Europe
Trump wants Europe increase defence spending: What does it mean for Europe?
Calls from President Trump and NATO Secretary General Mark Rutte for increased European defense spending have ignited a debate among European leaders. Dr. Ingo Piepers, founder of Global4Cast, told Harici how this could reshape Europe’s path toward strategic autonomy.
Ahmetcan Uzlaşık, Brussels
On January 7, Donald Trump stated that NATO members should spend 5% of their gross domestic product (GDP) on defence, marking a solid increase from the current 2% target. NATO Chief Mark Rutte also expressed his approval of Donald Trump’s return to the White House, by stating that his presidency would “turbo-charge defense spending and production” within the alliance.
NATO projected that 23 of its 32 member nations achieved the target of allocating 2% of their GDP to defense spending in 2024. However, no member, including the United States, currently dedicates as much as 5% of GDP to defense. Among the alliance, Poland leads with defense spending equivalent to 4.12% of its GDP, followed by Estonia at 3.43% and the United States at 3.38%, while Türkiye spends 2.09% of its GDP.
Eight of NATO’s 32 member countries fail to meet the alliance’s recommended defense spending target of 2% of GDP. Among them are Spain (1.28%), Slovenia (1.29%), Luxembourg (1.29%), and Belgium (1.30%), with slightly higher figures for Canada (1.37%), Italy (1.49%), Portugal (1.55%), and Croatia (1.81%).
Poland: The biggest spender
Poland’s Defence Minister has expressed support for Donald Trump’s call for NATO members to allocate 5% of their GDP to defense. He emphasized on January 12 that Poland “can be the transatlantic link between this challenge set by President Trump and its implementation in Europe.” As NATO’s largest relative spender, Poland currently dedicates 4.12% of its GDP to defense in 2024, with plans to increase this to 4.7% in 2025. Notably, Poland has recently taken over the EU Council presidency, with a strong focus on defense and security.
European Countries Grapple with NATO’s 5% Defense Spending Target
European countries are adopting varying stances on the ambitious 5% target proposed by Trump. While Germany has met NATO’s 2% defense spending target for 2024, it falls short of Trump’s demand for a 5% increase. Despite a significant boost in military spending since Russia’s invasion of Ukraine, Germany is facing budgetary constraints that complicate future funding, with a projected €16 billion budget gap for 2025.
In contrast, Baltic nations approach the issue more urgently. Lithuania has taken a bold step, committing to raise its defense spending to between 5-6% of GDP by 2026. Similarly, Estonia plans to spend 3.7% of its GDP on defense.
Sweden, which allocated 2.1% of GDP to defense last year, also supports increased spending, with Foreign Minister Maria Malmer Stenergard stressing that European countries must shoulder more defense costs.
Meanwhile, France faces political uncertainty that could hinder its efforts to increase defense spending, while the U.K. has not outlined a specific timeline for meeting its 2.5% defense target by 2030. The Czech Republic recently announced it reached the 2% target for the first time, with Prime Minister Petr Fiala suggesting that 3% could be feasible in the coming years.
Italy plans to allocate 1.57% of its GDP to defense in 2025 and aims to reach 2% by 2028, far below Trump’s wishes.
NATO members’ defence expenditure as share of GDP

Source: NATO, 2024
“Europe Must Take Responsibility for Its Own Security”
Dr. Ingo Piepers began the interview by criticizing Europe’s dependence on the United States for security and leadership. “It is high time for Europe to take responsibility and ensure its own security,” he said, describing this reliance as “increasingly unhealthy” and urging greater European autonomy.
Dr. Piepers pointed to a widening values gap between the U.S. and Europe, particularly under leadership such as Donald Trump’s. “The claim on Greenland is a prime example,” he noted, stressing the importance of Europe staying true to its principles and avoiding becoming “an instrument of a United States that disregards fundamental rights and agreements whenever it suits them.”
