European Union countries will only be able to spend around €500 billion on defense over the next five years, instead of the planned €800 billion that the bloc aims for, according to Fitch Ratings.
This is reported by Finway
The European Union is considering a significant increase in defense spending amid reduced security guarantees from the United States, which has traditionally provided security for Europe since the end of World War II.
“This is a major challenge at a time when some of the largest member states are facing high levels of debt and deficits”
Experts note that €500 billion is a realistic amount that countries can allocate over the next four to five years. Fitch adds that states further from Russia may feel less need to increase defense spending.
The agency also forecasts that defense spending in the long term will reach 3.3% of GDP in Germany and France, while in Italy and Spain, this figure will only be 2% of GDP. Overall, defense spending in Europe is expected to remain at 2.5-2.6% of GDP by 2028, which does not align with NATO’s ambitions to raise spending above 3%.