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Higher European defence budgets a first step, production needed, NATO's Rutte says

Published by Global Banking & Finance Review

Posted on March 8, 2025

2 min read

· Last updated: January 25, 2026

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Higher European defence budgets a first step, production needed, NATO's Rutte says
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FRANKFURT (Reuters) - Higher European defence budgets and a ramp-up of production by military equipment industries are necessary to secure Europe, NATO Secretary General Mark Rutte said in a German

European Defence Budgets Increase: Production Crucial, Says NATO

FRANKFURT (Reuters) - Higher European defence budgets and a ramp-up of production by military equipment industries are necessary to secure Europe, NATO Secretary General Mark Rutte said in a German newspaper interview.

"We will need to spend more to keep ourselves safe," Rutte told German Sunday newspaper Welt am Sonntag (WamS).

"But we also need to quickly ramp up our defence production on both sides of the Atlantic...for far too long, we have produced far too little."

The North Atlantic Treaty Organization includes much of Europe and also the United States and Canada.

Ammunition, ships, tanks, jets, but also satellites and drones were needed, Rutte said.

European countries are hastening to boost defence spending and maintain support for Ukraine after U.S. President Donald Trump froze U.S. military aid to Kyiv and raised doubts about Washington's commitment to European allies.

German lawmakers will debate sweeping changes to state borrowing rules to fund defence, alongside a 500-billion euro ($541.60 billion) infrastructure fund, from March 13 to get those measures passed in the outgoing parliament ahead of the formation of a new one on March 25, sources have said.

EU leaders on Thursday held meetings to back joint defence loans to member states and to allow defence spending beyond tight budgetary rules for other sectors.

Rutte said he had met with many heads of defence manufacturing companies and urged them to respond to higher demand.

($1 = 0.9232 euros)

(Reporting by Vera Eckert, editing by Sharon Singleton)

Key Takeaways

  • European defence budgets need to increase for security.
  • NATO's Rutte calls for ramped-up military production.
  • Defence production is needed on both sides of the Atlantic.
  • European countries aim to support Ukraine amidst US aid freeze.
  • EU leaders discuss joint defence loans and spending flexibility.

Frequently Asked Questions

What is the main topic?
The main topic is the need for increased European defence budgets and production as emphasized by NATO's Secretary General.
Why is increased defence production necessary?
Increased production is necessary to meet the demand for military equipment and ensure Europe's security.
How are European countries supporting Ukraine?
European countries are boosting defence spending and discussing joint loans to maintain support for Ukraine.

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