EU Leaders Propose Major Defense Spending Plan as U.S. Halts Ukraine Aid

European Commission unveils €150 billion loan program and budget rule changes to bolster defense, responding to U.S. withdrawal of military support for Ukraine.

European Commission President Ursula von der Leyen announced a €150 billion loan program to fund defense projects, part of a broader plan to mobilize up to €800 billion in military spending over the coming years.
The proposal includes loosening EU budget rules to allow member states to increase defense spending without breaching deficit limits, addressing long-standing reliance on U.S. military support.
The U.S. decision to suspend military aid to Ukraine, following a contentious meeting between President Trump and Ukrainian President Zelensky, has intensified pressure on Europe to fill the gap in support.
EU leaders are expected to discuss options for providing Ukraine with additional military resources, including seizing frozen Russian assets, though legal and financial hurdles remain.
The defense plan signals a significant policy shift for the EU, traditionally focused on peace and economic development, as leaders emphasize the urgency of addressing security threats from Russia.