BRUSSELS – Throughout 2025, Europe has been confronted with a challenging new landscape. The United States, historically its most steadfast ally, has gradually undermined the European Union’s cohesion, impacting its economies, security, and political systems. This sets the stage for an EU summit this week, marking the culmination of a particularly demanding year.

Following a recent decision to indefinitely freeze Russian assets within Europe, EU leaders face another crucial test of resilience at Thursday’s summit. Ukraine is grappling with severe financial challenges, and the EU has pledged to support Kyiv’s economic and military needs over the next two years, likely through a new reparations loan.

“This is a critical moment for both Europe and Ukraine,” stated Danish Foreign Minister Lars Løkke Rasmussen, as Denmark currently presides over the EU. “We must make this decision to stabilize Ukraine’s economy and also to demonstrate to the global community, including the White House in Washington D.C., that Europe remains a formidable geopolitical force.”

Amid the largest land conflict Europe has seen in decades, the continent has been tested by President Donald Trump’s threats, his endorsement of Europe’s far-right factions, and his seemingly amicable relations with Russian President Vladimir Putin. Initially, European leaders attempted to respond with diplomacy. However, this approach has waned in recent months.

Since the beginning of the year, as European leaders have strived to support Ukraine in its struggle against its larger neighbor, Trump’s stance has fluctuated, showing support for Kyiv one month and for Russia the next. His criticism of Europe has persisted, becoming increasingly pointed.

European leaders have worked to fill the gap and shore up military support for Ukraine, but they concede that the United States is an irreplaceable partner, and Trump is the only person Putin might talk peace with.

German Chancellor Friedrich Merz warned last week that “we are really witnessing a watershed moment now and nothing is the way it was before. We’re living in a different time, and this time requires different responses than we’ve given in the past.”

Europe starts to respond

Weeks after Trump returned to office in January, his administration signaled that U.S. security interests lie elsewhere: Europe must now look after itself and Ukraine, whose president was humiliated at a White House meeting in February.

Days later, Vice President JD Vance met with a far-right leader in Germany, claiming that free speech is in retreat in Europe, sparking allegations of election interference.

Vance’s themes were developed this month in a U.S. National Security Strategy. The text also attacked EU migration policy, suggesting that Europe faces “the prospect of civilizational erasure” and might not be reliable as an American partner.

Judy Dempsey, from the Carnegie Europe think tank, said that “Europe has no choice but to respond.”

“Europe and the rest of the world now know how poorly this U.S. administration regards them and they cannot keep pretending otherwise,” she said.

Merz is already speaking more forcefully. “We in Europe, and so also in Germany, must become much more independent from the U.S. in terms of security policy. This is not a surprise, but it has now been confirmed again,” he said.

Poor plans and new trade deals

Another troubling document for the EU was circulated last month: the Trump administration’s 28-point plan to end the war, drafted with Russia. It contained old Kremlin demands, promises of Russian business opportunities and a call to rehabilitate Putin on the world stage.

It was mostly unacceptable to Ukraine and its European backers. Not so to Russia as it tries to drive a wedge between the U.S. and the allies. Trump, Russian Foreign Minister Sergey Lavrov said, is “the only Western leader” who shows “an understanding of the reasons that made war in Ukraine inevitable.”

Back in April, on so-called Liberation Day, Trump announced sweeping tariffs across the globe to protect national security. He said that “our country has been looted, pillaged, raped and plundered” by other nations, including U.S. allies in the world’s biggest security organization, NATO.

Trump declared an economic emergency. By July, he and the EU had agreed a trade framework setting a 15% tariff on most goods, staving off far higher import duties.

The response of the EU has been to seek deals with other jilted partners, notably throughout Asia. The world’s biggest trading bloc has also accepted that higher tariffs were probably the best price to pay for continued U.S. support in Ukraine.

Off with the EU defense brake

Unsettled by the trade rift, Europeans at NATO still agreed to Trump’s demand that they invest 5% of GDP on defense, although it remains unclear whether many will hit the target by the 2035 deadline when they have struggled to meet the old 2% target.

Still, the EU has since taken its foot off the defense spending brakes and aims to be capable of defending against outside attack by 2030. Officials believe Putin could order an attack elsewhere in Europe in three to five years should Russia defeat Ukraine.

In fresh warnings this week, Blaise Metreweli, the new head of the U.K. MI6 spy agency said that Putin’s “export of chaos” is likely to continue until he “is forced to change his calculus.” British Armed Forces head Air Chief Marshal Richard Knighton said that the Russia leader’s aim is “to challenge, limit, divide and ultimately destroy NATO.”

Thursday’s EU summit, with its focus on funding Ukraine’s economy and military effort over the next two years, is another step alone without the United States. EU Council President António Costa, who will chair the meeting, has threatened to keep the leaders at EU headquarters for days until an agreement is reached.