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UNITED KINGDOM AND NATO
14 Mar 25. £2bn boost for defence sector to unlock orders from allies. Further support for the defence industry is being set out by the Chancellor with billions of pounds unlocked for UK defence companies that export overseas.
- UK defence exporters to benefit from £2bn increase to UK Export Finance lending capacity, boosting growth and securing jobs in a priority sector.
- Pipeline of UK orders for UK exporters unblocked, bolstering the supply chain and increasing our competitiveness in defence industry.
- Demonstrates the UK’s commitment to bolstering the defence industry, vital to UK national security – the first duty of any government – and growth; both central to the Plan for Change.
Further support for the defence industry is being set out by the Chancellor today which will see billions of pounds unlocked for UK defence companies that export overseas, driving economic growth and creating jobs across the UK. On a visit to Scotland Rachel Reeves will announce a £2bn increase to UK Export Finance’s Direct Lending capacity for defence, which will unlock further opportunities for UK defence exports such as missiles, aircraft and armoured vehicles overseas. The uplift, which will increase UKEF’s lending capacity from £8bn to £10bn, will increase the competitiveness of this country’s defence industry, allowing UK exporters to grow their business through sales to our allies around the world, and bolstering supply chains. UKEF’s Direct Lending facility provides loans to other governments to buy goods and services from the UK. In 2023/24, UKEF issued £8.8 billion worth of loans, guarantees and insurance to help grow UK exports, supporting 650 exporters of all sizes and 41,000 jobs across the UK. This builds on UKEF’s strong record of support for the defence sector, which has recently included an £8.8bn guarantee for exports of air defence systems to Poland, support for the export of Typhoon aircraft to Qatar and support for the sale of ex-Royal Navy minehunting vessels to the Ukrainian Navy. Today’s news follows the recent £1.6bn commitment announced by the Prime Minister to supply thousands of advanced air defence missiles to Ukraine, boosting the UK economy and support 700 existing jobs at Thales in Belfast. This uplift will drive tangible increases in financial support for UK defence exporters by increasing the funding available for overseas buyers of UK defence goods and services, and is a central pillar of the government’s upcoming Defence Industrial Strategy. As set out in the Plan for Change, national security is the first duty of the government. In recent years, the world has been reshaped by global instability, including Russian aggression in Ukraine, increasing threats from malign actors, rapid technological change, and the accelerating impacts of climate change.
Today’s announcement is part of how the UK is stepping up to meet this generational challenge.
Chancellor of the Exchequer Rachel Reeves said: “The world is changing, and we must bring about a new era of security and renewal that protects working people and keeps our country safe. This increase to UKEF’s lending capability is our Industrial Strategy in action, bolstering our defence industry and supply chains, creating jobs and driving growth across the UK. This is alongside an increase in our defence spending to 2.5% of GDP. We are strengthening our national defence, kickstarting economic growth and delivering the stability we need to keep us safe.
Business Secretary Jonathan Reynolds said: “A strong defence sector is vital for a Britain that’s both secure at home and strong abroad, and ensures a world where business can benefit from the economic security it brings. That’s why our Plan for Change has put defence at the heart of our Industrial Strategy, helping us drive growth while bolstering our national security for the long term. This new UKEF lending capability strengthens our support for the sector even further, and will help our defence firms export the best of British expertise abroad while boosting jobs and growth at home.”
Defence Secretary, John Healey, said: “A strong UK defence industrial base is essential for our national security, enabling us to rearm and innovate at a wartime pace. British businesses will directly benefit from this increase in lending capacity alongside our historic decision to raise defence spending to 2.5% of GDP – the largest uplift since the end of the Cold War. This will make our country more secure and ensure the defence sector is an engine for growth in every region and nation of the UK.”
Scottish Secretary Ian Murray said: “We are entering a new era for our national defence and Scotland’s world class defence industry is playing a big role in meeting that global security challenge. Scottish defence businesses – with their skills, expertise and innovation – have a huge opportunity to benefit from this £2bn in new lending. That will mean a boost in skilled jobs and economic growth in Scotland and show the best of our world class industry abroad.”
Whilst in Scotland the Chancellor will visit a defence company, following the government’s commitment to increase spending on defence to 2.5% of GDP from April 2027, in recognition that the UK faces a period of profound change, with conflicts overseas undermining security and prosperity at home. This is alongside an ambition to spend 3% of GDP on defence in the next parliament, as economic and fiscal conditions allow, in order to keep the British people safe and secure for generations to come.
Scotland is a hub for the UK defence industry, home to companies such as Babcock and BAE Systems, and critical operations in Scotland have benefitted historically from UKEF support through guarantees for their international exports to global markets. UKEF have previously supported Babcock with a £192m loan guarantee to finance the sale of two mine counter measure vessels to the Government of Ukraine.
Scotland’s defence sector received £2.14bn in UK Government spending in 2023/24, equating to about £390 per person, supporting approximately 25,600 jobs.
Chris Allam, Managing Director for MBDA UK, said: “UK Export Finance lending has and will continue to be a vital tool for Government and the defence industry. Increasing its capacity will enable MBDA, as the UK’s sovereign complex weapons provider, to secure more opportunities to deliver strategic capabilities to the UK’s key allies. It strengthens relationships with partners and makes the UK competitive in a global marketplace.” (Source: https://www.gov.uk/)
13 Mar 25. New British nuclear missile submarine on track for 2030s. The UK’s Dreadnought-class submarine programme remains on track, with the Ministry of Defence confirming that the manufacture of four new ballistic missile submarines is progressing within the original cost estimate of £41bn. Responding to a parliamentary question from Ben Obese-Jecty MP (Conservative, Huntingdon) on the current status of the programme, Defence Minister Maria Eagle stated:
“The programme remains on track to manufacture four Dreadnought Class submarines within the original cost estimate of £41bn, consisting of £31bn and a contingency of £10bn.”
The first of the new submarines, HMS Dreadnought, is scheduled to enter service in the early 2030s, replacing the current Vanguard-class submarines as part of the UK’s continuous at-sea nuclear deterrent. The Dreadnought programme represents one of the largest defence projects in British history, ensuring the Royal Navy maintains its nuclear deterrent capability for decades to come. The Dreadnought-class submarines are designed for an extended service life of 35 to 40 years, representing an increase of approximately 50% over the Vanguard-class they replace. Each submarine will operate with a crew of 130, including three chefs and a doctor, and will feature separate female quarters, a gym, a classroom, and a lighting system that simulates the time of day to support crew wellbeing during long deployments. They will be powered by Rolls-Royce’s PWR3 (Pressurised Water Reactor 3), a more advanced and efficient nuclear reactor than the PWR2 used on previous classes. The PWR3 was selected over its predecessors due to its simpler operation, extended lifespan, and reduced maintenance costs, with 30% fewer components, contributing to improved reliability and cost-effectiveness. To enhance stealth and manoeuvrability, the Dreadnought-class will introduce X-rudders—a first for British submarines—which will help reduce noise, particularly at high speeds, in conjunction with a pumpjet propulsion system. Unlike the Vanguard-class, movement control will employ a fly-by-wire system using BAE Systems’ Active Vehicle Control Management (AVCM), improving handling and automation. The submarines will also be equipped with Thales’ Sonar 2076, one of the world’s most advanced sonar systems. The missile compartments will feature four missile tubes each (quad packs), for a total of twelve missile tubes, shared with the American Columbia-class submarines as part of the Common Missile Compartment (CMC) scheme. Designed with five deck levels, the Dreadnought-class will provide a more modern, efficient, and survivable platform for the UK’s continuous at-sea deterrent well into the latter half of the 21st century. (Source: News Now/https://ukdefencejournal.org.uk/)
13 Mar 25. GCAP production expected for 350 fighters: how many will the UK get? New industrial partners could be sought in order to “accelerate” the sixth-generation GCAP fighter programme. The tri-national Global Combat Air Platform (GCAP) programme, intended to deliver a next-generation fighter to the air forces of the UK, Italy, and Japan, is looking at a production order of 350 units by 2035.
Formed through a merging of the UK-led Tempest and Japan’s F-X programmes, GCAP will produce a sixth-generation fighter with industries from the three partner nations collaborating on design and manufacture.
