Updated · Center for European Policy Analysis · May 6
Europe uses defence spending surge to modernise industrial base
Updated
Updated · Center for European Policy Analysis · May 6
Europe uses defence spending surge to modernise industrial base
8 articles · Updated · Center for European Policy Analysis · May 6
A CEPA report says wars in Ukraine and Iran exposed NATO procurement delays, weak surge capacity and dependence on legacy systems as Europe increases military budgets.
It urges faster investment in drones, AI-enabled production, cyber and electronic warfare, missile defence, resilient digital networks and cross-border manufacturing, while mobilising private capital and easing export and ESG barriers.
The report says Ukraine should be treated as a combat-proven innovation partner and integrated into NATO planning, warning Europe must spend in a coordinated way as US attention shifts and Russia and China modernise.
With Ukraine building millions of drones, why can't Europe's industrial giants rapidly scale modern weapons production?
While bolstering its eastern flank, is NATO ignoring the strategic threat of a demilitarized and contested Arctic?
As AI weapons approve targets in seconds, is 'meaningful human control' already obsolete on the modern battlefield?
Europe's Defense Spending to Reach €800 Billion by 2030: Strategic Autonomy and Industrial Transformation
Overview
Europe's defense spending is rapidly increasing in response to Russia's 2022 invasion of Ukraine and doubts about the US security guarantee. This surge, marked by a 20% rise to €381 billion in 2025, is supported by NATO's commitment to raise defense budgets to 5% of GDP by 2035. Key countries like Poland, France, and Germany are leading major military investments. However, decades of underinvestment have left Europe with depleted equipment and limited industrial capacity, challenges addressed by initiatives like the ReArm Europe program and the European Defence Industrial Programme. Together, these efforts aim to rebuild capabilities, foster innovation, and strengthen Europe's strategic autonomy amid a shifting global security landscape.