Industry Limitations Hold NATO Members Back on Defense Budgets

Secretary-General of the North Atlantic Treaty Organization (NATO) Mark Rutte (center)/DOK U.S. Marine Corps photo by Master Sgt. Scott Schmidt

JAKARTA - Secretary-General of the North Atlantic Treaty Organization (NATO) Mark Rutte revealed that inadequate industrial capacity hindered NATO member European countries and Canada from fully realizing their defense spending budgets.

Rutte stated that defense product and service providers contracted by the alliance's member states have not been able to boost their production capacity.

Canada and European countries have so far allocated an additional $250 billion (around Rp4.98 trillion) for the alliance's defense needs.

Nevertheless, Rutte admitted that realizing the use of such a large amount of funds is not easy.

"There are limits to what you can spend as additional spending in one or two years, both in terms of recruiting new military personnel, and in ensuring the defense industrial base, which, although currently growing rapidly, can produce more output," said Rutte.

"However, of course, there are still limitations to their ability to boost production capacity in a period of one or two years," he continued.

The industry's constraints emerged amid pressure from US President Donald Trump who has repeatedly criticized NATO member European countries for being considered to make low contributions to the alliance's defense capabilities.

Trump demanded that all NATO member countries increase their defense spending to 5 percent of Gross Domestic Product (GDP).

At the end of June, US Ambassador to NATO Matthew Whitaker said his party expects allied countries to report on the development of their increased defense budgets at the NATO summit in Ankara.

Whitaker also stressed that it was time for European countries to take full responsibility for defending their own continent using conventional forces.

This year's NATO summit took place in Ankara, Turkey, on July 7-8.