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Home / NATO / Foreign Contractors Stand To Gain As NATO Countries Spend Big On Defense
NATO, Alliances

April 16, 2026

Foreign Contractors Stand To Gain As NATO Countries Spend Big On Defense

“Some European countries are turning to other suppliers simply because they have to get this stuff, and they can’t get it from the U.S.,” said Jennifer Kavanagh, director of military analysis at Defense Priorities, a foreign policy think tank in Washington, D.C.

There are also financial reasons that NATO countries have turned to foreign contractors. Defense equipment made in the U.S. is among the best in the world; Kavanagh cited F-35 jets and Patriot air defense systems as examples. However, that also means they are the most expensive, which can be prohibitive for smaller countries that have fewer financial resources.

“Some of the smaller countries, like the Baltic States, they want to increase their defense capacity, but buying a Patriot system costs a billion dollars, and that sucks up a huge portion of their defense budget,” she said. “So they are looking for cheaper options.”

Whatever reservations European countries have about working with Israeli defense contractors are balanced against “how seriously they’re taking the Russia threat,” Kavanagh said

https://www.investors.com/news/nato-defense-spending-military-budget-israel-us-bae-systems-lockheed-elbit-thales-leonardo/

Featuring

Jennifer
Kavanagh

Senior Fellow & Director of Military Analysis

Defense Priorities

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