He also emphasized that Europe should have adopted a more critical and independent stance, particularly its support for Israel in Gaza and the occupied territories. “Europe must take responsibility for its own actions and ensure that the values it claims to represent are upheld in practice, rather than merely paying lip service to them,” Dr. Piepers added.
“Ambitious and Unrealistic”
Asked about Donald Trump’s suggestion that NATO countries meet or exceed 5% of GDP in defense spending, Dr. Piepers dismissed the proposal as “ambitious and, in many ways, unrealistic.” While acknowledging that European NATO members must take their defense responsibilities more seriously, he described the 5% target as “arbitrary and unsubstantiated.”
“It is essential to first conduct a comprehensive threat assessment to determine the actual requirements for European security. From this analysis, NATO’s strategy—including a stronger European pillar—must be adapted accordingly. Only then can realistic and justifiable spending goals be established,” he explained.
He argued that Europe’s focus should be on building a highly capable, largely autonomous European defense force within NATO. “Europe’s priority should be the development of a highly capable, largely autonomous European defense force within NATO,” he emphasized. This includes fostering interoperability, joint capabilities, and readiness rather than fragmenting investments at the national level.
Dr. Piepers pointed to Russia’s failure to capture Kyiv after nearly three years of war as a reminder of the importance of measured, strategic investments. “Strategic and measured investments are far more critical than a blanket 5% target,” he concluded.
“Trump’s Presidency Could Accelerate Europe’s Strategic Autonomy”
Dr. Ingo Piepers believes that the second term for Donald Trump would significantly push Europe toward pursuing strategic autonomy. “Trump’s transactional approach to alliances underscores the need for Europe to become more self-reliant,” he said, highlighting the urgency for Europe to rethink its dependence on U.S. leadership.
“A credible and cohesive defense strategy that addresses both conventional and hybrid threats is essential,” he explained. He noted that Europe must take on greater responsibility and assert its influence on the global stage. “Trump’s presidency should be seen as a catalyst for Europe to transition from dependence on U.S. leadership to a position of greater responsibility and influence within the international system” Dr. Piepers stated.
“A Roadmap for Europe’s Global Influence”
Dr. Ingo Piepers laid out actionable steps for the EU to enhance its global influence and reduce dependency on the United States:
Unify Foreign Policy
“The EU must strengthen its ability to act decisively on the global stage by improving coordination among member states.”
Address Internal Divisions
“Political and economic stability within Europe is essential for projecting power externally. Addressing budgetary crises, leadership transitions, and divisions among member states will enhance Europe’s ability to act cohesively.”
Develop Independent Defense Capabilities
“Europe must prioritize the development of a unified defense force that can operate independently of U.S. support. This includes investing in critical infrastructure, modernizing equipment, and enhancing the readiness of European forces.”
Build Strategic Alliances
“The EU should deepen its relationships with like-minded nations and regional organizations, such as ASEAN and the African Union. Diversifying partnerships will reduce dependency on the United States and expand Europe’s global influence.”
Invest in Innovation
“By leading in areas such as renewable energy, artificial intelligence, and defense technologies, Europe can position itself as a global leader in innovation. This will also enhance its economic and security resilience.”
Dr. Piepers concluded, “Europe needs to seize this moment to take responsibility and redefine its role in the world. Only by acting decisively can it safeguard its interests in an increasingly complex global landscape.”
Europe
EIB to unveil 15 billion euro tech initiative to scale European startups
The European Investment Bank (EIB) will announce a €15 billion initiative today, in collaboration with EU capitals and private investors, aimed at supporting the growth of European technology companies.
For decades, startups on the continent have struggled to raise the large-scale funding rounds necessary to scale on this side of the Atlantic, frequently turning to US investors or relocating abroad as they expand.
“We are catching up. Now we need to accelerate,” EIB President Nadia Calviño said.
Under the existing European Tech Champions Initiative, the EIB had already pooled resources with six EU governments to establish funds that invest in high-growth companies across the EU.
Calviño described the initiative as “very successful,” noting that it has supported 12 European “unicorn” companies valued at over $1 billion, including the German artificial intelligence translation firm DeepL.
