NATO allies to unveil tens of billions in defence contracts at Ankara summit
Nato allies will announce tens of billions in new defence contracts this week to appease Washington's demand for 5 per cent of GDP spending, signalling a historic shift in European public expenditure toward the military.
Nato leaders are set to unveil billions of dollars in new military contracts at a summit in Ankara this week, aiming to demonstrate they are meeting Washington's demand for drastically higher defence budgets. The announcements, expected at a Tuesday defence industry forum, come after the Trump administration warned allies to increase spending "immediately" or face consequences.
The push for a 5 per cent of GDP target has exposed deep divisions within the alliance. “Some allies are doing more than others. Poland, the Nordic countries, the Baltic countries lead the way,” said Matt Whitaker, US ambassador to Nato. “But many others are lagging behind, and President Trump expects all allies to step up immediately and not only get on a sustainable path to the 5 per cent [of GDP spent on defence] but to get to 5 per cent as soon as possible.”
The coming procurement wave represents a major economic shock for European public finances and a potential windfall for defence contractors. “We will announce tens of billions in new contracts that will provide the crucial kit we need to deter and defend,” Nato secretary-general Mark Rutte told reporters. Many of these deals are expected to go to US-based defence companies, raising questions about Europe's ability to capture the industrial benefits of its own rearmament.
Beyond the political theatre, the spending reflects hard capability gaps. “Europeans are already backfilling what the US cannot any longer promise,” Rutte said. The continent currently lacks critical assets that the US holds in abundance, specifically midair re-fuelers and long-range strategic bombers. Nato allies have also agreed to invest over $40bn in anti-drone capabilities over the next five years.
Current spending data shows a fractured continent. Poland leads in absolute terms, spending 4.48 per cent of GDP this year after a 214 per cent spending increase between 2014 and 2024. Lithuania and Latvia follow with 4 per cent and 3.73 per cent respectively, representing 324 per cent and 316 per cent growth over the same period. Estonia (3.38 per cent) and Norway (3.35 per cent) also outspend the United States, which sits at 3.22 per cent.
Spain, Belgium, the Czech Republic, Portugal, North Macedonia and Luxembourg remain at the bottom, spending just 2 per cent of GDP. Meanwhile, even top spenders face uncertainty. Despite Poland's massive budget increases, the Pentagon canceled an armoured brigade deployment there in May and pulled an infantry brigade from Romania last year. Trump promised 5,000 troops to Poland as compensation, but no forces have arrived.
