European Defence: Key Takeaways from the EU Leaders' Retreat

Introduction: The Strategic Imperative for European Defence

On February 3, 2025, European Union leaders convened in Brussels for an unprecedented meeting exclusively focused on defence. Given the evolving security landscape, including Russia’s ongoing war in Ukraine, hybrid threats in the Baltic region, and shifting transatlantic relations, this "informal retreat" aimed to develop a strategic roadmap for strengthening European defence. Unlike formal summits, this retreat did not produce official conclusions but provided political direction for the upcoming White Paper on Defence, scheduled for release in March 2025.

The key themes of discussion were:

  1. Enhancing European defence capabilities
  2. Finding sustainable financing solutions for security investments
  3. Strengthening partnerships, particularly with NATO, the US, and the UK

This publication examines the most critical takeaways from this high-level discussion and their implications for European security, with a particular focus on Ukraine.

Reinforcing European Defence Capabilities: The Shift from Policy to Implementation

As António Costa, President of the European Council, remarked, "We are not debating ‘if’ we should strengthen European defence; we are discussing how to do it." The retreat underscored the need for immediate investment in key military areas, particularly air and missile defence, military mobility, and cyber resilience. Recognizing the impact of Ukraine’s ability to rapidly scale its defence industry, European leaders acknowledged that Europe must adopt a similar approach.

The European Defence Agency has been tasked with identifying critical capability gaps. European Commission President Ursula von der Leyen emphasized that fostering defence innovation and interoperability is essential, learning directly from Ukraine’s rapid defence adaptations since 2022. Moreover, the debate over procurement strategy remains contentious: France has pushed for a "European preference" in arms procurement, while Germany, Poland, and the Netherlands advocate for maintaining strong defence partnerships outside the EU, particularly with the United States.

The Financing Debate: Addressing Long-Term Security Costs

While EU defence spending has increased by over 30% since 2021, ensuring its sustainability remains a challenge. The retreat centered on three primary financing mechanisms:

  1. Adjustments to EU fiscal rules: The European Commission is exploring how the revised Stability and Growth Pact can create room for increased national defence budgets.
  2. Expansion of European Investment Bank (EIB) funding: Nineteen EU leaders have petitioned the EIB to extend financing to defence industry investments, signaling a potential policy shift.
  3. Private sector involvement: The European Commission will initiate discussions with financial institutions to modernize lending frameworks for defence projects.

A key unresolved issue is joint EU borrowing for defence. Germany has opposed this proposal, while Poland and other Eastern European states argue that collective borrowing is necessary to meet urgent security needs. German Chancellor Olaf Scholz reiterated that while greater flexibility in national budgets is warranted, joint borrowing remains off the table.

The Ukraine Factor: The Strategic Rationale for European Defence

Ukraine remained central to discussions, reinforcing the argument that European security is directly tied to Ukraine’s ability to sustain its war effort. The EU has committed over €130 billion in aid, including €50 billion in military support, positioning Ukraine as the frontline of European security. The retreat reinforced the necessity of ensuring sustained financial and logistical support for Ukraine, particularly as Russia continues to escalate its military production.

The discussion also touched on broader lessons from Ukraine’s war effort. Ukrainian defence innovations, particularly in drone warfare, air defence systems, and rapid military production, were cited as models for European defence modernization. This underscores the need for closer EU-Ukraine defence industrial cooperation beyond the immediate war effort.

Strengthening Transatlantic and Global Partnerships

The retreat also focused on Europe’s evolving security partnerships. NATO Secretary-General Mark Rutte emphasized that EU defence efforts must complement NATO’s evolving strategy, particularly as NATO prepares to revise its defence spending target beyond 2% of GDP.

EU-UK Security Cooperation: A Renewed Framework

A significant diplomatic milestone was the participation of British Prime Minister Keir Starmer in the retreat’s working dinner. This marked the first high-level engagement on EU-UK defence since Brexit. Starmer reaffirmed Britain’s commitment to European security, particularly through continued military support for Ukraine. The meeting laid the groundwork for a EU-UK Defence Summit in May 2025, aimed at formalizing a new security cooperation framework.

EU-US Relations: A Pragmatic Approach

While EU leaders emphasized the importance of maintaining strong US ties, concerns over President Donald Trump’s recent comments on Greenland and trade relations added uncertainty. The EU reaffirmed its commitment to a pragmatic transatlantic partnership, while also emphasizing the need to reduce overreliance on US security guarantees by strengthening Europe’s strategic autonomy.

A Strategic Turning Point for Europe

As European Parliament President Roberta Metsola stated, "The EU must do more to protect itself, do more to finance this protection, and do more to coordinate." The February 3 retreat was not just another policy discussion—it was a defining moment for Europe’s long-term security strategy.

Key takeaways:

  • The EU is shifting from policy discussions to concrete defence implementation.
  • New financing mechanisms are being explored to sustain long-term security investments.
  • Support for Ukraine remains central to European defence strategy.
  • Security partnerships with NATO, the UK, and the US are evolving amid shifting geopolitical realities.

With major EU defence decisions expected later in 2025, this retreat laid the foundation for a more cohesive and strategically autonomous European security policy. The coming months will determine whether these commitments translate into effective action.

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