The EU plans to significantly increase defense spending, intending to purchase more US-made weapons to promote trade agreements.

CNBC: EU significantly increases defense spending, plans to purchase more US weapons to promote trade agreements

CNBC report on June 30: The President of the European Council, Antonio Costa, stated on Friday that NATO allies have agreed to raise the defense spending target from 2% of GDP to over 5% by 2035, which will significantly increase Europe's procurement of US weapons. Costa pointed out that part of the additional defense budget will be used to purchase US equipment, which will help balance the EU-US trade relationship and create conditions for reaching a broader trade agreement.

Data from the Stockholm International Peace Research Institute (SIPRI) shows that global military spending reached $2.24 trillion in 2023, with NATO European member states accounting for about 20%. Mark Cancian, an analyst at the Center for Strategic and International Studies (CSIS), said that increased defense spending in Europe will directly benefit US defense companies such as Lockheed Martin and Raytheon Technologies, and it is expected that European purchases of US weapons may increase by more than 30% over the next decade.

Currently, the European Commission is assessing the US trade proposal. Costa expressed optimism about reaching an agreement before the July 9 deadline, saying "both sides are actively seeking solutions." Fabian Zuleeg, an expert at the Brussels European Policy Center, believes this move addresses the long-standing American dissatisfaction with NATO defense burden-sharing and provides a buffer space to avoid tariffs under a Trump administration.

Original article: https://www.toutiao.com/article/1836301507259392/

Statement: This article represents the views of the author.