Kallas Says EU's $940 Billion Rearmament Is Stalled by Bureaucracy

5 articles · Updated · Business Insider · May 13

Kaja Kallas said the EU is still not scaling up defense production as fast as expected, even as the bloc targets an extra $940 billion in military spending by 2030.
Procurement rules and fragmented national standards are slowing manufacturers, she said, with firms complaining they face different requirements in each member state and cannot produce efficiently at scale.
Kallas said output has risen in ammunition, air defense and other critical capabilities, but demand from governments is rising at the same time, leaving stocks under pressure.
The rearmament push, unveiled in March 2025, relies on member states to lift defense spending by 1.5% of GDP by 2030, backed by $762 billion in fiscal leeway and a $176 billion joint-project loan program.
That leaves Brussels setting direction while capitals decide what to buy, adding to uncertainty over who will spend the money and where it will go as Europe races to deter Russia.

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