The European Council reaffirms the need for Europe to enhance its sovereignty, self-reliance in defense, and capacity to address current and future security threats. The war in Ukraine underscores the urgency of strengthening European defense through increased funding, strategic autonomy, and industrial capacity.

Key measures include:

• Defense Financing: The Commission is urged to activate the national escape clause under the Stability and Growth Pact, explore additional funding sources, and propose an EU-backed loan instrument of up to €150 billion.

• Industrial and Technological Base: Steps will be taken to improve defense readiness, reduce strategic dependencies, and enhance the EU’s defense industry, including revising European Investment Bank lending practices.

• Priority Capabilities: The EU will focus on air and missile defense, artillery, ammunition, drones, cyber warfare, artificial intelligence, and military mobility.

• Border Security: Particular attention is given to the security of the EU’s eastern borders due to threats from Russia and Belarus.

• Joint Procurement and Standardization: Increased coordination in defense spending aims to reduce costs, ensure interoperability, and boost European industry, including SMEs.

• Regulatory Simplification: The EU seeks to streamline legal and administrative barriers to defense industry growth.

• NATO Cooperation: The EU’s defense efforts remain complementary to NATO, with coordination expected ahead of the June 2025 NATO Summit.

The European Council anticipates the forthcoming White Paper on the Future of European Defence to provide further strategies for increasing defense financing and strengthening Europe’s defense industry.

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