Leading their respective national contributions are BAE Systems (UK), Mitsubishi (Japan), and Leonardo (Italy). Across European partners the UK and Italy, the GCAP fighter will replace the fourth-generation Eurofighter multirole combat aircraft in service.
In 2022 it was revealed that the UK had already begun work on a technology demonstrator aircraft under its national Future Combat Aircraft System programme, with a first flight test due by 2027.
Cited in Italian aerospace and defence prime Leonardo’s Industrial Plan, published on 11 March, it was revealed that there was the possibility in bringing new partners onboard to “accelerate development” of the GCAP programme.
“To date, the programme is based on investments amounting to €40bn ($43.4bn) by 2035. A total of 350 platform orders for the entire joint venture are expected by 2035,” Leonardo stated.
How many GCAP fighters will each nation operate?
With the UK due to axe its 30 older Tranche 1 Eurofighters by 2027, and no decision taken on any additional orders, a UK requirement could be for around 107 aircraft, or the same number of later variant Typhoons operated by the RAF (67 x Tranche 2 and 40 x Tranche 3).
Italy has around 93 Eurofighters in service, ordering 24 of the latest Tranche 3 models in 2024 to replace older aircraft due to leave service.
Japan meanwhile operates approximately 90 Mitsubishi F-2 fighters, which are due to be placed by the GCAP in the 2035 timeframe.
Combining all three current fleets of Italian and UK Eurofighters, together with planned replacements, there exists a minimum requirement for around 290 fourth generation fighters to be replaced by the GCAP platform.
It is not known where the additional 60 GCAP aircraft will be distributed. It could be the case that each partner nation will acquire slightly more GCAP fighters to replace their respective national fourth generation aircraft, to around 110-120 airframes each.
The UK has listed the FCAS programme as ‘red’ in its latest report into key defence programmes, indicating that on current trajectory it is unlikely to deliver in the stated timeframe. (Source: naval-technology.com)
13 Mar 25. UK Government announces major support for small and medium enterprises (SMEs) following historic commitment to increase spending on defence.
Scottish Secretary met JFD Global management and staff and hear about their work developing and supplying cutting edge submersible technology to the Royal Navy. Mr Murray’s visit to the Renfrew company was linked to an announcement that thousands of small businesses in the UK will receive new government support to ensure they benefit from the historic decision to increase defence spending to 2.5% of GDP. This investment will protect UK citizens from threats at home, but also create a secure and stable environment in which businesses can thrive, supporting the Government’s number one mission to deliver economic growth.
Scottish Secretary Ian Murray said: “It was a real pleasure to visit JFD in Renfrew, and to meet the team working on some of the most high tech defence technology we have. Scotland’s defence sector is amongst the best in the world. Helping to protect our own military personnel and those of our allies – while contributing to economic growth and good jobs in Scotland. The Prime Minister has been clear – we must up our game on defence. Scotland’s world class defence industry will play a big role in meeting that challenge. This new UK Government support for small and medium enterprises follows our commitment to significantly increase spending on defence to protect our own and European security. The consequence is a huge boost for Scottish businesses, workers and the economy.”
Driving economic growth and ensuring our national security are UK Government priorities. The skills, expertise and innovation in Scotland’s defence industry will play an increasingly crucial role in delivering our Plan for Change, and keeping our country safe. As well as being home to thousands of military personnel and major bases, defence is a key driver for renewal in Scotland, with the Ministry of Defence spending £2.14bn a year here – including £32m with SMEs – directly supporting more than 11,000 jobs. Following the launch of the MoD’s Defence Industrial Strategy consultation, we have been ramping up engagement with industry, working in partnership to tackle shared challenges and identify opportunities to innovate. I am very proud of Scotland’s defence sector, and we will always stand up for the industry, its workforce, and the vital role it plays at home and abroad. Our new Brand Scotland campaign is building on that success and helping the sector export its world class technology around the world. The government announced its plans to launch a new hub to provide small and medium enterprises (SMEs) with better access to the defence supply chain and committed to set direct SME spending targets for the Ministry of Defence by June this year. This is a chance for small, often family-owned, firms to bring their innovations, their agility and their expert workforce to the task of strengthening Britain’s defences. It will help create new jobs, boosting the economy of small towns and suburbs in the UK. It follows the Government’s historic uplift in defence spending to 2.5% of GDP by April 2027, with a commitment to hit 3% in the next Parliament. This investment in defence will deliver the stability that underpins economic growth, and will unlock prosperity through new jobs, improving the lives of people in every corner of the UK. The new hub and investment targets announced today will ensure this increased spending directly benefits SMEs as much as possible – supporting jobs, growth and innovation. This is a vote of confidence in the prospects of up to 12,000 SMEs, supporting them to raise finance and train workers with confidence. It marks further progress to deliver the government’s Plan for Change, putting more money in people’s pockets and rebuilding Britain. The move is designed to boost the resilience of the UK’s defence industrial base and to seize the full power of rapid technological change as part of the Government’s forthcoming Defence Industrial Strategy. Nearly 70% of defence spending goes to businesses outside London and the South East, bolstering local economies from Scotland to the North West. However, only 4% of this spending went to SMEs in 2023-2024, which is why the Government is stepping up to provide more support to SMEs and help them get their foot in the door in the defence supply chain.
