
The U.S recognizes 'Europe is back again', German foreign minister says
Johann Wadephul, foreign minister of Germany, discusses European defense and the transatlantic relationship at the NATO summit.

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Investors still don't believe in Europe's defense buildup — but they should, Goldman Sachs says
Investors have been drawn to European markets due to the 'Sell America' trade and EU spending. But market skepticism remains about Europe's short-term defense spending and its growth impact. Goldman Sachs predicts EU defense spending will rise, driven by geopolitical challenges. Investors have flocked to European markets in recent months, fueled by the "Sell America" trade and bets that a ramp-up in EU government spending would drive growth. The enthusiasm sent leading European stock indexes surging — but investors are still not entirely convinced, wrote Goldman Sachs analysts in a Tuesday note. "Market participants remain skeptical about Europe's ability to increase defence spending in the short term, questioning both the availability of funding and its effectiveness to boost growth," the analysts wrote. The Stoxx Europe 600 index is up 6.6% so far this year, while Germany's DAX index is up nearly 19% and trading near record highs. Goldman is even more optimistic. The Wall Street giant expects euro-zone and UK defense spending to rise to 2.7% and 2.5% of GDP, respectively, by 2027 due to geopolitical challenges and the US administration's demands for higher NATO contributions. In 2024, the EU spent 326 billion euros, or about 1.9% of its GDP, on defense. The UK spent 53.9 billion pounds, or 2.3% of its GDP, on defense that year. The Goldman analysts added that the region already has a strong industrial base to build on, since 25% of global arms production comes from Germany, France, Italy, Spain, and the UK. The analysts wrote that they expect most EU countries to ramp up defense spending alongside Germany from 2026, with Italy, Spain, and possibly France tapping the EU's 150 billion euro Security Action for Europe, or SAFE, credit line. But investors need more to gain more confidence in Europe's industrial turnaround, wrote the analysts. Specifically, they will need to see real, concrete spending from Germany and the rollout of SAFE. "Defence spending, because of its capital intensity and focus on R&D, is likely to be an essential element in shifting the narrative," they wrote. Goldman Sachs' assessment of Europe's defense spending plans comes amid the two-day NATO summit in the Netherlands that started on Tuesday. The allies are expected to announce a commitment to increase defense spending to 3.5% of GDP and another 1.5% of GDP on related infrastructural and cybersecurity. Defense spending as a share of GDP has fallen since the 1980s to its lowest level in the last decade, when it went below 2%. In 2022 — following Russia's full-scale invasion of Ukraine — military spending started to rise. In comparison, the US spends over 3% of its GDP on defense. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
38 minutes ago
- Yahoo
Analysis-NATO's Trump flattery buys time but dodges tough questions
By Andrew Gray, Sabine Siebold, Lili Bayer and Anthony Deutsch THE HAGUE (Reuters) -Lavishing praise, playing the royal card and copying his slogans – NATO pulled out all the stops to keep Donald Trump happy and hold the alliance together at a summit in The Hague. The plan came off, although it largely avoided tough topics of vital importance to NATO such as the war in Ukraine, Russia strategy and a likely drawdown of U.S. troops in Europe. Sooner or later, NATO will have to deal with them too. As NATO boss Mark Rutte had planned, the main summit outcomes were a vow by the allies to heed Trump's call to spend 5% of GDP on defence - a big increase on the current 2% target - and a renewed U.S. commitment to NATO's mutual defence pact. That is a far cry from a few months ago, when transatlantic ties were so tense that Friedrich Merz, now Germany's chancellor, wondered openly after his election win whether NATO would exist in its current form by the time of the Hague summit. There was nothing subtle about NATO's strategy to keep Trump on board. Rutte gushed with compliments in a message to Trump, made public by the U.S. president as he flew to The Hague. "You will achieve something NO American president in decades could get done," the former Dutch prime minister said in his message, putting some of his words in capitals like Trump. "Europe is going to pay in a BIG way, as they should, and it will be your win." Right before the summit, in another sign of chumminess with Trump, Rutte reacted to the U.S. president's comments berating Iran and Israel by saying that "daddy has to sometimes use strong language". Given Trump's threats to quit NATO in his first term and not to protect allies who failed to spend enough on defence, the stakes for NATO have been high. Most NATO members see Russia as an increasingly direct threat to their security following the 2022 invasion of Ukraine, and know they would struggle badly to defend themselves against attack without their nuclear-armed superpower ally. After the summit, Trump's previously harsh rhetoric on NATO had been replaced by something very different. "I left here saying that these people really love their countries. It's not a rip-off, and we're here to help them, protect them," he told reporters. Trump only criticised Spain for not signing up to the new defence spending target and said it would pay up another way - in its trade relations with the United States. Many European nations will find it tough economically to meet the target, but that issue was left for another day. CHARM OFFENSIVE As part of NATO's Hague charm offensive, Trump was granted the rare honour of staying overnight at the ornate royal palace of Dutch King Willem-Alexander before the summit. The king hosted a three-course meal for leaders prepared by 20 chefs and served by 18 footmen in the baroque 17th century "Orange Hall" in the Huis ten Bosch palace. At the start of the summit, other NATO leaders lined up to praise Trump. Lithuanian President Gitanas Nauseda suggested the alliance adopt the motto "Make NATO Great Again". Rutte kept the summit short and simple, minimising the risks of any blow-ups with Trump. Ukrainian President Volodymyr Zelenskiy had to settle for a seat at the pre-summit dinner rather than the main meeting, although he held a separate meeting with Trump after the summit. The summit's final statement ran to just five