Politics
European officials pitch new idea to shore up defenses with Trump's return
As NATO member states struggle to meet their defense spending goals and war rages on Europe’s eastern front, officials are struggling to agree on a plan to shore up hundreds of billions of dollars to bolster defenses.
Eight NATO countries did not meet their 2% target for defense spending in 2024. And as many member states struggle with chronically stressed budgets, calls to meet those goals are not being heeded quickly.
The European Commission estimates about 500 billion euros, the equivalent of $524 billion in investments, are needed in the coming decade to defend Europe against evolving threats.
NATO LEADERS PREDICT ERA OF 2% DEFENSE SPENDING ‘PROBABLY HISTORY’ AS TRUMP REPORTEDLY FLOATS HIGHER TARGET
The EU’s budget cannot be used to fund defense directly, and some European officials and NATO experts are proposing a global defense bank to dole out funds for military modernization.
A defense, security and resilience (DSR) bank would issue bonds backed by AAA ratings for financially strapped countries to upgrade their defenses and would provide guarantees for commercial banks to offer credit to defense suppliers.
European officials are struggling to agree on a plan to shore up hundreds of billions of dollars to bolster defenses. (U.S. Army photo by Spc. Ryan Parr)
“This is not a substitute to raising defense spending in each of these countries. I think it should be a supplemental tool,” Giedrimas Jeglinskas, chairman of the national security committee in the Lithuanian parliament and a former NATO official, told Fox News Digital.
His remarks echo those of incoming President Trump, who has long threatened to pull the U.S. out of NATO due to the number of nations missing the mark on the 2% goal for defense spending.
“I think we have to look at it also as an opportunity for the U.S. as well,” Jeglinskas added. “I understand the skepticism by Donald Trump of the World Bank and then the IMF [International Monetary Fund] and IFC [International Finance Corporation] and other institutions. I think there’s been a lot of capital deployed and a lot of investments that these banks or institutions do. The real impact is, at best, questionable. So, I think we have to have very clear KPIs [key performance indicators]. We need to build defense.”
The United States’ $824 billion defense budget in 2023 equaled half of total defense spending by all NATO member states combined at $1.47 trillion.
PUTIN SAYS RUSSIA READY TO COMPROMISE WITH TRUMP ON UKRAINE WAR
The return of Trump to the White House, coupled with a U.S. push to refocus on China, has left Europeans wondering whether the U.S. will have less of an appetite to defend Europe in years to come.
More EU defense chiefs and foreign ministers have pitched the idea of issuing joint debt through bonds to finance military projects.
But some countries like Germany have voiced concerns about maintaining their own sovereignty and a disproportionate financial burden on some countries.
The DSR bank idea is explained at length in a new Atlantic Council report by defense fellow Rob Murray.
The EU’s budget cannot be used to fund defense directly. (Ukrainian Defense Ministry Press Service via AP, File)
“For allies across both the Euro-Atlantic and Indo-Pacific regions, the bank could go beyond offering low-interest loans for defense modernization to facilitating equipment leasing, currency hedging, and supporting critical infrastructure and rebuilding efforts in conflict zones like Ukraine,” Murray wrote.
“An additional critical function of the DSR bank would be to underwrite the risk for commercial banks, enabling them to extend financing to defense companies across the supply chain.”
The goal would be to offer financing to small and medium-sized defense companies that often struggle with access to funds.
“By providing loans with extended maturities, the bank would offer predictable and sustainable funding for defence modernisation. Its governance structures would align funding with collective security goals, such as upgrading arsenals and investing in emerging technologies,” Jeglinskas wrote in a recent op-ed for the Financial Times.
A defense, security and resilience (DSR) bank would issue bonds backed by AAA ratings for financially strapped countries to upgrade their defenses. (Alexandra Beier/Getty Images)
Asked how the DSR bank would get countries to agree on defense funding priorities, Jeglinskas likened the idea to the U.K.-led Joint Expeditionary Force, a military alliance that includes Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, the Netherlands, Norway and Sweden.
