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A year on from their historic pledge to ramp up defense spending, NATO<\/a> leaders gathering in Ankara next week will reckon with another challenge: Getting industry to produce enough weapons<\/a>.<\/p>\n As money flows into defense budgets, up $90 billion in Europe and Canada last year alone, the 32-nation alliance is struggling to transform the funds into firepower.<\/p>\n \u201cCash is crucial, but you can\u2019t stop a missile or a tank with a dollar or a euro,\u201d NATO chief Mark Rutte said.<\/p>\n \u201cWe need to turn the cash into combat-ready capabilities, and fast. This is our shared priority.\u201d<\/p>\n In Ankara, the issue will be in the spotlight as leaders are expected to ink deals worth billions of dollars at a special industry forum on the sidelines of the summit.<\/p>\n The struggle getting industry to churn out enough weapons fast enough does not come as a surprise.<\/p>\n Russia\u2019s invasion of Ukraine has long highlighted Europe\u2019s limitations to produce enough, wait times are long and crucial capabilities are lacking.<\/p>\n Meanwhile, President Donald Trump\u2019s war on Iran has sapped U.S. stockpiles and shown off the strains for firms to refill them.<\/p>\n For Europe, the need to step up is of fundamental importance as it looks to become less reliant on Washington in the face of growing doubts about U.S. reliability and warnings Russia could attack in the coming years.<\/p>\n \u201cWe\u2019ve learned how to raise additional funds. We still need to learn how to spend them in an effective way in order to outproduce, out-innovate, outgun Russia,\u201d said EU defense commissioner Andrius Kubilius.<\/p>\n Industry insists that a change is already underway after several decades of underinvestment across the board in defense.<\/p>\n \u201cMany manufacturers are investing in significantly greater production capacity,\u201d Camille Grand, secretary-general of the European defense industry association ASD, told AFP.<\/p>\n \u201cBut does that mean we\u2019re exactly where we should be? Probably not.\u201d<\/p>\n Analysts warn that if war broke out now, Europe would quickly run out of key weaponry such as air defense missiles.<\/p>\n \u201cIn some critical areas, Europe\u2019s current production capacity would be overwhelmed within days,\u201d analysts from the European Council of Foreign Relations wrote.<\/p>\n \u201cAmmunition production has grown from 300,000 shells annually in 2022 to a target of 2 million, but this is still not enough for a protracted conflict.\u201d<\/p>\n Some of the issues facing Europe are deeply entrenched.<\/p>\n The EU has launched a raft of efforts to reform its defense market, but the sector remains deeply fragmented as countries such as France are fiercely protective of their own companies.<\/p>\n \u201cIn the European Union we have 27 defense markets, 27 sets of rules, and so the defense industry still has many obstacles,\u201d Kubilius, who oversees EU efforts to bolster production, complained in a recent speech.<\/p>\n But the push for a single defense market on the continent, and getting countries to work more together, faces major hurdles.<\/p>\n Large companies in the sector have no incentive to invest because they know they will be given preferential treatment by their governments, Guntram Wolff, a defense economics expert at the Bruegel Institute in Brussels, told AFP.<\/p>\n \u201cThe German purchases going to domestic firms have increased from something like 30 percent in 2020-2021, to now 60 percent in 2025-2026,\u201d he said.<\/p>\n