As European NATO countries rush to strengthen their armed forces, large pension bills threaten to divert funds from urgently needed military hardware.
European NATO members are racing to boost defence capabilities amid growing security concerns over Russia and doubts about long-term U.S. support. But generous military pensions are quietly eating into defence budgets, complicating efforts to strengthen firepower.
Reuters analysis of budget data from 13 NATO members shows that pensions consume an average of 12% of defence spending - reaching nearly 20% in Belgium, Bulgaria and Italy, and 16% in France. These costs, while included in NATO’s spending figures, do not translate into new equipment or operational strength.
Germany, with a lower pension share at 11.5%, appears better positioned to expand its military capabilities, while countries like France and Italy risk falling short of NATO targets if pension costs are excluded.
Although 23 of NATO’s 32 members claim to meet the alliance's 2% of GDP spending goal, that number drops significantly when pension spending is excluded. For instance, France barely meets the threshold, and Italy has reclassified pensions to meet NATO expectations.
Some countries, such as Belgium, are considering reforms like raising the military retirement age from 56 to 67. However, adjusting pension systems is politically sensitive and may affect recruitment and morale.
"If you don’t invest in the people behind the weapons, you’ll end up with empty tanks and no one to drive them,” warned Emmanuel Jacob, head of European soldiers’ rights group Euromil.
As NATO eyes even higher spending benchmarks - up to 5% of GDP, as demanded by U.S. President Trump - Europe faces a hard choice: fund more missiles and drones, or continue supporting costly military pensions that deliver no combat edge.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
The World Bank has approved a $640 million loan to Bangladesh to help improve gas supply security and reduce dangerous air pollution in urban areas.
Israel’s sweeping surprise attack on Iran last week marked a major escalation in tensions, with Israeli Prime Minister Benjamin Netanyahu declaring it had “struck at the head of Iran’s nuclear weaponization program.”
Kremlin spokesman Dmitry Peskov said Thursday that Ukraine “will have to understand and accept” the post-war realities, as Moscow signals openness to a third round of peace negotiations with Kyiv.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
The World Bank has approved a $640 million loan to Bangladesh to help improve gas supply security and reduce dangerous air pollution in urban areas.
Egypt’s first integrated solar and battery storage plant will deliver dispatchable clean energy, enhance grid stability and manage peak demand. The project is expected to generate approximately 3,000 GWh of clean energy and avoid up to 1.4 million metric tonnes of emissions per year.
Israel’s sweeping surprise attack on Iran last week marked a major escalation in tensions, with Israeli Prime Minister Benjamin Netanyahu declaring it had “struck at the head of Iran’s nuclear weaponization program.”
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
Azerbaijan Airlines (AZAL) has cancelled certain flights scheduled for 13th and 14th June amid recent escalation of situation in the Middle East and the closure of airspace in several countries for security reasons.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 17th, covering the latest developments you need to know.
South Korea’s new administration proposed $14.7 billion in additional spending on Thursday to boost weak domestic demand, as President Lee Jae Myung pushes economic recovery as his top priority.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
The European Bank for Reconstruction and Development (EBRD) has launched its Youth in Business programme in Türkiye, building on its success in 12 other countries. The initiative aims to mobilise up to €250 million in financing to support young entrepreneurs under 35.
KazMunayGas (KMG) and China’s Sinopec have reached an agreement on the terms for jointly implementing the Berezovski subsoil use project in Kazakhstan’s West Kazakhstan region. The signed documents outline joint activities and formalize the strategic partnership between the two companies.
Japanese stocks saw the largest foreign inflow in four weeks during the week ending 14 June, driven by optimism over U.S.-China trade talks and a weaker yen supporting exporters’ earnings.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
Wizz Air Abu Dhabi, the UAE’s ultra-low-fare national airline, has officially launched flights from Gabala, adding a second Azerbaijani city to its growing network and becoming the only low-cost carrier to connect the region with Abu Dhabi.
The World Bank has approved a $640 million loan to Bangladesh to help improve gas supply security and reduce dangerous air pollution in urban areas.
Egypt’s first integrated solar and battery storage plant will deliver dispatchable clean energy, enhance grid stability and manage peak demand. The project is expected to generate approximately 3,000 GWh of clean energy and avoid up to 1.4 million metric tonnes of emissions per year.
Israel’s sweeping surprise attack on Iran last week marked a major escalation in tensions, with Israeli Prime Minister Benjamin Netanyahu declaring it had “struck at the head of Iran’s nuclear weaponization program.”
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment