EU Proposes Defense Loans, Germany Increases Ukraine Aid

The European Commission is urging EU member states to enhance joint defense procurement, proposing up to €150 billion in EU-backed loans to bolster military deterrence against Russia by 2030. This initiative excludes the U.K., Turkey, and the U.S., although the EU seeks a defense partnership with the U.K. Germany has committed an additional €3 billion in military aid to Ukraine, adding to the €4 billion already allocated for 2025, as it continues to be Ukraine's largest military donor in Europe. The assistance includes Gepard anti-aircraft systems, mine protection vehicles, and a variety of ammunition and drones. Chancellor-elect Friedrich Merz plans to significantly increase Germany's defense budget to achieve strategic independence from the U.S., amid shifting transatlantic relations under President Trump. This defense spending boost aligns with broader European efforts to build a self-reliant defense infrastructure, reducing dependency on U.S. military capabilities.