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Date Published: 07/03/2025

EU leaders agree massive increase in military spending

The European Union will double down on defence as Trump’s position on Ukraine creates growing security concerns

This Thursday’s European Council summit in Brussels on March 6 was indeed, as promised, decisive, marking a pivotal moment in the EU’s approach to security and defence. European leaders reaffirmed their commitment to Ukraine while acknowledging that the bloc must take greater responsibility for its own security.

“The danger is real and imminent,” European Commission President Ursula von der Leyen warned, encapsulating the urgency of the situation.

The summit concluded with a significant commitment: a €150 billion joint investment in defence over the next decade, along with plans to redirect Cohesion funds and utilise European Investment Bank projects for military purposes.

Additionally, von der Leyen’s proposal includes an extra €650 billion from individual member states, who are encouraged to raise their defence spending by 1.5% of GDP. Spain, led by President Pedro Sánchez, has backed joint EU investments in a model similar to the post-pandemic recovery fund while also pushing for increased focus on the security of the EU’s southern flank.

The leaders agreed that Europe’s defence awakening must happen now. The bloc is struggling to maintain its relevance as a serious and sober player on the world stage, confronted as it is right now with the bombastic extremities of personalities in the US, Russia and China.

While the summit reaffirmed support for Ukraine, populist Hungarian Prime Minister Viktor Orbán remained opposed, leaving 26 of the 27 EU nations aligned. The leaders insisted that Ukraine must have a key role in any peace negotiations and that Europe should be directly involved, countering perspectives from the US and Russia.

The economic implications of increased defence spending in EU have been touted, with European Central Bank (ECB) President Christine Lagarde supporting the spending boost. She noted that higher investments in defence and infrastructure could provide an economic stimulus, though she warned of risks stemming from geopolitical instability and trade tensions.

Ukrainian President Volodymyr Zelensky expressed gratitude for the EU’s unwavering support. He praised Europe’s commitment to rearmament but stressed that some of the allocated funds should go towards military production within Ukraine. “We must work together to reinforce this advantage,” he said, calling for more artillery systems, ammunition and investments in domestic production of drones and long-range missiles.

Ukraine faces growing pressure from the United States, where recent developments have strained relations. A heated exchange between Zelensky and Donald Trump last week led to Washington pausing military aid and intelligence sharing with Kyiv. In response, Zelensky sent a letter to Trump, reportedly expressing regret over their public disagreement and reaffirming his commitment to cooperation.

Next week, further US-Ukraine talks will be held in Saudi Arabia, where Washington hopes to establish a framework for peace. While Zelensky will be in the Gulf kingdom, he will not participate in the negotiations, and neither will Trump. Instead, Trump’s special envoy, Steve Witkoff, will be there and it will hopefully be a less embarrassing affair.

Witkoff has emphasised that Ukraine must show greater flexibility to reach an agreement, while Kyiv remains firm in its demand for security guarantees.

Russian forces still control around 20% of Ukrainian territory, and a fresh wave of missile and drone attacks on Ukraine’s energy infrastructure prompted Poland to activate its air defence systems this Thursday, the same day as the European Council summit. Against this backdrop, peace proposals have emerged, including a plan by French President Emmanuel Macron advocating a ceasefire in the air and at sea.

However, Russian President Vladimir Putin remains resolute, stating that Moscow seeks a peace settlement ensuring long-term stability but will not concede territory. China has also called for a “fair, lasting and binding peace agreement.”

Image: Moncloa Pool/Fernando Calvo and EU Pool

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