A German manufacturer opened Europe’s largest ammunition factory, underlining the continent’s push to ramp up defense spending in the face of threats from Russia and wavering US support.
Rheinmetall’s facility will be able to produce 350,000 artillery shells annually by 2027, part of efforts by the continent to ultimately manufacture 2 million a year by itself.
European nations have sharply increased their budget allocations for defense in recent months, helping boost share prices for defense firms like Rheinmetall, but analysts have voiced worry over the pressure the additional cash places on the continent’s welfare spending, as well as concerns that the sudden fiscal focus on defense could lead to widespread waste.
