The European Union is proposing a €150 billion loan package ($158 billion) to bolster defense spending in member states, following the US President Donald Trump’s decision to withdraw American security support from the continent.
European Commission President Ursula von der Leyen stated that this move aims to correct decades of underinvestment in EU defense capabilities. The EU will also activate a budgetary mechanism allowing countries to use their national budgets to spend an additional €650 billion on defense over four years, without facing penalties.
Source: https://www.bloomberg.com/news/articles/2025-03-04/eu-proposes-150-billion-in-loans-for-pan-european-defense