France, March 7 -- Weapons manufacturers across Europe are rushing to secure contracts after EU countries announced plans to dramatically increase defence spending. Share prices of European arms companies had already risen sharply following the US decision to suspend military aid to Ukraine.

Under the "Rearm Europe" plan announced by EU Commission President Ursula von der Leyen on 6 March,EU member states can boost defence spending even if it means breaking the bloc's budget deficit rule of 3 percent of GDP.

Von der Leyen suggests the EU could raise "close to" €650 billion over four years, which would be added to a €150 billion loan to member states for defence investment, totalling €800 billion.

European arms manufac...