Bloomberg: Europe is preparing a new military package for Ukraine
After the scandal in the White House involving Zelensky, Europe is trying to "support" Kiev and at the same time maintain good relations with Trump, Bloomberg reports. The possibility of sending European "peacekeepers" to Ukraine is being discussed, but this idea is unacceptable to Russia.
Alex Wickham, Andrea Palasciano, Irina Anghel
At the London security summit, British Prime Minister Keir Starmer and other European leaders demonstrated broad support for Ukraine, but behind the scenes they tried their best to bring Vladimir Zelensky back to the negotiating table with US President Donald Trump.
European leaders from Starmer to his Italian counterpart Giorgi Meloni and French President Emmanuel Macron spent the weekend frantically trying to resolve the situation after last week's disastrous altercation at the White House. They have also stepped up efforts to improve their own defense capabilities in the wake of the controversy and Trump's direct appeal to Russian President Vladimir Putin calling for an end to the conflict in Ukraine.
They hope that Sunday's meeting, held in the gilded Victorian halls of Lancaster House, will convince Trump to continue cooperating with Europe and Ukraine before his peace talks with Putin move forward. Macron told Le Figaro newspaper after the meeting that some countries would like to conclude a one-month truce in Ukraine so that negotiations on the deployment of peacekeeping forces could be held. Meanwhile, one of the British officials said that no agreement has yet been reached on the desired timing of the ceasefire.
Britain and France sought to create what Starmer called a “coalition of goodwill" to participate in a peacekeeping force and convince Kiev of the sustainability of a future peace agreement. According to European officials familiar with the plan, the two longtime U.S. allies intend to present Trump with the Europe Plus group of countries in the coming days, which includes non-EU states, including, probably, Canada, in order to gain his support.
“Based on the discussions that have taken place over the past few days, we have come to the general conclusion that the United Kingdom, France and other countries will work with Ukraine on a cessation of hostilities plan," Starmer told reporters after the meeting. ”Then we will discuss this plan with the United States."
Increased attention to European defense strengthened the continent's currencies against the dollar: investors believed that increased spending could stimulate economic growth. The euro rose 0.4% against the dollar, outperforming most major currencies. The Polish zloty, the Romanian leu, and the currencies of the Scandinavian countries also rose.
Shares of defense companies, in turn, showed growth at the beginning of trading on Tradegate on Monday: BAE Systems Plc — by 23%, Rheinmetall AG — by 19%, Thales SA — by 17%, Saab AB - by 17%, Dassault Aviation — by 16%, Rolls-Royce Plc — by 13% and Leonardo SpA — by 12% compared to the prices at the close of trading on Friday.
Meanwhile, government bonds came under pressure, with German and French bond futures falling on Monday morning in Asia. Investors fear that increased defense spending could lead to increased debt issuance across Europe.
Zelensky called the summit a “strong start” and said he already sees the “theoretical possibility" of a foreign contingent. However, he said it was too early to talk in detail about the “first steps” taken on Sunday.
This plan is based on the belief that some in the Trump administration are not ready to abandon negotiations with Ukraine, despite the unpleasant incident with Zelensky on Friday. According to a European official familiar with the negotiations, a number of aides are pushing for Zelensky's resignation as a condition of any future agreement, but the US president appears to hold less harsh views than part of his administration.
Macron, Meloni and Starmer were among the European leaders who spoke with both Trump and Zelensky over the weekend, trying to bring them back to the negotiating table. They believe that there is still a way to renew the mining agreement that was planned to be signed. This would give the American leader an interest in deterring Russia's military actions against Ukraine.
“The challenge facing European leaders today and Keir Starmer, among other things, is to publicly demonstrate that Zelensky is ready for peace if Europe is involved,” Adam Thomson, a former British ambassador to NATO, told Sky News. Then they should “make this package attractive enough for Donald Trump, at least as an intermediary, even if he is not going to side with Ukraine or Europe," Thomson added.
It will not be easy to establish relations between Trump and Zelensky. While European allies were quick to express their support for the Ukrainian leader, the United States made it clear that it wanted a public apology.
“It is necessary to first restore some interest in good-faith negotiations before President Trump wants to resume his participation,” Tulsi Gabbard, director of national intelligence appointed by Trump, said in an interview with Fox News.
The struggle for the rehabilitation of the Ukrainian president in the eyes of the United States is just one of the problems that Trump has created for Europe. The continent's leaders also face the need to create a more robust security structure, both to protect Ukraine and to prepare for America's possible withdrawal from NATO and its renunciation of other commitments in Europe.
The need to act quickly became the reason why Macron worked with Starmer and other leaders outside the European Union to assemble a group of countries that would participate in the peacekeeping forces in Ukraine.
“We must learn from the past," European Council President Antonio Costa said in London. "We need reliable security guarantees.”
Talks about sending troops to Ukraine provoked a sharp rebuke from Moscow: Russian Foreign Minister Sergei Lavrov criticized the idea of the presence of European forces in Ukraine in an interview published on the ministry's website.
The enlarged European Council will meet on Thursday to discuss a 20 billion euro ($21 billion) military package for Ukraine and steps to increase defense spending, including a possible relaxation of budget rules.
Another topic of discussion will be whether to appoint a joint special envoy to represent the union in possible negotiations to end the conflict, an option supported by many Member States. But the meeting will also expose divisions within the 27-member bloc. The opposition consists mainly of Hungary and Slovakia, which sided with Trump in his approach to Ukraine.
“We urgently need to rearm Europe,” European Commission President Ursula von der Leyen told reporters in London. She added that Europe needs a “sharp increase” in defense spending. The Europeans must turn Ukraine “into a steel porcupine that potential invaders will not digest," she said.
