Defence in a geopolitically unstable world
The Russian invasion of Ukraine last year was a major shock to geopolitical stability. Countries in Europe were awoken from their post-Cold War spending slumps, which had seen?most NATO members falling well short of the treaty’s spending targets.
With the recent emergence of conflict in the Middle East,?the underspending by NATO members no longer seems tenable.
Since last year, vast amounts of inventory have been supplied to Ukraine in an effort to bolster their defence capabilities, but this has in turn?generated a need to replenish that inventory. Doing so will require increased spending on defence, and quickly.
McKinsey suggests that?by 2026, European NATO defence spending could grow 65% compared to 2021 levels.
Simultaneously, we are seeing a transformation in the way warfare is conducted. Just as rapidly as the geopolitical situation can change, so too can the methods of conflict.
Google’s Threat Analysis Group states that?Russia’s military intelligence increasingly uses destructive malware to degrade Ukrainian infrastructure.?Cybersecurity, therefore, is rapidly becoming?an essential component of defence.
Defence spending, therefore, will not only need to replenish inventories but also ensure that technology is ready for the future of defence.
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