European preference in defence is a ‘luxury’ debate, NATO chief tells Euronews

NATO chief calls European preference in defence a “luxury” debate

Poinews.com – European preference in defence is a “luxury” debate while manufacturers on both sides of the Atlantic cannot produce enough equipment to meet demand, NATO Secretary General Mark Rutte said in Brussels on Wednesday.

Rutte argued that the key issue for governments is not whether military systems come from Europe or the United States, but whether they are available to buy. In his view, funding is not the central constraint; the more urgent problem is insufficient industrial capacity.

“The problem is not: do you buy in Europe or do you buy it in the United States? The problem is: can you buy? The money is there. But the defense industrial base in Europe is underdeveloped. It is not producing enough,” Rutte said.

Capacity matters more than procurement preference

European governments remain divided over how strongly public defence contracts should favour domestic or European suppliers. France has advocated stricter rules prioritising European-made products, while Germany has supported a more open approach that includes suppliers from NATO partner countries.

Rutte said European preference in defence is less significant when neither European nor American factories can rapidly meet urgent orders. He described himself as coming from a free-market tradition and said open markets should function as independently as possible, but stressed that current shortages make the choice largely theoretical.

“It’s always better if you have these free markets functioning as open and independent as possible. But at the moment, I think it is a discussion of luxury, whether you buy European or American, because we cannot buy on both sides. There’s not enough production,” he said.

Preference rules can influence which companies are allowed to compete for contracts, but they cannot instantly create assembly lines, qualified workers, component supplies or production capacity. For countries raising defence spending, delivery times may therefore be more important than the location of the final supplier.

Rutte urged industry to respond to what he described as sustained, long-term demand. He said companies should expand production capacity while continuing to develop advanced military systems.

Ukraine exposes missile-defence production limits

Ukraine’s need for anti-ballistic missile interceptors illustrates the scale of the challenge, according to Rutte. He cited the Franco-Italian SAMP/T system and the US-made Patriot system, saying neither can currently be produced in quantities sufficient to meet Ukraine’s requirements.

The shortage is particularly difficult because air and missile defence relies on sophisticated interceptors and integrated systems that must detect, track and engage threats. Scaling up production of such technology takes more than procurement commitments alone.

European preference in defence may remain an important goal for governments seeking stronger regional manufacturing capacity. However, immediate military needs could also push countries to preserve access to a wider NATO market when no single national or regional industry can supply everything required.

A connected transatlantic defence industry

Rutte rejected the idea that European and American defence industries should be treated as entirely separate blocs. He pointed to investment moving in both directions, including Thales investing in the United States and US companies investing in European operations.

“European companies like Thales are investing in the US. US companies are investing in Europe. It is a transatlantic defence industrial base that is working as one, and that’s exactly as it should be,” Rutte said.

Modern defence production often depends on supply chains, specialist components, research and investment spread across several countries. Rutte’s argument was that transatlantic cooperation should be considered an advantage as NATO members seek to increase output.

FAQ: European defence procurement

What does European preference in defence mean? It refers to policies that give European-made defence products or European suppliers priority in public procurement.

Why does NATO consider the debate less urgent now? Rutte said the overriding challenge is that production capacity in Europe and the United States is currently too limited to satisfy demand quickly enough.

What is the practical priority for European governments? Governments need equipment that can be delivered when required, while industry expands factories, skills and supply chains for long-term demand.