5% of GDP on defence – a figure that no member state of the alliance, including the US, has achieved.

Ms Von der Leyen and Mr Costa said the EU had a number of potential defence financing options, including national spending, an expanded role for the European Investment Bank and private capital.

Leaders have avoided directly answering publicly the politically sensitive question of whether the EU should issue common debt to finance defence spending.