Today, we\u2019re making that plan happen. Let\u2019s look at what\u2019s already advancing – Europe collectively spent 2.1% of GDP on defense in 2025, above NATO\u2019s benchmark. Frontline allies like Poland, Lithuania, Latvia, and Estonia are moving toward spending 5% of GDP. Eighteen member states have already taken the next step under the EU\u2019s new $200 billion defense financing program. And the first $6 billion-plus is already being deployed to help countries procure faster, strengthen defense production and deliver the capabilities Europe and NATO need.<\/p>\n
Bigger budgets are only part of the story. Europe has fundamentally changed how it thinks about defense. The era when Europe outsourced too much of its security is over. New factories are opening, existing production lines are expanding, and private investment is flowing into next-generation drones, armored vehicles, artificial intelligence and electronic warfare. That investment is already translating into new industrial partnerships. At the NATO Summit, Lockheed Martin and Rheinmetall announced<\/a> plans to produce ATACMS missiles in a newly opened production plant in Germany, the first time the system will be manufactured outside the United States.<\/p>\n We\u2019re also changing how Europe buys defense. For too long, 27 national defense markets operated under 27 different sets of rules, creating duplication, delays and unnecessary costs. The European Union is helping bring those markets together, making it easier for countries to procure jointly, invest together and give industry the predictable demand it needs to expand production and deliver capabilities faster. These initiatives and more are helping Europe move from fragmentation towards integration.<\/p>\n None of this comes at America\u2019s expense. Quite the opposite. As Europe invests more in its own defense, the alliance as a whole becomes more resilient and better prepared for the threats we face together. Europeans remain the largest customers of the U.S. defense industry, accounting for nearly 40% of U.S. arms exports (worth $130 billion) \u2013 and supporting American manufacturing, innovation and high-skilled jobs. At the same time, more than half of European defense procurement continues to come from U.S. suppliers. Europe\u2019s defense investment is creating a larger market, and as that market grows, so do the opportunities for American defense companies.<\/p>\n Let me be clear – this buildup is not about replacing the United States. It\u2019s about becoming a stronger, more capable ally and balanced partner in a security relationship that benefits both sides of the Atlantic and keeps deterrence credible.<\/p>\n One year ago, we promised action. Today, Europe is delivering \u2013 and learning valuable lessons in what works and what doesn\u2019t. A powerful example of this is Putin\u2019s war in Ukraine. Together, the EU and its member countries have mobilized more than $300 billion in support for Ukraine, making Europe the largest provider of overall assistance. Importantly, a significant share of military support is being spent with U.S. defense companies through joint procurement and European-funded purchases, reinforcing both Ukraine\u2019s defense and the transatlantic industrial base.<\/p>\n The lesson from Ukraine is clear: modern warfare rewards speed, adaptability and scale.<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/nato\/wp-content\/uploads\/2026\/07\/V2MYJSJJR5BQHECQOTH6LTP4LI.png\")
Jovita Neliup\u0161ien\u0117 became the Ambassador of the European Union to the United States on Jan. 1, 2024. (EU photo)<\/p>\n