NATO Secretary General Mark Rutte is planning a meeting with leading European defense companies to stimulate investment and increase weapons production, the Financial Times reported today.
It is noted that the aim of the talks is also to accelerate production and prepare for key decisions expected at the NATO summit in Ankara in July. Rutte intends to urge defense companies to act faster and increase production capacity in response to growing demand from allies.
According to industry sources, such a large-scale meeting is atypical and highlights the Alliance's desire to quickly increase defense production before the NATO summit in Ankara in July.
The meetings are expected to be attended by representatives of defense technology giants, including Rheinmetall, Safran, Airbus, Saab, MBDA and Leonardo.
''We do not comment on the details of private informal meetings'', Airbus said when asked about the upcoming meeting with Rutte.
Rheinmetall, MBDA and Leonardo also declined to comment. Safran and Saab also responded to requests for comment from the FT.
Pressure on defense industry
NATO wants European arms manufacturers to help meet Donald Trump's demands for increased defense spending, as the alliance tries to calm the US president's anger over allies' refusal to support a war on Iran. The investment is also aimed at reducing the continent's dependence on the United States amid growing concerns about Washington's commitment to the region. At a NATO summit in The Hague last year, alliance leaders agreed to Trump's demand to increase defense spending to 5 percent of GDP. The Ankara summit's focus on arms deals could show the impact of that pledge and allow Trump to take credit, officials said. It's about making the defense spending increase seem more real, a NATO official said. Tensions between governments and manufacturers have been at loggerheads in recent years with European defense companies and defense ministries. The companies say governments are not signing enough long-term procurement contracts. Governments say the sector has failed to increase production capacity quickly enough. Despite the pressure, Rutte also wants to hear from companies about the obstacles to increasing production to meet NATO needs. Although European companies have taken steps to address ammunition shortages, access to long-range missiles is now a key issue for European capitals. Berlin is seeking to acquire US-made Tomahawk cruise missiles to bolster its defenses against Russia, a task that has become even more urgent after the Pentagon scrapped plans to deploy its own equipment. At the same time, European governments are putting pressure on local companies to accelerate their plans to develop alternatives.
NATO's strategic focus
In early May, the Pentagon announced plans to withdraw 5,000 troops from Germany amid a dispute between Trump and Chancellor Friedrich Merz over war with Iran, which has also forced the United States to use critical weapons stockpiles.
All of this has become a new 'wake-up call' for the for Europeans on the need to rapidly increase their manufacturing capacity and capabilities.
If European NATO allies meet the 5% spending target, it would mean a combined increase in annual defence spending of $1 trillion by 2035 compared to 2024.
NATO officials have said they want to secure big deals in key areas where European militaries rely heavily on the US: air defence, long-range missiles and intelligence and surveillance capabilities such as space satellites.
Some companies will present plans next week to address the challenges of expanding manufacturing capacity and workforces, securing critical raw materials and strengthening supply chains, while one of the FT sources added that the meeting would discuss how to reduce reliance on Chinese and Taiwanese components.