FT: Europe’s $1 trillion defence push sparks NATO-EU divide

NATO and the European Union are increasingly at odds over how to execute a massive defence spending surge, exposing a growing divide over control of Europe’s rearmament and its future weapons supply.

NATO members agreed in June to raise defence spending to 5% of GDP by 2035—a move that could translate into roughly $1 trillion in additional annual military expenditure by EU countries compared to 2024 levels. The scale of the increase has intensified a debate over procurement priorities, particularly whether new weapons should be sourced domestically or from established US suppliers.

According to reporting by the Financial Times, officials describe the disagreement as a “turf war” between NATO and the EU over defence industrial policy and production control. One official said: “There’s a turf war over defence industrial policy…This is about who manages the production scale-up, and what impact that has on the weapons Europe will be using in the future.”

At the centre of the dispute is the EU’s push to prioritise European-made systems, aiming to strengthen domestic industry and reduce reliance on external suppliers. This marks a shift from Europe’s long-standing dependence on US security guarantees, now being reassessed amid rising geopolitical tensions.

Twenty-three EU member states are also part of NATO, complicating coordination between the two institutions. While NATO defines military requirements, EU officials argue that Brussels is better positioned to mobilise funding, regulation and industrial policy. As one EU official put it: “It’s becoming increasingly clear that we need this stuff quickly, in large quantities and cost-effectively… And the way to do that is to manufacture it at home.”

They added: “NATO can define what [types of weaponry] we need. But when it comes to regulatory and financial tools to get there, they have very little to offer.”

Tensions have been further amplified by statements from US President Donald Trump, who has repeatedly criticised NATO allies for insufficient defence contributions and threatened to withdraw US support. His remarks, along with broader transatlantic strains, have reinforced European calls for greater strategic autonomy.

However, NATO leadership has pushed back against the idea of Europe building an independent defence capability. Secretary General Mark Rutte warned EU lawmakers that they should “keep on dreaming” if they believe Europe can defend itself without US backing, arguing such efforts would complicate alliance coordination and benefit Russia.

By Tamilla Hasanova