Finance
NATO chief Rutte warns EU against defence industry 'barriers'
Published by Global Banking & Finance Review®
Posted on January 24, 2025
2 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 24, 2025
2 min readLast updated: January 27, 2026
NATO's Mark Rutte urges the EU to avoid defence industry barriers, stressing the need for cooperation with non-EU allies to enhance security.
BRUSSELS (Reuters) - NATO chief Mark Rutte told the European Union on Monday not to create barriers that would prevent companies from NATO countries that are outside the EU from taking part in its defence industrial push.
The European Commission, the EU's executive body, last year proposed spending 1.5 billion euros to give countries incentives to buy jointly from European firms and encourage industry to raise capacity. EU countries have yet to agree on how much of the pot should be reserved for EU companies.
Speaking at a European Parliament committee session, Rutte said he applauds the plan, called the European Defence Industry Programme, but also urged caution.
"We must avoid creating new barriers between allies that would only increase costs, complicate production, and hamper innovation," the NATO secretary general said.
"Involving non-EU Allies in EU defence industrial efforts is vital, I believe, for security of Europe," he said. "Transatlantic defence industrial cooperation makes us all stronger."
While the majority of EU countries form part of NATO, some of the military alliance’s key members, including the United States, Britain and Turkey, are not EU members.
"At a time when Russia, China, North Korea and Iran are increasing their defence industrial cooperation to unprecedented levels, it would be an act of self-harm to put up new barriers between allies," Rutte said.
(Reporting by Lili Bayer and Andrew Gray; Editing by GV De Clercq and Angus MacSwan)
The article discusses NATO chief Mark Rutte's warning to the EU about creating barriers in the defence industry that could exclude non-EU NATO allies.
Transatlantic cooperation strengthens security by involving key NATO members like the US and UK in EU defence efforts.
It's an EU initiative proposing 1.5 billion euros to encourage joint defence purchases and increase industrial capacity.
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