Dear participants,
Its great to see you all.
In the past six months, weve had intense discussions, particularly with those in the defence and space sectors. Weve been actively listening to each other.
Now, we must act on the decisions made.
This approach will continue throughout our mandate: listening and deciding. What weve achieved so far is just the start; much more is needed.
Why? Because even in peacetime, we face a war-like reality.
Putins aggression against us and our NATO allies can only be deterred by strength, and he shows no signs of stopping. The threat of war alters everything.
Thus, we must discard our peacetime mindset.
We urgently need to prepare our European Union for defence and ensure we are combat-ready.
Readiness must span various areas:
These times demand it.
As Mark Rutte noted, “We are not at war, but we are certainly not at peace.”
We must recognize that between peace and war, there is a crucial period of defence readiness—a time when intelligence indicates possible aggression. We need to shift our pace and direction from peacetime norms.
This is the only way to deter aggression.
Recently, Commission President Ursula von der Leyen emphasized two key priorities: Pax Europaea and an Independent Europe. Her message was clear: for peace in Europe, we must be prepared to be independent. We cannot be swayed by the seismic changes we face.
Pax Europaea is our strategic responsibility, and it cannot exist without independent defence readiness.
We live in times that require us to be ready for defence.
Thats why our defence and space industries are vital. They are not just industries; they are essential resources for our defence.
Remember, victory in World War II was not solely due to military might but also to industrial strength. The Allies won the production war first, which led to their ultimate victory.
Similarly, we depend on industry to deter aggression and prevent war.
The Draghi Report on Competitiveness states that successful defence and space industries are crucial for the competitiveness of national economies.
Therefore, the strength of our defence and space industries is critical, and investing in them is essential for both defence and European competitiveness.
Significant European and national investments in defence are beginning.
Companies not yet engaged in the defence and space sectors should consider this.
On “Perfect Storm”
To understand our defence readiness, we must look at the broader picture.
We are facing a “perfect storm” regarding our security and defence readiness, characterized by:
This “perfect storm” signals a deep defence crisis on the European continent.
However, we should not waste this crisis to make bold decisions and reforms.
The “Defence White Paper” and “Rearm EU” program aim to facilitate such reforms.
Beyond this “perfect storm,” we must also learn clear lessons from the war in Ukraine.
On Lessons from Ukraine
Currently, Europe has two battle-tested armies capable of deploying millions of drones: Russia and Ukraine. Ukraine defends itself and Europe, while Russia prepares for its next aggression.
If Russia attacks again, we will face a much stronger, battle-tested army than in 2022. Russias war economy is now producing four times more ammunition than all NATO countries combined.
The most significant change in warfare is clear: today, 80% of targets in Ukraine are destroyed by drones. There exists a “death valley” on both sides of the front line where movement is nearly impossible. This valley is dominated by drones, and traditional tanks survive only minutes.
Every two months, we must radically innovate our drones as adversaries learn to counter previous models.
This year, Ukraine will produce and deploy four million drones, and Russia is expected to do the same.
As stated by the UK government in their Strategic Defence Review, they have learned from Ukraine and will shift their warfare doctrine towards the “20-40-40” strategy: 20% of targets hit by heavy conventional weapons, 40% by light kamikaze drones, and another 40% by heavy drones and missiles. This mirrors the drone utilization seen in Ukraine.
Are we prepared to follow Ukraine and the UK in this approach?
Our implementation of the White Paper depends on our answer to this question: what kind of war must we be ready to fight and defend against?
Implementation of Defence Readiness: Material and Institutional
Implementing our defence readiness strategy starts with “material” issues.
Currently, we are focusing on demand, supply, and financial resources.
However, looking to the future, we cannot focus solely on material aspects—how to spend more on defence and produce more weapons.
Broader discussions are needed regarding how to organize our defence institutionally in Europe and how to mitigate permanent security threats.
First, let’s examine what we are doing and what is necessary on the “material” side: demand, supply, and financial resources:
“Material” Defence Readiness
On EU Aggregated Demand:
On Space for Defence and Defence of Space
In discussing “material” readiness for defence, we must prioritize our capabilities in space—both for defence and the defence of space.
Modern defence readiness cannot exist without space readiness. We require:
These capabilities are vital for modern warfare and civilian security, such as aviation.
We currently have limited space services at the national level, and while some data can be acquired from commercial services, we need to augment existing systems or develop new ones for advanced EU-level space capabilities.
We have successfully created the leading Galileo and Copernicus systems with the European Space Agency.
Now, in collaboration with ESA, we are implementing the new IRIS2 system for secure satellite communication, operational by 2030. This summer, we will launch the GOVSATCOM system to pool national assets for satellite communication.
Together with ESA, we are working on:
This is crucial for our ability to obtain high-resolution geointelligence data with frequent revisits, potentially every 30 minutes, instead of the current once daily capability.
We need these new systems to be implemented swiftly. We must rethink our traditional space development methods to adapt to current demands, while leveraging our existing capacities and coordinating with member states.
We need to enhance our readiness not only for “space for defence” but also for “defence of space”—protecting our space assets from increasing threats.
Defence readiness in space requires us to:
Space is a new frontier. We must be materially and politically present in space for our defence readiness and security.
