Europe’s Defence Dilemma: Buy American or Back Itself?

NATO’s vast spending hike pours cash into European militaries but risks deepening dependence on Washington and driving up global arms prices.

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Polish army volunteers

Wojtek RADWANSKI / AFP

NATO’s vast spending hike pours cash into European militaries but risks deepening dependence on Washington and driving up global arms prices.

European countries are divided over how to spend a massive surge in defence cash, with some rushing to buy U.S. weapons while others argue the EU should pour money into its own arms industry.

In June, NATO agreed to raise defence spending to 3.5% of GDP. For the 23 EU members, that means almost €270 billion more each year, according to Euractiv. Brussels insists the target will strengthen Europe’s security, but the policy risks waste and duplication.

Many governments are choosing the easy route—buying American systems such as the F-35 fighter jet and Patriot missile batteries. These big-ticket imports quickly tick NATO boxes but deepen Europe’s dependence on Washington. France, Spain and Germany want the money to stay in Europe, backing projects like the SAMP/T missile system and the joint Future Combat Air System fighter jet.

Poland has gone furthest, doubling its budget and signing huge contracts not only with the US but also South Korea, focusing on speed over European cooperation.

Reliance on foreign suppliers undermines Europe’s claims of “strategic autonomy,” especially after Donald Trump’s return to the White House and his reluctance to give NATO allies a blank cheque. NATO’s GDP-based target also encourages spending for appearances rather than combat strength, while fuelling a surge in global arms prices.

Allies will now face annual reviews to prove they are delivering.

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