Europe considers a major defense spending package as Trump signals disengagement
BERLIN — The head of the European Union’s executive branch proposed an $840 billion plan to quickly build up defense budgets in Europe, as President Trump pauses military aid to Ukraine and signals his administration could pull back from a long-standing U.S. commitment to protect allies on the continent.
European Commission President Ursula von der Leyen said Tuesday she will present her “ReArm Europe” proposal to the leaders of the EU’s 27 member countries.
“I do not need to describe the grave nature of the threats that we face,” von der Leyen said in a statement. “We are in an era of rearmament. And Europe is ready to massively boost its defence spending.”
The announcement followed news late Monday that the White House will put U.S. military aid to Ukraine on hold, as Trump accuses Ukrainian President Volodymyr Zelenskyy of not being “ready for peace.”
“We are pausing and reviewing our aid to ensure that it is contributing to a solution,” a White House official said, speaking on background.
Von der Leyen was already working on an EU defense buildup plan before Trump’s decision was announced.
She said a new fund worth more than $150 billion would support EU members’ investing in defense, while relaxing the bloc’s debt rules to free up more than $680 billion over the next four years.
She also said member states could use funding intended for other EU programs to increase defense spending.
Details of the plan were outlined in a letter she sent to EU leaders ahead of a summit scheduled for Thursday. The letter referenced “financial levers at our disposal,” including activating what’s called the “national escape clause” of the EU’s Stability and Growth Pact, which would allow member states to run larger budget deficits than typically allowed in order to significantly increase their defense expenditures.
For example, mentioned von der Leyen, “If Member States would increase their defense spending by 1.5% of GDP on average, this could create fiscal space of close to EUR 650 billion over a period of four years.”
EU leaders are expected to discuss von der Leyen’s proposal at a leader summit in Brussels on Thursday.
“This is Europe’s moment, and we must live up to it,” Von der Leyen said.
This is a developing story that may be updated.
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