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15 Mar 24. European members need to find an extra €56bn a year to meet the alliance’s defence spending target, but the shortfall has halved in the past decade, according to research by Germany’s Ifo Institute for the Financial Times. The research showed many of the EU countries with the biggest shortfalls in Nato’s target for defence spending to hit 2 per cent of gross domestic product — including Italy, Spain and Belgium — also have among the highest levels of debt and budget deficits in Europe. The push for the 32 members of the US-led alliance to boost defence spending in response to Russia’s full-scale invasion of Ukraine is stoking budgetary pressures in Europe at a time of low growth and when many countries are tightening their fiscal plans. Economists say this will make it harder for the laggards to bridge the gap. The biggest shortfall by value was in Germany, which last year spent €14bn less than needed to meet the benchmark, according to Ifo. But Berlin has halved this gap in the past decade, adjusted for inflation, and plans to close it completely this year. The next largest European shortfalls were €11bn in Spain, €10.8bn in Italy and €4.6bn in Belgium. The trio were among six EU countries with debt above 100 per cent of their GDP last year. Italy also had one of the bloc’s highest budget deficits at 7.2 per cent and its interest costs are set to rise above 9 per cent of government revenues this year. “Countries with high debt levels and high interest costs do not have much room to raise more debt, so the only real way to do it is to cut spending in other areas,” said Marcel Schlepper, an economist at Ifo. “This is not easy, as we saw when Germany tried to cut subsidies on agricultural diesel and the farmers came out in protest.” US state department spokesperson Matthew Miller this week acknowledged that there had been an “improvement” in EU efforts to get all Nato members to hit the 2 per cent threshold. Washington has long wanted Europe to spend more on its own defence. Last year, two-thirds of the total €1.2tn of Nato defence spending was by the US, more than double the €361bn spent by EU members, the UK and Norway combined. New EU fiscal rules applying from next year are set to usher in more budget cuts as countries seek to comply with a 3 per cent limit on annual deficits and a 60 per cent debt-to-GDP threshold. More than 10 countries in the bloc are expected to breach the annual deficit limit, which will probably result in sanctions by the European Commission. But during negotiations that ended last year, Poland, Baltic countries and Italy successfully campaigned to treat defence spending more favourably under the new rules. The commission will therefore regard military expenditure as a mitigating factor when assessing whether to take action against countries breaching the annual deficit limit. In cases such as Poland, which in 2024 is set to spend more than 4 per cent of its output on defence — the highest level among Nato members — and thus breach EU fiscal limits, this is likely to lead to a more lenient assessment of its budget.
(Source: FT.com)
15 Mar 24. France’s Naval Group wins $6bn Dutch submarine project. The Netherlands has picked France’s Naval Group to build four attack submarines in a project worth €5.65bn (U.S. $6.17bn), beating offers from Germany’s ThyssenKrupp Marine Systems and Sweden’s Saab Kockums in cooperation with Dutch shipbuilder Damen.
Naval Group will provide a conventionally powered version of its Barracuda submarine to replace the Royal Netherlands Navy’s four Walrus-class attack submarines, the first of which the service retired in October.
The French shipbuilder will be asked to deliver the first two vessels within 10 years after signing the contract, the Dutch Defence Ministry said in a statement Friday.
The contract will include a “substantial role” for Dutch industry, which was a key requirement, Dutch State Secretary of Defence Christophe van der Maat said in a post on X, formerly known as Twitter.
The Netherlands has embarked on a spending spree to replace its major naval combatants, and in addition to the submarines it plans to start construction on more than 20 surface vessels in the next decade for an investment of more than €11 billion. For the submarine offer, the Dutch were seeking an expeditionary vessel that can operate in the country’s overseas territories.
“The vessels offer increased strike power and enhanced operational capabilities, and will therefore be deployable worldwide for various types of missions,” Chief of Defence of the Netherlands Gen. Onno Eichelsheim said in a post on X.
The delivery contract will be signed after the tender assessment undergoes debate in parliament. The government has faced criticism for the potential choice of Naval Group, with some lawmakers saying the company would favor French jobs over the Dutch naval construction industry.
The choice of Naval Group will provide the Netherlands with ocean-going submarines “of the highest global standards,” the French government said in a statement following the Dutch announcement. It said a French-Dutch partnership will accompany the program over the long term and help strengthen bilateral defense cooperation.
The Netherlands had requested proposals from the three candidate yards in November 2022 for four long-range, conventionally powered submarines. The investment budget to replace the country’s submarine capacity is €5.65bn through 2039, which includes a delta for exploitation and project risk reserve, the Defence Ministry wrote in a report to parliament.
France operates a nuclear-powered version of the Barracuda class, and in 2020 the country estimated the cost of the program to build and operate six submarines in the class at €10.4bn, up from €8.6bn in 2010. Naval Group in July last year launched the Tourville, the third vessel of six planned for the French Navy.