Jeglinskas noted the 33 trillion euros in European assets under management across the continent.
“There’s really no political will, no risk appetite to move them anywhere besides the kind of bond markets where they rest now,” he said. “But several nations need to build that initial capital, and then, by using the sovereign rating to get to hopefully AAA in capital markets, raise that money from bond markets and to start funding defense programs.”
The European Investment Bank has doled out long-term loans and guarantees to European nations’ projects that align with EU policy goals.
“But even they are struggling with kind of shifting their mandate towards more dual-use technologies is still not allowed in their funding package,” said Jeglinskas.
“Of course, every other bank in Europe is looking at EIB for their signals. That signaling hasn’t been there yet. So, that’s the point. We need to create some sort of mechanism, and that kind of global defense bank would be one of the tools that we could use to rally the capital and really direct it toward defense. So, it’s really creating another multilateral lending institution.”
Politics
Iran fires missiles at US bases across Middle East after American strikes on nuclear, IRGC sites
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Iran launched missile and drone strikes targeting U.S. military facilities in multiple Middle Eastern countries Friday, retaliating after coordinated U.S.–Israeli strikes on Iranian military and nuclear-linked sites.
Explosions were reported in or near areas hosting American forces in Bahrain, Qatar, the United Arab Emirates, Kuwait and Jordan, according to regional officials and state media accounts. Several of those governments said their air defense systems intercepted incoming projectiles.
It remains unclear whether any U.S. service members were killed or injured, and the extent of potential damage to American facilities has not yet been confirmed. U.S. officials have not publicly released casualty figures or formal damage assessments.
Iran’s Islamic Revolutionary Guard Corps (IRGC) described the operation as a direct response to what Tehran called “aggression” against Iranian territory earlier in the day. Iranian officials claimed they targeted U.S. military infrastructure and command facilities.
Explosions were reported in or near areas hosting American forces in Bahrain, pictured above. (Photo by Petty Officer 2nd Class Adelola Tinubu/U.S. Naval Forces Central Command/U.S. 5th Fleet )
The United States military earlier carried out strikes against what officials described as high-value Iranian targets, including IRGC facilities, naval assets and underground sites believed to be associated with Iran’s nuclear program. One U.S. official told Fox News that American forces had “suppressed” Iranian air defenses in the initial wave of strikes.
Tomahawk cruise missiles were used in the opening phase of the U.S. operation, according to a U.S. official. The campaign was described as a multi-geographic operation designed to overwhelm Iran’s defensive capabilities and could continue for multiple days. Officials also indicated the U.S. employed one-way attack drones in combat for the first time.
IF KHAMENEI FALLS, WHO TAKES IRAN? STRIKES WILL EXPOSE POWER VACUUM — AND THE IRGC’S GRIP
Smoke rises after reported Iranian missile attacks, following strikes by the United States and Israel against Iran, in Manama, Bahrain, Feb. 28, 2026. (Reuters)
Iran’s retaliatory barrage targeted countries that host American forces, including Bahrain — home to the U.S. Navy’s Fifth Fleet — as well as Qatar’s Al Udeid Air Base and the UAE’s Al Dhafra Air Base. Authorities in those nations reported intercepting many of the incoming missiles. At least one civilian was killed in the UAE by falling debris, according to local authorities.
Iranian officials characterized their response as proportionate and warned of additional action if strikes continue. A senior U.S. official described the Iranian retaliation as “ineffective,” though independent assessments of the overall impact are still developing.
Smoke rises over the city after the Israeli army launched a second wave of airstrikes on Iran in Tehran on Feb. 28, 2026. (Fatemeh Bahrami/Anadolu via Getty Images)
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Regional governments condemned the strikes on their territory as violations of sovereignty, raising the risk that additional countries could become directly involved if escalation continues.
The situation remains fluid, with military and diplomatic channels active across the region. Pentagon officials are expected to provide further updates as damage assessments and casualty reviews are completed.
