The recently held 2025 NATO Summit marked a pivotal moment for the Alliance, with leaders agreeing to a historic increase in defence spending – raising the target from 2% to 5% of GDP by 2035.

Prompted by renewed U.S. pressure and escalating global security threats, the summit emphasized the urgent need to scale up defence production, foster innovation, and deepen transatlantic defence industrial cooperation. These efforts aim to deliver a strategic leap forward in NATO’s collective defence capabilities.

The summit also reaffirmed NATO’s steadfast support for Ukraine, calling for continued military and humanitarian assistance. For the Central and Eastern European (CEE) region, the summit’s outcomes are particularly significant.

Given their proximity to the conflict in Ukraine and historical experience with Russian aggression, CEE nations have long championed stronger deterrence and defence measures.

CEE region’s growing role in deterrence and defence

Now, they are emerging as vital pillars of NATO’s forward defence posture, reflecting a strategic shift toward reinforcing the Alliance’s Eastern Flank. A key focus of this transformation lies in the modernization of infantry units through the acquisition of new tanks and armoured vehicles, and the enhancement of long-range artillery capabilities, including howitzers and multiple rocket launchers. It also encompasses the growing integration of Unmanned Aerial Vehicles (UAVs) and significant investments in air force capabilities, particularly in next-generation fighter jets and advanced military helicopters. These developments not only bolster regional defence capacities but also signal a deeper integration of CEE countries into NATO’s strategic core.

While all countries in the region – except Serbia and Ukraine – are NATO members, their levels of integration and commitment vary. Romania has played a visible role in NATO politics, with former President Klaus Iohannis briefly pursuing the role of NATO Secretary General in 2024, and Mircea Geoană serving as Deputy Secretary General from 2019 to 2024.

Poland, Czechia, and Croatia have emerged as strong proponents of NATO’s eastern expansion and collective defence, whereas Hungary and Slovakia have adopted more cautious or divergent approaches. In Romania, rising sovereigntist sentiment has sparked growing opposition to support for Ukraine, with increasing calls for a “non-interference” approach.

Meanwhile, Serbia maintains its policy of military neutrality, carefully balancing its historical ties with Russia against its aspirations for EU integration – deliberately postponing a definitive geopolitical alignment. Ukraine, though not a NATO member, remains deeply embedded in Western defence structures through extensive aid, logistics, and training partnerships.

Defence spending across the region reflects a heightened sense of urgency. Poland leads with a projected 5% of GDP allocated to defence by 2026, followed by Romania, Bulgaria, Hungary, Czechia, Slovakia, and Croatia – all of which have surpassed or are on track to meet NATO’s 2% target.

Slovenia is gradually increasing its budget, while Ukraine stands apart with an extraordinary 37% of GDP dedicated to defence—the highest globally, and understandably so given the ongoing war.

Most NATO members in the region have doubled their defence expenditure as a share of national GDP, with Poland showing the largest increase – 2.45 percentage points over the past decade- reaching a defence spending level above 4% of GDP.

CEE’s rapid rise in defence spending

In 2014, all CEE NATO member countries fell short of NATO benchmarks—not only in terms of military spending as a share of GDP (below 2%), but also in equipment acquisition as a proportion of total defence expenditure (below 20%).

By 2024, every NATO country in the region had surpassed the equipment acquisition threshold, with Poland and Hungary leading the way—allocating 51% and 48% of their military budgets to equipment, respectively.

Modernisation and procurement programmes are reshaping the region’s military posture. Poland is acquiring F-35s, Apache helicopters, and HIMARS systems; Czechia is investing in Leopard 2A8 tanks and CV90 armoured fighting vehicles; Croatia is focusing on tanks, armoured fighting vehicles and the navy; and Bulgaria is expanding its F-16 fleet and radar capabilities. Hungary’s Zrínyi programme emphasises domestic production of Lynx IFVs and installation of NASAMS air defence systems, and Slovakia is pursuing a broad procurement agenda including Barak systems, Black Hawks, and passive radars.

While Romania has made significant acquisitions – including HIMARS, Patriot systems, Bayraktar drones, and F-35 program confirmed in 2024 – its modernization efforts continue to be hampered by systemic inefficiencies and persistent bureaucratic obstacles that have disrupted major procurement processes.

Regional cohesion and industrial momentum in CEE

Regional cooperation frameworks – such as the Central European Defence Cooperation (CEDC), the Multinational Land Force (MLF), and bilateral agreements with the US, France, and Germany – are reinforcing interoperability and strategic cohesion. Poland and France have signed a mutual defence treaty, while Hungary and Serbia have deepened their strategic alignment. Ukraine’s integration into Western defence logistics and training networks continues to expand, with Poland serving as a key logistical hub. Romania, despite its internal challenges, remains a critical NATO ally in the region, contributing to both strategic stability and forward defence posture.

The EU has adopted the SAFE Regulation, launching a €150 billion loan instrument to strengthen Europe’s defence industrial base. A key feature of this initiative is its emphasis on joint procurement projects involving at least two Member States, promoting interoperability and economies of scale. Central and Eastern Europe’s defence sector holds immense potential for collaboration. By working closely together, countries in the region can accelerate capability development and contribute meaningfully to building a more resilient and autonomous Europe.

Meanwhile, CEE’s defence industries are becoming increasingly dynamic and export oriented. Poland’s PGZ and Czechia’s CSG are regional leaders, while Croatia’s Dok-Ing has carved out global niche in robotics.

Hungary’s Rheinmetall–4iG partnership is driving innovation in UAVs and digital defence, while Bulgaria’s state-owned and private firms continue to supply munitions and armoured vehicles to global markets. Romania’s defence industry, anchored by the state-owned Romarm and supported by key aerospace, naval, and optics firms, is also expanding, with U.S.-backed plans to produce NATO-standard artillery and tank ammunition domestically. Serbia, despite political controversy, has seen a surge in defence exports, particularly in artillery and ammunition. Meanwhile, Ukraine’s defence-industrial complex, supported by over 800 enterprises, is rapidly scaling up production and attracting strategic partnerships with firms such as Rheinmetall and Baykar.

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In summary, the CEE region is rapidly evolving into a cornerstone of European defence. While political divergences persist – particularly regarding the war in Ukraine- the overarching trajectory is one of increased investment, modernisation, and alignment with NATO and EU security objectives. The region’s ability to sustain this momentum will depend on continued political will, industrial capacity, and strategic coordination.

Read the full analysis below.