Rheinmetall, Leonardo are poised for growth as Europe re-arms, Bernstein’s Harned says

Increased Military Spending: European countries are expected to raise defense spending from 2% to at least 3% of GDP, resulting in an additional $220 billion annually, which will significantly benefit local defense contractors like Rheinmetall and Leonardo.

Impact of U.S. Policy: The shift in U.S. defense policy under President Trump has prompted European nations to prioritize local procurement and increase their defense budgets, potentially leading to a $40 billion annual boost for European firms as they adapt to growing military demands.