NATO Needs a Collective Defense Market to Build Industrial Capacity
Defense spending is rising in Europe and North America, but turning budgets into real military capabilities requires expanding industrial capacity and creating a collective market within the alliance.
Canada’s transformation during World War II is a striking example of how quickly a military industry can be built when political will exists. In 1939, the country had virtually no defense production, yet by 1945 it had produced thousands of aircraft, hundreds of naval vessels, and over 800,000 military vehicles, despite a population of only 11 million.
Today, governments in Europe and North America are increasing defense budgets, announcing new arms procurement plans and programs. Several countries have committed to spending 5% of GDP on defense by 2035. Making defense a strategic priority, boosting spending, and improving procurement systems are steps in the right direction, but they are not enough.
To convert financial resources into real military capabilities, industrial capacity must be developed. NATO member states should establish a collective defense market that allows for more efficient use of resources and promotes joint production. Without this, the alliance will be unable to respond quickly enough to new security challenges.
