SRF reports on Europe’s defence industry – demand surges, challenges persist

Switzerland’s national broadcaster, SRF, recently set out to chart Europe’s rearmament trajectory in a dispatch authored by Fredy Gsteiger. Drawing on insights from ASD Secretary General Camille Grand, the report reflects on an industry enjoying an upswing, yet shadowed by structural and strategic uncertainty.

Gsteiger’s feature begins with a scene familiar to industry observers: order books are stacked high and stock prices are climbing steadily. Yet Camille Grand does not let bullish sentiment obscure the knots ahead. “It is often not clear which priorities governments are setting. This is also because they have to pursue three objectives simultaneously,” he observes, as policymakers wrestle with support for Ukraine, the spectre of Russian provocations, and the daunting task of constructing European defence capability increasingly independent from America.

Geopolitical realities underscore both urgency and ambiguity. The SRF report highlights recent incursions of Russian drones into NATO airspace – episodes not easily addressed by high-ticket weapons platforms. “Weapons systems such as fighter jets or missiles are not a suitable answer and are far too expensive,” Camille Grand says, pointing to the necessity of agile, adaptive solutions over blanket spending.

Looking ahead, Camille Grand maintains that Europe’s defence sector, while buoyant, needs more than political rhetoric. “For the next five or ten years, we expect a greatly increased demand. For truly substantial investments, reliability is needed,” he says. The calculus of defence readiness, as he sees it, is inseparable from public sentiment and the hard realities of national budgets.

Structural fragmentation is another stone in the industry’s shoe. “There are far too many different types of tanks, fighter jets, frigates or missiles – and that is unnecessarily expensive. It would make more sense to have fewer, but larger suppliers. But to achieve that, individual governments would have to think more European and less nationalistic,” Grand is quoted as saying.

If there is a thread that ties Europe’s disparate approaches together, it is the prospect of harnessing European investments to foster European jobs. “It is logical that not only the defence industry, but also Europe’s governments are keen to spend a good portion of state billions here and create jobs at home,” Camille Grand notes, highlighting the political dividends of localising high-value investment.

ASD for its part continues to act as the sector’s leading advocate – championing constructive engagement, cross-border cooperation, and the long-range vision Europe needs as security demands intensify.