Dear participants,

Its a pleasure to see you all. Weve had an intense 6 months of discussions with many of you, particularly in the defence and space sectors. This collaborative approach will continue throughout this Commissions mandate: listen and decide. Our actions so far are just the beginning.

We must do more. Why? Because only strength can deter Putins aggression against the EU and NATO. Our defence industry is crucial as it is not just another sector but a key defence resource. Remember, victory in World War Two was not only by armies but by factories. We rely on industry to deter aggression and prevent war.

The Draghi Report on Competitiveness emphasizes that successful defence and space industries are vital for competitive economies. Hence, investing in these industries is crucial for both defence and Europes competitiveness.

Increased European and national defence investments are starting. Companies not yet engaged in defence and space should consider this. We face a perfect storm in security: ongoing war in Ukraine, Russian aggression, and a potential American withdrawal from Europe. This situation demands bold decisions and reforms, as outlined in the Defence White Paper and Rearm EU program.

Lessons from Ukraine are clear: two battle-tested armies, Russia and Ukraine, use millions of drones. In case of Russian aggression, we face a stronger Russian army and a war economy producing more ammunition than NATO combined.

Warfare has changed: 80% of targets in Ukraine are hit by drones. The death valley created by drones is a no-go zone. Ukraine and Russia are rapidly innovating drone technology.

The UKs 20-40-40 doctrine reflects these lessons: 20% of targets by heavy weapons, 40% by light drones, and 40% by heavy drones and missiles. Are we ready to follow?

Our actions focus on demand, supply, and financial resources. We need a picture of EU demand based on NATO targets, which are 30% larger than previous ones. We have only 50% of the required capabilities. We must prepare to replace US capabilities in Europe, requiring substantial investment.

On the supply side, a Joint Task Force for Defence Readiness is mapping industrial output and supply chain issues. The Commission will propose a defence simplification omnibus to reduce red tape and a roadmap for modernizing defence with AI and quantum focus.

Financially, the Rearm Europe program allocates 800 billion euros for defence over 4 years. SAFE loans, approved last week, can be used with Ukraine. Member States have requested the National escape clause for additional support.

Much more needs to be done: industry consolidation, specialization, and standardization, and stronger political will from national governments for joint procurement.

Supporting Ukraine is crucial. Ukraine defends Europe, and we can learn from its defence innovations. The Dutch defence industry is actively engaging with Ukrainian start-ups, setting an example for Europe.

As the US prepares to leave Europe and Russia strengthens, Ukraines innovative defence industry will be key to European security. Ukraines EU integration is vital for our defence and peace.

Our relationship with the UK is also crucial. Their battlefield skills and defence innovation enhance European Defence Union.

Finally, its an honor to speak in Rzeszow, the City of Saviours, an inspiration to us all.