Trump's threat gives Europe more political will to spend on defense. But the challenge is leading
Madrid – In a huge hangar in Spain, workers secured their fuselage to the European aerospace giant's Airbus, which runs out of jets and other military equipment.
Multinational corporations are the rarity of European defense industry supported by Spain, Germany, France and the United Kingdom. The norms of the defense industry in the continent are Daming national champions, with hundreds of small companies primarily working to fill state government orders.
This piecemeal paradigm could hinder Europe's plans to spend more on defense amid U.S. President Donald Trump's threat to have Russia's full-scale invasion of Ukraine.
For years, Trump accused NATO allies of spending too little on their defense. The chasm of the transatlantic bond has been growing in recent months. The Trump administration has shown that U.S. priorities are located outside Europe and Ukraine, and it is time for “Europe to stand at its own pace.”
Spain is the most obvious shortage of defense spending.
Last year, it lagged behind all NATO allies’ defense spending as a share of GDP, forcing the country to catch up this year to reach the alliance’s 2% spending target. NATO leaders are expected to raise the target again this summer.
Industry leaders and experts across Europe pointed out that the challenge that the continent must overcome is truly self-sufficiency military power, mainly due to decades of dependence on the United States and its dispersed defense industry.
“Europe has obtained most of the defense materials outside of Europe, which is really something we have to leave,” said Jean-Brice Dumont, the air force director of aircraft defense and space, at the space manager at the aircraft manufacturer’s factory outside Madrid. “The journey until we gain full autonomy is a long journey, but it must begin.”
The shift with support from Europe can be seen in the stock market, despite the recent turmoil caused by Trump’s tariffs, such as BAE Systems (UK), UK (UK), Leonardo (Italy), Leonardo (Italy), Leon Miltre (Germany), Thales (France) and Saab (Sweden) are all on the rise.
The push from European Union policymakers has made European companies hopeful to benefit from EU policymakers to ensure that as much of the euro ends up being European companies rather than transatlantic flows. The challenge is daunting, but not as terrifying as having to face potential military threats without the help of the United States.
One question is: Can production expand rapidly?
A European Union white paper published last month bluntly stated that Europe's defense industry cannot produce defense systems and equipment that are sufficient to meet member states. It notes where most of the group's spending occurs: the United States
Europe relies not only on military equipment, but also on intelligence, surveillance and even software updates. Supply chain complexity means that equipment manufactured in Europe often uses software or other components built or even operated by American companies.
Airbus' A330 MRTT air-to-air refueling aircraft is built outside of Madrid and is an example of specialized equipment that Europe is largely lacking.
Another example is the Swedish Gripen Fighter, a researcher at the Stockholm Peace Institute, which studies the European Armory, notes Lorenzo Scarazzato, a researcher at the Stockholm Peace Institute, which studies the European Armory.
According to a recent SIPRI report, from 2020 to 2024, more than half of Europe's weapons come from the United States
Scarazzato said changing this paradigm will require years of continuous investment and a shared vision for the entire group. “This will be a massive overhaul of the entire command and control structure.”
Experts say a broken defense industry in Europe reduces the interoperability of equipment and makes it more difficult to establish economies of scale.
For example, according to the European Defense Agency, with only one used by the U.S. military, there are at least 12 types of tanks in the entire 27 countries of the EU.
But the Institute for International Strategic Research noted in its 2025 Military Balance Report that there have been some positive developments in the private sector recently. Leonardo and Rheinmetall started a joint venture last year.
Douglas Barrie, senior researcher at IISS Military Aerospace, said the European capital has historically wanted to spend on its own local industries, rather than nearby industries, to ensure work and feed the pride of the country that is deeply rooted in manufacturing military hardware.
“The basic economic focus is there. Partly a question of political will, partly a question of national pride and national identity,” Barry said. “While politicians can advocate mergers, it must be driven by individuals within the industry, and industrialists will see that.”
This month, when Spain announced it would increase its defense spending by 10.5 billion euros ($12 billion) this year, the European government favored local manufacturers over shopping among other European companies.
The government said 87% of the money will go to Spanish companies in an effort to generate nearly 100,000 direct and indirect jobs and increase Spain's GDP by 0.4 to 0.7 percentage points.
“Whenever there is a political interest in integration, that's what you encounter,” Barry said.
The European Commission will provide Member States and Ukraine with 150 billion euros (US$170 billion) to purchase air defense systems, drones and strategic drive aircraft such as air transport and improve cybersecurity.
This is part of a set of measures that include relaxing the budget rules for defense spending and reorganizing EU funds to reflect security priorities.
Under these proposals, member states will be invited to “work together” and by 2030, at least 35% of defense goods between external countries will be purchased at least 40% of defense equipment.
Airbus Dumont said he was clear about the European leaders.
“Europe must provide funding for European industry in preparation for tomorrow's defense, tomorrow and the next day after tomorrow and years to come. That's what's happening to us right now.”
___
Wilson reported on Barcelona, Spain. AP photojournalist Bernat Armangué contributed to the report.