The Dutch naval force this month announced plans to order four new air defense frigates for more than €3.5bn from Damen and Thales. The Defence Ministry also intends to buy six amphibious transport vessels at a cost of €1 billion to €2.5bn to replace two landing platform docks and four ocean-going patrol vessels, working with Damen on the project.
Dutch defense forces have a constitutional obligation to protect the kingdom, including its faraway Caribbean territories, meaning the country requires its submarines to have long ranges and be logistically independent. The existing Walrus class can operate in relatively shallow and narrow waterways compared to nuclear subs, and it fulfills an “internationally appreciated niche capacity,” the ministry wrote in a March 2023 report to parliament.
“Similar to their predecessors, the new boats will be relatively small, which will allow them to also operate in shallow waters,” the ministry said. “Nevertheless, because they will be larger than submarines that are designed to remain close to home base, the new boats will be able to operate independently far from home for extended periods of time.”
That combination of size and reach is rare, and means the Royal Netherlands Navy’s submarines are “highly regarded” within NATO, the ministry said.
The four new submarines will represent a considerable improvement in design, and the ability to launch cruise missiles will “substantially” increase striking power, according to the ministry. The Netherlands plans to equip the new subs with RTX’s Tomahawk cruise missiles for a maritime strike capacity, something the Walrus class lacks.
The Dutch also studied the French MdCN naval cruise missile and considered the range insufficient compared to the Tomahawk’s more than 1,000 kilometers (621 miles). The ministry previously noted the Anglo-French Future Cruise/Anti-Ship Weapon is still in development and information is lacking, though it will continue to follow developments around the FC-ASW.
The new submarines will carry torpedoes, and they will be suitable for special forces operations. The vessels will be better suited for intelligence gathering due to improved sensors, while modern battery technology will give them greater energy capacity than the Walrus class, and therefore allow them to remain submerged for longer, according to the ministry.
The new vessels will be named Orka (Orca), Zwaardvis (Swordfish), Barracuda and Tijgerhaai (Tiger Shark), the Netherlands said.
The country is targeting delivery of the first sub in the third quarter of 2033, with the final vessel delivered in the third quarter of 2037. (Source: Defense News)
15 Mar 24. EU sprinkles $560m over defense firms to grow ammunition output. The European Union has named a host of local ammunition firms it will supply with more than half a billion euros, or almost $560m, in combined funding to help them beef up production in a bid to push the bloc’s annual output of shells to two million a year by the end of 2025.
Munition firms across the EU are in line for the funding to invest in their facilities to accelerate shell production to improve supply to Ukraine as it battles against Russia’s invasion.
Amid complaints from Kyiv that it cannot compete with Russia’s constant shelling, the EU admitted in January that it had fallen short on a pledge made last March to supply a million shells in a year.
Instead, member states would hand over just 524,000 shells, 52% of the promised batch, by March 2024, said EU foreign affairs chief Josep Borrell.
Those shells were coming courtesy of the first two phases of the EU’s so-called ASAP plan to use two billion euros to buy up existing European inventories and make new joint purchases from EU manufacturers.
Phase three of ASAP, announced on Friday, involves the €513m to help firms improve facilities, as well as co-finance investments with the private sector, which should take the total investment to €1.4bn, the European Commission said in a statement.
The 31 investment projects selected cover explosives, powder, shells, missiles, and testing and reconditioning certification, the Commission said, although it added that the production of explosives and powder will receive the lion’s share of the funding – €124m and €248m, respectively.
As bottlenecks in supply are eased, the Commission hopes to increase the annual production of explosives in the EU by over 4,300 tons and the production of powder by 10,000 tons.
Firms who applied for and received cash to boost explosives production included Greece’s Hellenic Defence Systems, Slovakia’s MSM Export, Norway’s Chemring Nobel, France’s Eurenco France, Sweden’s Eurenco Bofors and Hungary’s N7 Holding.
Among the 17 firms who applied for and received cash to boost powder production are Rheinmetall, Nexter, Nammo and Eurenco.
Deals for funding will be signed in May, the Commission said.
Overall, the member states involved in the scheme are Greece, Slovakia, Norway, France, Sweden, Germany, Italy, Hungary, Latvia, Finland, Spain, Romania, Belgium and Czechia.
A spokesman for the Aerospace, Security and Defence Industries Association of Europe (ASD), welcomed the deal but claimed the EU was bulking up the funding with money taken from the budget of the European Defense Fund – the EU body charged with funding defense technology in the bloc.
