Key Points
Italy cuts €8 billion from defence budget as coalition opposes Ukraine military aid.
Poland raises defence spending to record 4.8% of GDP by 2026.
Russia threatens nuclear strikes on European capitals including Warsaw and Berlin.
Denmark deploys F-35 warplanes to Faroe Islands to protect Arctic sea lanes.
NATO’s unity on defence spending is cracking. Italy is slashing €8 billion from its military budget this week, even as Denmark, Poland and the UK announce major defence buildups. The split reflects war fatigue in some member states versus rising security fears on NATO’s eastern flank, where Russia is increasing Arctic operations and making nuclear threats against European capitals.
Italy cuts defence budget amid coalition pressure
Italian Prime Minister Giorgia Meloni’s government agreed Thursday to slash defence spending by up to €8 billion, cutting planned military funding from €21-22 billion to around €14 billion. Deputy Prime Minister Matteo Salvini, who leads the League party in the governing coalition, pushed the reduction through despite Meloni’s backing for Ukraine and NATO spending targets. Salvini opposes military aid to Ukraine and wants a deal with Moscow to end the war.
Eastern NATO members accelerate military spending
Poland is boosting its defence budget to a record 4.8% of GDP by 2026, making it one of NATO’s highest spenders. Denmark announced in August it will patrol the Faroe Islands with F-35 warplanes and strengthen maritime presence to protect the strategic Greenland-Iceland-UK gap, a vital sea lane near Russian submarine bases. The UK is considering cuts to home energy-efficiency programmes to fund over £2 billion in additional defence spending.
Russia raises nuclear stakes as tensions mount
Moscow warned it is prepared to use nuclear weapons if NATO attempts to isolate the Russian exclave of Kaliningrad, and threatened strikes on European capitals including Vilnius, Warsaw, Berlin and Brussels. Russia is also increasing Arctic military infrastructure and submarine patrols. NATO Secretary General Mark Rutte visited German and Dutch forces on October 1, emphasizing that the 1st German-Netherlands Corps can command 50,000 soldiers to defend Estonia and Latvia against hybrid attacks and military threats.
Latvia votes amid security fears and drone incursions
Latvian voters head to polls on October 3 with security as a defining campaign issue. German Eurofighter jets are stationed 60 kilometres from Riga following repeated drone incursions into Baltic airspace. Intelligence officials from several European countries have warned that Russia could test NATO in the coming months, not years. Romania’s F-16s shot down a drone over Estonia in May, demonstrating allied solidarity against Russian pressure.
Final Thoughts
NATO’s defence spending rift exposes the alliance’s vulnerability. While eastern members race to rearm against Russian threats, Italy’s budget cuts signal that war fatigue and domestic politics are eroding consensus. Without unified spending, NATO’s deterrent weakens precisely when Russia is most aggressive.
FAQs
Deputy PM Matteo Salvini pushed the cut through Italy’s coalition government. He opposes military aid to Ukraine and wants a peace deal with Russia, contrasting with PM Meloni’s NATO backing.
Poland is boosting defence spending to 4.8% of GDP by 2026, one of NATO’s highest rates, amid rising security concerns.
Russia warned it would use nuclear weapons against NATO, including strikes on European capitals like Warsaw, Berlin and Brussels if NATO isolates Kaliningrad.
Denmark announced the deployment in August to strengthen Arctic military presence, protect strategic sea lanes near Russian bases, and counter repeated sabotage of undersea cables.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author

Danny Kontos
Co FounderDanny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.
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