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European NATO countries are ready to spend almost $500B on defense; the EC has already allocated €500M to increase ammunition production.

European NATO countries are ready to spend almost $500B on defense; the EC has already allocated €500M to increase ammunition production.

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The threat posed by Russia forces has convinced NATO countries to arm themselves, and they also need to arm Ukraine, Secretary General Jens Stoltenberg said.

He added that this year, the combined defense investment by European NATO countries will amount to $470B and will reach 2% of GDP for the first time. He also called on NATO countries to hasten the provision of as many shells as possible to Ukraine.

It should be noted that the EU’s military expenditures should exceed Russia’s spending by almost 300%. Moscow has budgeted ₽10.7T (about 6% of GDP), or $118B, for defense spending in its 2024 budget. However, the FT notes that NATO members in Europe need to find an additional €56B a year to meet their defensive spending target.

Meanwhile, the EC has announced the allocation of €500M to European companies to increase ammunition production capacity in order to provide Ukraine with its needs and replenish EU stocks. By the end of 2025, annual European ammunition production should reach two million units.

 

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