Brussels, 21 March 2025 (dpa/MIA) - The European Union plans to dramatically ramp up defence spending, mobilizing €800 billion ($868 billion) over the next four years, including €150 billion in loans for arms projects and exemptions from EU debt rules for defence investments.

At a summit in Brussels on Thursday, EU leaders agreed to take all necessary steps to strengthen Europe's defence readiness by 2030, according to the summit declaration.

The effort is also intended to boost military support for Ukraine as it continues to resist Russia's invasion.

The initiative, which has not yet been formally adopted, comes amid growing concern within the European Commission that the EU must urgently prepare for the risk of large-scale conflict with Russia.

In a paper presented ahead of the summit, the commission warned that history would not forgive European leaders for failing to act. If Russia succeeds in Ukraine, it argued, Moscow is likely to pursue further territorial ambitions, potentially by 2030.

Commitment to NATO

The security situation in Europe is seen as particularly perilous after President Donald Trump made clear the United States will no longer serve unconditionally as Europe’s guarantor of peace, as it has for decades.

Still, the summit declaration makes clear that the EU is counting on NATO’s continued role.

The bloc does not view increased European defence and security capabilities as competition to NATO but rather as efforts that "will contribute positively to global and trans-Atlantic security and is complementary to NATO, which remains, for the 23 EU states that are also NATO members. the foundation of their collective defence."

Germany’s outgoing Chancellor Olaf Scholz noted that the Bundestag has already approved easing the country’s debt limit, allowing for billions in additional defence spending.

But the summit was shadowed by Hungary’s announcement that it would block any new EU decisions specifically supporting Ukraine. As during an earlier EU summit on March 6, no joint text on the issue could be adopted.

Hungary justified its stance by aligning with Trump’s position. Trump trying to pressure Ukraine into agreeing to a ceasefire with Russia. Many European capitals fear those terms could be favourable to Moscow.

Swedish Prime Minister Ulf Kristersson called Trump's approach to trying to end the war "terrible" at the summit.

Discussion on new EU debt

Several countries expressed dissatisfaction with the European Commission’s financial efforts to boost defence, arguing they do not go far enough.

Greek Prime Minister Kyriakos Mitsotakis said there should be serious consideration of large-scale new EU borrowing — so-called Eurobonds — rather than just loans. The EU has only used Eurobonds once before, during the coronavirus pandemic, to mitigate economic fallout.

However, countries like Germany, the Netherlands, and Austria remain firmly opposed.

Photo: EBS