paragraphs - compared with 38 in the text from last year's leaders' meeting in Washington. It does not explicitly describe Russia's military action in Ukraine as a war or invasion, nor does it repeat or reaffirm a previous pledge that Ukraine will one day join the alliance. By focusing on reaffirming commitments to NATO and the new spending pledge, it papered over major differences between Washington and many European allies on Russia and Ukraine. To the discomfort of many Europeans, Trump has taken a more conciliatory stance with Moscow and been less supportive of Kyiv than his predecessor Joe Biden as he seeks to end the war. While such diplomatic fudges may hold NATO together for now, it will be hard for the alliance to function effectively if there is a major long-term difference between the United States and Europe on a question as fundamental as how to handle Russia. "A NATO summit that essentially ignores the war that is still raging in Ukraine should worry all of us," said Julianne Smith, who served as the U.S. ambassador to NATO under the Biden administration. Peter Bator, Slovakia's former ambassador to NATO, said "we have just missed an opportunity to send a strategic message to the ruler in the Kremlin. And it will cost us in our security". NATO officials will now be watching to see whether Trump's newfound enthusiasm for the alliance is reflected in his administration's ongoing review of U.S. military posture, as Europe relies heavily on U.S. forces for its security. European leaders say they are committed to taking on more of that responsibility but they are anxious to ensure any transfer is done in an orderly and gradual way. "You can feel the anxiety when talking to senior European officials about this," said Oana Lungescu, distinguished fellow at RUSI and former NATO spokesperson. "Most expect the Pentagon to start pulling out some troops and capabilities, but nobody knows how many and how soon." (Additional reporting by John Irish, Jeff Mason and Gram Slattery; Editing by Aidan Lewis)


Los Angeles Times
42 minutes ago
- Los Angeles Times
Trump offers relief to NATO allies: ‘We're with them all the way'
THE HAGUE — President Trump offered robust support for Europe and a rebuke of Russian President Vladimir Putin at the NATO Summit in the Hague on Wednesday, capping a visit that came as a relief to anxious allies across the continent. The gathering was designed by NATO leadership to appease the president, and it delivered, with nearly all members of the transatlantic alliance agreeing to spend 5% of their gross domestic product on defense — an historic increase that had been a priority to Trump for several years. 'We're with them all the way,' Trump said of NATO, sitting alongside its secretary general, Mark Rutte. He later added to reporters, 'if I didn't stand with it, why would I be here?' Rutte was obsequious throughout the visit, at one point referring to Trump as 'daddy' disciplining child-like nations at war with one another. But addressing reporters, he defended his praise of the president as well-earned. 'When it comes to making more investments, I mean, would you ever think this would be the result of this summit, if he would not have been reelected president?' Rutte said. 'Do you really think that seven or eight countries who said, 'somewhere in the 2030s, we might make the 2%,' would have all decided in the last four or five months to get to 2%? So doesn't he deserve some praise?' While at the summit, the president faced repeated questioning over the success of U.S. strikes on Iranian nuclear facilities over the weekend, which were designed to supplement an Israeli campaign to effectively end Iran's uranium enrichment program. But Trump expressed confidence in the mission, stating that intelligence continues to come in supporting the conclusion that its facilities were 'obliterated.' 'It's been obliterated, totally obliterated,' he said. 'We've collected additional intelligence. We've also spoken to people that have seen the site, and the site is obliterated.' An initial Defense Intelligence Agency report, first reported by CNN, cast doubt on that conclusion. But an Israeli official speaking with The Times said that its preliminary findings from an on-the-ground assessment gives them confidence that the program has been set back by several years. 'You can see that the intelligence was very high quality in the execution of this operation – that gives us confidence in the information we have on the different facilities,' the Israeli official said. Addressing reporters at a news conference, Trump seemed to commit to enforce Article 5 of the NATO charter, a critical provision of the alliance that states that an attack on one member is an attack on all. In the past, Trump has cast doubt on his commitment to the pledge. 'As far as Article 5, look — when I came here, I came here because it was something I'm supposed to be doing,' Trump said. 'I watched the heads of these countries get up, and the love and the passion that they showed for their country was unbelievable. I've never seen quite anything like it. They want to protect their country, and they need the United States, and without the United States, it's not going to be the same.' The visual was moving, the president said. 'I left here saying that these people really love their countries,' he added. 'It's not a rip-off. And we're here to help them protect their countries.' Trump also gave himself praise for helping to broker ceasefires around the world — most recently between Israel and Iran, but also between Pakistan and India, as well as Rwanda and the Democratic Republic of the Congo — while expressing frustration with Russia's president for what he described as 'misguided' views that have perpetuated Moscow's war against Ukraine. He described a bilateral meeting with Ukraine's president, Volodymyr Zelensky, as 'very nice' — 'he couldn't have been nicer,' Trump said — while offering choice words for Putin, an uncharacteristic position for a president who has repeatedly referred to the Russian leader as a potential friend and partner. 'Vladimir Putin has been more difficult,' Trump said, telling one Ukrainian reporter that he is looking to provide Kyiv with Patriot missile defense batteries – long a request of the Ukrainian government. Trump also said he was open to sending additional defense funds to Kyiv if Putin fails to make progress toward a ceasefire. 'As far as money going, we'll see what happens – there's a lot of spirit,' he said. 'Look, Vladimir Putin really has to end that war,' he added.