Fox News’ Jennifer Griffin contributed to this report.
Politics
Why Iran resists giving up its nuclear program, even as Trump threatens strikes
Embassy staffers and dependents evacuating, airlines suspending service, eyes in Iran warily turning skyward for signs of an attack.
The prospects of a showdown between the U.S. and Iran loom ever higher, as massive American naval and air power lies in wait off Iran’s shores and land borders.
Yet little of that urgency is felt in Iran’s government. Rather than quickly acquiescing to President Trump’s demands, Iranian diplomats persist in the kind of torturously slow diplomatic dance that marked previous discussions with the U.S., a pace that prompted Trump to declare on Friday that the Iranians were not negotiating in “good faith.”
But For Iran’s leadership, Iranian experts say, concessions of the sort Trump are asking for about nuclear power and the country’s role in the Middle East undermine the very ethos of the Islamic Republic and the decades-old project it has created.
“As an Islamic theocracy, Iran serves as a role model for the Islamic world. And as a role model, we cannot capitulate,” said Hamid Reza Taraghi, who heads international affairs for Iran’s Islamic Coalition Party, or Hezb-e Motalefeh Eslami.
Besides, he added, “militarily we are strong enough to fight back and make any enemy regret attacking us.”
Even as another round of negotiations ended with no resolution this week, the U.S. has completed a buildup involving more than 150 aircraft into the region, along with roughly a third of all active U.S. ships.
Observers say those forces remain insufficient for anything beyond a short campaign of a few weeks or a high-intensity kinetic strike.
Iran would be sure to retaliate, perhaps against an aircraft carrier or the many U.S. military bases arrayed in the region. Though such an attack is unlikely to destroy its target, it could damage or at least disrupt operations, demonstrating that “American power is not untouchable,” said Hooshang Talé, a former Iranian parliamentarian.
Tehran could also mobilize paramilitary groups it cultivated in the region, including Iraqi militias and Yemen’s Houthis, Talé added. Other U.S. rivals, such as Russia and China, may seize the opportunity to launch their own campaigns elsewhere in the world while the U.S. remains preoccupied in the Middle East, he said.
“From this perspective, Iran would not be acting entirely alone,” Tale said. “Indirect alignment among U.S. adversaries — even without a formal alliance — would create a cascading effect.”
We’re not exactly happy with the way they’re negotiating and, again, they cannot have nuclear weapons
— President Trump
The U.S. demands Iran give up all nuclear enrichment and relinquish existing stockpiles of enriched uranium so as to stop any path to developing a bomb. Iran has repeatedly stated it does not want to build a nuclear weapon and that nuclear enrichment would be for exclusively peaceful purposes.
The Trump administration has also talked about curtailing Iran’s ballistic missile program and its support to proxy groups, such as Hezbollah, in the region, though those have not been consistent demands. Tehran insists the talks should be limited to the nuclear issue.
After indirect negotiations on Thursday, Oman’s Foreign Minister Badr al-Busaidi — the mediator for the talks in Geneva — lauded what he said was “significant progress.” Iranian Foreign Ministry spokesman Esmail Baghaei said there had been “constructive proposals.”
Trump, however, struck a frustrated tone when speaking to reporters on Friday.
“We’re not exactly happy with the way they’re negotiating and, again, they cannot have nuclear weapons,” he said.
Trump also downplayed concerns that an attack could escalate into a longer conflict.
This frame grab from footage circulating on social media shows protesters dancing and cheering around a bonfire during an anti-government protest in Tehran, Iran, on Jan. 9.
(Uncredited / Associated Press)
“I guess you could say there’s always a risk. You know, when there’s war, there’s a risk in anything, both good and bad,” Trump said.
Three days earlier, in his State of the Union address Tuesday, said, “My preference is to solve this problem through diplomacy. But one thing is certain, I will never allow the world’s number one sponsor of terror, which they are by far, to have a nuclear weapon — can’t let that happen.”
