Shares of EU defense companies soared amid plans to increase arms transfers to Ukraine
On March 3, shares of European defense companies rose sharply after a meeting of EU political leaders, at which they confirmed plans to increase arms transfers to Ukraine. About this informs Bloomberg.
Shares in Rheinmetall jumped 8.9%, Saab gained 11% and Dassault Aviation added 15%. Goldman Sachs* index of European defense shares rose 16%, setting a new record and bringing the annual gain to 63%.
Britain and France are working to create what British Prime Minister Keir Starmer called a “coalition of the willing.” It will participate in peacemaking initiatives and help Ukraine ensure the stability of any agreement. French President Emmanuel Macron also said that the EU should allocate 200 billion euros to strengthen defense capabilities.
The expectation of a significant increase in defense spending in European countries caused active growth in the shares of companies in this sector. Rheinmetall, one of Europe’s leading suppliers of arms to the ground forces, has already added 67% since the start of the year and is up more than 800% since the start of the war three years ago.
European experts predict that government spending on defense will grow significantly in the coming years, regardless of a possible ceasefire in Ukraine in 2025.
