Europe’s 5% Defense Pledge

Europe didn’t just raise its defense budget—it rewrote the playbook. With a 5% GDP pledge now locked in, governments are racing to stockpile steel, chips, and anything that can fly, drive, or blow something up.

The catch? They're using the same suppliers you are.

This isn't just a military story—it’s a corporate procurement headache. Lead times will stretch. Prices will spike. And your tier-1 vendor may now answer to a general.

Here’s what the rearmament race means for buyers, budgets, and supply chains everywhere.

1. The Big Boom: What’s Actually Happening

• 32 NATO members just pledged to spend 5% of GDP on defense by 2035.

• The EU is echoing that with Readiness 2030: €800B of firepower (plus some fiscal smoke and mirrors to make it “off-books”).

• Translation? Defense is back, and it’s not just a government problem. Every B2B buyer is now in a queue behind the Ministry of Boom.

Sources:

• NATO 5% Pledge

• EU Readiness 2030

• Reuters: Europe’s Supercycle

2. Procurement Goes Tactical (Whether It Likes It or Not)

How Corporate Procurement Will Be Affected: