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Significance

Along with previous remarks about NATO’s obsolescence, this has put a sharp focus on the disparities in both spending and military capabilities between the United States and Europe.

Impacts

The expected modest increases in defence spending will likely be invested primarily in boosted readiness and equipment buys.

European countries will increase their focus on developing the EU’s defence identity to strengthen their capacity to operate independently.

It is unclear whether the modest increases will satisfy Trump or defence spending will continue to be a source of friction.

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