“ASAP has been an important step to support the much needed ramp-up of the European defense industry’s production capacity,” the spokesman said. But he added, “At the same time, we regret the limits and the sources of the financial envelope. Using €260m (from the) budget of the European Defence Fund to fund ASAP is particularly disappointing in this respect, as it undermines the long-term development of the European defense industry. Europe needs to address today’s urgent needs, including ammo production, without undermining research and development activities that ensure Europe’s technological edge in defense in the long run.” (Source: Defense News)
15 Mar 24. Johnny Mercer faces threat of jail over Afghan inquiry silence.
Veterans minister is refusing to name whistleblowers who raised concerns about special forces carrying out extrajudicial killings
Mr Mercer could be compelled to give information to the public inquiry, with failure to comply risking a fine or a jail sentence CREDIT: Geoff Pugh
Johnny Mercer faces the threat of prison for refusing to reveal the identities of special forces whistleblowers who raised concerns about the alleged executions of Afghans.
The Minister for Veterans’ Affairs is declining to cooperate with official requests from the inquiry into the unlawful killing of Afghans, The Telegraph understands. He has been asked to identify sources who had warned him about alleged atrocities committed by the SAS.
The soldiers are not suspects but witnesses who Mr Mercer believes are vulnerable and whom he wants to protect. He had given them assurances that they would remain confidential sources when they came to him with concerns about seven years ago.
But Sir Charles Haddon-Cave, the inquiry chairman, has warned Mr Mercer that his refusal to name sources is “completely unacceptable”. In a rebuke, the judge said Mr Mercer risked being “part of what is, in effect, an omertà, a wall of silence, and this wall of silence is obstructing the inquiry and access to the truth”.
Lord Justice Haddon-Cave told Mr Mercer during his appearance at the inquiry last month that he has “very significant powers under the Inquiries Act 2005” that he would use if necessary.
The ultimate sanction if Mr Mercer continues to defy the inquiry is imprisonment, with a maximum sentence of 51 weeks behind bars, or a fine.
Non-compliance also carries with it a criminal penalty that could put Mr Mercer in breach of the ministerial code, potentially forcing him out of office.
Stand-off
The stand-off between Mr Mercer and the inquiry piles further pressure on Rishi Sunak at a critical time. On Friday, James Heappey announced his resignation as Armed Forces minister while Grant Shapps, the Defence Secretary, is pushing for an increase to UK military spending, leaving the Prime Minister vulnerable to criticism over his handling of defence.
The Afghan inquiry has already cast a shadow over SAS operations in Afghanistan while claims of a cover-up of atrocities inside the Ministry of Defence are deeply concerning for the Conservative administration. Mr Mercer had told the inquiry that he believed the Army had “failed in their basic duty” to find out the truth of allegations of executions conducted by a special forces unit known as UKSF1.
Lord Justice Haddon-Cave, a Court of Appeal judge, is investigating allegations that special forces carried out extrajudicial killings in Afghanistan between 2010 and 2013. The inquiry was set up in December 2022 over initial claims that one SAS squadron had killed 54 Afghans in suspicious circumstances.
If the stand-off continues, Lord Justice Haddon-Cave has the power to serve Mr Mercer with a section 21 notice that gives the judge the authority to compel witnesses to provide information as requested to a public inquiry. If Mr Mercer fails to comply with the order, the inquiry judge can issue a fine or a jail sentence. Non-compliance would mean the minister was in contempt of the inquiry.
Mr Mercer, a former Army captain who served on three tours of Afghanistan, said in a 19-page written statement provided to the Afghan inquiry in November last year, that “serving officers” had informed him in 2017 that there were “serious allegations of incidents” regarding UK Special Forces “that made members of that community feel very uncomfortable”.
He said he was “also made aware” of a separate allegation by a member of the Special Forces that he had been asked to carry a “dropped weapon”.
Mr Mercer said in his written statement: “I understood this to mean that he had been asked to carry an extra weapon (one that could not be linked to Nato forces) to be dropped on the body of a person to make it appear as though they had been a legitimate target as a combatant. The request made him uncomfortable and he refused.”
But asked during oral evidence if he was able to provide the names of his “multiple sources” to the inquiry, Mr Mercer said: “Not at this stage, no.”
When asked why not by Oliver Glasgow KC, counsel to the inquiry, Mr Mercer replied: “This has been a prolonged saga for me over many years, and my faith in the system to interrogate these issues is not where it needs to be for that to happen.”
Mr Mercer said his sources were “not direct-hand witnesses”, adding: “They were not there.” He told the inquiry that he needed to maintain his “integrity” and that “the simple reality is at this stage that I’m not prepared to burn them”.
He said the inquiry was “already speaking to people” with “far closer knowledge” of what had taken place and that he was also fearful “of the repercussions that may fall on them [his sources]”.
Mr Mercer, who conducted a parliamentary investigation into the treatment of troops serving in Iraq and Afghanistan, told the inquiry that there was a “context around how investigators have destroyed people’s lives”, adding: “So when all is said and done and rank and privilege is stripped away, you know, you have your friends and your family and your own integrity, and that’s it, and I’m going to keep mine.”
