Europe’s $1 trillion race to build back its defense industry

Subscribe to enjoy similar stories. President Trump’s overtures about acquiring Greenland are now reviving questions among the U.S.’s NATO allies over whether Europe can make enough of its own weapons to fight independently of America. Defense analysts and lawmakers mainly conclude yes, but not just yet.

The continent’s once-sclerotic defense industry is churning out drones, tanks, ammunition and other weaponry at its fastest pace in decades as the region looks to rearm in the face of Russian aggression and divides with Washington. But there is still some way to go. The cost of replacing current U.S.

military equipment and personnel in Europe would be around $1 trillion, according to the International Institute for Strategic Studies think tank. Some holes remain in the region’s manufacturing capability, including stealth fighters, long-range missiles and satellite intelligence. While Europe has increased its defense production in recent years, its fragmented industry currently lacks the capacity of its U.S.

peers, which are financed by the world’s largest military budget. Still, sharp increases in military spending across Europe and renewed efforts in research and development are bringing operational independence closer—and in some cases it is happening surprisingly quickly. In late 2024, Clemens Kürten started a company to sell drones to European militaries without a design or staff.

Within a year the German company had sold hundreds of units. There is growing urgency to find a response to what the U.S. intends to do, not just in Greenland, but with the broader security alliance that has bound it to Europe since the end of World War II.