According to remarks made Tuesday, July 7, by President Donald Trump during a bilateral meeting with Turkish President Recep Tayyip Erdoğan in Ankara, Trump renewed his call for the United States to control Greenland and warned that Washington could reconsider its military presence in Europe if NATO allies continue resisting U.S. priorities. The comments came shortly after Trump arrived in Turkey for the annual NATO summit, immediately raising geopolitical and market concerns across Europe.
Trump argued that Denmark does little for Greenland. “Greenland doesn’t help Denmark. Denmark doesn’t spend money to really help Greenland, but it’s an important part for the United States,” he said. He repeated his claim that the island is “surrounded by China ships and Russian ships,” then added that the United States “could remove all of our soldiers out of Europe.”
Asked whether additional American troops could leave Europe, Trump declined to make a commitment. “Well, we’re going to see,” he told reporters. He linked his frustration to what he described as insufficient NATO support during the recent conflict with Iran and said the Greenland dispute had damaged his relationship with the alliance.
For business, the issue extends well beyond geopolitics. Investors are increasingly focused on who will finance Europe’s expanding defense commitments and which companies stand to benefit from a new era of military spending.
European defense stocks have rallied into the summit as investors anticipate higher defense budgets across the continent. A Goldman Sachs basket of European defense companies recovered roughly 17% from its late-June 2026 low ahead of the gathering. On Monday, Fincantieri surged 12.84% to €12.30, while Leonardo, Saab, Hensoldt, Rheinmetall, Thales, Dassault Aviation and Safran also posted gains.
Germany’s Rheinmetall, Europe’s largest defense contractor, traded near €1,121.80 after climbing more than 15% during the past week, although the shares remain well below earlier highs following Germany’s cancellation of its F126 frigate program. The volatility underscores the risks facing investors as governments rapidly reshape military procurement priorities.
The broader spending trend continues to strengthen. NATO members have committed to increasing defense expenditures toward 5% of GDP over the coming decade. According to figures cited by NATO Secretary-General Mark Rutte, non-U.S. members increased military spending 20% last year to $574 billion, while Germany alone boosted defense expenditures 24% to $114 billion. Rutte has warned that manufacturers are now struggling to keep pace with demand.
The summit is also producing new commercial opportunities. Lockheed Martin and Rheinmetall announced plans to jointly produce ATACMS missiles in Germany, marking the first production of the system outside the United States. NATO leaders also outlined more than $40 billion in planned investments over the next five years to strengthen anti-drone capabilities. Belgium is preparing a €3.1 billion air-defense purchase that includes 20 Skyranger systems produced by Rheinmetall, pending final government approval.
Analysts increasingly believe Europe will rely more heavily on domestic defense manufacturers. Analysts Adrien Rabier and Douglas Harned of Bernstein estimate that while U.S. companies still account for roughly 60% of European defense procurement, that balance is likely to shift toward European suppliers over time. They identify BAE Systems, Dassault Aviation, Rheinmetall and Thales among the companies best positioned to benefit from the trend. Berenberg analyst George McWhirter continues to rate Rheinmetall a Buy with a €2,100 price target.
The economic implications extend beyond defense contractors. If the United States reduces its military commitment to Europe, governments across the continent could face difficult budget decisions as higher defense spending competes with funding for healthcare, education and other public services. Businesses operating across Europe are also watching closely, as greater geopolitical uncertainty could influence investment decisions and cross-border trade.
Turkey also has significant commercial interests tied to the summit. Reports indicate Trump and Erdoğan discussed potential agreements involving F-35 fighter aircraft and related defense equipment, creating possible opportunities for both Turkey’s defense industry and major U.S. aerospace manufacturers.
European leaders sought to lower tensions following Trump’s remarks. Danish Prime Minister Mette Frederiksen reiterated that Greenland is not for sale and called on allies to respect Denmark’s sovereignty. Finnish President Alexander Stubb urged cooperation among Arctic allies, emphasizing the strategic importance of maintaining unity within NATO.
With defense spending accelerating, geopolitical tensions rising and investors closely watching every announcement from Ankara, the outcome of the summit could influence both global security policy and defense-sector markets for years to come.
JBizNews Desk | Ankara
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