Goodbye to US weapons: Europe military spending to focus on EU manufacturers “We must buy more European”
As the US becomes an ever more unreliable partner and ally under President Trump, Europe prepares to defend itself with EU-made defense equipment.
President Trump proclaimed ‘Liberation Day’ on Wednesday by slapping punitive “reciprocal” tariffs on his allies and partners in Europe, as well as the rest of the world including uninhabited islands, further damaging the once close friendship. But even before President Trump launched his trade war, the group of 27 nations that form the European Union were preparing to face the threat of Russian aggression without support from its long-time ally.
“The era of the peace dividend is long gone. The security architecture that we relied on can no longer be taken for granted. Europe is ready to step up,” said EU Commission President Ursula von der Leyen unveiling ‘Readiness 2030’, a roadmap for investments in European defense industrial capabilities. “We must buy more European. Because that means strengthening the European defense technological and industrial base. That means stimulating innovation. And that means creating an EU-wide market for defense equipment.”
Europe prepares for future without US support
The ReArm Europe Plan/Readiness 2030 is “an ambitious defense package providing financial levers to EU Member States to drive an investment surge in defense capabilities,” according to the White Paper released in March. On the one hand it aims to address the short-term urgency of supporting Ukraine while at the same time tackle the long-term need to strengthen Europe’s security and defense.
The plan enables spending of more than €800 billion by loosening EU fiscal rules to allow for budgetary space to invest more on defense. A new dedicated instrument to provide up to €150 billion in loans to member states will be established called Security Action for Europe (SAFE).
In order to qualify for these loans, member state would have to purchase at least 65% of equipment from suppliers in the EU, Norway or Ukraine. This would be a complete turnaround for member states, who in recent years have bought roughly two-thirds of their equipment from US defense companies.
EU countries cannot use the loans to acquire material from defense firms in the US, UK or Turkey, unless their governments sign security agreements with the EU.
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