Euractiv
FIREPOWER
DEFENCE - PRO BRIEF

Good afternoon and welcome to the very first edition of Firepower!

Euractiv’s new weekly briefing on European defence is here to help you stay on top of what’s really going on with policy, strategy and spending. You’ll find us in your inbox every Friday, though during the week of the NATO leaders’ summit in The Hague and European summit in Brussels, we’ll go daily.

Here's what matters for you today, 81 years since the allied landings on the beaches of France in the thick of the Second World War. Weeks out from a major summit, NATO countries generally agree about spending 5% of GDP on defence, but don't expect an immediate surge from NATO's current 2%. Instead, keep an eye on how defence expenditure calculations are being re-defined.

The European Commission, meanwhile, wants to loosen regulation on the industry to boost arms production. The simplification package that drops on 17 June will show if they are taking defence firms’ complaints seriously.

Some other big EU defence initiatives are also racing ahead. Initial requests for a €150 billion joint procurement loan programme are due within weeks, so we'll soon find out if firms from Canada, the UK or Turkey are patched in too.

Today, we'll look at the sweeping European Defence Industry Programme, and several bids to divert EU civilian and social funding to defence, which will get critical feedback from the EU's 27 countries in the coming weeks.

What’s in today’s edition:

EDIP IS BACK. EU countries are restarting negotiations on the bloc's landmark defence industrial programme next Tuesday at the ambassadors' level, following six months of relative silence.

The lull was down to political deadlock around potential flexibility for non-EU industries to access EU-sponsored joint procurement contracts, especially for hardware like ammunition and missiles, according to documents seen by Euractiv.

The new momentum comes after EU leaders signed off on the €150 billion SAFE joint procurement loan programme last week.

Some capitals (notably France) are eager to use EDIP to boost domestic industry, while others argue that some weapons systems made outside the EU – like American-made Patriot air-defence systems – are urgently needed.

Negotiations with the Parliament are expected to start under the leadership of the Danish Council presidency, which kicks off 1 July.

BRUSSELS SIGNS OFF ON MILITARY DEBT. Fifteen countries are seeking extra leeway from the EU’s strict fiscal rules in order to borrow money for defence got approval from the European Commission on Wednesday.

Germany, once Europe’s fiscal disciplinarian, is also hoping for extra permission – but the new government will need to pass a budget before submitting a plan to Brussels for review.

DANES DITCH THE FRUGALS. In a sign of the times, long-time fiscal hawk Denmark embraced looser spending this week. Prime Minister Mette Fredriksen pulled the country out of Europe’s unofficial “Frugal Four” club, which had banded together to fight for tighter spending rules in Brussels.

"For me, the most important thing is to rearm Europe,” Fredriksen said. That leaves the Netherlands, Austria and Sweden as the remaining members.

MOODY’S BULLISH ON DEFENCE. Credit rating agency Moody’s forecast that operating profits at the 25 biggest aerospace and defence companies they watch will “grow 10% to 12% on average in 2025-26, well above our threshold for a positive outlook”, according to a report published on Tuesday. Even supply chain issues and tariffs “shouldn’t derail our positive outlook”.

DRONES BY THE MILLIONS. Ukraine gave the world a spectacular demonstration of just how effective a weapon drones have become when a covert operation used swarms of drones to damage or destroy dozens of Russian strategic bombers and other high-end aircraft at bases far from the frontlines.

Just days later, Ukraine’s Defence Minister Rustem Umerov appealed for funding to massively expand Ukrainian drone production. Umerov said the country has already poured $5 billion in the industry, but could produce as many as 10 million drones of various types each year with another $6 billion in financing.

AERIAL SUPREMACY: European Defence Commissioner Andrius Kubilius, meanwhile, recently noted that Ukraine is using drones to destroy about 80% of its battlefield targets. The operation last weekend will no doubt fuel ambitions in Brussels to have innovative industries in the EU and Ukraine work more closely together in the future.

MONEY FOR RELOCATION. The Ukrainian defence minister also announced an initiative from the Ukraine Defence Contact Group to boost Ukrainian defence production by paying for Ukrainian defence companies to manufacture products like drones, missiles and ammunition abroad. He did not specify which of the 50 countries in the group would take part or who is contributing cash.

NEW OCEAN AWARENESS. The European Commission wants a fleet of unmanned surveillance ships to help keep an eye on underwater infrastructure, after a series of recent suspicious incidents in the Baltic. The proposal was included in its Oceans Pact published on Thursday. The goal is to “connect sensors, unmanned systems, and patrol aircraft to form an integrated surveillance network”.

