BRUSSELS – The European Union leaders have approved a plan to unlock hundreds of billions of euros for their defense budgets following warnings from the Trump administration to take responsibility for their security, including Ukraine.
After extensive discussions lasting over 12 hours on Thursday, the 27 leaders agreed on a strategy to loosen budget constraints on defense expenditure, redirect some of the EU’s unspent funds towards security priorities, and allocate 150 billion euros ($162 billion) in loans for military acquisitions.
The primary focus of the allocated funds will be on investments in air and missile defense, artillery systems, ammunition, drones, air transport, cyber capabilities, 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.”
Taking the budget brakes off
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.
A new defense loan program
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. Air and missile defenses are right up there.
The European Commission said it would raise the money on financial markets, and that around 20 member countries would benefit from the more favorable rates that it could generate.
But the leaders did not welcome the idea with open arms. Instead, they invited EU headquarters staff “to examine this proposal as a matter of urgency.”
France believes the pot is too small. Heavily indebted Spain is demanding free grants rather than loans.
Hungary. Together, alone
Hungarian Prime Minister Viktor Orbán, a staunch supporter of President Donald Trump and Russian President Vladimir Putin’s closest ally in Europe, refused to endorse part of the summit statement in favor of Ukraine.
It’s not the first time that Orbán has tried to block proceedings, nor the first time that Hungary’s EU partners have moved forward without it.
“Hungary is isolated among the 27, and we respect Hungary’s position,” European Council President Antonio Costa told reporters after the meeting. “But it’s one out of 27, and 26 are more than one.”
Orbán appears to relish his isolationist role and is intent on turning the tables.
“The European Union has isolated itself from the United States now, isolated itself from China because of the trade war, and isolated itself from Russia because of the sanction policy. So if somebody is isolated here it is the European Union,” he said.
Hungary’s population totals around 9.5 million, a fraction of the EU’s 450 million people.
It’s high on European minds but Ukraine needs more
President Volodymyr Zelenskyy dined with the leaders. He welcomed their security plans and expressed hope that some new spending could strengthen Ukraine’s defense industry.
Ukraine can make weapons more cheaply than elsewhere in Europe, and closer to the battlefields where they are needed.
“We are very thankful that we are not alone, and these are not just words. We feel it. It’s very important,” Zelenskyy said, looking more relaxed among Europe’s leaders in Brussels than when he received a verbal lashing from Trump in Washington last week.
But the EU offered no new weapons, a day after Zelenskyy’s hometown was bombed again, even though the leaders might argue that this was not the main goal of their summit.
No discussion was held on whether to unblock the estimated 183 billion euros ($196 billion) in frozen Russian assets held in a Belgian clearing house, a pot of ready cash that could be seized if Europe was willing.
Some countries feel it is wiser to use the interest generated from the assets to help Ukraine, rather than use the funds themselves. Others worry that confiscating the money, with its tricky legal implications, could undermine confidence in the euro.
Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