Prime Minister Keir Starmer said: “The UK’s defence industry is a source of national pride. It supports hundreds of thousands of good jobs up and down the country and represents British manufacturing at its best.
Increasing our investment in defence is not only bolstering our national security, it is an opportunity to put more money into working people’s pockets and boost economic growth. By helping smaller businesses to access this money, we’re making communities across the UK better off and opening up more opportunities to train for good, skilled, productive jobs.”
Defence Secretary John Healey MP said: “This Government’s historic increase in defence spending to 2.5% of GDP by April 2027 will boost national security and make defence an engine for economic growth throughout the UK. For too long small businesses felt locked out of defence, but we’ve listened and we’re acting. Today’s announcement will ensure that smaller firms benefit from increased defence spending, attracting new suppliers and fast-tracking the technologies of the future into the hands of our Armed Forces. This a new era for defence and we will ensure it plays the fullest part in our national economic growth.”
The new Hub will work with suppliers across the nations and regions of the UK to ensure that it fully meets their needs. This will strengthen defence procurement through increased choice and faster access to innovation. It will keep the UK at the forefront of defence technology, improving the capabilities available to our Armed Forces, the competitiveness of UK industry and growing potential exports benefits. Defence is an engine for jobs and growth in every nation and region of the UK. In 2023-24, defence spending by the Government supported over 430,000 jobs across the UK, the equivalent to one in every 60. In the same year, the Ministry of Defence spent a total of £28.8bn with UK industry, with spending in the East Midlands increasing by 30%, equivalent to £328 m, on the previous year. Northern Ireland also saw a rise of 20%, with other increases in Yorkshire and the Humber and the North West, up 19% and 18% respectively. With increased support for SMEs and the upcoming Defence Industrial Strategy, the Government plans to increase this further. (Source: https://www.gov.uk/)
12 Mar 25. Small businesses set to see a boost in exports and growth with new expert panel. As part of the Government’s plan to support small businesses and boost global exports a new Board of Trade has been unveiled today.
- Revamped Board will use their expertise to help drive growth and boost exports
- New Call for Evidence to study SMEs support via access to finance
- SME summit brings together small firms, trade bodies and government to inform SME strategy
As part of the Government’s plan to support small businesses and boost global exports a new Board of Trade has been unveiled today.
The new look Board, announced by the Business and Trade Secretary, will be charged with helping businesses, including the country’s 5.5m SMEs, to boost their exports and help super-charge growth for the economy as part of the Plan for Change. Made up of a range of CEOs and business leaders, each member has been handpicked due to their expertise and knowledge in their respective fields. The new Board members include Apprentice star and entrepreneur Mike Soutar, BT CEO Allison Kirkby, and Michelle Ovens CBE, the Founder of Small Business Britain. These advisors will be advocates and ambassadors for their sector, supporting businesses, especially SMEs, so they can trade more and grow.
