As tensions mount on NATO’s eastern flank, European leaders have pledged unprecedented investments in defense—but analysts warn that spending money alone may not close the widening capability gap with Russia. Intelligence reports suggest Moscow has effectively retooled its economy for war. A new German military strategy paper (cited by Der Spiegel) notes that Russia is aligning its industrial base and leadership structures “specifically to meet the requirements for a large-scale conflict against NATO” by the end of this decade. In practical terms, the Kremlin is pouring enormous resources into its armed forces: Western observers estimate that Russia already allocates roughly one-third of its state budget to defense. Even NATO’s secretary-general, Mark Rutte, has bluntly warned that “given our long-term threat of Russia … it’s really important we spend more” on defense. In early 2025 the European Union responded by approving a record €800 billion plan to modernize and expand the continent’s armed forces by 2030. Yet this enormous funding pledge comes with a caveat: European officials and analysts alike are questioning whether the money can be translated into real combat power quickly enough.
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