ANKARA – NATO launched a new initiative on Tuesday aimed at channeling private capital into its defense and security sectors, as the alliance seeks to complement strained state budgets with commercial funding amid mounting US pressure to raise member states’ defense spending targets.
The “Call to Action”, announced during NATO’s first-ever Defence Industry Forum alongside its summit in Ankara, urges commercial financial institutions to increase lending and equity investments in military and security production.
Speaking at the forum, NATO Secretary-General Mark Rutte cited a growing demand for military capabilities, saying the alliance requires more capital to scale its defense industries and fund innovation.
Rutte noted that while private funding within the sector is growing, it remains “not nearly enough”.
The push reflects the alliance’s broader effort to shift more of the financial burden of military production onto commercial markets through public-private co-investment models, he added.
Under the initiative, NATO allies are expected to facilitate domestic financing mechanisms to support this transition. Major Western financial institutions, including Barclays, Citi, and Deutsche Bank, are participating in the framework.
Associated financial institutions have already mobilized $217 billion for security-related investments, according to NATO.
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The push for private funding comes as NATO tries to rebuild its military stockpiles and boost arms production under mounting US pressure to raise member states’ defense spending targets from 2 percent of gross domestic product to 5 percent.
With European governments facing tight budgets, NATO is increasingly turning to commercial markets to fund its military expansion.