Business and Trade Secretary Jonathan Reynolds said: “Small businesses are the driving force of our economy, both at a local and national level, which is why, as part of our Plan for Change we’re determined to ensure that all SMEs have the tools at their disposal to thrive. The new Board of Trade will be another tool in our arsenal to get more businesses trading around the world and taking advantage of our fantastic FTAs. This won’t be a chin-stroking talking shop, because I’ll be urging them to boost exports and get more SMEs trading across all their sectors. Because we know that when more small firms export, it leads to more jobs and higher wages and grows the economy. ”
The announcement comes in the backdrop of a flagship policy event at Wilton Park which is bringing together government, trade bodies, small businesses and other experts to help inform the government’s wider Small Business Strategy that will be published later this year. A key part of the Government’s growth mission and Plan for Change, the three-day summit is aimed at tackling the everyday issues SMEs face to help them to scale up, grow and thrive. The event will be attended by SME representatives and Export Champions like Exeat’s Laura Ward MBE, Creative Nature’s Julianne Ponan MBE and Burren Balsamics’s Bob McDonald. In addition to this, business groups, local government officials, representatives from regional Growth Hubs and experts from the world of finance will attend to offer their key insights to the event. This means that small businesses, who help grow the economy, will have a real seat at the table to generate the policies that matter most to them. Discussions will include ways to encourage entrepreneurship and speed up adoption of new digital technologies amongst SMEs, how to build a business support service that promotes growth and productivity, ways to better access finance and how to boost the number of SMEs that export overseas. A key issue faced by small firms is access to finance, who often rely on finance to help them start up, expand and grow. That’s why a major Call for Evidence is being launched today to gather information on the issue. It will look specifically at the current demand for finance, measures the private sector can implement to boost funding, as well as the barriers to growth for hard-to-reach groups including those with disabilities and ethnic minorities.
Small Business Minister Gareth Thomas said: “For small businesses, getting off the ground is one of the hardest parts of scaling up, and central to that is the ability to access finance. That’s why this Call for Evidence will be important to allow us to see what more needs to be done to support SMEs so they can go for growth.”
Simon Groom, CEO of MagnifyB said: “We are delighted to see the Government addressing the critical issue of SME finance. At MagnifyB, we know firsthand the urgent need for change and understand how SMEs can unlock their data in everyday apps, like QuickBooks, to boost productivity, improve cashflow and expand access to finance. We look forward to working with the Government to help ensure these insights help widen access to the traditionally underfunded.”
Today’s announcement is the latest in a series of measures to boost the number of high-growth SMEs across the country. The Government has already announced that it will launch a major consultation to tackle the scourge of late payments, while the Budget protected a m small firms from National Insurance increases, extended business rates relief and announced a new Business Growth Service to make it easier and quicker for SMEs to access and benefit from the right government advice and support for their business. The event, sponsored by Goldman Sachs 10,000 Small Businesses and Intuit, will be hosted by Wilton Park, a historic policy convener that has been key to developing the UK’s foreign policies for several decades. It has hosted world leaders and has been central to developing work around a wide range of policies across government.
Michelle Ovens CBE, Board of Trade Adviser and Founder of Small Business Britain said: ”I am thrilled to be appointed Adviser to the Board of Trade and look forward to the honour of contributing to the Board’s work. In particular, I am excited at the opportunities small businesses have to export and expand, the great growth and ambition we can open up, and the impact this can have on the whole of the UK economy. Almost all businesses in the UK are small businesses, employing millions and creating and supporting communities. Work to support their growth supports us all.”
Mike Soutar, Board of Trade Adviser, portfolio director and entrepreneur said: ”I’m passionate about helping businesses – particularly fast-growth SMEs – to seize international opportunities. The UK has world-class talent, and turning that potential into globally competitive businesses requires the right networks.”
Laura Ward, Founder of EXEAT said: “The Department for Business and Trade has been instrumental in EXEAT’s journey as a global exporter. By providing us with a comprehensive international toolkit including essential training through the Export Academy, access to funding, and ongoing support from our International Trade Advisor, DBT has set us up for long-term international success and remains a key and valued partner in our global growth. ”
Dorian Payne, Managing Director at Castell Group, and 10,000 Small Businesses UK graduate said: ”As a business owner who has grown from zero, through the micro and small stages, to now leading a medium-sized company, I’ve seen firsthand the challenges SMEs face when trying to grow — whether it’s accessing finance, scaling operations, or breaking into new markets.”
