6invcjcbxm6m4hyoi(aii2ph_media_dl_1.png NATO Annual Report 2025

Article content

(Bloomberg) — NATO allies unveiled $12 billion in key defense industry deals to buy next-generation drones, surveillance planes and military aircraft — and convince US President Donald Trump that Europe is heeding his spending demands.

Article content

Notably, some of the contracts show Europe moving to locally source some equipment it previously bought from the US. Eleven countries, for instance, will now buy airborne radar-detection systems from Swedish aerospace firm Saab AB, replacing a US-made Boeing Co. model. The deal is worth $5 billion, according to a NATO diplomat.

Article content

Article content

Article content

Others deepen ties to US manufacturers for crucial items. Denmark, Finland, Germany and Norway will buy up to five Northrop Grumman Corp Triton surveillance aircraft at a cost of $2.7 billion, the diplomat said, speaking anonymously to describe the agreements.

Article content

Article content

NATO Secretary General Mark Rutte revealed the deals on Tuesday during a defense industry forum in Ankara, Turkey’s capital, where the military alliance’s leaders are gathering for their annual summit this week. 

Article content

Officials have structured the entire week as one big appeal to Trump, putting on an industry-friendly display and coming armed with figure after figure meant to convey the message: Europe is stepping up in NATO and spending billions in the process. 

Article content

Trump has for years railed against the North Atlantic Treaty Organization, arguing it lets Europe and Canada piggy back off America’s defense prowess without having to invest in their defense. Alliance members have responded with billions in fresh military spending, spurred on by Russia’s war on Ukraine, which left Europe fearing for its security.

Article content

Article content

Other purchases revealed on Tuesday include seven allies saying they will acquire Airbus SE’s A400M military aircraft, which helps with airlift and tanker capabilities. That contract is worth $4.3 billion, the diplomat said.

Article content

Separately, allies will invest more than $40 billion in counter-drone capabilities over the next five years, Rutte said. 

Article content

Explainer: Europe Pledged to Rearm. How’s That Going?

Article content

Europe is still far from military self-sufficiency, however, and is lacking the ability to produce key modern tools of warfare, including drones and advanced air defense systems. 

Article content

The deals announced Tuesday aim to address some of those shortcomings. 

Article content

In the case of SAAB’s radar-detection system, the shift reflects a growing European desire to ensure its safety is not completely tied to US manufacturers. 

Article content

Boeing’s planes “have served us well and continue to do so,” Rutte said, “but they are reaching the end of their life.”

Article content

The new products “will ensure” NATO’s capabilities are “strong and credible for decades to come.”

Article content

The Europe-first push has caused friction with the US, which wants its allies to spend more on their own defense — but still buy American. Those tensions increased after the European Union designed a €150 billion ($172 billion) defense loan scheme — and its €90 billion loan to Ukraine — to prioritize local companies.

Article content

In key areas, however, Europe hasn’t been able to find its own equivalents for American products, and Tuesday’s contracts reflect that. 

Article content

The Triton maritime surveillance equipment, for example, is a capability Europe has yet to develop. The Triton equipment “gives us the situational awareness we need to make the decisions we need and stay ahead of threats,” Rutte said.

Article content

(Updates with additional information on contract values starting in paragraph one.)

Article content