‘Disappointing and surprising’
At the end of the second day of testimony, Lord Justice Haddon-Cave warned Mr Mercer of the consequences of refusing to co-operate, telling the minister: “The plain fact of the matter is that you have, at least for the moment, refused to answer legitimate questions by leading counsel at a public inquiry, and in particular, what are their names, what are the names of the people who have spoken to you about these matters.
“And I’m bound to say this is, frankly, very disappointing and surprising, particularly for someone in your position, and, I am bound to say, completely unacceptable. It gives rise to potentially serious legal consequences which may need to be put in train.”
Lord Justice Hadden-Cave added: “I have, I’m afraid, very significant powers under the Inquiries Act 2005, which I would prefer not to have to use. But you can be assured, Mr Mercer, that I will if necessary. My patience is not inexhaustible because I have a public inquiry to run and pursue as quickly as possible, in the public interest, and in the interest of all those who have had allegations made against them, or who have a dark cloud sitting over them, their families and their careers.”
The judge warned Mr Mercer: “You need to decide which side you are really on,” which was either to get “to the truth of these allegations quickly, for everyone’s sake; or being part of what is, in effect, an omertà, a wall of silence, and this wall of silence is obstructing the inquiry and access to the truth”.
He said Mr Mercer was staying silent out of what he called “a misguided understanding of the term integrity, and inappropriate sense of loyalty”.
Mr Mercer declined to comment when approached by The Telegraph this week.
Offer of closed hearing
It is unclear if the minister and the inquiry can reach a compromise. Lord Justice Haddon-Cave has told the minister he can offer him a closed hearing in which he could detail the names behind closed doors. He also reassured Mr Mercer that evidence can be taken in secret.
A friend of Mr Mercer said: “These sources are not people who are in any way suspects. They are vulnerable soldiers and veterans who for their own legitimate reasons didn’t want to engage with the inquiry, but Johnny was able to tell their story for them because they trusted him.
“This is not about him protecting wrongdoers. But Johnny has spent his entire political career protecting junior ranks, and he won’t change that.
“Mercer is the most senior member of the Government who has consistently said something stinks here and has called it out. He has highlighted the failure of the MoD to investigate this when it was first raised.
“He is uniquely a minister who also has special forces experience and that’s why he recognised this was not being investigated properly in the first place
“He is not covering up any wrongdoing. He is protecting second-hand witnesses who don’t want to engage with the inquiry because they are vulnerable. Johnny gave these soldiers his word they would not be identified. The inquiry should have used Johnny as a person who the military community trusts. Instead they’ve made it less likely for people to tell anyone anything.” (Source: Daily Telegraph)
14 Mar 24. Austin Underscores NATO Unity in Meeting With Latvia’s Defense Minister. Secretary of Defense Lloyd J. Austin III underscored the United States’ commitment to stand alongside its NATO allies against Russian aggression during a meeting with Latvian Defense Minister Andris Spruds today.
The secretary commended his counterpart for Latvia’s continued assistance in helping Ukraine defend against Russian President Vladimir Putin’s ongoing invasion of Ukraine and urged all allies to remain steadfast in their support.
“You’re here at a vital time for European security and global security,” Austin said as he welcomed Spruds to the Pentagon. “Two years ago, Putin launched his all-out invasion of Ukraine. He assumed Ukraine’s friends will give in, when instead we still stand strong against Putin’s aggression. And together, we’re helping Ukraine fight back against the Kremlin’s war of choice.”
“We must not let up,” he said.
The two leaders met following Tuesday’s announcement that the Defense Department would provide an additional round of military aid to Ukraine valued at up to $300m to support the country’s immediate air defense and antitank requirements.
The aid package, sourced through presidential drawdown authority, is the first to be approved this year. It was made possible after the Army negotiated a lower price for supplies already sent to Ukraine.
The latest round of U.S. assistance comes amid continued negotiations on Capitol Hill over President Joe Biden’s request to Congress to continue critical funding for military and humanitarian aid for Ukraine.
In a move that has yet to pass in the House, the Senate last month approved a supplemental funding measure that would include additional funds for Ukraine security assistance. In addition, it would provide urgent support for Israel following the Oct. 7 attack by Hamas terrorists and humanitarian support for Palestinian civilians in Gaza.
The measure would also provide additional resources for U.S. Central Command to deter attacks by Iranian-backed militia groups and protect vessels operating in the Red Sea from attacks by Houthi rebels. It would also provide critical funds needed to bolster U.S. deterrence in the Indo-Pacific.
Defense officials have continued to underscore the urgent national security imperative for approving the funding.
“We urgently need Congress to pass DOD supplemental requests,” said Pentagon Press Secretary Air Force Maj. Gen. Pat Ryder at Tuesday’s news briefing announcing the latest round of assistance.
Ryder said the PDA package, while providing urgent capabilities to Ukraine’s forces, is not nearly enough. “And the only way to meet Ukraine’s battlefield needs is for Congress to swiftly pass the supplemental,” he said.