SMEs are the backbone of our economy, and it’s vital we create the right environment for them to thrive. Discussions like those happening at Wilton Park are essential to breaking down barriers to growth and ensuring SMEs have the support they need to succeed.
The new board advisers are:
- Omar Ali
- Mike Hawes OBE
- Dame Vivian Hunt DBE
- Allison Kirkby
- Paul Lindley OBE
- Catherine McGuinness CBE
- Michelle Ovens CBE
- Mike Soutar
- Sarah Walker
- Dr Charles Woodburn CBE
(Source: https://www.gov.uk/)
EUROPE
11 Mar 25. F-35 partners fully committed to program, Dutch defense minister says. The partner countries involved in the Lockheed Martin F-35 remain fully committed to the fighter jet, and there’s no sign the United States is changing course on the Joint Strike Fighter program, Dutch Minister of Defence Ruben Brekelmans said.
“It’s in the interest of all of us to make sure that the F-35 program remains operational, that it remains as successful as it is right now, and I don’t see any signs of the United States backtracking,” Brekelmans said in a press briefing at the Paris Defence and Strategy Forum on Tuesday, in response to a question citing concerns the U.S. could remotely ground aircraft operated by allies.
“So, I don’t think we should speculate on this,” he added.
Some European researchers and lawmakers expressed concern in recent weeks that America might block allies from using their F-35s, as U.S. President Donald Trump appears to increasingly align with Russia and has threatened to annex Canada and Greenland, an autonomous territory of Denmark. European F-35 operators collaborate with the U.S. to prepare the mission data files critical to operating the jet, and many rely on a U.S.-hosted cloud-based software system for maintenance and updates. The Netherlands as of September had received 40 F-35s out of 52 ordered. That same month, the Dutch announced plans to buy another six of the jets and officially retired their fleet of F-16s. Brekelmans pointed out that the F-35 program relies on parts from partner countries, echoing an argument made by Belgian Minister of Defence Theo Francken in a television interview Monday. Francken dismissed comments about a hypothetical F-35 “kill switch” as “scaremongering stories,” also saying that if the U.S. would stop supplying parts, that would “immediately completely shut down” the business of the entire U.S. defense industry in Europe. The U.S. is the “biggest partner, and we need to have them on board in order to have a successful F-35 program, but other countries also play a key role,” Brekelmans said, noting the stealth jet has some “essential parts that only we produce.”
“In the end, it is good also for the strength of the United States and for NATO and all of us that we have the most modern air force in the world,” the Dutch minister said. “That means we should all be fully committed. And so far, that’s what I also see from the partners in the F-35 program.”
Lockheed Martin said in a statement last week that the company delivers “all system infrastructure and data required for all F-35 customers to sustain the aircraft.”
The F-35 capabilities against Russian air defenses cannot currently be replaced or replicated with other platforms, Justin Bronk, senior research fellow for air power at the U.K.’s Royal United Services Institute, wrote in a social media post on Monday.
“On the F-35 fears, I get it — there is real dependency,” Bronk said. He added, however, that if countries rely on the U.S. for targeting capacity — beyond line-of-sight communications, ISR and munitions to fight a war — then dependency on the U.S. for mission data files and software “isn’t your main problem.”
Norway earlier this month received three more F-35 aircraft, bringing its fleet to 49 jets out of 52 the country has ordered. Denmark has received 17 fighters out of 27 ordered. Belgium has been less advanced in building up its fleet, receiving its first F-35 in December, with a total of 34 on order. Poland, meanwhile, started training on its first F-35s in February. The Netherlands continues to see the U.S. as a reliable NATO ally, but the Americans expect European countries to step up and “do much more” on defense, according to Brekelmans.
”They do not expect burden sharing, they do expect burden shifting,” Brekelmans said. “We should take that message seriously, but we should not speculate on any further steps that the United States is taking because we simply cannot guarantee our security without the U.S. at this moment. That is the reality that we have to work with.”
Brekelmans added that the Netherlands is prepared to “seriously talk” about sending troops to Ukraine to safeguard any peace agreement with Russia. The minister said he doesn’t believe a U.S. backstop is off the table, even if there will be no American boots on the ground.
