The Czech Republic said on Wednesday that it is open to spending more on defence, as demanded by US President-elect Donald Trump. "We are open to this debate," Prime Minister Petr Fiala said, emphasizing that money invested in defence was money well spent.

European defence sector stocks rose on Wednesday after U.S. President-elect Donald Trump called for higher spending from NATO allies. All leading European arms makers, including Rheinmetall, Dassault Aviation,

Even before being sworn in, Donald Trump harshly criticised European NATO countries. He also changed his stance on ending the conflict in Ukraine, suggesting he could achieve it within half a year, not in 24 hours as he previously claimed.

European NATO members would struggle to increase defense spending to 5% considering the high social welfare bill in the continent. But analysts say Trump's demand could be a negotiating tactic to reach a compromise.

US President-elect Donald Trump said that NATO countries should be spending 5% of gross domestic product (GDP) on defence, up from the current 2% target. "They can all afford it, but they should be at 5% not 2%,