Europe will buy more American weapons and pave way for trade deal, EU Council chief says

NATO’s agreement to more than double allies’ defense spending targets will rebalance Europe’s trade relations with the U.S. and see the region buy more American weaponry, European Union Council President Antonio Costa told CNBC on Friday.

Earlier this week, NATO allies agreed to more than double their defense spending target from 2% of gross domestic product to 5% by 2035.

The move has solved the main trade-related issue between Europe and the United States, Costa told CNBC’s Silvia Amaro.

“What we have decided to do is strengthen our position and to assume greater responsibilities in our own defense. Then I think we solved already the main issue, and then I think the path is paved to solve the other issues,” he said.

At least some part of this higher defense expenditure will be used to “buy American,” according to Costa.