From Italy to the Czech Republic, how and how much military spending is growing in Europe

Modernisation also concerns the Navy: the PPA (Pattugliatori Polivalenti d'Altura) programme envisages the construction of seven new multifunctional ships, designed for surveillance, air defence and anti-submarine operations. In addition, Italy is upgrading its submarine fleet with the construction of four units of the U212 NFS class.

In Europe, Italy is among the countries with the largest increase in military spending: Germany increased its budget by 10% to EUR 60 billion, while France increased spending by 12% to EUR 50 billion.

The case of Rome is not isolated in southern Europe. A recent NATO report on defence spending shows that Spain spends more than ever on defence, but spends less than all NATO members, with an estimated 1.28% by 2024.

Although it did not reach 2% of GDP, Spain increased its defence spending compared to previous years. The Spanish Ministry of Defence received a budget of EUR 12.8 billion in 2023, which represents a 25 per cent increase over the previous year. The final budget approaches EUR 15 billion after the expansion of several credits for special armament programmes.

The President of the Spanish Government, Pedro Sánchez, invited some 30 representatives of the Spanish defence industry to Moncloa in March to give an unprecedented show of support to a sector unaccustomed to such public demonstrations. According to sources quoted by El Confidencial, the meeting was very cordial.

The President showed great interest and, as stated in the official press release, they discussed industrial strategy and the need to increase the production and technological capacity of the national defence ecosystem. During and after the meeting, Sánchez expressed his intention to maintain the momentum for a strategic, technological and profitable (in terms of jobs and exports) sector for the nation at a 'complex geopolitical moment'.

This support was reiterated by Spanish Defence Minister Margarita Robles on several occasions, including during her appearances before the Senate and Congressional defence committees. "The budget shortfall will not affect the approved spending limits," said the senior official, pointing out that her department's execution rates are at 90 per cent. "We will meet our commitment to reach 2 per cent with NATO by 2029," he insisted.

NATO Secretary General Jens Stoltenberg released the latest figures on NATO defence spending on 14 February 2024, which showed an unprecedented increase among European members. "In 2024, NATO allies in Europe will invest a total of USD 380 billion in defence. For the first time, this is equivalent to two per cent of their combined GDP," Stoltenberg said. In 2014, European countries spent 1.47% of their collective GDP on defence. This figure has increased over the decade and is estimated to reach 2% in 2024.

Further east, growth also concerns Eastern European countries. One example is Prague. In 2024, the Czech government will allocate 2 per cent of GDP to the defence budget, the equivalent of almost six billion euros. This is in line with meeting NATO commitments on military spending. The reason for this allocation is the modernisation of the armed forces in response to Russia's continued aggression against Ukraine. The budget investments will be used for the planned purchase of new military equipment, including tanks, armoured vehicles and F-35 fighter jets.

The country's military industry is robust, especially after Russia's large-scale invasion of Ukraine. Czech arms and military factories have received substantial orders for weapons, logistics and heavy military equipment and, following the invasion, the industry has reaped significant profits.

The Czechoslovak Group, a globally operating military company, is a major producer of artillery ammunition. Michal Strnad, the owner of the Czechoslovak Group, also has links to state officials, which has sparked debates in military circles about the Czech army's dependence on Strnad's business. The importance of the Czech military industry and diplomacy increased with the launch of the Czech Munitions Initiative. This initiative aims to facilitate the transfer of ammunition from third countries to Ukraine.

Czech diplomats and officials helped Ukraine in the certification process and identified military equipment and ammunition mainly from non-European countries to be delivered to Ukraine to defend itself against Russian aggression. They also asked for financial support from European and NATO members to support this initiative.

*This article is part of the Pulse project and was written by Silvia Martelli (Il Sole 24 Ore, Italy), Enrique Andrés Pretel (El Confidencial, Spain), Matěj Moravanský (Deník Referendum, Czech Republic).