Why it matters:
The surge in military expenditures amid global conflicts highlights the financial motivations of Western arms manufacturers, particularly those supplying weapons to war zones such as Gaza and Ukraine. Meanwhile, the burden of these increased budgets is being shifted onto taxpayers, leading to cuts in essential public services.
What he's saying:
U.S. President Donald Trump has called on NATO members to allocate at least 5% of their GDP to military spending, a move that further accelerates the global arms race and boosts the revenues of major defense contractors.
Key points:
- BAE Systems secured £33.7 billion in military contracts in 2024, marking a new record.
- The company saw a 12% increase in U.K. sales, reaching £7.4 billion, while sales in the U.S., its largest customer, rose by 17% to £12.5 billion.
- BAE Systems also sold £3 billion worth of weapons to Saudi Arabia last year, a 10% increase from 2023.
- U.S. arms giant Lockheed Martin reported a 5% rise in sales, reaching $71 billion, with total available funds for the company hitting $176 billion by the end of 2024.
- The military budgets of European nations are increasing while funding for essential public services is being slashed. In the U.K., severe cuts have led to a backlog of 7 million patients awaiting treatment in public hospitals, including cancer patients.
Go deeper:
Critics argue that Western arms companies are profiting from wars at the expense of human lives, particularly in Gaza, where weapons manufactured in the U.K. and sold to the U.S. are reportedly being used in military operations. Meanwhile, the growing military budgets of European nations come at a high social cost, with rising taxes and deep cuts to healthcare and welfare services.
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