BRUSSELS – European Union leaders have endorsed a significant €150 billion defence spending plan during an emergency summit, although Hungary's Prime Minister Viktor Orbán did not support a joint statement affirming solidarity with Ukraine.

This unanimous commitment from the other 26 EU member states paves the way for the European Commission to present a formal proposal in the upcoming summit.

Orbán's dissent marks another instance of Hungary isolating itself from widespread EU consensus, a situation noted by various leaders.

Notably, the statement reinforced the principle that negotiation efforts regarding Ukraine's future must involve the Ukrainian government, maintaining respect for its sovereignty and territorial integrity.

Slovakia's position shifted as it ultimately agreed to the statement, influenced by the inclusion of phrases regarding its gas supply disputes with Ukraine, although these concessions were diluted during negotiations.

European Commission President Ursula von der Leyen outlined her 'ReArm Europe' initiative, which proposes five strategies for financing defence enhancement.

These options include securing loans, activating a national 'escape clause' from EU fiscal regulations, leveraging cohesion funds for defence, enhancing the role of the European Investment Bank, and mobilizing private investment through the Savings and Investment Union.

While there were discussions about the possibility of Eurobonds for joint borrowing, no formal proposals were submitted.

Germany's outgoing Chancellor Olaf Scholz voiced a desire for long-term exemptions for defence spending from EU fiscal limits.

European Council President António Costa emphasized the necessity for flexible applications of current fiscal rules but did not support a complete overhaul.

Costa expressed determination on ensuring financial commitments to bolster European defence capability.

On the subject of Ukraine, summit participants agreed to explore proposals for increased aid, addressing the reduction of U.S. support for Ukraine's defence.

French President Emmanuel Macron noted an ongoing dialogue regarding relations with Russia, stating readiness to engage with President Vladimir Putin, contingent on prior agreements with Ukrainian President Volodymyr Zelenskyy and other allies.

The participants, including Zelenskyy, who joined for a working lunch, acknowledged the significance of EU alignment in supporting Ukraine.

Zelenskyy also announced plans to attend talks in Saudi Arabia with U.S. representatives.

In related developments, the European Commission is contemplating a regulatory 'Defence Omnibus' to facilitate operational efficiencies among defence companies in Europe, enabling easier access to financing and simplifying production processes.

This initiative comes as part of continued efforts to enhance the continent's military capabilities and production capacity.

A thorough consultation with industry stakeholders is being undertaken to refine proposals aimed at easing business challenges, amidst persistent concerns regarding the EU’s Environmental, Social, and Governance (ESG) criteria, which some argue inhibit defence investment.

European leaders have set ambitious agendas for their defence strategies, with June being a particularly crucial period for finalizing commitments to increased military expenditures.

The NATO meeting scheduled for the end of June will likely further solidify spending targets, surpassing the existing benchmark of 2% of GDP allocated to defence by each member state.