EU Chief Pushes for Homegrown Defense: Calls to Cut Reliance on US Military Gear

At a summit last week, the EU’s 27 leaders weighed a European Commission proposal for a new loan plan worth $163 bn. It would be used to buy air defence systems, drones and strategic enablers

In a bold move to strengthen Europe’s self-reliance in defense, European Commission President Ursula von der Leyen has urged EU nations to prioritize purchasing military equipment from European manufacturers under a proposed €150 billion ($163 billion) loan program. The initiative aims to boost Europe’s defense industry while reducing dependence on American suppliers, which currently dominate the market.

A Push for European-Made Defense Systems

Speaking to EU lawmakers on Tuesday, von der Leyen emphasized that the funds should be directed toward “purchases from European producers, to help boost our own defense industry.” She further stressed that contracts should be structured as multi-year agreements to provide stability to manufacturers. Additionally, she advocated for nations to make joint purchases, stating that “we have seen how powerful this can be.”

The proposed loan program, discussed at last week’s EU summit, is designed to fund key security investments, including air defense systems, drones, strategic transport, and cybersecurity enhancements.

Rising Urgency Amid Security Concerns

Recent years have seen European NATO members placing nearly two-thirds of their defense orders with US suppliers. However, growing pressure from the Trump administration, warning that European nations must take greater responsibility for their security and Ukraine’s defense, has prompted a shift in strategy.

France has been a vocal proponent of ensuring the loan funds are strictly used within Europe. Meanwhile, Spain—one of the eurozone nations with debt exceeding 100% of GDP—is pushing for free grants instead of loans to finance defense spending.

A Step Toward Financially Sustainable Security

EU leaders are expected to endorse the loan initiative at an upcoming summit next week. The commission argues that the plan could benefit around 20 EU countries facing high borrowing costs while supporting a broader defense spending overhaul.

This initiative is part of a larger strategy, which includes easing budget restrictions on military expenditures and reallocating EU funds. If successfully implemented, these measures could generate up to €800 billion ($874 billion) to fortify Europe’s long-term security infrastructure.