“There are also other ways in which you can provide a backstop,” Brekelmans said. “And it’s not only nuclear. In this escalation ladder, there are many steps in between, and we need to make sure that we create those steps.”
Any mission in Ukraine would need to be clearly defined and have “robust military capabilities” to realize the defined goal, Brekelmans added.
The Dutch minister said “it’s very good” that French President Emmanuel Macron last week floated the idea of expanding the French nuclear deterrent to European allies. With China investing in nuclear capabilities and Russia issuing nuclear threats, “we also need to have this conversation,” he said.
“These conversations are very much in early phases and exchange of statements and ideas,” Brekelmans added. “It’s not [like] right now … with ministers of defense, that we have sessions about nuclear capabilities or something.”
As part of this year’s bigger budget discussion, the Dutch government will assess whether to raise defense spending above 2% of its GDP, according to Brekelmans. An additional percentage point would mean an additional €10 bn to €12 bn of spending, which “for the Netherlands is a serious amount of money.”
The biggest capacity shortages for the Netherlands are in the land forces, and while the Dutch government is planning to buy tanks, “the number we invest is relatively low,” Brekelmans said. “We need to make sure that our land forces become bigger and stronger, with more heavy equipment and heavier weapon systems.”
The war in Ukraine has shown that Dutch Army battalions and brigades need to be able to keep up the fight longer than three months, which means investing in enablers such as supply chain, logistics and medical equipment will be a priority, the minister said. Air defense will be another focus.
“We need to make sure we have more air defense systems, more missiles, more of everything.” (Source: Defense News Early Bird/Defense News)
USA
11 Mar 25. South Korea Offers Canada Its Weapons Instead of American Ones. South Korea has dispatched a delegation to Canada, positioning itself as a trusted and dependable military hardware and equipment supplier.
The Ottawa Citizen reported on this.
South Korea is offering Canada a range of new military equipment deals, demonstrating its ability to deliver advanced defense systems swiftly and underscoring its position as a trusted and reliable ally. The push comes as recent actions by U.S. President Donald Trump, which include cutting Ukraine off of military supplies and threatening to annex Canada, have American allies around the world reconsidering their security arrangements. A delegation of a dozen South Korean defense industry and government officials visited Ottawa on March 5 and March 6 with proposals to provide the Canadian Forces with a variety of new equipment, including howitzers, training aircraft, rocket launchers, and submarines. The pitch included promises of significant benefits for Canadian industry as well as a secure supply chain.
Retired South Korean Admiral Steve Jeong, Vice President of Hanwha Ocean, said that the KSS-III submarine currently being produced by the company meets all of Canada’s requirements. At the same time, the first delivery can be made in six years after the contract is signed.
The company also offered submarines of this type to the Polish Navy in 2023.
Maintenance facilities would be established in Canada, and unlike with U.S. weapon systems, the South Koreans would provide Canada with total access to the onboard technology. In addition, Hanwha has already been signing alliances with Canadian firms for potential work on the proposal.
According to the media, South Korea has created its own powerful defense industry after facing rising prices and unreasonable demands for American-made equipment.
Self-propelled launcher K239 Chunmoo. Photo from open sources
“We had the same problems with the Americans. For our navy, everything depended on the Americans, but America kept raising the price. So we got upset (and) we developed on our own,” Jeong shared.
As previously reported, U.S. allies, including members of the Five Eyes alliance and other key partners, are considering scaling back intelligence sharing with Washington over concerns about a possible shift in U.S. policy toward Russia. (Source: News Now/https://mil.in.ua/en/news)
06 Mar 25. US DHS to launch environmental assessment of C-UAS nationwide operations. The US Department of Homeland Security (DHS) is due to publish on 7 March 2025 a proposed action for“a Programmatic Environmental Assessment for the Nationwide Operation of Counter-Unmanned Aircraft Systems.” The purpose of the Proposed Action is, according to the DHS, to support RDT&E of C-UAS technologies and to deploy C-UAS in operational settings to detect, identify, monitor, track, and mitigate (DIMT-M) (passively and actively) threats posed by UAS, including across the radio frequency spectrum.
