Analysis & Reports

KONGSBERG and SALT were awarded a contract by the Norwegian Defence Material Agency to design up to 28 new standardised vessels for the Norwegian Navy. This initiative aims to simplify maintenance and reduce costs while enhancing operational efficiency. The companies have collaborated for years to secure this program and are also exploring international opportunities for similar designs.

NATO members increased their defense spending by 20% in 2025, reaching a total of $574 billion. For the first time, all 32 member nations met the 2% GDP defense spending target. Poland and the Baltic states surpassed the US defense spending percentage, reflecting heightened security concerns. NATO plans to raise defense spending to 5% of GDP by 2035, with Russia identified as the main threat to stability in the region.

Dr. Klaus WeberMon Mar 30 2026Loading...

Adm. Pierre Vandier stated that NATO must adapt to rapid changes in warfare, particularly due to the war in Ukraine, during a speech in Paris on March 25. He emphasized the urgency for Europe to enhance its military deterrence capabilities against evolving threats from Russia and Iran. NATO plans to conduct a counter-drone exercise in Romania, involving 20 member states, to address these challenges and improve readiness.

XPONENTIAL Europe 2026 showcased innovations in autonomous systems in Düsseldorf from 24 to 26 March 2026. The event featured 360 exhibitors and discussions on the strategic relevance of autonomous technologies, including upcoming legislation on commercial drone flights. The German Armed Forces participated, emphasizing military interest in these technologies.

DroneShield opened its European Headquarters in Amsterdam on 30 March 2026, enhancing its operational presence in Europe. This move supports the EU's ReArm Europe Plan and aims to boost military spending and counter-UAS capabilities. The headquarters will facilitate faster support for EU partners and is part of a broader strategy to expand DroneShield's footprint in the region, which generated $98 million in revenue in 2025.

Rheinmetall AG and Indra Group signed a memorandum of understanding to enhance their strategic partnership in military vehicle systems production. They plan to establish a joint venture to bid on a Spanish Army contract for up to 3,000 military trucks. This collaboration aims to modernize various military vehicles and strengthen the European defense market, particularly in Spain and Germany.

DroneShield opened its European Headquarters in Amsterdam on 30 March 2026, enhancing its operational presence in Europe. This facility will support the EU Centre of Excellence and align with the EU's military initiatives. The company aims to meet the growing demand for counter-drone solutions, with a regional pipeline valued at $1.2 billion and a multilingual team to assist its operations.

German Chancellor Merz is committed to reviving the Future Combat Air System (FCAS) fighter jet project with France, acknowledging previous doubts about its viability. He appointed mediators from both countries to propose a solution by the end of April. The project, which symbolizes defense cooperation between Germany and France, is currently stalled due to disagreements between Dassault Aviation and Airbus. Merz had previously considered abandoning the project due to a lack of opportunities.

Norway plans to increase its defense spending by approximately 115 billion Norwegian Krone over the next ten years to enhance military capabilities in response to international security challenges. The focus will be on procuring submarines, frigates, and long-range strike systems, with the aim of meeting NATO commitments by 2035. This decision is influenced by the ongoing Russia-Ukraine conflict and pressures from NATO allies, although some projects may face delays or cancellations due to rising costs.

Russia continues military operations in Ukraine, facing over 250,000 casualties and significant economic challenges since February 2022. Despite these losses, Putin persists in the conflict, believing that the costs of peace would be greater than continuing the war. The situation remains dynamic, with ongoing military aid to Ukraine and a lack of resolution in sight.

Russian forces conducted mechanized assaults near Lyman in March 2026, utilizing over 20 armored vehicles. Ukraine's air defense effectiveness has declined due to ammunition shortages, while NATO members collectively increased defense spending to over $1.4 trillion. Ongoing negotiations between Kyiv and Moscow have stalled, with no progress made on key issues. Poland has notably ramped up its military rearmament efforts in response to regional threats.

Dmitri VolkovSun Mar 29 2026Loading...

Thales launched the SkyDefender air and missile defense system on March 11, 2026, marking a significant shift in European defense capabilities. Germany committed EUR 117.2 billion to defense spending for 2026, while the SAFE financing instrument provides EUR 150 billion for defense initiatives. European defense budgets have risen sharply, reflecting a new focus on military readiness and self-sufficiency.

Alexandra ReevesSun Mar 29 2026Loading...

In 2025, all 32 NATO member states achieved the defense spending target of 2% of GDP, marking a significant milestone. NATO Secretary General Mark Rutte announced plans to increase this target to 5% by 2035. European NATO partners and Canada saw a 20% increase in defense spending, with Poland, Lithuania, and Latvia surpassing the 3.5% target. The report emphasizes the need for enhanced European defense production capabilities to meet these new goals.

Dr. Klaus WeberSun Mar 29 2026Loading...

China's Ministry of National Defense sent a delegation to Europe from March 23 to 29 to engage in security policy dialogues with the European Union, NATO, and Switzerland. The discussions included the 15th China-EU defense security policy dialogue, the 9th China-NATO security policy dialogue, and the 15th China-Switzerland defense ministry working dialogue, focusing on shared concerns regarding international and regional security.

The Eurofighter Typhoon continues to attract export customers in Europe and beyond, maintaining its relevance in the air superiority market. Despite the rise of fifth-generation stealth fighters, the Typhoon's capabilities, including air-to-air performance and multirole functionality, make it an appealing option for many air forces. Its political and industrial advantages further enhance its attractiveness as a combat-proven aircraft.

NATO member states achieved a historic milestone in 2025 by reaching the 2% of GDP defense spending benchmark for the first time. European allies and Canada collectively increased their defense budgets by 20% compared to 2024, totaling $574 billion. Poland leads with a defense budget of 4.3% of GDP, reflecting heightened awareness of regional threats. Despite these increases, Europe still faces critical shortages in military capabilities and industrial constraints.

Alexandra ReevesSat Mar 28 2026Loading...

The Russian Air Force's Su-35 fighter jet is actively engaged in operations in Ukraine, showcasing its long-range capabilities and advanced weapon systems. While it lacks stealth features, the Su-35 is designed to counter NATO air defenses and maintain standoff engagement. The aircraft's performance highlights the evolving nature of modern warfare, where networks and logistics play a crucial role in determining success.

NATO member states increased their defense spending by 20% in real terms for 2025, reaching a total of 381 billion euros. This marks a significant shift in European defense policy, with all EU-NATO members meeting the 2% GDP target for the first time. Germany's defense budget is set to double compared to 2021, reflecting a broader trend of increased military investment across Europe in response to security threats.

Dr. Klaus WeberSat Mar 28 2026Loading...

NATO allies collectively increased their defense expenditure by 20% in real terms compared to 2024, reaching an estimated €381 billion. This marks the first time all 32 member states met or exceeded the 2% of GDP defense spending target. Poland leads with 4.48% of GDP, while Germany allocated €95 billion, doubling its 2021 expenditure. The revised commitment calls for a 5% GDP allocation by 2035, reflecting a significant shift in European defense policy and spending.

Alexandra ReevesSat Mar 28 2026Loading...

European defense spending is projected to rise significantly, from €218 billion in 2021 to an estimated €381 billion by 2025, driven by geopolitical instability and Russian aggression. All NATO-affiliated EU states have surpassed the 2% GDP defense spending guideline, with a new goal of 5% by 2035. Germany plans to double its defense budget by 2025, while Poland faces political challenges regarding EU defense funding.

Dr. Klaus WeberSat Mar 28 2026Loading...