Europe boosts defense: Nearly €1 Trillion military budget after Trump cuts Ukraine aid

The European Union is planning an unprecedented move to raise a joint debt of €150 billion, which will be made available as loans to member states in order to strengthen their defense system.

It is part of a broader €800 billion program designed to ensure the security of the continent and reduce dependence on the United States.

The move comes after Ukraine was removed from the U.S. aid budget and concerns about Russia might try to invade other countries.

Mounting pressure from the United States and Donald Trump's return to the White House have led European leaders to realize that Washington should no longer be blindly relied upon. As has been written here in the past, Trump has even demanded that NATO member states increase defense spending to 5% of GDP – a goal that no country, including the United States, has yet to meet.

Trump's statement about NATO countries not spending enough on defense spending is well remembered, that he will give Putin a free hand to invade wherever he wants.

According to the proposal of EU Commission President von der Leyen, the funds raised will be directed to the development of air defense, missile systems, artillery, UAVs and anti-drone systems, as well as important areas such as cyber and military mobility.

"This will help member states consolidate demand and purchase together. This will reduce costs, reduce fragmentation, increase compliance, and strengthen the base of our defense industry," said European Commission President Ursula von der Leyen.

The European Commission is proposing to exclude defense spending from the EU's budget limits, which would allow governments to increase investment in security.