A Bloomberg Intelligence report revealed that NATO’s 15 largest European members may need to raise military spending to $720 billion annually, a $340 billion increase, to compensate for potential reduced U.S. support under a second Trump administration. Analyst George Ferguson noted that while Russian aggression has already driven increased European defense budgets, additional spending may be necessary to support Ukraine, counter Moscow’s regional threats, and address strategic competition with China. Defense firms like BAE Systems Plc, Airbus, Leonardo, and Rolls Royce are expected to benefit significantly from this spending surge. The report underscores the growing pressure on Europe to enhance its defense capabilities independently. This potential shift highlights the broader implications of geopolitical uncertainties on global defense strategies.
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