The Financial Times reports that European defense industries are expanding at a rate three times faster than previously anticipated, driven by the ongoing Russia-Ukraine war. The newspaper identified 7 million square meters of new industrial development after tracking changes at 150 facilities across 37 companies, namely those associated with ammunition and missile production.
According to the analysis, the accelerated expansion reflects a strategic shift in European defense spending priorities. Countries such as Germany, France, and the Netherlands have been particularly active in scaling up their military-industrial bases, with a focus on enhancing capabilities in precision-guided munitions and advanced missile systems.
This surge in production is expected to have significant financial implications for the region’s defense sector. With increased demand for military equipment, key contractors are likely to see rising revenues and investment in research and development. However, the long-term economic impact remains a topic of debate among analysts.