Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.Europe is facing a daunting reality. With Donald Trump, who has long pushed allies to boost their military budgets, heading back in the White House, they may have to spend a lot more. Not just for their own defense, but also to support Ukraine’s resistance against Russia without Kyiv’s most powerful ally. EU countries are already ramping up production of ammunition and artillery, but it’s unclear if the bloc has the capacity to sustain those deliveries. Plus, with Ukraine relying heavily on the US for intelligence, military aid and support in developing its own defense industry, it’s unlikely the EU can replace the full US role even if it wanted to. The bloc is still haggling over how to fund defense increases, which could be as high as $340 billion annually to meet the challenge.
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