An informal summit of 27 EU heads of state convened at the Palais d'Egmont in Brussels on February 3, 2025, to discuss the urgent need for enhanced European defense capabilities.

The discussions were prompted by increasing global tensions, prompting leaders to recognize the necessity of military upgrades.

Many leaders agreed that Europe must transition from viewing itself merely as a common market to acknowledging its defense responsibilities.

Member states aim to submit their defense priorities ahead of the EU Commission's white paper on defense, set to be released on March 19, 2025.

The EU Commission estimates that Europe requires an additional investment of at least 500 billion euros over the next decade to bolster its defense readiness.

While the EU's previous experience with the 800 billion euro recovery fund set a precedent for joint debt issuance, there remains resistance to making this a permanent solution for military funding.

French President Emmanuel Macron advocates for increased European financing through joint debt issuance, but this proposal faces opposition from Germany, the Netherlands, and Austria.

German Chancellor Olaf Scholz has expressed his opposition to Eurobonds for defense financing, favoring enhanced cooperation among European nations instead.

Germany and 18 other member states are pushing for increased credit lending by the European Investment Bank (EIB) to support the security and defense industry.

Danish Prime Minister Mette Frederiksen highlighted the urgency of rethinking defense funding amidst a prevailing sense of peace in Europe.

Proposed defense projects include establishing a European air defense system and enhancing security along the eastern borders.

Following the release of the Commission's proposals in March, EU states will have two months to review them, with decisions expected by the end of June 2025.