EU Leaders Tackle Defence and Trade Challenges Amid US Tensions

EU leaders convene to address Europe's defence strategy and trade tensions with the US under President Trump. Discussions include transatlantic ties, defence funding challenges, and the EU's goal for greater autonomy. Funding remains a contentious issue, with varying defence spending across member states.

European Union leaders are gathering to navigate the intricate landscape of continental defence amid rising tensions with the United States, led by President Donald Trump. These discussions mark a crucial moment in EU-US relations, with a particular focus on trade tariffs recently imposed by Trump on several countries.

The meeting, taking place at a transformed royal palace in Brussels, includes both informal and formal engagements. EU leaders will strategize with NATO Secretary General Mark Rutte and dine with UK Prime Minister Keir Starmer. European Council President Antonio Costa has described the gathering as a 'retreat' centered on defence policy without pressuring for formal conclusions.

A key challenge is sourcing funds for defence enhancement, with proposals ranging from joint EU borrowing to more conservative financial strategies. The context includes increased defence budgets since Russia's 2022 aggression. While Baltic states and Poland lead with significant GDP allocations, larger EU economies lag in comparison.

(With inputs from agencies.)