Defense ETFs to Gain as EU Allies Push for a Rearmament Boost

Germany, the Netherlands, Sweden, Denmark, Austria, and Finland have recently urged the European Union (EU) to cut hundreds of billions of euros from the proposed 2028-2034 budget and redirect that funding toward defense and innovation. The six countries, which together account for roughly 40% of the EU's budget revenues, signed a letter demanding a "fundamental reform" of the bloc's spending priorities. The European Commission had proposed a nearly $2.3 trillion budget, with approximately $149 billion earmarked for defense, security and space. The signatories now want that figure to be larger — and they want it funded by slashing agriculture subsidies and regional development funds, which traditionally consume about two-thirds of the EU budget.