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18 Sept 24. UK commits to bolstering European security as Foreign Secretary visits Norwegian military command.
Foreign Secretary travels to Norway to strengthen defence and security cooperation.
British Royal Marines on a training exercise in Norway’s arctic region.
- the Foreign Secretary will visit Norwegian Joint Headquarters with Norway’s Foreign Minister Espen Barth Eide to discuss deepening UK-Norway security collaboration
- the ministers will reinforce both countries’ unwavering commitment to Ukraine and tackling threats from Russia including their Shadow Fleet
- they will discuss the UK and Norway’s joint work in the High North to detect, deter and contain threats and defend NATO’s northern flank
Foreign Secretary David Lammy will commit to strengthening UK-Norway defence and security cooperation on a visit to Norwegian Joint Headquarters with Foreign Minister Barth Eide today [18 September].
During the Foreign Secretary’s visit, he will reaffirm both countries’ commitment to Ukraine, particularly through military support to boost their defence capabilities. They will also discuss efforts to tackle Russia’s shadow fleet, cutting the flow of illicit funds to Putin’s war chest following on from UK sanctions.
Norway and the UK have a long history of defence and security collaboration especially in the High North. Norway has hosted British Armed Forces’ Arctic training for over 50 years, and over 4,000 UK troops will visit Norway in the next 6 months for winter training and military exercises.
Foreign Secretary David Lammy said: “With the return of war to the European continent, the UK’s relationship with Norway, as a key ally in the defence of NATO’s northern flank, has never been more important.
We are both unwavering in our support to Ukraine, and together we are training and supporting the Ukrainian armed forces including boosting the country’s air defence and maritime capabilities. Norway acts as our eyes and ears in the High North; our joint work at the Norwegian military headquarters underlines the importance of our work to bolster Europe’s defences.”
Euro-Atlantic security is this government’s foreign and defence priority.
In the face of Russia’s sustained malign influence campaigns, and its recent baseless expulsion of British diplomats, the UK and Norway will agree to enhance intelligence-sharing and cooperation to counter Russian disinformation networks in Europe and beyond.
The Foreign Secretary will welcome Norway’s navy patrols of the waters between the UK and the Russian Northern Fleet, detecting, deterring and managing increasingly sophisticated subsea threats to energy, security and critical national infrastructure.
Norway is an important ally on conflict prevention and peacebuilding, especially when it comes to ongoing conflict in Gaza. The UK and Norway are also focused on ensuring joint ambition on development truly delivers for global partners.
Norway is also a key trading partner in supplying the UK with the energy it needs to power growth. That is why the UK and Norwegian Prime Ministers agreed in July to begin work on a new Norwegian-UK partnership on security and the energy transition. (Source: https://www.gov.uk/)
18 Sept 24. Europe must prepare to meet Russia militarily in 6-8 years, says its new defence chief. The European Union must be quick to increase its defences as Russia may be ready for a confrontation in six to eight years, the nominee to be the EU’s first defence commissioner told Reuters in an interview.
Andrius Kubilius, a former prime minister of Lithuania, Russia’s neighbour, has been tapped to boost the continent’s arms industry, by getting EU countries spend more on European weapons and procure jointly – as well as by getting companies themselves to cooperate more across borders.
The new post reflects how security has risen to the top of the EU’s political agenda since Russia’s 2022 invasion of Ukraine.
“Defence ministers and NATO generals agree that Vladimir Putin could be ready for confrontation with NATO and the EU in 6-8 years,” Kubilius, a fierce critic of Russia and a supporter of Ukraine, said on Wednesday.
“If we take these assessments seriously, then that is the time for us to properly prepare, and it is a short one. This means we have to take quick decisions, and ambitious decisions,” he said.
Kubilius said his first job as a commissioner would be to explore, jointly with EU top diplomat nominee Kaja Kallas, what resources the European Union needs to be ready for a military challenge. He is aiming to complete an exploratory study within the first 100 days.
He said underinvestment of more than a trillion euros in the decade since the financial crisis meant the European defence industry was in an “unsatisfactory condition”.
SPENDING NOT SOURCING
Kubilius faces an uphill battle against several EU governments which are deeply wary of giving Brussels a say in how they organise their defence industries.
The European Commission has no legal mandate to formulate defence policies, and EU countries coordinate their defence through NATO.
Kubilius sees his job as complementary to NATO, not in competition.
“The European Union won’t have defence plans or military leadership, like NATO does – but the European Union has instruments to get larger financing, which NATO doesn’t”, he said.
Kubilius “would be glad” to be able to invest more than 500 bn euros over the next few years to boost Europe’s defence industries.
But he is less certain on where to get the money: “It’s not for me to know… A defence commissioner has to know where to spend the money, not how to source it. That is up to the other commission members,” he said.
Issuing joint defence bonds, using funds from the European post-pandemic Recovery and Resilience Facility or tapping the European Investment Bank were options to fund defence industry expansion, Kubilius suggested.
