When Ukrainian President Volodymyr Zelensky appeared at the White House in February, he instantly became a meme for showing up to meet the president in what looked like a gym fit. He sees himself as a wartime leader but learned that fatigues work for the battlefield, not so much for the Oval Office.

This time, though, Zelensky turned up in a suit. Most headlines focused on optics, but the real story was what the suit represented and who stood with him: a lineup of European leaders rarely seen together in Washington.

Why Zelensky’s Attire Matters

Zelensky’s suit was more of a sign of seriousness and intent to strike a “deal” than just image- massaging. During this particular meeting, Ukraine floated a $90 billion U.S. weapons proposal financed by Europe, alongside a $50 billion U.S.–Ukraine drone production partnership.

For Brussels, represented by the EU leaders, this isn’t just about Kyiv. It’s about Europe’s own rearmament. After years of fragmented defense budgets, the war in Ukraine has forced Europe into the realization of the Russian threat and a united front with serious money behind it.

The ReArm Europe Program

European Union defense spending hit $381 billion in 2024, and the European Defence Agency projected at least another $117 billion by 2027. Brussels’ new ReArm Europe program could mobilize as much as $937 billion over the next four years to help member states reach this spending target.

The EU Content Rule

Europe wants its defense to come with a “Made in Europe” label.. Brussels is advancing rules requiring 65% or more of defense contracts to be filled by European industry. That means U.S. prime weapons manufacturers are facing a forced joint venture. They will still win orders, but only if they manufacture on the continent or partner with European firms. If Raytheon wants in, it may need to learn to spell Rheinmetall.

Cheaper, Theater-Specific Solutions

European militaries face a different calculus than the Pentagon. America needs weapon systems that can cross oceans before they reach their target. The EU wants systems that can hit Moscow without leaving Warsaw. That tilts procurement toward European-designed fighters, air defense, and artillery rather than U.S. platforms like the F-35. It also opens the door for joint production where U.S. tech is paired with European assembly to make weapon systems better suited for the EU theater. Think less Top Gun, more trench warfare with Wi-Fi.

A United Political Front

The symbolism of Zelensky standing beside European leaders in Washington should not be missed. After Trump mocked his military fatigues earlier this year, the suit signaled a pivot: business mode, ready to negotiate contracts. The optics underscored unity, but the substance was financial commitments that will reshape defense markets for years.

The Finance Play in EU Armament

Zelensky’s suit symbolized Europe’s pledge of nearly $1 trillion in new defense spending. With EU rules favoring local contractors and joint production, investors should expect the European defense industry to have its biggest boom since the Cold War, while U.S. firms will need to localize to remain competitive.

iShares Global Industrials ETF (EXI)

SPDR S&P Aerospace & Defense ETF (XAR)

iShares U.S. Aerospace & Defense ETF (ITA)

iShares 0–3 Month Treasury Bond ETF (SGOV)

Bottom Line:

Europe’s nearly $1 trillion defense rearmament will prioritize local premium defense contractors and joint production. ETFs like XAR, ITA, EXI, and SGOV help investors balance exposure to U.S. and European defense contractors while keeping cash reserves steady during volatile procurement cycles.

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November 28, 2025