The Budapest Declaration on Competitiveness — New Opportunities for the European Defence Sector

One of the most pressing issues in enhancing the competitiveness of Europe is the need to optimize defence spending. Europeans now spend much more on defence in the wake of Vladimir Putin’s invasion of Ukraine, with ten European NATO members set to reach the 2 per cent of GDP spending threshold by the end of 2024. However, developing and acquiring modern weapon systems of cutting-edge technology demand an exponential level of spending for development and production, which can hamstring the capabilities of nation-states if they want to fit out their armies fully with domestically produced equipment, from building tools to jet fighters.