The European Union has delivered on its defense investment agenda, with budgets approved, production expanding, and capabilities being delivered. This shift is not temporary, but a structural change in taking care of its own defense.
Europe collectively spent 2.1% of GDP on defense in 2025, above NATO's benchmark, with frontline allies moving toward spending 5% of GDP. The EU's new $200 billion defense financing program has already deployed over $6 billion to help countries procure faster and strengthen defense production.
The investment is translating into new industrial partnerships, such as Lockheed Martin and Rheinmetall producing ATACMS missiles in Germany. This buildup is not about replacing the United States, but about becoming a stronger, more capable ally and balanced partner in the security relationship.
