Bloomberg: Europe's Rearmament May Take Over a Decade.

NATO countries in Europe are gradually strengthening their defense sector. According to Bloomberg Intelligence, the 15 main alliance countries may require between $340 billion and $720 billion annually. There has been a call for investments in the acquisition of armored vehicles and aircraft from well-known companies such as BAE Systems, Airbus, Boeing, Saab, and General Dynamics.

These requests came after former U.S. President Donald Trump's statement regarding the reduction of U.S. security commitments in Europe and the demands on allies to increase defense spending to 5% of GDP. U.S. support is so vital that its absence could lead to a weakening of European defense within weeks.

However, large-scale rearmament may be slowed down due to the volume of orders from major arms suppliers, as well as a shortage of skilled personnel. The U.S. has offered the European Union to allocate 150 billion euros in the form of loans to increase defense spending. The President of the European Commission added that there is also the possibility of using national budgets for additional defense spending without the risk of sanctions.

To increase production capacities in the European defense sector, long-term procurement contracts are necessary. The consolidation of demand and the corresponding requirements of EU member states will allow for reduced timelines and lower prices.