NATO allies unveiled $12 billion in key defence industry deals to buy next-generation drones, surveillance planes and military aircraft, aiming to convince United States President Donald Trump that Europe is heeding his spending demands. Officials structured the entire NATO summit week as an appeal to Trump, putting on a defence industry-friendly display and armed with figures to convey that Europe is stepping up.
Europe moves to locally source equipment
Some contracts show Europe moving to locally source equipment previously bought from the U.S. Eleven countries will buy airborne radar-detection systems from Swedish aerospace firm Saab AB, replacing a U.S.-made Boeing Co. model. The deal is worth $5 billion, according to a NATO diplomat who spoke anonymously to describe the agreements.
Others deepen ties to U.S. manufacturers for crucial items. Denmark, Finland, Germany and Norway will buy up to five Northrop Grumman Corp. Triton surveillance aircraft at a cost of $2.7 billion, the diplomat said.
Rutte reveals deals at defence forum
NATO Secretary General Mark Rutte revealed the deals on Tuesday during a defence industry forum in Ankara, Turkey, where the military alliance’s leaders are gathering for their annual summit. Trump has for years railed against NATO, arguing it lets Europe and Canada piggyback off America’s defence prowess without investing. Alliance members have responded with billions in fresh military spending, spurred by Russia’s war on Ukraine.
Other purchases include seven allies acquiring Airbus SE’s A400M military aircraft, worth $4.3 billion, the diplomat said. Separately, allies will invest more than $40 billion in counter-drone capabilities over the next five years, Rutte said.
Europe still far from military self-sufficiency
Europe is still far from military self-sufficiency and lacks the ability to produce key modern tools of warfare, including drones and advanced air defence systems. The deals announced Tuesday aim to address some of those shortcomings. In the case of Saab’s radar-detection system, the shift reflects a growing European desire to ensure its safety is not completely tied to U.S. manufacturers.
Boeing’s planes “have served us well and continue to do so,” Rutte said, “but they are reaching the end of their life.” The new products “will ensure” NATO’s capabilities are “strong and credible for decades to come.”
Europe-first push causes friction with U.S.
The Europe-first push has caused friction with the U.S., which wants allies to spend more on their own defence but still buy American. Tensions increased after the European Union designed a €150 billion ($172 billion) defence loan scheme and its €90 billion loan to Ukraine to prioritize local companies. In key areas, however, Europe hasn’t been able to find equivalents for American products. The Triton maritime surveillance equipment, for example, is a capability Europe has yet to develop.
“The Triton equipment gives us the situational awareness we need to make the decisions we need and stay ahead of threats,” Rutte said.
