Europe’s historic rise in defence spending must also accelerate investment in homegrown artificial intelligence, quantum technologies, and other “disruptive” innovations that will shape the future of warfare, the EU’s technology and security commissioner Henna Virkkunen has said.
Amid Russia’s war on Ukraine and uncertainty over long-term US defense commitments, EU member states have significantly boosted their military budgets. Virkkunen argues that at least 10% of this spending should be directed toward next-generation technologies developed within Europe, to make the bloc more competitive and less dependent on foreign systems.
Europe Pushes for Strategic Technological Autonomy
“It’s very important for the European Union to be sure that our defence industry is competitive in the future,” Virkkunen told the Financial Times. She said the Commission wants member states to allocate a larger share of their defence budgets to emerging technologies that can deliver battlefield advantages over time.
A new defence industry “road map,” set to be unveiled this week, proposes:
- Updated procurement rules in 2025 to speed up the contracting process
- Greater access to contracts for small and innovative defence companies
- A stronger preference for European-made technologies and components
“We want to especially boost our European technologies,” Virkkunen said, emphasizing the growing security imperative of reducing reliance on non-EU suppliers.
Learning From Ukraine’s Rapid Tech Innovation
Ukraine’s wartime experience has become a major source of inspiration for Brussels. Under intense pressure, Ukrainian start-ups and small manufacturers have rapidly developed crucial systems — from drones to electronic warfare tools — that have transformed the battlefield.
The EU hopes to replicate this agility by linking deep-tech innovators with established defence contractors so that ideas move faster from lab to deployment.
Since the start of Russia’s full-scale invasion in 2022, more than 230 defence start-ups have emerged within the EU, and Brussels plans to help them scale through a new €1bn “fund of funds” backed by the European Investment Bank.
Finding capital remains one of the biggest obstacles for young defence tech companies, and the Commission believes this financial support will help Europe close the gap with the US and China.
Part of a Larger Push Toward “European AI Leadership”
The initiative dovetails with broader EU efforts to build an “AI continent” and reduce strategic dependence on foreign technologies, especially in the race to develop advanced robotics, autonomous systems, and large-scale AI models.
Brussels fears that Europe has fallen behind the US and China in key areas of artificial intelligence and wants defence spending to become a catalyst for catching up.
Not Everyone Convinced: Germany Calls for Balance
But some European officials urge caution.
Vice admiral Carsten Stawitzki, a senior figure in Germany’s procurement system, warned that Ukraine’s defence innovations should not be treated as a universal model for Europe.
Ukraine’s reliance on millions of drones, he said, reflects shortages in traditional high-end capabilities — not a blueprint for future Western military strategy.
While Stawitzki supports investing in new technologies, he stated that Germany’s immediate priorities include:
- Supporting the NATO nuclear deterrent
- Acquiring modern fighter aircraft
- Increasing long-range precision-strike capability
These are systems, he noted, that “our Ukrainian friends unfortunately don’t have.”
A Turning Point for Europe’s Defence Landscape
Europe’s rearmament drive has opened a rare opportunity for the bloc to develop its own defence technology ecosystem. The question facing policymakers now is how much of this surge in spending will go toward future-focused innovation rather than traditional weapons systems.
Virkkunen insists the moment must not be wasted: “We have to be sure our defence industry is competitive for the future.”
