Europe Readies for Major Defense Spending Increase

What Happened?

President of the European Commission Ursula Van Der Layen announced this week the Readiness 2030 plan. It calls for massive increases in defense spending for European nations. 

“We’re not doing this to go to war, but to prepare for the worst and defend peace in Europe,” said Kaja Kallas, the EU’s top diplomat. 

In a public statement Ms. Van Der Layen said “We must buy more European. Because that means strengthening the European defense technological and industrial base.” 

The announcement specifically included plans to refrain from buying American defense technology and to invest heavily in armaments made in Europe. 

Why it Matters

Currently European nations purchase two thirds of their defense equipment and technology from the United States. That means the Readiness 2030 plan would involve a major change in European defense spending. 

The program could create new jobs for European workers in addition to bolstering defenses.

While European leaders took pains to publicly emphasize the moves are purely defensive without naming Russia, it’s clear the proposed increases are to prepare for a future conflict with Russian forces. 

Poland in particular has led the way in increasing its defense spending, becoming the first European nation to do so in a systematic way after the Russian invasion of Ukraine.

Germany has also announced similar plans to embark on major defense spending increases designed to improve German military capabilities, access to advanced technology, and grow the size of that country’s armed forces.

As Europe’s most populous nation, Germany could once again become a major military power if the current plans are brought to fruition and sustained.

While the changes floated by European policy makers may sound good to the Trump Administration politically, they could also represent significant losses in sales for American defense contractors. 

A potential upside is that a more militarily capable Europe would make NATO a more formidable military force, and potentially a greater deterrent to future Russian aggression.

The moves by European nations to boost defense spending and take a harder stance towards Russia would seem to be very different from the results Russian President Vladimir Putin was looking for with his war on Ukraine. 

Mr. Putin made it clear he believed the invasion would convince Europe and NATO to back off, but the exact opposite appears to be happening.

Finland and Sweden are now NATO members and European nations are seeking to build a military capability to rival and even exceed Russia’s.

How it Affects You

Historically, a heavily militarized Europe has not always been a positive development for the United States. Two world wars since 1900 resulted in part from an arms race in Europe and among European powers. 

European officials say this time is different, and they may be right. 

In international relations the old adage to be careful what you wish for is sometimes true. The Trump Administration wants a stronger and more heavily armed Europe, and it appears they may get exactly that.