"Beyond the battlefield" - European Defence & Security Summit – day 2

Opening the second day of the summit, EU Commissioner Hadja Lahbib delivered a powerful keynote that called for a broadening of the definition of security beyond military hardware to encompass a "whole of society" approach to resilience. She argued that the nature of conflict has fundamentally changed, and that supply chains, financial institutions, and digital networks "are the battlefields of the 21st century". In this new reality, she stressed, a proactive strategy is essential, as "European defence and security doesn't start when the bombs fall."

The Commissioner called for a cultural shift where "preparedness must become our European way of life," empowering every citizen and institution to play a role. Acknowledging that this "doesn't come for free," she made a strong case for backing this vision with resources in the next EU budget, arguing that "investing in preparedness doesn't just save lives ... it also saves money" in the long run. She concluded with a call for a new collective mindset that is "Proactive, forward thinking and operational”, setting a clear and ambitious agenda for the day's discussions on securing Europe's future.

Securing and boosting innovation in European space

The summit's panel on space provided a forward-looking discussion on how Europe can secure its leadership in an increasingly contested domain. The panel brought together leaders from the EU institutions, industry, and the new-space ecosystem, to map out a vision for a more resilient and ambitious European space sector.

The dialogue was anchored in a recognition of Europe’s existing strengths. Rodrigo da Costa of EUSPA highlighted flagship programmes like Galileo, which he called the "best navigation system in the world". However, this was balanced by a realistic assessment of the challenges. Olivier Lemaitre of ASD Eurospace pointed to the significant gap in institutional investment and launch mass between Europe and competitors like the US and China. He argued that the core issue is not a lack of European innovation, but rather a need for stronger, aggregated demand to fuel the industrial base.

Nicolas Guillermin of the European Commission outlined the institutional response, centred on the upcoming EU Space Law, which aims to create a "single market for space" to promote safety, resilience, and a level playing field. This was complemented by a perspective of the new-space sector, with Daniel Seidel of LiveEO making a powerful case that for innovative space companies, "government contracts" are the most effective catalyst, serving to leverage significant private capital. He highlighted that access to debt financing for manufacturing is a critical missing piece for scale-ups to grow.

Overall, the discussion reflected a call for greater ambition, eloquently captured by Jürgen Ehle, who urged Europe to adopt a "John F. Kennedy" level of vision. The consensus was that "money is not enough"; Europe must spend its resources efficiently and define its collective defence capabilities in space.

Funding Europe’s rearmament

The summit’s panel on financing Europe’s rearmament provided an exploration of one of the most complex challenges facing the continent: how to fund a historic military build-up while fostering an integrated European market. The discussion brought together experts from the EU institutions, think tanks, and the financial sector, who collectively assessed the new toolkit of financial instruments and debated the deeper, structural reforms needed for long-term success.

The consensus was that while new EU instruments provide vital short-term funding, achieving long-term readiness and efficiency will require a deeper structural evolution towards a more integrated European approach. 

The role of the European Investment Bank

The day’s first Fireside Chat offered a crucial perspective from Nadia Calviño, President of the European Investment Bank, who detailed the bank’s proactive and rapidly evolving role in financing European security. Since taking office, she has championed a new strategic direction, stating she had a "clear idea that we needed to step up our support to security and defence". This has translated into concrete action, with the EIB doubling its financing for security and defence projects last year and expecting to exceed that again this year.

President Calviño provided tangible examples of this new focus, from financing military barracks in Lithuania to supporting drone manufacturing, satellites, and, crucially, the SME supply chain through a new multi-billion euro facility. However, she also emphasised that "we are not a defence ministry"; the EIB’s function is not to fund weapons and ammunition directly, but to act as a strategic investor in the foundational pillars of Europe's defence capacity: large-scale infrastructure, industrial innovation, and the resilience of its SMEs. This is part of a broader vision where, as she argued, "every euro that the European Investment Bank group finances is contributing to Europe's security," including investments in energy autonomy and health.

 Key perspectives from industry

The second fireside chat of the day with Micael Johansson, President and CEO of Saab and the newly elected President of ASD, provided an industry perspective on the realities of Europe’s rearmament. Representing both a major industrial manufacturer and the wider European industry, his insights grounded the summit's high-level policy discussions in the practical experience of the companies tasked with delivering Europe's security.

Micael Johannsson addressed the central challenge that has been a recurring theme: the gap between political ambition and industrial reality. While acknowledging the positive momentum of increased GDP spending commitments, he confirmed that the system remains slow to translate these high-level political statements into the tangible, long-term contracts that industry needs to invest and ramp up production. This hesitation, he argued, stems not from a lack of financial instruments, but from a continued reluctance at the national level to commit to large-scale, collaborative European projects, noting that there is still no "common European bucket of money" for major joint programmes.

Johansson was clear that this hesitation does not originate from industry. "Resistance is not coming from industry on collaboration. Absolutely not", he said, explaining that industry is ready and willing to work together more closely. He called for deeper discussions between political leaders, defence forces, and industrial players to align on long-term capability targets and provide the clarity needed for investment. On the vital topic of Ukraine, he demonstrated industry's proactive stance, confirming Saab’s commitment to invest and work on the ground despite the significant operational and regulatory challenges.