The bank is now expanding the program with a new phase nearly four times the size of the original.
Twenty-five EU governments, alongside private investors such as Santander and Danske Bank, are expected to participate in the program.
This initial €15 billion aims to mobilize up to €80 billion in total investment. Calviño stated that this estimate is based on the multiplier effects achieved under previous programs.
As part of these efforts, the EIB also aims to attract European pension funds, which manage immense pools of capital but have historically allocated fewer resources to technology investments compared to their US counterparts.
In addition to the new funding, Calviño noted that the EIB will create a platform providing a single point of access for existing European scale-up initiatives, including the European Commission’s Scaleup Europe Fund, France’s Tibi initiative, and Germany’s Win initiative.
Europe
Germany to purchase US Tomahawk missiles to build own long-range strike capability
Germany will purchase Tomahawk cruise missiles from the United States and deploy them on German territory, Chancellor Friedrich Merz announced on Thursday.
The move marks a shift away from planned US deployments and toward Germany establishing its own long-range strike capability.
Merz told lawmakers that he finalized the agreement with the US government during the NATO summit in Ankara, adding that the talks held on Tuesday and Wednesday had exceeded his expectations.
“While we close a critical strategic gap in our defense, we are also working to develop our own European systems and deploy them in Europe,” the Chancellor said.
According to German government sources, Washington committed in a letter of intent signed on Tuesday to approve Germany’s acquisition of Tomahawk missiles and their land-based Typhon launchers in August.
The number of missiles and launchers Germany plans to purchase was not disclosed because the information is classified.
The planned acquisition appears aligned with US President Donald Trump’s pressure on European allies to cover their own security costs, such as by purchasing US weapons.
The fate of the Tomahawk procurement had become uncertain after Trump announced in May that he would reduce the US military presence in Germany.
That development was seen as a cancellation of a plan made under the previous administration to deploy a US battalion equipped with long-range Tomahawk missiles to Germany.
That original plan was designed as a temporary solution to serve as a strong deterrent against Russia while Europeans developed their own versions of such weapons.
Germany produces its own cruise missile, the Taurus, but its range of approximately 311 miles is three to five times shorter than that of the Tomahawk missiles.
Europe
Apple loses EU court appeal over Digital Markets Act gatekeeper designation
The General Court of the European Union has rejected Apple’s challenges against its “gatekeeper” status designated under the Digital Markets Act (DMA).
With this ruling, the company’s designated status for the App Store and iOS remains valid, while its applications regarding iMessage were also rejected.
Apple had argued that the five separate App Stores it operates for the iPhone, iPad, Apple Watch, Mac, and Apple TV should be evaluated as distinct, individual services.
The court rejected this argument, ruling that these stores serve a common purpose of connecting developers and users, regardless of the specific device.
The court also dismissed Apple’s defense that the DMA’s interoperability obligations violate its fundamental rights.
However, it did not conduct a substantive assessment on the legality of this obligation, stating that a direct legal link could not be established between the regulation in question and the determination of “gatekeeper” status.
Following the ruling, Apple argued that the obligations under the DMA “exceed the boundaries of legality and proportionality.” The company asserted that the new rules jeopardize the work it has carried out for years to ensure user privacy and security.
Apple retains the right to appeal the decision, though a company spokesperson did not comment on whether there are plans to do so.
Apple previously declared that DMA rules prevented the launch of the updated version of Siri in Europe, resulting in European users being unable to benefit from the service.
In force in the European Union since 2024, the DMA covers a total of 22 services and products belonging to Alphabet, Amazon, Apple, ByteDance, Meta Platforms, and Microsoft.
The regulation obliges these companies to share certain data with competitors, provide access to user-generated data, and offer verification tools to advertising partners.
Additionally, it prohibits platforms from engaging in anti-competitive practices that favor their own products. Companies failing to comply with the rules face fines of up to 10% of their global turnover, which can rise to 20% in cases of repeated violations.
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