New IISS Report Highlights Gaps in Europe’s Defence

TDT | Ashen Tharaka

Email : ashen@newsofbahrain.com

A new strategic report by the International Institute for Strategic Studies (IISS) has outlined critical steps Europe must take to strengthen its military readiness. Titled “Progress and Shortfalls in Europe’s Defence: An Assessment”, the report was released ahead of the IISS Prague Defence Summit 2025, where political, military, and industry leaders will discuss how NATO allies can meet new capability targets.

The report builds on the IISS 2024 publication, “Building Defence Capacity in Europe: An Assessment”, noting that pressures on European decision-makers have grown amid Russia’s continued military threat and uncertainties over the United States’ commitment to European security.

Key Findings:

Critical Hardware Gaps: Europe faces shortages in intelligence, surveillance, and reconnaissance (ISR) capabilities, space launch facilities, long-range strike weapons, and rocket artillery.

Dependence on US Technology: European forces remain reliant on US companies for hyperscale cloud-computing, vital for modern warfare. While Europe’s edge cloud and command-and-control software are competitive, gaps remain in high-capacity datalinks needed for multi-domain operations.

Air and Missile Defence Challenges: Europe lacks sufficient integrated air and missile defence (IAMD) coverage, especially for exo-atmospheric interception, which depends heavily on US assets. Although new systems are being introduced, meeting NATO’s goal to quadruple air and missile defence remains uncertain.

Shifts in Defence Procurement: More European countries are buying from domestic or European suppliers, with 53% of spending on European systems and 36% on US equipment. The US still dominates in aerospace. Legislative efforts to speed up procurement are modest, but reforms are underway to modernize defence operations.

NATO Funding Goals at Risk: Defence spending in 2025 is over 50% higher than in 2022, yet some European allies may struggle to meet NATO’s new funding targets. Long-term success will require sustained public and private investment, venture capital support, and faster procurement decisions.

The IISS report underscores that while Europe has made progress, urgent action is needed to address gaps and ensure the continent can respond effectively to current and future security threats.