Funds Europe – ETFs

Defence Tech Emerges as Strategic Allocation

European defence spending is entering a structural re‑armament phase, with global military outlays reaching a record $2.7 trillion in 2024. NATO members have agreed to raise defence budgets to 5% of GDP, allocating 1.5% to cyber, AI and other non‑traditional domains. The EU’s ReArm Europe and Readiness 2030 initiatives aim to channel up to €800 bn into modernisation, while legacy hardware still dominates many forces. Analysts argue that the sector is shifting from a short‑term reaction to a long‑term growth story driven by asymmetric, low‑cost technologies.