The European Union is at a pivotal moment, grappling with a changing global landscape shaped by shifts in U.S. foreign policy and increasing concerns about its own defense capabilities. Amidst this backdrop, the EU is considering a significant boost to its defense spending, while also navigating internal disputes over energy policy.
ReArm Europe: An €800 Billion Response?
Recent events, including a reported rift between former U.S. President Trump and Ukrainian President Zelenskyy, have spurred European leaders to action. Emergency talks in London resulted in a roadmap to peace, and European Commission President Ursula von der Leyen announced a proposal called ReArm Europe. This ambitious plan, estimated at roughly $840 billion (€800 billion), aims to rapidly bolster defense budgets across Europe. 
The initiative is seen as a response to a perceived need for greater European self-reliance in security matters.
However, the plan has faced criticism. Some argue that the proposed €800 billion figure is misleading and that the success of the initiative hinges on EU member states' willingness to utilize a more flexible budgetary framework. According to some, the plan rests on the Member States, through the relaxation of budgetary rules proposed by the European Commission. A financial instrument of 150 billion euros will offer them loans to accelerate their investments. This raises questions about the actual impact and effectiveness of the proposed measures.
Austria Challenges Hungarian Nuclear Aid
In a separate but equally important development, Austria is challenging the European Commission's approval of state aid for Hungary's Paks nuclear plant expansion. The Court of Justice of the European Union is expected to rule on Austria's appeal, with an EU court advisor already backing Austria's position. This suggests that the Commission's decision to greenlight Hungary's state aid may be subject to re-evaluation. 
The case highlights ongoing tensions within the EU regarding energy policy and the role of nuclear power.
The Shifting Global Order
The backdrop to these developments is a perceived shift in the global order, largely influenced by the foreign policy decisions of the U.S. There are concerns that the U.S. may be aligning itself more closely with Russia. This is causing uncertainty among European leaders.
“President Trump is upending the U.S.-led order that has dominated global politics for the better part of a century,” notes one analysis. 
What this means for Ukraine, and for America’s place in the world, remains to be seen. The EU's response, both in terms of defense spending and internal policy debates, will be crucial in shaping the future of Europe and its role on the global stage.
The ReArm Europe initiative and the legal challenge to Hungary's nuclear aid underscore the complex challenges facing the EU. As the global political landscape continues to evolve, the EU must navigate these challenges to maintain its influence and ensure its security.