MW European defense stocks are flying again. Germany backs 5% NATO spending target.

By Steve Goldstein

European defense stocks were rallying on Thursday, as Germany's foreign minister said the country accepted the 5% of GDP defense-spending target for NATO countries.

"The result is the 5% that President [Donald] Trump has called for, and we will follow him in this respect," said Foreign Minister Johann Wadephul at a meeting in Ankara, according to Deutsche Welle.

Germany right now spends just over 2% of GDP but recently amended its constitution to allow for more defense expenditure.

Hensoldt shares (XE:HAG) jumped 6% as Rheinmetall (XE:RHM) gained 5%. Hensoldt shares have doubled this year while Rheinmetall has surged 172%.

Saab (SE:SAAB.B), Leonardo (IT:LDO) and Kongsberg (NO:KOG)shares also gained ground.

-Steve Goldstein

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May 15, 2025 05:12 ET (09:12 GMT)

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