www.nato.int Europe and NATO Boost Defence Production Amid Supply Chain Challenges
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- •EU defence spending increased by 20% in 2025, reaching €418 billion.
- •NATO Allies pledged 5% of GDP for defence, enhancing industrial production capacity.
- •Focus on rebuilding manufacturing capabilities and securing supply chains is critical.
In 2025, EU defence spending surged to €418 billion, with projections of €454 billion for 2026. Despite increased budgets, Europe faces challenges in securing the industrial capacity needed for defence readiness. The European Defence Agency emphasizes the importance of rebuilding manufacturing capabilities and strengthening supply chains with trusted partners. NATO has also committed to investing 5% of national GDP in defence, collaborating with industry to enhance production capacity. Both organizations stress the need for a robust defence industry to meet demands during peacetime and conflict. The focus is on strategic autonomy while managing dependencies through diversified sourcing and cooperation.
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