IT’S ALL IN THE NAME. What’s the right word to describe NATO’s new 5% target? “This is not going to be just a pledge. This is going to be a commitment,” according to Matthew Whitaker, the US ambassador to NATO. NATO Secretary-General Mark Rutte prefers to call it a “plan” for now. The detail may go unnoticed, but within the walls of NATO HQ, names matter (remember the NSATU-UNITE debate last year?). NATO's current 2% target has long been described as a “pledge”, and it took most countries a decade to make good on it. Coincidence? The US, at least, thinks not.

INDUSTRY PLEDGE. As part of NATO's revised Defence Production Action Plan, allies will have to report on progress they’ve made in increasing defence industrial production by the summit, according to a document seen by Euractiv. The data will be compiled into a report that gives an overview of available production capacity and shares best practices for procurement.

NATO STARTUP CASH. NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA) published its 2026 list of 10 “challenges” on Monday, for which startups and SMEs propose new military-civilian technologies. Topics include resilient space operations, maritime operations, critical infrastructure and logistics. Companies will have until 11 June to apply, with selected firms receiving €100,000 and access to testing facilities across Europe and North America for work on their projects.

HYBRID THREATS GUIDELINES. NATO wants its members to take hybrid attacks – like cyber threats or disruption of critical infrastructure – more seriously, and alliance staff plan to issue new guidelines, a senior official of the military alliance said this week. The alliance and its members have been wondering how to address such threats after several high-profile incidents in the past year. But the issue is tricky, given how difficult it is to identify the perpetrators, and because hybrid attacks usually don’t fall under the classic definition of warfare.

WHERE’S THE INVITE? With less than three weeks to go until that NATO summit, it remains unclear whether Ukrainian President Volodymyr Zelenksyy will be a guest at all, much less whether he'll score invites for anything more than side-events. That’s because of US concerns about what impact a Ukrainian invite will have on the Moscow and the prospects of peace talks, people have told Euractiv over the past month. NATO Secretary General Mark Rutte did say on Wednesday that Ukraine will have a presence of some type at the summit.

NATO’s DOGE MOMENT? The alliance's top leadership is undergoing major changes, with cuts to high-level positions and rationalisation of the number of expert groups, according to people informed of the plans. Allies want to avoid duplication and wasted resources with a more efficient management structure focused on core defence tasks. Here’s hoping the effort is more successful than the chaotic Elon Musk-led effort to slash and burn through American bureaucracy. The move comes after revelations of alleged corruption in the alliance’s procurement agency.

Trump’s trade spat with the EU risks distracting focus from “the main issue: how to rebalance the burden-sharing on European defence,” European Council President Antonio Costa told a small gaggle of reporters on Thursday, including Euractiv.

CONTROVERSIAL APPOINTMENT IN BERLIN. The German defence ministry raised eyebrows this week by naming a controversial foreign policy figure known for a relatively dovish attitude towards Moscow as the official over Germany’s ambitious rearmament plans. Jens Plötner, who served as a top advisor to former Chancellor Olaf Scholz, has been blamed by his critics for Scholz’s hesitation in sending military aid to Ukraine. But it was his past involvement in “important armament and procurement projects” that the ministry cited while announcing his appointment on Wednesday.

LAUGHABLE? Ursula von der Leyen’s comms chief, Jens Flosdorff, reacted to the news of Plötner’s appointment by texting “WTF???” with a laughing/crying emoji to a WhatsApp group with over 400 journalists. Flosdorff, who clearly didn’t intend to share that reaction so publicly, quickly deleted the message.

NATO countries approved the nomination of US Air Force Lt. Gen. Alexus Grynkewich as the new Supreme Allied Commander Europe, continuing the tradition of having an American in charge of NATO’s defence plans in Europe.

BIDEN ALUMS DIVE INTO CONSULTING. A pair of Biden admin officials very familiar to Brussels – former Defence Secretary Lloyd Austin and Biden’s NATO ambassador, Julianne Smith – co-launched a new consulting firm this week, Clarion Strategy, as Smith announced in a LinkedIn post. Denis McDonough, Biden’s secretary for veteran affairs, is also on the team.

