When the European Union unveiled its ambitious defense investment strategy last year, many observers in the United States were skeptical. Critics questioned whether Europe could rearm quickly enough, overcome the fragmentation of its defense industry, or reduce its long-standing dependence on American military capabilities. A year later, Europe’s response is evident not in rhetoric, but in measurable progress. Defense budgets have been approved, manufacturing capacity is expanding, procurement processes are moving faster, and new military capabilities are already entering service.
This momentum represents more than a short-term increase in spending. It marks a lasting transformation in Europe’s approach to safeguarding its own security. While building stronger defense capabilities will take time, the direction is firmly established and the process is well underway. We encourage our American partners to assess Europe based on its current actions and achievements rather than outdated perceptions.
When I wrote for these pages in 2025, Europe had just introduced Readiness 2030—a defense modernization roadmap approaching one trillion dollars aimed at acquiring advanced weapons systems and cutting-edge technologies. It reflected a fundamental shift in the European Union’s role in strengthening the continent’s defense and highlighted significant opportunities for American defense companies.
Today, that vision is steadily becoming reality. European nations collectively allocated 2.1% of their GDP to defense in 2025, surpassing NATO’s long-standing benchmark. Countries on NATO’s eastern flank—including Poland, Lithuania, Latvia, and Estonia—are progressing toward defense expenditures of 5% of GDP. Meanwhile, eighteen EU member states have joined the Union’s new $200 billion defense financing initiative, with more than $6 billion already being invested to accelerate procurement, expand industrial capacity, and deliver the capabilities required by both Europe and NATO.
Greater financial commitments tell only part of the story. Europe has fundamentally redefined its defense philosophy. The period during which the continent relied heavily on others for its security is coming to an end. New production facilities are being established, existing factories are increasing output, and private capital is flowing into technologies such as unmanned systems, armored platforms, artificial intelligence, and electronic warfare. These investments are also fostering new industrial collaborations. During the recent NATO Summit, Lockheed Martin and Rheinmetall announced plans to manufacture ATACMS missiles at a newly established facility in Germany, marking the first production of the system outside the United States.
Europe is also reforming the way it procures defense equipment. For decades, twenty-seven separate national procurement systems created duplication, inefficiencies, and unnecessary costs. The European Union is now promoting greater coordination by encouraging joint procurement and collaborative investment, while providing industry with the long-term demand needed to increase production and shorten delivery timelines. Collectively, these reforms are helping transform Europe’s defense market from a collection of isolated national systems into a more integrated and efficient framework.
These developments do not diminish America’s role; instead, they strengthen the transatlantic alliance. As Europe assumes greater responsibility for its own defense, NATO becomes more resilient and better equipped to confront shared security challenges. European countries remain the largest international customers of the U.S. defense sector, accounting for nearly 40% of American arms exports—valued at approximately $130 billion—and supporting manufacturing, innovation, and highly skilled employment in the United States. At the same time, more than half of Europe’s defense acquisitions continue to be sourced from U.S. suppliers. Europe’s increased investment is expanding the overall defense market, creating additional opportunities for American industry.
To be clear, Europe’s defense modernization is not intended to replace the United States. Its objective is to become a more capable, dependable, and balanced ally within a transatlantic security partnership that enhances collective deterrence and benefits both Europe and North America.
A year ago, Europe committed itself to decisive action. Today, that commitment is being translated into tangible results while generating valuable insights into effective defense planning and procurement. Russia’s war against Ukraine provides a powerful illustration. Together, the European Union and its member states have committed more than $300 billion in support of Ukraine, making Europe the largest overall contributor. Notably, a substantial portion of military assistance has been directed toward purchases from U.S. defense manufacturers through joint procurement initiatives and EU-funded acquisitions, strengthening both Ukraine’s defense capabilities and the broader transatlantic defense industrial base.
The conflict in Ukraine has also underscored an important reality: success in modern warfare depends on speed, adaptability, and the ability to produce at scale.
As European Defence Commissioner Andrius Kubilius recently observed, Europe has become highly proficient at producing exceptionally sophisticated, high-performance missile systems. The next objective is to complement that technological excellence with the capacity to manufacture reliable, cost-effective capabilities—including drones and rapidly deployable systems—in significantly larger quantities. In other words, Europe must ensure that the pursuit of perfection does not impede the timely delivery of effective solutions.
Later this year, the European Union will present its new European Security Strategy, outlining a long-term vision for safeguarding the continent. This strategy will serve as the foundation for the next phase of Europe’s ongoing defense transformation.
