European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte today stressed the critical need for allies to accelerate and expand defense industry production at the NATO summit in The Hague. They argued that increased defense spending reduces the likelihood of war.
Speaking at the plenary session of the NATO Industry Forum, Von der Leyen stated that “the future of Europe is not only being written on the Ukrainian front, but also in European defense industry factories.” She emphasized that the security architecture the West has relied on for decades “can no longer be taken for granted,” underscoring the importance of increased investment and technological innovation in the defense sector.
Historic Investment Goals and Shifting Landscape
“This is a tectonic shift happening once in a generation,” Von der Leyen told the forum, which included defense ministers, government officials, and industry representatives from NATO members and Indo-Pacific partners (Australia, Japan, New Zealand, South Korea). She highlighted that Europe has taken “actions that seemed unimaginable until last year,” such as launching the “Rearm Europe” plan, which will enable €650 billion in defense investments over the next four years.
Von der Leyen announced that tomorrow’s NATO summit will set a historic goal: alliance members will allocate five percent of their GDP to defense, stressing that how and how much is invested is equally crucial. She noted that since the start of Russia’s war against Ukraine, investments in European defense tech startups have risen by over 500 percent, but funding for the critical scaling-up phase is still lacking. She also called for building more bridges between civilian and military industries to better connect technological innovation with the defense industrial base.
Rutte: “No Defense Without a Strong Defense Industry”
NATO Secretary General Rutte reminded participants of the ancient Roman saying: “If you want peace, prepare for war.” He stated that NATO’s military advantage is being “aggressively challenged by Russia, supported by Chinese technology and armed with Iranian and North Korean weapons.”
Rutte reported that “hundreds of new production lines have been opened and existing ones expanded across NATO.” He added, “We are now on track to produce more ships, planes, and ammunition than we have in decades. There is no defense without a strong defense industry. And there is no European security without a strong transatlantic link.”
He found it “simply inconceivable” that Russia, with an economy 25 times smaller than NATO’s, could outpace the alliance in production and armament. “We must spend more to prevent war. We must win this new war of production. That is the essence of this summit,” Rutte concluded, emphasizing that this will require courageous decisions from NATO political leaders.
“That is what we will do at the summit tomorrow. With an ambitious new Investment Plan, we will spend five percent of GDP on defense. This will be an engine of growth for our economies, fostering millions of jobs on both sides of the Atlantic,” Rutte stated.