During his meeting with Spruds, Austin noted that Latvia remains among the top European contributors of military assistance to Ukraine relative to the size of their economy.
“Latvia is donating more than 1% of its GDP to help Ukraine defend itself,” he said. “That just proves that countries of all sizes can make a big difference to all of our security.”
Austin also noted Latvia’s investments in its own defense capabilities, including recent purchases of High-Mobility Artillery Rocket Systems, naval strike missiles and air defense systems.
“These systems are crucial for your security and for NATO’s collective deterrence and defense,” he said.
Spruds underscored his appreciation for the United States’ leadership in unifying NATO allies amid Russian aggression and echoed Austin’s calls to continue supporting Ukraine.
“The continuous support for Ukraine is absolutely indispensable and instrumental,” he said. “I think we’ve done a lot together. Latvia believes that the steady unwavering support, continued support absolutely must be there.” (Source: U.S. DoD)
14 Mar 24. A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry
INTRODUCTION
On 14 and 15 December 2023, the European Council, in line with the Versailles Declaration1 and the Strategic Compass for Security and Defence2, underlined that more needs to be done to fulfil the Union’s objectives of increasing defence readiness3. The European Council also emphasised the need to strengthen the European defence technological and industrial base (EDTIB), including SMEs, and to make it innovative, competitive and resilient. A stronger and more capable EU in security and defence will contribute positively to global and transatlantic security and is complementary to the North Atlantic Treaty Organization (NATO), which remains the foundation of collective defence for its members. EU Defence readiness can be defined as a steady state of preparedness of the Union and its Member States to protect the security of its citizens, the integrity of its territory and critical assets or infrastructures, and its core democratic values and processes. This includes an ability to provide military assistance to its partners, such as Ukraine. In line with the Strategic Compass, it encompasses the ability to act more quickly and decisively when facing crises, secure our citizens against rapidly evolving threats, invest in the needed capabilities and technologies and partner with others to achieve common goals. This Strategy also responds to proposals made by citizens in the Conference on the Future of Europe4. A strong EU defence industry is an essential pre-requisite to achieve defence readiness.
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(Source: altus Rio/Paul Hough)
14 Mar 24. NATO Secretary General Jens Stoltenberg has released his Annual Report for 2023. On 14 March 2023, NATO Secretary General Jens Stoltenberg released his Annual Report for 2023.
The world faces greater challenges than it has for generations. Rising competition with authoritarian states including Russia and China, war in Europe and the Middle East, terrorism, cyber-attacks and the climate crisis. We need NATO more than ever. Europe and North America, united in NATO, stand strong and ready to protect and defend our 32 countries and one bn people.
In 2023, our Alliance became bigger, stronger and more capable. Finland became a NATO Ally, and only last week we welcomed Sweden as a member. At our Vilnius Summit in July 2023, Allies agreed robust new defence plans, backed by hundreds of thousands of troops at a high state of readiness, ready to defend every inch of NATO territory.
At the Vilnius Summit, Allies agreed to spend at least 2% of GDP on defence. In 2024, we expect around 18 Allies will meet or exceed this target, up from just three in 2014. Allies also agreed a new Defence Production Action Plan to provide the weapons and ammunition we need for a credible deterrence and defence, and to support Ukraine in its fight for freedom.
In 2023, we brought Ukraine closer to our Alliance. We established the NATO-Ukraine Council, continued to provide tens of bns of dollars in military, financial and humanitarian aid, and we removed the need for a Membership Action Plan. All Allies agree that Ukraine will become a member of NATO.
In this report you will read how NATO is evolving to deal with the many threats we face. It covers NATO’s work and achievements throughout the year, including at the Vilnius Summit and our determined support for Ukraine.
In 2023, NATO commissioned surveys across all 31 Allies and in Sweden (then invitee) to understand our citizens’ perceptions of NATO. Support for our Alliance, the transatlantic bond and collective defence remains strong. 82% believe collaboration between North America and Europe on safety and security matters is important.
This report also includes details of estimated 2023 national defence expenditures for all 31 NATO Allies. 2023 saw the ninth annual increase in defence spending, with an unprecedented 11% increase across European Allies and Canada. By the end of 2024, European Allies and Canada will have spent an additional $600 bn on defence since Allies agreed the Defence Investment Pledge in 2014.
The Secretary General’s Annual Report is now available online.
