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Europe Prepares to Spend Big on Defense

  • European NATO members reported a 72 percent increase in defense spending since 2014, reaching nearly US$500 billion in 2024, as a collective effort to safeguard freedom and democracy.
  • The European Council announced the ReArm Europe Plan, allowing states to boost military spending by €800 billion over five years, overriding limits set by the 2012 European Fiscal Compact.
  • At a NATO summit in June, members committed to allocating 5 percent of GDP annually for military spending, aiming to enhance Europe’s economic and military power.
  • Increased military strength is regarded as essential for readiness, strategic autonomy, and the future of Europe as a global player.
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According to a recent article by Funcas entitled "Some economic keys to a more integrated European defence industry", the root of the problem is the fragmentation of the European defence industry, which limits efficiency, increases costs and slows down technological development. Currently, industrial defence production is concentrated in a few countries — France, Germany, Italy, Sweden and Spain — while other economies such as Poland and Romania…

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Free Malaysia Today News broke the news in Kuala Lumpur, Malaysia on Tuesday, July 22, 2025.
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