“Check against delivery”
Secretary-General, dear Mark,
Minister Brekelmans,
Thank you first of all for bringing us together here in the Hague.
Ministers,
Excellencies,
Ladies and Gentlemen,
Dear representatives of the defence industry,
I am grateful for this chance to discuss the future of Europe, which is being shaped not only on the frontlines in Ukraine but also in your factories. You have quickly adapted to a new reality, ramping up production amidst a full-scale war on European soil. Like your industry, Europe faces a shifting international landscape. The security framework we relied on for decades is now uncertain, marking a significant change. In recent months, Europe has taken unprecedented steps, including launching the ReArm Europe Plan, mobilizing EUR 650 billion for defence investments over the next four years. We established the SAFE financial instrument with EUR 150 billion in loans for joint defence procurement. Recently, we proposed a simplification omnibus to accelerate our defence investments and signed eight Defence and Security Partnerships globally, including one with Canada yesterday. The European defence sector is finally awakening.
Tomorrow, this Summit will set historic spending targets for NATO Allies. However, how we invest is just as crucial as how much we invest. Russias invasion of Ukraine has transformed warfare, consuming more hardware than any other conflict while highlighting the importance of software, jamming systems, and AI. As we replenish our stocks, we must modernize our legacy systems to meet new technological demands, which is vital for credible deterrence. The EU plays a key role in this; while NATO sets standards for Allies, our Union can connect various industries, bridging civilian and military efforts, and linking NATO with non-NATO countries.
I will share three examples where our Unions contribution is vital. First, we can bridge the gap between major contractors and start-ups. The war in Ukraine has illustrated the importance of this connection. Tech start-ups can provide innovative solutions to battlefield challenges, which is why weve established a Defence Innovation Office in Kyiv to learn from Ukraines experience. Investment in European defence tech start-ups has surged by over 500% since the war began, yet funding remains scarce in the critical scale-up phase. We must enhance support for our start-ups to grow, identifying potential unicorns and directing capital towards them from both public and private sectors. Europe is home to many innovators who should find the resources they need to thrive here.
Second, we need to strengthen the link between civilian and military sectors. Many essential components of 21st-century defence are dual-use: chips, cloud services, software, satellites, and AI. Our defence industry must have seamless access to these advanced technologies. Currently, dual-use projects often cannot operate on civilian platforms, but we will change this. We will allow access to our new AI Gigafactories for dual-use projects, given their immense computational power, and the same applies to our European Innovation Council Fund for start-ups. We aim to foster synergy across the board, better connecting our tech industry with our defence industrial base.
Finally, we are asking the defence industry to deliver rapidly and at scale. However, we must create the right conditions for this. Through SAFE loans, we are incentivizing joint procurement and long-term contracts to provide the predictability you need for scaling production. SAFE is available not only to our Member States but also to future members like Ukraine and our Defence and Security Partners such as the UK, Japan, Norway, and South Korea. We also signed a Security and Defence Partnership with Canada yesterday and are clarifying rules for cross-border transfers of defence products and multinational collaborations. This collaborative approach is the key to accelerating and scaling up efforts with our trusted allies.
Ladies and Gentlemen,
Be aware that Russia will test our mutual defence commitments within the next five years. By 2030, Europe must possess everything required for credible deterrence, a goal we call Readiness 2030. Achieving this requires a new mindset from all of us. We must be prepared to step out of our comfort zones, exploring innovative approaches to integrate technology and defence, civilian and military, across Europe and beyond. Together, we can deter any threats to our safety, ensuring a stronger NATO and a safer Europe.
Thank you for this opportunity to engage with you, and long live Europe.