The security environment in Europe changed drastically on 24 February 2022 with Russia’s full-scale and brutal invasion of Ukraine. This led NATO to reassess its deterrence and defence posture.

NATO Heads of State and Government have agreed new and ambitious Capability Targets and a new defence investment pledge of 5% of Gross Domestic Product (GDP) in June 2025.

The new Capability Targets agreed by NATO defence ministers will create a long-term increase in demand for defence industrial production.

The Alliance needs a robust defence industrial base, supported by the exchange of best practices between Allies; identifying options for financial risk-sharing; reducing barriers to cooperation; expanding multinational procurement; improving standardisation and interoperability; and expanding cooperation with partners, including Ukraine, the Indo-Pacific partners, and the European Union (EU).

What is NATO's plan? Learn more in the new NATO Review article:

https://www.nato.int/docu/review/articles/2025/06/26/future-proofing-natos-industrial-capacity-how-decisions-at-the-nato-summit-in-the-hague-will-strengthen-the-allied-defence-industry/index.html