Rolls-Royce sees defense spending hike to show in land, naval

Rolls-Royce sees defense spending hike to show in land, naval

All 32 North Atlantic Treaty Organization (NATO) members are projected to reach the alliance’s 2% GDP defense spending goal, according to recent data [1]. This achievement follows intense pressure from President Donald Trump to meet the minimum target and push toward a 5% mark. The data, released on Thursday, shows that 32 countries spent at least 2% of GDP on military expenditures, up from last year's record of 23 countries [1].

Trump has long expressed concern that the United States is unfairly bearing the weight of supporting Europe’s defense capabilities. Since assuming office for the second time in January, Trump has challenged NATO allies to reach a 5% defense spending pledge. In June, the president achieved a major victory when the alliance agreed to reach the expanded target by 2035, with Trump hailing the $1 trillion commitment as a "monumental win" for the U.S. [1].

NATO Secretary-General Mark Rutte commended Trump's leadership, stating, "Your leadership on this has already produced $1 trillion in extra spending from European allies since 2016, and the decision today will produce trillions more for our common defense to make us stronger and fairer by equalizing spending between America and America’s allies" [1].

Meanwhile, Rolls-Royce, a leading aerospace and defense company, anticipates a hike in defense spending to reflect in its land and naval sectors. The company has been investing in advanced technologies and strategic partnerships to capitalize on the growing defense market. The acquisition of Tekne S.p.A. and a U.S.-Japan joint venture by Nuburu Inc. is expected to drive significant growth in the defense tech market, with a target of $90 billion by 2033 [2]. The partnership combines Tekne’s armored vehicles with Nuburu’s blue-laser technology for high-margin directed-energy and electronic warfare contracts.

References:
[1] https://www.washingtonexaminer.com/policy/defense/3787297/nato-members-defense-spending-goal/
[2] https://www.ainvest.com/news/nuburu-shares-soar-40-12-defense-sector-entry-2509/