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.nato.int/nato_static_fl2014/assets/pdf/2024/3/pdf/sgar23-en.pdf?utm_medium=email&utm_campaign=Secretary%20Generals%20Annual%20Report%20for%202023&utm_content=Secretary%20Generals%20Annual%20Report%20for%202023+CID_2b5bb18d2e46467466ec433fcab190d0&utm_source=Email%20marketing%20software&utm_term=You%20can%20download%20a%20PDF%20of%20the%20full%20Report%20here (Source: NATO)
14 Mar 24. NATO accelerator and two test centres to be established in Finland. NATO’s DIANA (Defence Innovation Accelerator for the North Atlantic) programme is expanding its network with new sites. Finland is now part of the network since the Board of the DIANA initiative approved a proposal to establish an accelerator and two test centres in Finland. Their mission is to help companies develop technology, innovation and business for the civil and defence sectors.
The preparatory work, which started in spring 2023, was led by the Ministry of Defence and VTT Technical Research Centre of Finland and required input from several operators, has reached its desired conclusion. VTT is setting up a DIANA accelerator in Otaniemi, Espoo, in collaboration with Aalto University and the University of Helsinki. The test centres will be established at the University of Oulu and VTT’s Otaniemi site.
The operations to be established in Finland will build on decades of strong technological expertise and market success. The technology themes of the accelerator and test centres are related to next-generation communication systems, 6G technology, cybersecurity, quantum and space technologies.
“VTT is honoured to be part of the DIANA network and its accelerator and test centre activities. Finland’s world-class expertise helps pioneering companies to develop the deep technologies that will safeguard NATO and its bn inhabitants,” says Sauli Eloranta, Vice President, Defence at VTT.
DIANA accelerator to train companies to operate in the defence sector
VTT is setting up a DIANA accelerator in Otaniemi, Espoo, in collaboration with Aalto University and the University of Helsinki, which will focus on the communication systems and quantum technologies of the future. This will provide a special training programme that will help companies develop deep technologies and innovations for commercial and defence purposes. It will also provide companies with extensive and varied training on how to develop business opportunities in the defence sector.
The accelerator’s services will be specifically targeted at start-ups and SMEs with limited experience in the defence and security sector.
“The long-awaited decision is significant for Finland as it is the first time that Finnish operators will be able to harness their cutting-edge expertise for NATO’s DIANA innovation activities on such a large scale. Our country has a large number of technologically advanced and innovative start-ups and SMEs, which have found it difficult to invest in export in the defence sector. DIANA will support this activity free of charge by using the accelerators to train companies in NATO technical and procurement requirements and by developing company-specific business training programmes. Such a mechanism provides a high-speed lane for companies to enter a difficult but fastest growing industry internationally – I hope Finnish companies will participate as widely as possible,” says Eloranta.
DIANA selects companies for accelerators through its application process. This procedure is called the DIANA challenge programme. The first round of applications for the Finnish DIANA accelerator will be launched in 2024, and it will be open to start-ups developing dual-use solutions in NATO countries.
Test centres provide tools for further technological development
The technology test centres will be established at VTT’s Otaniemi site and the University of Oulu. VTT’s Otaniemi Test Centre will focus on secure connectivity, space and quantum technologies. The test centre at the University of Oulu will offer companies the opportunity to test 6G network technologies.
DIANA test centres are places where companies can strengthen their technological expertise and competitiveness. The research infrastructure and experts provided by the test centres will allow companies to evaluate their own concepts and technologies and get support to develop them. In practice, the test centres will consist of a comprehensive set of existing research facilities and equipment, as well as top-level expertise in the sector. The centres will also support the development of start-ups participating in the accelerator programme.
It will be possible for all companies in NATO countries to purchase the test centre services, regardless of whether or not they belong to a DIANA accelerator.
“Finland has a strong position as a developer of civilian communications systems, thanks to companies like Nokia. DIANA offers a fast track for many companies to enter the NATO defence market,” says Eloranta.
What is NATO’s DIANA initiative?
NATO’s DIANA initiative aims to identify future challenges in the defence and security sector and work with companies to find technological solutions.
“Part of DIANA’s strength is our unique transatlantic network of talent centres and innovation leaders working toward a common purpose. The breadth and diversity of partners in DIANA’s network will accelerate the development and deployment of ground-breaking solutions for defence, security and peace,” says Professor Deeph Chana, Managing Director of DIANA.
The initiative focuses on new technologies such as artificial intelligence, autonomy and quantum technologies, which are dual-use in nature, i.e. they can be commercially exploited in both the civil and defence sectors.
DIANA in brief
- NATO established DIANA to help develop dual-use technologies that meet security and defence challenges. DIANA supports companies working on solutions in key sectors identified by NATO member states.
- To meet the needs of a changing world, NATO is identifying, developing and deploying emerging and disruptive dual-use technologies.
- DIANA is NATO’s innovation accelerator, bringing together innovators from member states to support NATO’s technological leadership, defend its one bn citizens and maintain peace and security.
- DIANA provides companies with training, funding, commercial advice and access to defence expertise and investors. Participating companies are developing dual-use technologies to address major defence and resilience challenges.
13 Mar 24. US Army should permanently station armor brigade in Poland, report argues. The U.S. military should reassess its force posture in Europe and reduce its reliance on revolving door-style unit rotations, a major think tank’s analysts concluded in a Monday report.
