Defense budget hiked in majority of countries across Europe, driven by Russian aggression. Download the FREE report

The ongoing conflict has persuaded countries to relook at their Defense spending, this report analysis the Defense sending of 25 countries and programs to 2026.

NEW YORK, UNITED STATES, March 28, 2022 /EINPresswire.com/ — Defense budget is measured in percentage of GDP generated by a country, the percentage of GDP set aside for Defense budget varies. The threats faced by a country and the Defense budgets are in sync and these play a major role in deciding the Defense budget. The top 5 Defense spenders in the World are US, China, India, Russia and UK and their Defense budget averages at around 3.1% of their GDP, which is much higher than the Global average of 2.4%.

Defense budgets of majority of European countries have seen a hike due to the Russia – Ukraine war. In a major shift, Germany has allocated $112 billion for the year 2022. A special Bundeswehr fund is to be set up to investment in armaments projects. As one of the major consumers of Russian gas, Germany has also halted the Nord Stream 2 gas pipeline project which will bring Russian natural gas from the Baltic Sea.

Other nations have also followed Germany’s decision to hike the defense budget. Norway has increased the defense budget to $8.34 which is an increase of $340bn from 2021. Norway aims to bolster the border with Russia with the increased funding. Norway shares a 196km long land border and a large maritime border with Russian. Norway will also be strengthening its naval presence in the North to protect its offshore energy assets and also monitor Russian movement in the region. European nations moving away from Russian supply of oil and gas can drive the Norwegian economy which is dependent on energy. Oil and gas accounts to almost 20% of Norway’s economy. Norway has attracted more than $165 billion in oil revenue since the beginning of the Russia – Ukraine conflict.

Sweden a Non-NATO state has also increased the defense budget form $6.7 billion in 2021 to $7.10 billion in 2022 ending decades of defense budget cuts. Though many NATO members fall short of 2% of GDP in defense spending, Sweden’s defense budget is at the same level of the 2% target. The hike in budget will drive the local economy and encourage investment in the defense segment. Netherland’s defense budget stands at $14.26 billion for 2022. Netherlands has also committed to an annual increase of $104 million to their defense budget from 2022 onwards, till 2030. France has also increased their defense budget to $47.9 Billion. The budget aim to focus on critical technologies and will be investing in next generation and advanced platforms such as cyber defense and space-based capabilities. Focus is also on upgrading the Leclerc tanks and procurement of HK 416 rifles and medium range missiles. Romania’s 2022 defense budget is $5.8 billion, which is a 14% increase from 2021 and has exceeded the NATO target of 2% of the GDP on defense spending. Hungary’s defense budget is at $3.2 billion for 2022 and aims to meet the NATO 2% target by 2024. NATO also fears the Russian may not stop with Ukraine and has started to look for weak links in its Defense. Baltic region’s new NATO members maybe vulnerable from land and sea.

Some of the most favored weapons procurement will be anti-tank guided missile, UAVs and loitering munitions. ATGMs will be key in defeating armored columns and is suitable for urban warfare in the European combat theatre. Loitering munitions procurement is also increasing due to their ability to take out lightly armored vehicles. Their low cost of procurement and low cost of kill makes them the ideal choice. There has also been huge demand for UAVs and UCAVs. UAVs and UCAVs are cheap to procure and greatly increases the effectiveness of combat operations. UAVs and UCAVs also have a lower cost to kill when compared to manned aerial platforms and missiles. Directed energy weapons and Electronic warfare programs will also see significant increase in spending due to their economic feasibility and operational effectiveness.

One of the other areas where significant amount of spending will take place will be in detection and engagement of hypersonic vehicles and missiles. Hypersonic glide vehicles and missiles pose a serious threat to all defense system currently in operation in Europe and beyond. Russia has carried out multiple hypersonic missile attack on Ukraine and may continue to use hypersonic missiles in future conflicts. Hypersonic glide vehicles are also an incredibly challenging threat that can keep it target a secret until the last moment. The Defense Budget Outlook 2022-2026 covers the Defense budget forecast until 2026 across top 25 countries and their major programs, it can be downloaded FREE from our website.

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