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EU’s Frontline States Urge €100 Billion Boost in Defense Spending

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EU’s Frontline States Urge €100 Billion Boost in Defense Spending
Ukrainian soldiers of the 111th brigade operate an American Humvee fitted with Soviet-era Grad launcher in the direction of Toretsk, Donetsk region, Ukraine, 23 January 2025 (Source: Getty Images)

The European Union must double its defense spending to address at least €100 billion ($104 billion) in urgent military investment needs, stated four member states that border Russia, according to a report by Bloomberg on January 30.

A policy paper prepared by Lithuania, Estonia, Latvia, and Poland calls for the EU to adopt joint borrowing, enable the European Investment Bank to finance key defense projects and collaborate with European partners outside the bloc—a likely nod to the United Kingdom.

The four nations, which have been at the forefront of efforts to support Ukraine’s defense against Russia’s full-scale invasion, cite estimates projecting EU military spending at approximately $340 million in 2024. The document argues that this figure must double for the bloc to meet a target of at least 3% of GDP and be prepared for potential “extreme military contingencies.”

Some member states, notably Germany, resisted joint borrowing for military purposes. Meanwhile, US President Donald Trump floated the idea of raising NATO’s defense spending target to 5% of GDP, a level even the US does not currently meet.

European Commission President Ursula von der Leyen previously stated that the EU must invest at least $522 billion in defense over the next decade. However, the Baltic and Polish-led paper warns that immediate needs cannot wait until the next budget cycle in 2028.

According to the document, Russia has already begun expanding its military forces and is producing three times more artillery shells than Europe and the United States combined. In addition, Russia can manufacture and supply its armed forces with 1,000 to 1,500 tanks every year. This number is approximately double the combined tank production of the five largest European nations. The EU also faces supply chain vulnerabilities due to its reliance on China and concerns over Moscow’s deepening ties with Beijing, Iran, and North Korea.

To close the immediate defense gap, the paper calls for at least $52 billion in funding to scale up artillery production and strategic stockpiles. Other top priorities include:

  • A European missile and air defense shield.

  • Strengthening EU borders with Russia and Belarus.

  • Enhancing the bloc’s ability to rapidly deploy forces.

The document also underscores the need for sustained military aid to Ukraine, emphasizing that Kyiv has growing industrial capabilities but requires financial support.

One proposed solution is to seize frozen Russian central bank assets, though this remains contentious. So far, the EU has only tapped into the profits from immobilized Russian funds, with Germany and Belgium resisting full confiscation.

Earlier, reports emerged that over 20,000 pieces of Russian military equipment were lost since the beginning of the full-scale invasion of Ukraine.

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