In a pivotal meeting set for Monday, European Union leaders will convene in Brussels to confront two pressing challenges: strengthening Europe’s defense against Russia and navigating the rocky transatlantic relationship under U.S. President Donald Trump’s administration. This informal “retreat,” hosted by European Council President Antonio Costa, is designed to foster candid discussions on defense strategies without the constraints of formal declarations or decisions.
The one-day event will bring together leaders from all 27 EU nations. NATO Secretary General Mark Rutte and UK Prime Minister Keir Starmer will also participate, reflecting the broader geopolitical stakes at play. Over lunch and dinner, the leaders will hash out issues that could reshape Europe’s security landscape for years to come.
Trump’s Tariffs and Defense Demands Stir Anxiety in Europe
Central to the discussions will be President Trump’s recent decision to impose sweeping tariffs on goods from Canada, Mexico, and China. While Europe has not yet been directly targeted, EU officials are bracing for potential tariff hikes that could severely impact the continent’s economy. Trump’s aggressive trade policies have already sparked global tensions, and European leaders fear they could be next in line.
But it’s not just trade causing concern. Trump, now in his second term, has intensified pressure on European countries to significantly boost their defense spending. His demand for NATO members to allocate 5% of their GDP to defense spending—a figure no member, including the U.S., currently meets—has alarmed many EU nations. Trump’s controversial call for Denmark to cede Greenland to the U.S., coupled with his refusal to rule out military or economic pressure to achieve this, has further strained transatlantic relations.
Europe’s Push for Defense Autonomy
The Brussels gathering will also focus on how Europe can reduce its reliance on the U.S. for security. President Costa emphasized the need for the EU to become more resilient, autonomous, and efficient in its defense strategy. “Europe needs to assume greater responsibility for its own defense,” Costa wrote in a letter to EU leaders ahead of the meeting.
However, turning that vision into reality won’t be easy. While many European countries have increased their defense budgets in response to Russia’s 2022 invasion of Ukraine, there is still a significant gap between current spending levels and the targets Trump is pushing. Last year, EU countries spent an average of 1.9% of their GDP on defense, totaling approximately 326 billion euros—a 30% increase since 2021, but still far below Trump’s 5% demand.
The Funding Dilemma
Finding the money to bolster Europe’s defenses is a major hurdle. Some nations, like the Baltic states and France, support the idea of joint EU borrowing to fund defense initiatives. But this proposal faces stiff opposition from fiscal conservatives like Germany and the Netherlands, who are wary of increasing debt.
A potential compromise could involve using borrowed funds to issue loans for defense projects rather than direct grants. But even this solution may not satisfy all parties, highlighting the deep divisions within the EU on how to finance its security needs.
Spending also varies significantly across the bloc. Poland and the Baltic states are among the biggest spenders relative to their GDP, with Poland leading at over 4.1%. In contrast, larger economies like Italy and Spain lag behind, spending just 1.5% and 1.3%, respectively.
What’s Next?
As EU leaders gather in Brussels, the stakes couldn’t be higher. The decisions made—or avoided—during this meeting will shape Europe’s defense policies and its relationship with the U.S. for years to come. With Trump’s unpredictable leadership and Russia’s continued aggression, the pressure is on for Europe to step up its defense game.