NEUTRAL WITH A PLUS ONE. Irish Lt Gen. Séan Clancy started his new role as chairman of the EU Military Committee (EUMC), which advises EU countries and institutions on defence decisions. Casey, the former head of neutral Ireland’s military, takes over from another neutral-country commander: Austrian Gen. Robert Brieger. But for the first time, the EUMC chair will be joined by a deputy chair in the autumn: Italian Maj. Gen. Enrico Barduani, who currently commands NATO’s KFOR peace-keeping mission in Kosovo. It’s unclear how duties will be divided.

LONDON announced the most substantial expansion of the Royal Navy since the end of the Cold War on Monday, which the British government said will come while also investing more in drones and ammunition plants.

DUTCH Defence Minister Ruben Brekelmans said on Thursday that the collapse of his government will not affect decisions on NATO’s 5% target or aid for Ukraine. It “doesn’t mean anything for foreign policy”, Brekelmans claimed, adding that the caretaker government can still make decisions on the budget “for next year”. New elections are planned for 29 October.

It’s a different tune in POLAND, which elected conservative populist Karol Nawrocki as president. Supported by the opposition Law and Justice (PiS) party he may also oppose further European defence cooperation, according to experts from the ECFR. Support for Ukraine will likely not be impacted, though. Tusk responded to the election results by calling for a confidence vote set for 11 June.

The SPAIN-ISRAEL saga continues. The Spanish defence ministry on Tuesday cancelled a €285 million Spike LR2 missile contract with Pap Tecnos, a Madrid-based subsidiary of Israeli Rafael Advanced Defence System. Spain’s parliament approved a non-binding motion last month urging the government to impose an arms embargo on Israel.

LUXEMBOURG has doubled military aid to Ukraine in 2025 to €120 million, the defence ministry said on X on Wednesday. Luxembourg, a tiny but very rich duchy, is currently exempt from NATO’s 2% spending rule.

BELGIUM, famous for waffles and skimping on military spending, now plans to buy more F-35 jets, according to De Morgen. Currently, the country has 34 on order, but new draft defence investment plan call for 55 in total. In other Belgian spending news, Defence Minister Theo Francken on Tuesday broke ground on the country’s €500 million future military headquarters in Brussels, just across from NATO, which is set to open in March 2028.

European Union

European Commission

  • Defence Commissioner Andrius Kubilius meets with Swiss Defence Minister Martin Pfister, Swedish Foreign Affairs Minister Maria Malmer Stenergard and Indian External Affairs Minister Subrahmanyam Jaishankar, Tuesday, 10 June
  • Kubilius also meets with CEOs of European steel companies, Wednesday, 11 June
  • President Ursula von der Leyen meets with India's Jaishankar on Tuesday 10, June
  • Top diplomat Kaja Kallas’s agenda will be available here

Council

  • Coreper II discusses EDIP on Tuesday, 10 June, meets again Wednesday, 11 June
  • Political and Security Committee meeting, Tuesday, 10 June
  • EU Military Committee meeting, Tuesday, 10 June

NATO

  • Secretary-General Mark Rutte meets UK Prime Minister Keir Starmer in London, Monday, Monday 9 June
  • Rutte gives a speech at Chatham House, London, Monday 9 June, 4:45pm. Watch live here

Events

  • European Defence and Security Summit, EBS and ASD, Brussels, 10-11 June. Here’s the programme, including a speech by EU Defence Commissioner Andrius Kubilius on 10 June
  • NATO StratCom dialogue, Riga, 10-11 June, programme
  • Globsec forum, Prague, 12-14 June, programme
  • German Marshall Fund Forum, Brussels, 11-12 June, programme, includes speech by EU Defence Commissioner Andrius Kubilius 11 June

Thank you for reading,

Firepower was brought to you by Euractiv’s defence team, with additional reporting by Nick Alipour and Alexandra Brzozowski.

Tell us how we’re doing, what you know and see! You can contact us at defence@euractiv.com .

Each team member is available at firstname.lastname@euractiv.com

Follow our coverage here.

Aurélie Pugnet Chief Defence Correspondent
Aurélie Pugnet
Bryn Stole Editor
Bryn Stole
Kjeld Neubert Reporter
Kjeld Neubert
Charles Cohen Reporter
Charles Cohen
Euractiv
Connect with us
Copyright © 2025
Euractiv Media BV, All rights reserved.
You are receiving this email because you subscribed to receive email newsletters from Euractiv.
Euractiv Media BV - Boulevard Charlemagne 1, Brussels 1041 - Belgium