UK seeks new defence alliance to slash military spending bills

UK Prime Minister Keir Starmer is preparing to promote a new multinational defence initiative designed to coordinate joint weapons procurement among Western allies and reduce the rising costs of rearmament, according to UK government officials, cited by foreign media.

The proposal is expected to be presented during this weekend’s Munich Security Conference, where Starmer plans to advocate deeper defence cooperation both in a public address on February 14 and in private meetings with international leaders attending the three-day gathering.

The initiative would focus on closer coordination between allied countries on defence spending, procurement standards and military capabilities. British officials say the aim is to avoid duplication across national programmes and achieve better value as countries accelerate military investment.

In recent weeks, Starmer has also signalled interest in reopening discussions about the UK joining Security Action for Europe, a European Union rearmament programme, after negotiations stalled last year. He indicated that London is reassessing a range of options related to defence cooperation and spending frameworks.

UK Chancellor Rachel Reeves has echoed the push for collective action, saying Western partners must find ways to lower the cost of strengthening their armed forces while delivering joint defence projects more efficiently.

The UK faces mounting financial strain as it seeks to expand military capabilities following Russia’s full-scale invasion of Ukraine and amid pressure from US President Donald Trump for NATO allies to increase defence spending.

Government departments are examining options to address a projected defence funding gap of up to £28 billion over the next decade. Britain and its NATO partners have pledged to raise defence spending to 3.5 per cent of GDP by 2035, but London has not yet outlined a clear path to meet that target, given tight fiscal constraints.

Reeves said there was growing agreement among the UK and many EU member states that improving interoperability and adopting shared procurement systems could deliver better “value for money.” She stressed that European countries should avoid maintaining separate technical specifications for similar weapons systems.

Speaking at a conference organised by the Bruegel think tank and the London School of Economics, Reeves said European finance and defence ministers were increasingly willing to pursue such cooperation.

A policy paper presented to EU finance ministers by Bruegel last year proposed creating a “European defence mechanism” capable of issuing joint debt to finance shared weapons purchases. Under the concept, equipment could be stockpiled collectively while keeping associated liabilities off national balance sheets.

Reeves is exploring support for such a mechanism among EU governments. Political parties negotiating a minority coalition in the Netherlands have already expressed backing for a similar arrangement, including harmonised defence standards and joint procurement conducted in cooperation with NATO partners outside the EU, including the UK.

Guntram Wolff, a senior fellow at Bruegel, noted that Germany currently appears focused on its own large-scale rearmament efforts rather than joining a collective financing scheme, but added that declining trust in US security guarantees could eventually push European countries toward deeper integration.

A UK Treasury spokesperson said the government remained committed to strengthening cooperation with allies to deter emerging threats while maintaining its “unshakeable commitment” to NATO.

Reeves’ growing emphasis on defence policy comes as she prepares to expand her “securonomics” agenda aimed at strengthening economic resilience. In a speech planned after the Office for Budget Responsibility publishes its spring fiscal forecast on March 3, she is expected to outline plans for a more active state working alongside private industry to promote stability and investment.

By Tamilla Hasanova