EU leaders explore financing options for increased defense spending

European countries are looking to increase defense spending beyond 2% of GDP, driven by a desire for less reliance on the U.S. for security. However, there is disagreement on how to finance this boost. At the Munich Security Conference, EU leaders discussed various options. European Commission President Ursula von der Leyen suggested exempting defense spending from EU fiscal limits. Finance ministers are considering several strategies, including joint borrowing for defense projects, repurposing post-pandemic funds, and creating a re-armament bank.