Economy February 13, 2026

Starmer to Propose Joint Weapons Procurement to Trim Rearmament Costs

UK leader will press allies at Munich conference for coordinated defense buying amid a multi-decade funding gap

By Jordan Park
Starmer to Propose Joint Weapons Procurement to Trim Rearmament Costs

British Prime Minister Keir Starmer intends to urge Western partners to pursue a coordinated defense-procurement program aimed at lowering the cost of rearmament by pooling purchases and standardizing equipment. The proposal, to be raised at the Munich Security Conference, responds to a projected UK defense funding shortfall of up to A328 billion over the next decade and follows calls from UK officials for improved value on rising defense spending.

Key Points

  • Prime Minister Keir Starmer will press allies at the Munich Security Conference for a coordinated defense-procurement program to reduce rearmament costs.
  • The plan responds to an estimated UK defense funding shortfall of up to A328 billion over the next decade and broader NATO commitments to raise spending to 3.5% of GDP by 2035.
  • Sectors affected include defense manufacturing, government procurement, and fiscal policy on defense budgeting; markets for defense contractors and sovereign debt could be influenced by pooled purchasing and joint financing arrangements.

Overview

British Prime Minister Keir Starmer is preparing to present a plan to Western allies that would see countries coordinate weapons purchases to reduce the expense of rearming, according to UK government sources. He is scheduled to press the case during the Munich Security Conference this weekend in both a public speech and private meetings with other leaders over the three-day event.


Proposal and timing

The proposal centers on deeper defense cooperation through joint procurement arrangements that could lower unit costs for major defense purchases. Starmer is expected to outline the initiative in remarks on Saturday and in bilateral discussions during the conference, aiming to build consensus for closer multilateral buying arrangements.


Fiscal pressures driving the push

The initiative arrives as Britain confronts a significant funding shortfall for defense, estimated at up to A328 billion across the next ten years. The UK and NATO partners have committed to increasing defense spending to 3.5% of GDP by 2035 in light of Russia's full-scale invasion of Ukraine and pressure from the United States for higher contributions. But Britains strained public finances have left the government without a clear route to meet that target, making cost-saving cooperation a policy focus.


UK government priorities and ideas under consideration

Chancellor Rachel Reeves has argued that Britain and EU member states require better "value for money" on rising defense expenditures, calling for greater interoperability, more joint procurement, and standardized weapons specifications across European nations. Reeves has also shown interest in a European funding mechanism that could issue debt to fund collective weapons purchases - a structure that would allow jointly financed weapons to be stockpiled temporarily so that associated borrowing would not immediately appear on each participating country's balance sheet.


European and NATO context

Elements of this joint-financing idea have gained traction beyond the UK. Dutch parties forming a minority coalition government signaled last month they would explore a similar mechanism, including close collaboration with non-EU NATO partners such as Britain. Meanwhile, discussions around UK involvement in Security Action for Europe - an EU rearmament scheme - have been reopened after talks foundered last year when Britain declined to make a financial contribution.


Responses and outlook

Not all allies appear aligned. Germany seems to be focused principally on its own rearmament program. Guntram Wolff, senior fellow at Bruegel, warned: "The truth is that with less trust in the U.S., at some stage we will all have to think about it." A Treasury spokesperson said Britain remains "committed to deepening cooperation with our allies."


Conclusion

Starmers initiative aims to reconcile rising defense commitments and tight public finances by pushing for pooled procurement and harmonized equipment standards. The coming days at the Munich Security Conference will show whether that proposal gains traction among NATO and European partners grappling with the twin challenges of increased defense demands and constrained budgets.

Risks

  • Fiscal constraints: Britain's strained public finances may limit its ability to meet pledged defense spending targets, leaving uncertainty about implementation and funding stability for joint programs - this affects government budgets and defense contractors.
  • Fragmented allied approaches: Differing national priorities, such as Germany's focus on national rearmament, could hinder agreement on joint procurement and interoperability, creating uncertainty for suppliers and for procurement timelines.
  • Participation and financing hurdles: Reopening talks on EU schemes and proposals for joint debt issuance face political and accounting complexities; delays or limited participation could reduce expected cost savings and market effects.

More from Economy

Trump Vows Fresh 10% Global Tariff After Supreme Court Limits His Trade Authority Feb 20, 2026 Supreme Court Ruling Narrows Presidential Tariff Options, Treasury Secretary Says Feb 20, 2026 Supreme Court Curbs Emergency Tariff Authority, Sparking Market and Policy Reactions Feb 20, 2026 Brazil Says U.S. Supreme Court Decision Restores Country's Edge in American Market Feb 20, 2026 Musalem Says Fed Stance Appropriate; One-for-One Tariff Replacement Would Barely Shift Outlook Feb 20, 2026