On Simplification Omnibus
Next week, we will present the Defence Simplification Omnibus, which is crucial for initial implementation.
Without simplification, achieving defence readiness will be impossible.
Defence readiness cannot be ramped up solely through aggregated demand or financial resources if traditional “red tape” from peacetime stifles industrial efforts.
We must remember that when the laws that currently govern industrial operations were made, war seemed unthinkable in Europe.
We no longer have that luxury. War is no longer unthinkable, and defence can no longer be an afterthought. Putin will not wait for us to organize our paperwork.
To prepare our laws for defence readiness, we have consulted with the defence industry, including many present today.
President Ursula von der Leyen and I have engaged in dialogues with you. Member States and industry provided around 200 responses to our public consultation. Eleven Member States submitted a joint letter.
Each time, the message was clear: red alert against red tape. Bureaucracy must not hinder our defence, at both the EU and national levels. Companies reported delays of up to two years in receiving funds from the European Defence Fund and banks refusing to finance defence production due to its “controversial” nature.
Next week, we will unveil our defence simplification omnibus—a proposal for an EU rulebook suited for defence readiness.
We will simplify defence-specific legislation, including the directive on defence procurement and the directive on intra-EU transfers of defence products.
We intend to grant more flexibility to Member States in common procurements, enhance framework agreements, and facilitate innovation procurement.
We will also streamline access to the European Defence Fund.
It is vital to examine other EU regulations affecting defence readiness, such as faster permitting processes and simpler reporting obligations.
We will also review competition rules and sustainable finance.
We will maintain a balance between the original purpose of these regulations and the current needs for defence readiness.
On Military Mobility
As we address the “material” aspects of our readiness and the need for simplification, we will propose an initiative on military mobility later this year.
We cannot move tanks or artillery to defend our borders if infrastructure like bridges or roads cannot support them, or if tunnels are too small.
Additionally, physical obstacles are not the only challenge. Tanks encounter paperwork at national and regional borders.
We have free movement of people, but not of military equipment.
We need a military Schengen to swiftly relocate troops and tanks to where they are needed.
On Financial Resources
Thus, we are advancing in “material” implementation, but much remains to be done.
On Our Common Tasks
First, there is an urgent need for greater cooperation, consolidation, specialization, and standardization across industries and their products. I know many of you are moving in this direction.
Second, strong political will from national governments is essential to increase defence spending, invest in joint development and procurement, and ensure European collaboration.
This is not about protectionism; industry is a crucial defence resource. Industries must collaborate with national governments to overcome fragmentation.
The EU is prepared to mobilize the EU budget further to support cooperation between industries and Member States throughout the capability development lifecycle.
We must ensure our Armed Forces possess the necessary capabilities to protect Europe and have a competitive industry to sustain them.
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That summarizes our implementation focus on the “material” side of defence.
However, much more is required for our defence readiness.
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On Institutional and Political Defence Readiness
Ukraine and Our Defence Readiness
Most importantly, we must support Ukraine and learn from its experience—not just in combat but in building an innovative defence industry.
Today, Europe’s defence line runs through Ukraine.
It is perplexing that while we are willing to invest 3.5% of our GDP or more in our defence, our annual military assistance to Ukraines defence is less than 0.1% of our GDP.
I hope Member States will leverage SAFE loans to achieve a breakthrough in supporting Ukraine.
We can learn from Ukraines successes in self-defence, not only in modern warfare but also in establishing a contemporary defence industry.
That’s why we created the EU-Ukraine Task Force on Defence Industrial Cooperation with key tasks:
Now is the time to make this cooperation practical and “material”:
On the Ukrainian Government’s proposal, we are working to establish a joint program called “BRAVE EU.”
This initiative would create opportunities for European and Ukrainian defence start-ups and mid-caps to collaborate in integrating Ukraines innovative defence technologies and methods into European defence practices.
During my visit to Kyiv in early May, I repeatedly heard that the Dutch defence industry is actively engaging with Ukrainian defence start-ups and mid-caps.
It appears that the Dutch are very prudent, as the future of defence and defence industry issues in Europe lies with Ukraine. I am confident that other Europeans will be inspired by the Dutch example.
On New European Security Architecture
In addition to addressing material aspects of our defence, we must seriously consider the institutional arrangements of our defence on the European continent.
NATO will remain the backbone of our collective defence.
However, as Americans prepare to withdraw from Europe and Russians gain strength, we must discuss:
We must understand from the outset that Ukraine, with its battle-tested army and innovative defence industry, will be a crucial component of this new European security architecture.
This implies that we need Ukraines integration into the EU as much as Ukraine needs this integration—perhaps even more.
Strengthening our defence is essential for deterrence and peace.
The same applies to our relationship with the United Kingdom.
The US withdrawal should compel Europeans toward greater unity.
Moreover, the British possess remarkable battlefield skills and defence innovation that could significantly enhance the European Defence Union.
Conclusions
I began by stating that while the European Union is not at war, we live in war-like times.
We still have the power to avert war by building our defence readiness, establishing a robust defence industry, creating a new European security architecture, and forming a European Defence Union. By investing in European independence and Pax Europaea!
Together, we can deter aggression, prevent war, and maintain peace.
