Shares in European Arms Companies Surge on ‘Turbocharged’ Military Spending Outlook

France, Germany, and the UK plan unprecedented post-war military spending to support Ukraine.

A French soldier takes part in a NATO drill at the Tapa Army Base near Rakvere, Estonia, on Feb. 5, 2022. Alain Jocard/AFP via Getty Images

Shares of European arms giants have risen significantly on the prospect of increased military spending by European Union countries.

The market reacted to a European leaders’ summit that announced a planned boost in military spending to support Ukraine, sparking a rally in some of the world’s largest Europe-based arms companies.