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London – It is expected that the European Union will announce “specific” measures to increase defense financing this week, CNBC sources said when Europe and the US faced Ukraine’s support.
27 EU leaders will gather in Brussels on Thursday for a meeting dedicated to the defense and support of Ukraine. This follows two particularly tense points in the US and Europe’s relations: Vice President JD Vance’s Speech in Munich In mid -February, when he criticized European leaders; and Back the collision Between the US and Ukrainian President Zelensky in the Oval Cabinet on Friday.
European leaders are trying not to alienate President Donald Trump after he criticized Zelensky for “for”Gambling “over the potential World War II. At the same time, Europeans know that they should take measures immediately to ensure that Ukraine continues to receive the support it needs – and any further aggression from Russian President Vladimir Putin.
“There will be intensive work in the coming days,” CNBC said on Monday, which did not want to call it a specified debate sensitivity, but is part of the preparation for Thursday.
The same official said the purpose is to declare “specific results” for financing protection.
Traders will closely watch the talks between EU officials. The European Aerospace and Defense Index increased by almost 23% today when investors are betting on hike and in Monday’s morning trade by 6% higher.
Trump often criticized European countries for not spending 2% of his GDP on defense, as provided for by NATO rules. Since Trump’s first term, several countries have increased defense costs, and the last NATO figures show that 23 of 32 members are expected to reach 2% in 2024.
Now many NATO members are trying to increase costs even more, and NATO Secretary General Mark Rutht said CNBC in February what the figure should be “Much more than 2%“Trump, meanwhile, called 5% GDP As focuses on NATO’s contribution.
How to spend more on protection
Ursula von der Leyen, President of the European Commission Ursul von der, has announced that EU financial rules would be updated to allow countries to spend more on defense without limited to specific borrowed and scarce purposes.
An unnamed EU official said CNBC that the next message would go even further. “We consider additional financing at the EU level, including through flexibility in the use of structural funds and adaptation of the EIB mandate,” the official said.
European Investment Bank that focuses 95 billion euros (99 dollars.26 billion) in investment in 2025Currently, it is only limited to financing defense projects with double use, which means that they should have both civilian and military purposes.
The second EU official, who did not want him to be called from the sensitivity of the negotiations, was confirmed by CNBC on Monday that in the coming days, background der Leyen would present “specific measures” in terms of defense financing. They will then be discussed by EU leaders on Thursday.
The Ukrainian military is moving in the Soviet t-64 tanks in the Sumi region, near the border with Russia, on August 11, 2024, against the background of a Russian invasion of Ukraine. On August 11, Russia acknowledged that the Ukrainian troops joined the Kursk border region in the following, that the top official in Ukraine said he was aimed at “destabilizing” Russia and “stretch” their strength.
Roman Pilipey | AFP | Gets the image
“We urgently need to redo Europe. And for this I will represent the leaders a comprehensive plan on how to overcome Europe on March 6, when we have our European Council,” von der Leyen said at the London summit on Sunday.
A recent report entitled “Protecting Europe without the United States” is based in Brussels Analytical tank Brugel that Europe may need “300,000 troops and Annual Protection Costs at least 250 billion The euro will restrain Russian aggression in the short term. “
At the same time, Goldman Sachs said that “in the absence of financial action compensation, the euro area must be funded by an additional 0.6% GDP annually to achieve a 2.5% defense target.”
One of the key questions is whether the EU will go so far as to agree to general borrowing for defense projects. The block decided to make this unprecedented step in 2020 after a pandemic (known as NEXTGEENrationeu) And some member countries believe that this should be repeated for defense costs. However, more fiscal conservative countries want to run out other options before taking this step.
According to Goldman Sachs, EU leaders can “redo” great financial capabilities from Nextgenerationeu funds for protection. They could then look at a new program that “could provide stable financing for the protection against individual national factors,” analysts added.