There are other signs an attack could be imminent.
On Friday, the U.S. Embassy in Israel allowed staff to leave the country if they wished. That followed an earlier move this week to evacuate dependents in the embassy in Lebanon. Other countries have followed suit, including the U.K, which pulled its embassy staff in Tehran. Meanwhile, several airlines have suspended service to Israel and Iran.
A U.S. military campaign would come at a sensitive time for Iran’s leadership.
The country’s armed forces are still recovering from the June war with Israel and the U.S, which left more than 1,200 people dead and more than 6,000 injured in Iran. In Israel, 28 people were killed and dozens injured.
Unrest in January — when security forces killed anywhere from 3,000 to 30,000 protesters (estimates range wildly) — means the government has no shortage of domestic enemies. Meanwhile, long-term sanctions have hobbled Iran’s economy and left most Iranians desperately poor.
Despite those vulnerabilities, observers say the U.S. buildup is likely to make Iran dig in its heels, especially because it would not want to set the precedent of giving up positions at the barrel of a U.S. gun.
Other U.S. demands would constitute red lines. Its missile arsenal, for example, counts as its main counter to the U.S. and Israel, said Rose Kelanic, Director of the Middle East Program at the Defense Priorities think tank.
“Iran’s deterrence policy is defense by attrition. They act like a porcupine so the bear will drop them… The missiles are the quills,” she said, adding that the strategy means Iran cannot fully defend against the U.S., but could inflict pain.
At the same time, although mechanisms to monitor nuclear enrichment exist, reining in Tehran’s support for proxy groups would be a much harder matter to verify.
But the larger issue is that Iran doesn’t trust Trump to follow through on whatever the negotiations reach.
After all, it was Trump who withdrew from an Obama-era deal designed to curb Iran’s nuclear ambitions, despite widespread consensus Iran was in compliance.
Trump and numerous other critics complained Iran was not constrained in its other “malign activities,” such as support for militant groups in the Middle East and development of ballistic missiles. The Trump administration embarked on a policy of “maximum pressure” hoping to bring Iran to its knees, but it was met with what Iran watchers called maximum resistance.
In June, he joined Israel in attacking Iran’s nuclear facilities, a move that didn’t result in the Islamic Republic returning to negotiations and accepting Trump’s terms. And he has waxed wistfully about regime change.
“Trump has worked very hard to make U.S. threats credible by amassing this huge military force offshore, and they’re extremely credible at this point,” Kelanic said.
“But he also has to make his assurances credible that if Iran agrees to U.S. demands, that the U.S. won’t attack Iran anyway.”
Talé, the former parliamentarian, put it differently.
“If Iranian diplomats demonstrate flexibility, Trump will be more emboldened,” he said. “That’s why Iran, as a sovereign nation, must not capitulate to any foreign power, including America.”
Politics
Video: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry
new video loaded: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry
transcript
transcript
Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry
Former President Bill Clinton told members of the House Oversight Committee in a closed-door deposition that he “saw nothing” and had done nothing wrong when he associated with Jeffrey Epstein decades ago.
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“Cause we don’t know when the video will be out. I don’t know when the transcript will be out. We’ve asked that they be out as quickly as possible.” “I don’t like seeing him deposed, but they certainly went after me a lot more than that.” “Republicans have now set a new precedent, which is to bring in presidents and former presidents to testify. So we’re once again going to make that call that we did yesterday. We are now asking and demanding that President Trump officially come in and testify in front of the Oversight Committee.” “Ranking Member Garcia asked President Clinton, quote, ‘Should President Trump be called to answer questions from this committee?’ And President Clinton said, that’s for you to decide. And the president went on to say that the President Trump has never said anything to me to make me think he was involved. “The way Chairman Comer described it, I don’t think is a complete, accurate description of what actually was said. So let’s release the full transcript.”
By Jackeline Luna
February 27, 2026
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