EU Confidential What’s really behind Europe’s 5% defense push
10 snips
Jun 20, 2025 
Michelle Haas, a defense analyst at Ghent University, discusses how European states are reacting to the proposed 5% defense spending goal amidst the Ukraine conflict. Sammy Mahdi, leader of Belgium's CD&V, vehemently opposes the goal, calling it 'crazy' and raises concerns about budget reallocations affecting social programs. Ralf Stegner, a senior German Social Democrat, advocates for prioritizing diplomacy over militarization, emphasizing the need to balance defense investments with domestic welfare. The episode dives into the political complexities around Europe's defense policies.
AI Snips
Chapters
Transcript
Episode notes
Europe's 5% Defense Spending Norm
- NATO's new defense spending norm is set at 3.5% of GDP with an additional 1.5% for defense related investments.
- This target reflects genuine European defense plans, not just pressure from the US under Trump.
Threat Perceptions Shape Spending
- Countries closer to Russia have much higher threat perceptions which drive defense spending increases.
- Western European nations often feel the threat more abstractly, complicating defense budget increases.
Funding Defense Buildup Options
- Governments have three main ways to fund increased defense: raising taxes, issuing debt, or reallocating budgets.
- Approaches vary by country based on political culture, fiscal discipline, and threat perception.