Ultimately, Micael Johansson's message was one of both confidence and urgency: Europe's defence industry is fully prepared to step up, innovate, and collaborate to meet the continent's security needs. However, this potential can only be unlocked through a new level of partnership with governments – one that provides the clear, stable, and long-term demand signals required to turn strategic goals into battlefield-ready capabilities.

Priorities of the European Defence Agency

In a fireside chat on the priorities of the European Defence Agency (EDA), Sean White, Director at the EDA, detailed the agency’s crucial role as the operational hub for European defence cooperation, outlining how the agency is fostering collaboration in this new era through concrete initiatives such as its central role in aggregating demand for ammunition. He stressed that in this unprecedented geopolitical climate, the EDA's core mission is to help Member States work collectively, because as he powerfully concluded, "we are all on the same ship together."

Single market for defence

The panel on the Single Market for Defence delved into the challenge of how to move beyond a fragmented landscape of national markets towards a truly integrated European approach.

The European Commission’s Gueorgui Ianakiev established the urgent rationale for this shift. He argued that while a fragmented system was manageable in peacetime, it is unsustainable when deterrence requires industrial "mass". Using the stark example that, at one point, the entire monthly US production of certain artillery shells corresponded to just six days of use by Ukrainian forces, he made a powerful case that only through the economies of scale of a single market can Europe produce the volume needed. This economic logic was reinforced by Daniel Fiott of the Centre for Security, Diplomacy and Strategy, who framed fragmentation not just as inefficient, but as a failure of deterrence itself.

The panel converged on a clear diagnosis: the current system is not fit for purpose. While the Commission is moving forward with simplifying the European Defence Fund and revising key directives, the consensus was that achieving a true single market for defence requires that Member States embrace joint procurement not just as an economic benefit, but as a strategic imperative for the credibility of European defence.

Protecting critical infrastructure against hybrid threats

The summit's final panel on protecting critical infrastructure against hybrid threats provided a sobering assessment of Europe's evolving security landscape, reflecting on the interconnected nature of contemporary threats and the comprehensive response required across military, civilian, and industrial domains.

The panel was anchored by a clear-eyed assessment of the escalating threat environment. NATO's Alexandre Monéger detailed the evolution from the 2015 hybrid strategy – developed in response to Russia's "little green men" – to the new strategy adopted just last week by defence ministers. He painted a picture of Russian operations becoming increasingly "reckless," with direct attacks on critical infrastructure through sabotage and arson. This assessment was reinforced by the EU's Barbara Gallo, who described an "intensification" of Russian hybrid activity requiring a full spectrum response.

Chair of ASD Security Business Unit, and Director Head of Brussels Office, Indra, David Luengo provided a forward-looking perspective, pointing to industry as an indispensable partner in this collective effort: "there is no security without technology, no technology without industry”. He stressed that European competitive advantage depends on nurturing its own security technology sector, rather than relying on external solutions. His call for "actionable intelligence solutions" that can anticipate threats before they materialise reflects the sophisticated, data-driven approach required in an era where critical infrastructures are increasingly digitised and interconnected. David Luengo also highlighted the fundamental challenge of the "network effect" – that national approaches, however well-resourced, are insufficient when dealing with interconnected systems.

Industry ready, politics must follow

In his closing remarks to the European Defence & Security Summit, ASD Secretary General Jan Pie delivered a powerful message that encapsulated both the promise and the challenge facing European defence. His words provided not just a summary of two days of intensive discussion, but a clear roadmap for what Europe must do next.

Pie began with a stark economic truth that should give European leaders confidence. He reminded the audience that the EU and UK combined represent an economy 10 times the size of Russia's, and when the US is added, this becomes more than 20 times larger. "Do we have the economies to take care of our own security? The only conclusion I can come to is absolutely without the doubt we have the economies. This is not about the economics, it's about prioritisation." This observation cuts to the heart of the summit's central theme: Europe's challenge is not one of capability or resources, but of will and coordination.

Jan Pie highlighted Rheinmetall's remarkable transformation as evidence of what is possible when clear demand signals are provided. In 2022, the company could produce 70,000 rounds of 155mm ammunition annually. By 2027, it is targeting 1.1 million rounds – a scale-up factor of 14 to 15 times. This data point serves as compelling proof that when European industry receives clear, long-term commitments, it can and will deliver at the scale required for credible deterrence.

Perhaps the most memorable moment of Pie's closing remarks came with his characterisation of Europe as "a red Ferrari" – beautiful, colourful, potent, and possessing "the capacity to win every race". It is, he said, "a technological masterpiece, but without a driver it doesn't move."

This metaphor perfectly captures the summit's overarching conclusion: Europe has everything it needs to secure its future – world-class industry, innovative technology, substantial financial resources, and supportive EU institutions. What it needs decisive political leadership to put all these capabilities into motion.

Jan Pie's closing remarks embodied the summit's ultimate message of confident optimism. Europe is not a continent scrambling to catch up, but one awakening to its own strength. The economic resources exist. The industrial capacity is proven. The technological expertise is world-leading. The institutional frameworks are in place.

What remains is for European leaders to step into the driver's seat of that red Ferrari and accelerate toward a more secure, sovereign, and resilient future. The summit demonstrated that when they do, industry and institutions will be ready partners in that journey.