At the NATO Summit in The Hague, NATO leaders recognised that in order to deter any future military conflict, Allies will have to pledge to spending 5% of their GDP to defence (of which up to 1.5% may be spent on defence-related investments). This has created the conditions for Allies to channel robust funding into governmental contracts with the defence industry in order to meet the new Capability Targets that are assigned for each Ally to generate collective effect. To meet these targets and acquire capabilities at pace, NATO now has to greatly increase and optimise the capacity of its defence industrial base. The updated Defence Production Action Plan, publicly released at the Summit in The Hague presents a concrete programme to optimise and strengthen the Allied defence industry, maximise its outcomes and increase Allies’ return on investment.
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