UK Prime Minister Keir Starmer hosted an emergency meeting in London with European leaders, NATO Secretary General Mark Rutte, and the Prime Ministers of Turkey and Canada to discuss Ukraine aid amid concerns over a potential U.S. withdrawal of support.
According to Danske Bank (CSE:DANSKE), total U.S. aid to Ukraine has reached 114 billion euros, far less than former President Trump claimed. Some estimates suggest the actual monetary value could be as low as 49 billion euros. While the U.S. has been a key military supporter, Europe is now considering ways to fill the potential funding gap.
NATO countries are set to raise their defense spending targets beyond 2%, with Trump proposing a 5% target—requiring an additional 490 billion euros annually. However, sustaining U.S. aid levels of 16-38 billion euros per year may be a more cost-effective alternative.
The proposed “Coalition of the Willing,” formed by countries at the London meeting, has a collective GDP exceeding 20 trillion euros. Matching U.S. support would account for just 0.2-0.6% of their GDP, making it a feasible option. Other proposals include seizing 210 billion euros in frozen Russian assets, though legal obstacles and opposition from countries like Hungary make this uncertain.
To secure long-term defense funding, the EU Commission plans to activate a clause for defense investments. Poland has proposed an EU rearmament bank, and there are suggestions to expand the European Investment Bank’s mandate to include arms funding. Attracting private capital through guarantees for financial institutions is another potential strategy.
With time running out, Europe must act swiftly to ensure Ukraine’s defense remains strong despite shifting U.S. policies.