European Union countries plan to allocate around €500 billion for defense over the next five years, which is significantly less than the desired €800 billion, according to Fitch Ratings. With the United States, which has effectively ensured Europe’s security since the end of World War II, no longer willing to do so, the EU is considering a substantial increase in its defense spending.
This is reported by Business • Media
Financial Challenges for EU Countries
Experts note that this is a significant challenge for EU member states, which are facing high levels of debt and deficit.
“This is a major challenge at a time when some of the largest member states are grappling with high levels of debt and deficit,” experts say.
Defense Spending Forecasts
Fitch specialists emphasize that €500 billion is a realistic target that can be achieved over the next four to five years. They also point out that countries located further from Russia may feel less need for defense spending. The agency forecasts that long-term defense spending in Germany and France could reach 3.3% of GDP, while in Italy and Spain this figure will only be 2% of GDP. Overall, defense spending in Europe is expected to remain at 2.5-2.6% of GDP by 2028, which does not align with NATO’s ambitions to increase spending above 3%.