U.S. Shifts Stance on European Defense Spending
PARIS — A top U.S. defense official has indicated that the United States is revising its previously cautious stance on European allies using defense budgets to boost local military industries. The U.S. now adopts a more “pragmatic” view on nations purchasing domestically-produced military equipment.
Speaking at a related event during the Munich Security Conference on February 13, Elbridge Colby, the under secretary of defense for policy, emphasized the U.S. understanding of countries investing in local defense production. “If nations are allocating 3.5% or even 5% of their GDP to defense, it’s expected a significant part of that investment will be localized,” Colby stated.
Colby pointed out the potential domestic backlash in countries such as Germany or Poland if substantial defense funds were consistently sent outside their borders, instead of supporting local industries.
Historically, the U.S. has often been wary or outright opposed to European policies that favored local defense manufacturers at the expense of American companies’ involvement in European defense projects.
However, Colby noted, “There is a different attitude now,” highlighting the primary U.S. interest in having allies that are more self-sufficient in terms of security.
Europe’s Role in Its Defense
According to Colby, Europe should primarily be responsible for its conventional defense. This sentiment was expressed during a NATO meeting in Brussels on February 12, just before the annual Munich conference. Colby emphasized the desire for “partnerships, not dependencies,” clarifying that while the U.S. will continue to provide its nuclear deterrent, it will offer conventional military capabilities in a more targeted manner to support NATO defense.
Between 2020 and 2024, Europe accounted for 35% of U.S. arms exports, with imports by European NATO members more than doubling compared to the previous four-year period, data from the Stockholm International Peace Research Institute (SIPRI) showed. The U.S. was responsible for 64% of these imports.
Colby also commented on the expansion of the U.S. defense industrial base, aligning with broader Department of Defense goals. “The demand for defense equipment remains enormous and will persist. While the U.S. aims to increase its market share and has strategic leverage, this will be a practical discussion,” he remarked during his time in Munich.
As Europe is encouraged to take greater responsibility for its defense, there has been a noticeable shift in attitude, including how the European Union supports defense initiatives, Colby added.
Following Russia’s invasion of Ukraine, the EU has significantly increased its defense commitments, including launching a €150 billion loan program for joint defense procurement that mandates at least 65% of component costs originate from Europe, Canada, or Ukraine.
Colby expressed understanding of major fiscal initiatives being channeled through the European Union, emphasizing cooperation and supporting the concept of partnership over dependency.
EU member states are projected to spend €381 billion on defense by 2025, marking a 63% increase from five years earlier, according to EU data.
Modern Warfare and Defense Production
In further discussions at the Munich Security Conference on February 14, Colby described modern conflicts as “wars of production,” necessitating a robust defense industry capable of servicing both the U.S. and its allies. “We’re also very supportive of our allies building up their defense industrial bases, setting us on a path towards long-term stability, deterrence, and defense,” he added.
Last year, NATO allies agreed in The Hague to raise defense spending to 5% of GDP by 2035, including spending 3.5% of GDP on core defense essentials. Spain has been the sole dissenting voice, arguing that it can meet NATO capability targets with less expenditure. Spanish Prime Minister Pedro Sánchez argued in Munich that such high spending levels would increase European dependency on the U.S. defense industry.
However, Finland’s President Alexander Stubb countered this view, highlighting Finland’s role as a security provider in the face of Russian threats. “As a Finn, I am pleased with the push for us to take more responsibility for our defense,” Stubb stated during a panel discussion on transatlantic security.
Meanwhile, Danish Prime Minister Mette Frederiksen advocated for reaching the 3.5% spending target by 2030 instead of 2035, suggesting that even this might not suffice. Frederiksen also noted that NATO’s current capability targets do not adequately cover the High North and Arctic regions, where the U.S. and European production lines have yet to meet specific defense needs.
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Jamal Peterson reports on defense, aerospace, and tech policy. With a military background and a strategic mind, he dissects complex subjects with clarity, offering readers sharp, reliable insights.