“The Proposed Action is needed to enhance DHS’s ability to use C-UAS technologies, monitor emerging threats, protect DHS’s missions, and defend the Nation from UAS threats and malicious activity effectively and reliably,” said the proposed announcement. “The use of C-UAS would support existing and emerging mission requirements of the various Components within DHS and facilitate their services and strategies essential to the Nation’s security, safety, and emergency response.
“Within DHS, the use and application of C-UAS are actively being researched and tested to better understand C-UAS capabilities to support DIMT-M activities. DHS conducts C-UAS activities nationwide, with some recurring in certain locations based on testing and demonstration needs. : Additionally, authorized Components may use C-UAS technologies for operational use, trainings, and demonstrations nationwide, including along the southwest and northern borders. Under the Proposed Action, DHS and its Components would continue ongoing RDT&E activities, but on a nationwide scale. The Proposed Action also includes the nationwide use and operation of C-UAS, outside of a testing environment, to conduct training and operational activities, such as law enforcement and security. The Proposed Action includes all elements related to the training, operation, maintenance, and use of CUAS, including mitigation. This would allow DHS to continue its current testing of C3UAS while also enabling DHS and its Components to use C-UAS in an operational setting to support mission requirements.”
For more information: https://public-inspection.federalregister.gov/2025-03532.pdf (Source: www.unmannedairspace.info)
REST OF THE WORLD
13 Mar 25. BAE Systems is exploring opportunities to deepen collaboration with Japanese defence groups, including potential joint development of drones to fly alongside a next-generation fighter jet the two nations are building with Italy. Rob Merryweather, group technology director, revealed the steps by the UK’s largest defence supplier at a Tokyo media briefing this week. They come at a time when global security has been rocked by US President Donald Trump’s threats to weaken long-standing alliances. Merryweather highlighted the potential benefits of co-ordinating on the development of low-cost drones that would go alongside the multibn-dollar Global Combat Air Programme under development with Japan and Italy. “All of the nations who are engaged in GCAP have the same need for these autonomous collaborative programmes to work alongside that aircraft,” he said. “In terms of collaboration with Japan, I think we are at the early stages of conversations around that, but it is certainly an area where working with international partners is of interest to us.” Merryweather did not mention any potential involvement by Italy but added that balancing the drones’ capabilities with those of the fighter jet would be “critical” to GCAP’s affordability and success. Although the final cost of the combat aircraft has yet to be determined, the drones would cost about a tenth of GCAP, he said. The UK has so far committed just over £2bn towards the original programme. The work on GCAP is focused solely on the jet and does not include drones. While drones can be developed far more quickly than GCAP, the aspiration is for a fighter jet that will work seamlessly with drones and be fitted with advanced communication systems. (Source: FT.com)
12 Mar 25. Indian Air Force to fast track tenders: Sources. The planned induction of these 114 multirole fighter jets is going to help the Air Force maintain its squadron strength over the next 10 years along with the indigenous fighter jets.
In Short
- Induction crucial for maintaining 60 squadrons by 2047
- Jaguar, Mirage-2000, MiG-29 to retire in 10-12 years
- Rafale, Gripen, Eurofighter, and others in new tender
At a time when a high-level defence ministry committee has agreed with its demand for new multirole fighter jets, the Air Force is planning to begin induction of these planes in the next four to five years through a fast-tracked global tender, sources said on Tuesday.
The planned induction of these 114 multirole fighter jets is going to help the Air Force maintain its squadron strength over the next 10 years along with the indigenous fighter jets, including the different variants of the Light Combat Aircraft such as the Mark 1A and the Mark-2, they added. According to sources, the Air Force will be retiring 10 fighter aircraft squadrons by the year 2037. It is looking to achieve the number of 60 fighter aircraft squadrons by the year 2047 and feels that the induction of the MRFA jets in the next five to 10 years would be critical to achieve the numbers required to be able to be battle-ready in case of a two-front war. (Source: News Now/https://www.indiatoday.in/)
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Since 1946, Industrial Electronic Engineers, IEE, has specialized in the design, test, support and fielding of display products for use in demanding military and aerospace applications throughout the world. IEE has developed an extensive product portfolio that today includes enhanced flat panel displays, smart displays and handheld devices.
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