The meeting came as the bloc faces growing pressure to boost its military spending, amid Russia's continuing invasion of Ukraine and growing expectations from the United States to increase EU military investments.
Unlike usual EU summits held at the European Council headquarters, this meeting took place at Egmont Palace in Brussels, in a move aimed at fostering a more open discussion, Polish state news agency PAP reported.
The summit began with a discussion on transatlantic relations, two weeks after Donald Trump returned to the US presidency.
Trump has repeatedly urged European allies to increase their defense spending. Even before taking office, he suggested that NATO members should allocate 5 percent of their gross domestic product to defense, more than double the current commitment of 2 percent.
NATO Secretary-General Mark Rutte joined EU leaders during a working lunch, before they turned to the central topic of the summit: how to jointly finance European defense.
Ahead of the summit, a senior EU diplomat emphasized the urgency of the matter, saying that the goal is to secure agreement on shared defense funding immediately, rather than waiting for the next EU budget cycle, the PAP news agency reported.
The current seven-year budget framework runs until 2027.
During the summit, EU leaders considered the controversial option of issuing joint EU debt, leaders explored whether the European Investment Bank (EIB) can expand its role in financing defense projects, according to reports.
The EIB, which traditionally funds infrastructure and economic development, has already begun supporting projects with dual civilian and military applications.
Later in the evening, British Prime Minister Keir Starmer joined the meeting, becoming the first UK leader to attend an EU summit since Brexit five years ago.
The summit concluded with a press conference featuring European Council President António Costa, European Commission President Ursula von der Leyen, and Poland's Prime Minister Donald Tusk, who attended in his role as the leader of the EU’s rotating presidency.
Tusk told the press conference that "territorial integrity is non-negotiable" for the European Union, and that it remains "a priority for the entire community."
Source: IAR, PAP