I believe that the entire European defence industry — including companies that develop dual-use technologies for both civilian and military purposes — is becoming increasingly important to observe. This includes firms such as Spain’s Indra or Germany’s Rheinmetall, which operate at the intersection of defence, technology and industrial capacity.
A New Security Reality in Europe
On one hand, we are facing an ongoing conflict in Ukraine and a growing threat to countries with direct borders to Russia. But this is no longer limited to conventional warfare. We are now witnessing a rise in hybrid threats: drone warfare, submarine cable sabotage, cyberattacks and digital interference. These risks are accelerating investment into security, defence and resilience across Europe.
The Role of European Fiscal Policy and Defence Spending
At the same time, the European Union has taken a significant step with the partial federalisation of debt to support Ukraine, reintroducing eurobonds as it did during the pandemic. If this mechanism becomes normalised, it could also be used to bypass the growing fiscal constraints faced by many governments, while responding to social demands and defence requirements. This would enable the financing of new programmes and the expansion of existing industrial and manufacturing capabilities.
A Shifting Geopolitical Order
The geopolitical landscape has also changed substantially. The United States has become a less predictable partner, engaging in trade disputes, questioning long-standing alliances, and positioning itself in the Ukraine conflict in ways that increasingly echo parts of the Kremlin’s narrative. Even territorial tensions involving EU member states — such as Greenland — illustrate how fragile the current global order has become.
Why European Defence Companies Matter in 2026
For all these reasons, European defence companies — particularly listed dual-use firms — deserve close attention as we move into 2026. The convergence of geopolitics, industrial policy and long-term security needs is creating a structural shift that could define Europe’s strategic autonomy for decades.
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