Investing in Product Guard0-Eurohajuse Governments Gelating Maling Glandeng between dealing with security threats and managing financial problems, according to citi restrictions.
As the president encourages the revival of Nato Allies to increase spending, questions are raised about how Western Europe will respond.
Citi points out that Trump's pressure can push European nations to allocate 3% of GDP to defense spending, but this goal may not be achieved until the 2030s.
If countries resist these demands, there could be “real harm to US security,” which could force Europe to show its defense capabilities.
In Eastern Europe and Scandinavia, countries such as Poland are already spending 4-5% of GDP in response to security concerns.
However, Western European countries, including the UK and France, are far less likely to do so, according to the bank. Financial constraints, particularly in the UK, are said to be significant constraints.
“(A) UK Defense Reform in 2025 could prove a clear example of the pressures of a low-key UK campaign,” said Cit.
“In the middle corner, we think that European spending is likely to go higher (although 3% of GDP may be optimistic), in order to satisfy our needs,” they added. “If European defense spending goes to 3% of GDP in the 4th quarter of 30, we will expect this to add additional ~ to the value in each sector.”
Finally, CITI suggests that the World Douse the West of the West shows the tension between meeting the long-term security risks posed by Russia and immediate financial discipline.
As Citi puts it, “given current constraints … we would not expect to see any near-term increases in defense spending.”