NATO member states are failing to capitalize on cost efficiencies by purchasing weapons individually rather than through joint procurement, according to a senior alliance official. Tarja Jaakola, NATO's assistant secretary general for defense industry, innovation, and armaments, emphasized the need for greater collaboration among allies to reduce costs and streamline defense spending.
Inefficient Practices in Defense Procurement
Jaakola noted that many NATO nations still approach defense industries independently, leading to fragmented requirements and higher costs. 'When I talk with the industry, the industry keeps telling me many nations still approach them individually with their individual requirements,' she said during a discussion at UK think tank Chatham House. This approach, she argued, results in fewer resources per program and increased per-unit costs.
'We should look at how much can we collaborate, work together,' Jaakola said. Shared systems not only reduce costs but also enhance interoperability among allied forces during conflicts.
Push for Joint Procurement
In response to these inefficiencies, NATO has been advocating for joint procurement as the preferred method for acquiring defense systems. The European Union, where most NATO members are based, has also revised rules to incentivize multinational contracts. Secretary General Mark Rutte and European Commission President Ursula von der Leyen have both stressed the benefits of joint procurement, including cost reductions, improved interoperability, and a stronger industrial base.
Jaakola pointed to the co-production of interceptor missiles for the US MIM-104 Patriot air defense system as a successful example of joint efforts. However, she acknowledged that much more needs to be done to achieve broader collaboration across the alliance.
Urgent Need for Change
Russia's invasion of Ukraine has heightened concerns about defense readiness and spending across NATO. Traditional development cycles are being criticized for being too slow, leaving arsenals insufficient to meet modern threats. Jaakola urged member states to 'make sure that we use the taxpayer's money cost efficiently,' particularly as defense system costs escalate faster than those in civilian markets.
A briefing to European Parliament members last year revealed that joint procurement across the EU remains below targets, despite potential savings of several billion euros annually. Jaakola's call to action underscores the need for NATO members to adopt collective approaches to defense spending in an increasingly volatile geopolitical climate.