The Center for Strategic and International Studies’ transnational threat team based their study on official documents, open-source materials and interviews with subject-matter experts.
The report’s authors recommend that the Army abandon the rotational armor brigade deployment model that “eats up … the Army’s force structure and long-term readiness.” Currently, two armor brigades are deployed to Europe. Instead, the report said, the service should permanently station an Armored Brigade Combat Team in Poland to replace one rotational unit and eliminate the remaining rotation altogether.
An Army Times investigation found that tank brigades and enlisted tank crew members were at higher risk of suicide than other soldiers in recent years, due in part to a decade of high operational tempo fueled by such non-combat deployments. The service once had armor brigades in Europe, but they were removed in the early 2010s.
Currently, the Army maintains a large presence of rotational forces in Europe. V Corps’ forward headquarters in Poznan, Poland oversees the three temporarily deployed brigade combat teams, which includes one light infantry brigade in addition to the two armor brigades. Other rotational forces include division headquarters, a combat aviation brigade, fires assets and sustainment units.
But the short-tour model has consequences, the report’s authors argued. They cost more money in the long-term compared to permanent bases, and they are less integrated into the continent’s culture and defense network. The deployment-based model negatively impacts soldiers, too — the authors said evidence suggests they “separate military personnel from their families,” causing “low morale” that can spawn “discipline issues and increased divorce rates.”
Army spokesperson Col. Roger Cabiness II told Army Times, however, that “forward basing of an ABCT is not a simple task.” Doing so would require diplomatic and legislative approvals both at home and abroad.
Despite efforts to reduce their operational tempo, the Army’s armor units continue to deploy at a high rate to fulfill the Europe requirements. The 4th Infantry Division’s 3rd Armored Brigade Combat Team cased its colors Monday, signifying its departure for an eight- or nine-month Europe rotation. The Iron Brigade’s new mission is beginning roughly 16 months after returning to Fort Carson, Colorado from another Europe deployment that wrapped in December 2022.
The report’s authors also recommended that the Air Force station an additional F-16 squadron in Germany; increase anti-submarine warfare capability and air defense forces; bolster stockpiles of prepositioned equipment and ammunition; and continue modernization, cyber, space and security cooperation efforts. (Source: Defense News Early Bird/Army Times)
13 Mar 24. Denmark plans $6bn boost in military spending amid defence shortcomings. Denmark will boost its defence budget by 40.5bn Danish crowns ($5.9bn) over the next five years to meet NATO targets and address major defence shortcomings “in a world where the international order is being challenged,” the prime minister said.
A founding member of the North Atlantic Treaty Organization, Denmark scaled back its military capabilities after the end of the Cold War in the early 1990s.
“We are not rearming in Denmark because we want war, destruction, or suffering. We are rearming right now to avoid war and in a world where the international order is being challenged,” Prime Minister Mette Frederiksen told reporters, indirectly referring to Russia’s military moves in recent years and months.
Russia, which is engaged in a war in Ukraine, plans to deploy troops and military equipment to the Finnish border, following the latter’s entry to NATO, President Vladimir Putin said on Wednesday.
Denmark has come under pressure from Washington to bring military spending back up to a NATO target of 2% of GDP, from 1.4% last year.
The fresh defence funding comes in addition to 155bn crowns Denmark pledged last year for the next 10 years.
The plan presented by the majority government included extending conscription service to 11 months from four months, and making service equal for all, meaning both men and women will be called up.
While vast military aid for Ukraine, including a donation of F-16 fighter jets, has helped Denmark meet the NATO spending target, it has yet to invest in a major way in its own forces.
The new money will help Denmark meet NATO’s target by next year, Frederiksen said. Denmark had previously expected to reach the target by 2030. Investments will cover land-based air defence systems and a heavy infantry brigade of up to 6,000 soldiers by 2028 which could be deployed as part of NATO’s emergency forces on high alert. (Source: Reuters)
13 Mar 24. Hungary must balance a faster procurement process with a clear doctrine. While the security environment has accelerated Hungary’s defence procurement, its plans will only go so far without a clear understanding of how to use its new inventory.
Since Hungary’s Zrínyi 2026 modernisation programme began eight years ago, the country’s Armed Forces have accelerated their acquisition of the latest weapon systems, but the nation’s unclear doctrinal objectives stymie this modernisation.
Faster procurement
GlobalData intelligence projects that Hungary is taking its commitment to Nato’s rule to spend 2% of gross domestic product (GDP) on defence very seriously. The Central European nation is expected to meet or exceed that rate for the future forecast years, reaching 2.9% of GDP spending by 2029.
The country’s flagship modernisation project, the Lynx programme, has progressed greatly. In August 2023, the Government and the German arms manufacturer Rheinmetall agreed to open a manufacturing facility in the country to produce the 209 Lynx KF41 infantry fighting vehicle units it had previously ordered.
