European leaders are calling for increased defense spending amid rising tensions in the region. The European Commission has proposed measures that could bring about €800 billion ($867 billion) in new defense spending, but some leaders want it to go even further.
Greek Prime Minister Kyriakos Mitsotakis said the EU needs to “seriously discuss” a joint borrowing facility to support its defense efforts. He believes the current plan is an important step, but “maybe we need to be more ambitious.” Other leaders, such as Latvian Prime Minister Evika Siliņa and Lithuanian President Gitanas Nausėda, have echoed similar sentiments, calling for further financial instruments to be included in the EU’s defense plans.
Luxembourg’s prime minister Luc Frieden emphasized that the most important question is what will be spent on, not just how much. He believes financing should come second, after determining what defense capabilities are needed. European Central Bank member and Bank of France Governor Francois Villeroy de Galhau has expressed hesitation about increasing defense spending, stating that a policy of “spending whatever it takes” is not feasible.
The ReArm Europe plan includes €150 billion euros in loans for member states to invest in defense and security capabilities, with conditions such as 65% of production taking place in the EU or Ukraine. A temporary relaxation of fiscal rules would also enable member states to use public funding for defense on a national level. However, not all leaders are convinced that more spending is necessary, leaving the future of European defense cooperation uncertain.
Source: https://www.cnbc.com/2025/03/20/european-leaders-push-for-even-more-defense-spending.html