Europe’s remilitarisation set to offer more opportunities for defence investors

Today’s NATO summit will begin amidst geopolitical conflict and tensions, with Iran and Israel exchanging fire and Russia continuing its invasion of Ukraine. As Europe’s governments look to increase their military spending and reduce reliance on the US, the outcomes from The Hague could impact defence contractors. It is likely that NATO allies will commit to spending 5% of GDP on defence, cyber-security and infrastructure. The EU is also linking access to its STEP fund with defensive investing, encouraging member states to meet targets or risk losing funding. The expected surge in spending bodes...