In the same spirit, Hungary is exploring ways to bring uncrewed aerial systems (UAS) into the mix. One spokesperson observed that the new technology, which has seen proliferated use in the Ukraine conflict, has become “a reality of war,” serving an extensive use of functions from reconnaissance to offensive roles. GlobalData suggests that Hungary is particularly eyeing Türkiye’s Bayraktar TB2 medium-altitude, long-endurance UAS, for which the company forecasts spending to grow to $90m on the system in the next ten years.
Unclear doctrine
Now that Hungary is on track to furnish its Armed Forces, the Government is starting to face questions such as how to integrate these systems together and acquire systems with more agility, which the spokesperson stipulated is “definitely hard work.”
It’s not just about technology. It’s also about “changing mindset” beyond acquiring such low-hanging fruit.
One solution that will strengthen Hungary’s response to such questions may be its international collaboration, which Prime Minister Viktor Orban’s politics seems to impede as it positions Hunagry as an outlier member state within the EU and Nato in its Russian alignment.
Nevertheless, global collaboration is still being pursued. At the end of February 2024, the Defense Innovation Research Institute, in cooperation with the Nato Innovation Fund (NIF), provided new opportunities for Hungarian defence start-ups, revealed Brigadier General Imr Porkolab, the Hungarian Ministry of Defence’s (MoD) Commissioner for Defence Innovation.
It is difficult for start-up companies developing cutting-edge technology to find investors due to the longer market access time and the capital intensity of the development. Hungary’s MoD holds that the NIF eliminates this difficulty by making long-term (15-year) investments while focusing on developments at an early stage. (Source: army-technology.com)
08 Mar 24. NATO navigates fine line between transparency, information security. “We are ready.”
The three-word statement was highlighted in bold letters at the opening of NATO’s March 4 briefing, on the occasion of the Polish-leg of the alliance’s largest military exercise since 1988.
But even amid the resolute and calm tone of officials in the room, there was a palpable sense of apprehension among reporters.
A core theme of the speeches presented by NATO representatives revolved around transparency, specifically in showcasing what the Steadfast Defender exercise — and its subsidiary drill Dragon, led by Poland — would involve. Yet many were wary of answering questions related to Russia or lessons learned from the war in Ukraine.
On several occasions, officials were pressed about whether they had concerns over revealing their plans to Russia through events such as these, or even the possibility the Kremlin could intercept operational details.
“Of course we are concerned, everyone is concerned,” Brig. Gen. Gunnar Bruegner, assistant chief of staff at NATO’s Supreme Headquarters Allied Powers Europe, told Defense News. “[We need] to make sure we are safeguarding the critical information, but it does not relieve us from the requirement of making these exercises happen.”
“It is quite a balance you need to keep; you cannot showcase everything,” he said.
During a March 4 news conference, Maj. Gen. Randolph Staudenraus, director of strategy and policy at NATO’s Allied Joint Force Command Brunssum, told reporters that while the alliance does protect its communications, “we are also really trying to be transparent.”
The fine line between accountability and information security is one that some NATO members have recently grappled with. A notable example is the leak of a German discussion about potentially providing Ukraine iwth Taurus missiles. Russia intercepted audio from the web conference between German Air Force officials.
Through this, Moscow was able to get its hands on information regarding the potential supply of cruise missiles to Ukraine as well as operational scenarios of how the war could play out.
Russian officials said last month that the country views Steadfast Defender as a threat.
When it comes to that training event, Bruegner said, details provided to the media during briefings are meant to illustrate the bigger picture, but only in broad terms.
“The plans themselves and the details in there will not be made available to everyone. What you’re seeing here are slides NATO has unclassified,” he explained.
He also noted that an objective of the exercises is to showcase the integration of capabilities, and not necessarily what NATO would do in a contested setting.
“We for sure would not fly banners on the amphibious devices in a contested exercise, which would have involved having an opponent on the other side of the eastern benches of the river and would’ve looked different [than what we saw in the Dragon drill],” Bruegner said.
(Source: Defense News Early Bird/Defense News)
08 Mar 24. NATO opens Nordic air operations centre. The Nordic countries of Denmark, Finland, Norway, and Sweden have opened a combined air operations centre (CAOC) aimed at protecting NATO’s northern flank. The Danish Ministry of Defence (MoD) said on 6 March that the new CAOC at Bodø in northern Norway is made up of personnel drawn from the air forces of the four Nordic countries, along with “substantial support” from the UK Royal Air Force (RAF) and US Air Force (USAF).
“The concept of a joint Nordic air operations centre is currently being tested for the first time,” the Danish MoD said. “This is happening in connection with the major NATO Exercise ‘Nordic Response’, which is taking place in the northern part of Norway, Sweden, and Finland.” (Source: Janes)
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