ReArm Europe: EU’s bold move to strengthen its military might

In a recent article, Fortune highlights that in a groundbreaking move to strengthen its security amid growing global uncertainties, the EU is launching the ReArm Europe initiative, a colossal 800 billion euro defence overhaul. 

The plan, announced by European Commission President Ursula von der Leyen, includes 150 billion euros in loans to help member states bolster their security infrastructure. This includes acquiring critical defence assets such as air defence systems, missiles, "ammunition drones," anti-drone technologies, as well as addressing crucial cybersecurity and mobility needs.

"Europe is ready to significantly increase its defense expenditure, both to respond to the urgent situation at hand and to support Ukraine, as well as to ensure long-term security by taking greater responsibility for our own defense," von der Leyen declared.

The announcement comes amid growing concerns over the shifting stance of the United States on the Russia-Ukraine conflict. A recent tense conversation between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy, alongside reports of a suspension of US military aid, has raised fears that European security may no longer be as reliant on US support. As a result, the EU is preparing to strengthen its own military capabilities to safeguard its security interests.

As part of this strategy, European defense contractors are poised to play an essential role in meeting the continent's growing defense needs. BAE Systems, Thales, Rheinmetall, Leonardo, Saab, Airbus, Safran, Fincantieri, and Dassault Aviation are among the key players expected to lead the charge.

BAE Systems, a major UK-based defense contractor, is a leading partner in programs like the Eurofighter Typhoon and the F-35 stealth fighter. The company also manufactures a variety of combat vehicles, artillery systems, and missile launchers, while providing advanced electronic warfare solutions.

Thales, based in France, has a strong presence in aerospace and defense, with a focus on advanced sensors and systems for digital connectivity on the battlefield. CEO Patrice Caine stressed the importance of European defense independence, stating, "If you want to be autonomous, if you want to give meaning to the word sovereignty, you need to be independent from third parties and be as self-sufficient as possible in this type of capability."

Rheinmetall, headquartered in Germany, produces air defense systems, autonomous vehicles, and the highly-regarded Panther KF51 battle tank, alongside flight surveillance systems and naval defense solutions.

Leonardo, the Italian aerospace and defense giant, is expanding its footprint with new unmanned aerial vehicle (UAV) technologies, as well as its longstanding expertise in helicopters and fighter aircraft. The company recently partnered with Turkey’s Baykar to capitalize on the booming UAV market, which is expected to be worth $100 billion in the coming decade.

Saab of Sweden, known for its Gripen fighter jets and advanced submarine technologies, recently upgraded the Swedish Navy's HMS Halland submarine, showcasing its expertise in modernizing military assets.

Airbus and Safran, leading players in aerospace and defense, are also playing pivotal roles in the EU's rearmament plan, with Airbus at the forefront of developing next-generation combat air systems.

Fincantieri, Italy's renowned shipbuilder, is poised to significantly expand its naval defense capabilities, particularly in submarine technology, while Dassault Aviation continues to lead in military aircraft development, most notably through its Mirage and Rafale fighter jets.

The ReArm Europe initiative represents a transformative shift in Europe’s defence posture, marking a new era of self-sufficiency and autonomy as the continent seeks to ensure its security in an increasingly unpredictable global landscape.

By Naila Huseynova