Europe will spend more on defense after Trump pressure

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European Union leaders convened for urgent discussions in Brussels, reaching a landmark agreement to substantially increase defense spending following President Donald Trump’s insistence that European nations reduce their dependence on U.S. military support and funding.

The emergency summit highlighted a dramatic shift as European nations, long accustomed to American military protection and financial backing, faced the prospect of strengthening their defense capabilities independently.

“Today history is being written,” European Commission President Ursula von der Leyen told reporters after the summit ended.

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Me on Bloomberg TV today talking about the catalyst for the bond rally.

🧵with more color

tl:dr, Europe will spend trillions on defense, relieving the brufen from the US. Lower deficits and smaller issuance coming.

Markets are forward looking. pic.twitter.com/eRKse0StzD

— Jim Bianco (@biancoresearch) February 26, 2025

She said the 27 E.U. leaders are “determined to ensure Europe’s security and to act with the scale, the speed and the resolve that this situation demands. We are determined to invest more, to invest better and to invest faster together.”

This significant policy shift reflects a fundamental change in international relations, driven by Trump’s demands for European nations to take greater responsibility for their military preparedness using their own resources.

The gathered leaders responded to Trump’s call by approving measures to ease budgetary constraints, enabling interested EU member states to boost their defense expenditure.

The summit’s final statement called on the European Commission to explore additional methods for facilitating increased military spending across all member states.

According to estimates from the EU’s executive branch, this initiative could potentially unlock approximately 650 billion euros ($702 billion) in defense funding.

HUGE concrete decision for Europe's safety!

European Union just decided to invest €800 billion in defence.

Plan also includes a new €150 billion financing mechanism to lend money to member states to strengthen their defence.

This is the way! 🇪🇺💪 pic.twitter.com/Fbq9ySPTdk

— Tomi 🇺🇦🇫🇮🇪🇺 (@TallbarFIN) March 6, 2025

Hungarian Prime Minister Viktor Orbán, known for his alignment with Trump, declined to support portions of the summit declaration regarding Ukraine.

However, the remaining 26 EU leaders maintained their position that any negotiations concerning Ukraine must include Kyiv’s participation, and that European involvement is essential in security-related discussions.

Trump’s previous criticism of U.S. taxpayer contributions to Ukraine through substantial military aid packages has emphasized his intention to transfer more financial responsibility to European allies.

His stance includes challenging NATO members to elevate their defense spending to five percent of their GDP.

Meanwhile, European nations have found themselves marginalized in the American-led diplomatic exchanges with Russia.