Nato to press Europe’s arms makers to boost investment and production
Nato secretary-general Mark Rutte will press European arms companies next week to increase investment and boost production, as the defence alliance seeks to strengthen the continent’s military capabilities and appease US President Donald Trump.
Rutte is set to meet top European defence groups in Brussels to urge them to move quickly and to lay the groundwork for key announcements at Nato’s annual summit in Ankara in July, people familiar with the matter told the FT.
Ahead of the meeting, companies have been asked to share information about major investments and their ability to boost production, with a particular focus on areas such as air defence and long-range missiles.
Rutte regularly meets with Europe’s top defence executives but gathering the representatives of a large number of companies at a single meeting is unusual, said people in the industry. His message on what the alliance expects from the groups also underscores the urgency inside Nato to demonstrate industrial expansion at the leaders’ gathering in Turkey.
Many of the continent’s biggest arms makers such as Rheinmetall, Safran, Airbus, Saab, MBDA and Leonardo were expected to send representatives to the meeting.
Airbus said: “We do not comment on the details of private, informal meetings.” Rheinmetall, MBDA and Leonardo declined to comment. Safran and Saab did not immediately respond to a request for comment.
Nato wants Europe’s arms makers to help meet Trump’s demands for more spending on defence as the bloc seeks to address his anger over the alliance’s perceived failure to support his war against Iran. The investments are also aimed at reducing the continent’s reliance on the US amid rising concerns about Washington’s commitment to the region.
At last year’s Nato summit in The Hague, members agreed to Trump’s call to increase defence spending to 5 per cent of GDP. Focusing the Ankara meeting on arms deals would demonstrate the impact of that announcement and allow Trump to claim credit, said officials briefed on the preparations.
“It’s about making the defence spending increase look more real,” said one of the officials.
Rutte wants Europe’s defence companies to invest rapidly without waiting for significant new government orders.
European arms companies and defence ministries have clashed in recent years over the root cause of the continent’s lack of military production. Companies have accused governments of not signing enough long-term procurement contracts, while states argue the sector has failed to increase production capacity quickly enough.
Despite those tensions, Rutte also wants to hear from the companies about the barriers to increasing production to meet Nato’s needs, said two people in the industry.
While European groups have moved to address ammunition shortages, access to long-distance missiles is now one of the main problems for European capitals.
Berlin is trying to buy American Tomahawk cruise missiles to bolster its defences against Russia, an effort that has become more urgent after the Pentagon scrapped plans to deploy its own equipment. At the same time Europe is pressing domestic companies to accelerate plans to develop alternatives.
The Pentagon in early May announced plans to withdraw 5,000 troops from Germany amid a spat between Trump and Chancellor Friedrich Merz over the Iran war. That conflict has also caused the US to burn through “years” of critical munitions.
Both developments served as fresh “wake-up calls” to Europeans about the need to quickly bolster their production capacity and capabilities, some of the people said.
If European Nato allies hit the 5 per cent spending target, it would amount to a combined $1tn increase in annual defence expenditure in 2035 compared with 2024.
Nato officials say they want headline agreements in key areas where European armies rely heavily on the US: air defence, long-range missiles and intelligence and surveillance capabilities such as space satellites.
Some of the companies will present plans next week to address the need for more factories and personnel, securing crucial raw materials and strengthening supply chains, while one of the people added that talks would also discuss how to reduce dependence on Chinese and Taiwanese components.
“The secretary-general regularly meets with industry and financial institutions from across the alliance to encourage increased production, innovation and investment to meet our capability needs,” a Nato official said.
