Europe sees 50% spike in weapons prices, Estonian defense officials warn
Hanno Pevkur (photo: Getty Images)
Estonian Defense Minister Hanno Pevkur stated that prices for defense products in Europe are rising, with some items becoming more than 50% more expensive over the past two years, according to Bloomberg.
"Prices are going up. I have discussions with my national armament director constantly. What we see is that when we bought something two years ago, and when we now want to increase these quantities what we bought — the same thing — then the price has gone up like 50%, 60% for some items," the minister said.
He explained that the price increases are linked to NATO allies ramping up military spending.
The outlet noted that the sharp rise in the cost of weapons and other military equipment complicates NATO's defense spending plans, as Europe faces pressure to rapidly rearm.
At the same time, European countries are being forced to shoulder most of the costs of supplying Ukraine amid Russia's war, while the United States shifts its focus to other priorities.
Pevkur described the situation as a "chicken-and-egg" problem, in which countries face market shortages, but the European defense industry is unwilling to increase investment until governments sign contracts.
The minister stressed that Europe does not have time to wait until 2030 to improve military readiness, since the best time for Russia to provoke NATO could come as early as this year or next year.
"If the industry doesn't understand that there will be a lot of money on the market, then you are late," Pevkur said, adding that spending must remain high for a long period.
Europe ramps up defenses
In late April, The Telegraph reported that the British government was considering creating a "defense bank" to rearm 10 northern European NATO countries.
Also, media reported that NATO Secretary General Mark Rutte will meet next week with representatives of the European leading defense companies to discuss increasing investment and production volumes.
