MarketsMar 3, 2025
After Oval Office Fracas, Europe Is Preparing To Spend Billions to Reduce Reliance on American Defense
Strategic Autonomy
Noah Weidner
Discover
Americans might have their own interpretation of what went down in the Oval Office between US President Donald Trump and Ukraine President Volodymyr Zelenskyy last week. But televised for the world to see, there’s no doubt what the rest of the world thinks. As lawmakers drilled Zelenskyy about his attire and “not saying thank you,” global powers faced a wake-up call — they realized that they could no longer rely on American promises.
Teaming up: Last April, French President Emmanuel Macron warned that Europe cannot rely on the US for security, warning the bloc that the “American security umbrella is a thing of the past” and that Europe needs to have its own independent strategy. During an hour-long fracas at the White House, that warning became Europe’s reality. Frustration and anger towards Trump policies — which represent a reversal from prevailing American defense commitments — are now uniting Europe, spurring the region out of its ambivalence.
The meeting is likely to spur hikes in defense spending from European countries at a pivotal time. After the recent White House meeting, Europe is increasingly worried that American economic support for the war could evaporate. If forced to go it alone, European countries are unlikely to buy American — which has investors bidding up European defense contractors.
Spendthrift watch: In recent weeks, the industry has urged Europe to go big. Today, we’ll start to gauge how big the EU Commission is expected to release its “rearm Europe plan,” detailing the size of Europe’s defense commitment. French President Macron had already said the EU could provide €200B ($210B) for defense, just days after Airbus CEO Guillaume Faury said that the current environment requires “more investment, more cooperation, and more consolidation.” Similar comments by European defense leaders model for higher spending from European nations, regardless of how quickly a resolution can be had in Ukraine.
