European countries are trying to scale up and integrate their military capabilities, but experts say the current defense production and procurement model is not fit for purpose.

For decades after the Cold War, defense was not a priority for European leaders. Military spending was slashed, armed forces downsized, and equipment stockpiles depleted, resulting in diminished combat readiness.

Russia's full-scale invasion of Ukraine in February 2022 served as a wake-up call, prompting European governments to focus on defense. Growing uncertainty about US security commitments under President Donald Trump accelerated the trend.

Germany even amended its constitution to remove borrowing limits for defense. Last year, 29 European NATO members spent $559 billion on defense, with Germany alone spending $114 billion, a 24% increase.

Europe has sought to strengthen its defense industry, but weapons makers struggle to accelerate production. Underwhelming revenue and profit figures in the first quarter of 2026 raised investor concerns.

The sector faces structural challenges such as scale disadvantage compared to US companies and national fragmentation, leading to duplication and coordination issues. Joint initiatives often face severe delays. The Franco-German FCAS fighter jet project was scrapped due to disagreements.

Experts say the main bottleneck is institutional, not financial. National protectionism, risk-aversion, and slow consensus-bound decision-making hinder progress. They call for forming coalitions of like-minded partners.

There are concerns about how long European governments can sustain high defense spending amid economic weakness. The Stoxx Europe Targeted Defense index has fallen over 15% since January.

Some experts see defense spending as a means to boost economic activity and create jobs, but regional variations in threat perception persist.

Source: www.dw.com