(Source: Reuters)
17 Sept 24. Sweden to boost defence spending by $1.3bn in 2025. NATO’s newest member Sweden plans to raise its defence spending by 13bn crowns ($1.3bn) in the state budget for 2025 to a total of 138bn, Defence Minister Pal Jonson said on Tuesday.
Military spending will rise in 2025 to 2.4% of GDP from 2.2% this year and is projected to hit 2.6% in 2028, Jonson told a press conference.
Moscow’s full-scale invasion of Ukraine in 2022 sparked a historic policy U-turn in previously militarily non-aligned Sweden, which this year joined NATO and has vowed to further ramp up military budgets.
The centre-right government coalition, which relies on support from the far-right Sweden Democrats, is due to submit its budget bill for 2025 to parliament on Sept 19. ($1 = 10.1579 Swedish crowns) (Source: Reuters)
16 Sept 24. Sweden should lead deepening of NATO presence in Finland, the Nordic neighbours agree. The Finnish government is happy for Sweden to lead the establishment of NATO land forces in Finland to boost defences against neighbouring Russia, the two Nordic countries said on Monday.
Moscow’s full-scale invasion of Ukraine in 2022 sparked a historic policy U-turn in previously militarily non-aligned Finland and Sweden, which joined NATO in 2023 and 2024 respectively.
NATO has boosted its presence in the eastern part of the alliance by building multinational battlegroups from the Baltics to the Black Sea, and has said it will develop a presence in Finland, which shares a 1,340 km (830 mile) border with Russia.
“The Swedish government has the ambition to take on a role as framework nation for forward land forces in Finland,” Swedish Defence Minister Pal Jonson told a joint press conference with his Finnish counterpart Antti Hakkanen in Stockholm.
The process was still in an early phase, the ministers said, adding that the appointment of a nation to lead the effort to establish so-called forward land forces (FLF) will be made by NATO collectively.
“I envisage that FLF Finland could be in place in one to two years,” Jonson later told Reuters on the sidelines.
Decisions have yet to be made on the composition and extent of the NATO presence in Finland. Finland’s defence minister said the country was not looking for the same kind of permanent multinational force as in, for example, the Baltic countries given the considerable size of its own forces.
“But if the security situation gets worse or something like that we can increase exercises with certain countries’ troops,” Hakkanen said.
The two neighbouring countries are seeking to improve their cross-border mobility for military purposes, removing technical, administrative and legal obstacles, Jonson told Reuters.
“It can also cover infrastructure in all its various components, not least roads and railways,” he said. (Source: Reuters)
16 Sept 24. Airbus revives plans for UK helicopter factory. Aerospace giant unveils sweetened proposal in attempt to win £1bn defence contract
Airbus is preparing to revive plans for a new helicopter factory in the UK as part of its attempt to secure a £1bn contract from the Ministry of Defence (MoD).
The manufacturing giant has indicated it could proceed with the plant after reversing its decision to pull out of the bidding to replace the RAF’s Puma helicopter fleet last month.
At the time of its withdrawal, Airbus said the terms of the MoD’s tender weren’t sufficiently attractive for it to proceed.
However, Bruno Even, Airbus Helicopters boss, has unveiled a sweetened proposal which he hopes will satisfy obstacles relating to the Government’s defence spending review.
As part of its new approach, Airbus will resurrect plans to build a new factory in Broughton, Flintshire, creating hundreds of jobs in the process.
It is at this plant that Airbus, if successful in the tender, would build a fleet of H175M helicopters. To reduce costs, it would also keep the RAF’s existing Puma fleet flying for several years longer through its maintenance programme.
Bosses hope this will deliver enough savings to convince the Government to award Airbus the £1bn contract as the MoD seeks to cut costs as part of its ongoing spending review.
Mr Even said: “We are open to discussions depending on the conclusion of the defence strategy review. If there is a will from the MoD side to revisit the future of this campaign, we are ready.
“There is time to review things. The Pumas can continue to fly until 2035 and we have committed to continue to support them.”
Airbus had touted the proposed factory during initial negotiations with the Government, although the company walked away from the bidding process in August after claiming it was commercially unviable.
Sikorsky Aircraft, a US-based rival, also pulled out – leaving just Leonardo of Italy, which owns Britain’s only current helicopter plant, in the running.
However, Mr Even said Airbus was now willing to reconsider.
He said: “We took the decision to withdraw only after concluding that we could not provide long-term returns to our business, address the requirements in terms of social value and industry capacity and still have a fair chance to win.
“But we are not the only ones to take this decision, which questions the current set of requirements.”
This puts Airbus back in competition with Leonardo, which produces the AW149 helicopter through its site in Yeovil, where around 3,300 people are employed.
Mr Even said his company’s H175M model remained the best suited to succeed the Puma, a battlefield workhorse that has seen action in Iraq, ex-Yugoslavia and Afghanistan.
He said: “In terms of performance, competitiveness and value creation, including the commitment we took to set up industrial capability, we are convinced that it is the best proposal.”
While the MoD originally sought up to 44 aircraft as part of the £1bn contract, that number is understood to have been reduced to no more than 30 and perhaps as few as 25.
A source said previously that Airbus felt the tender rules had not given it sufficient credit for its investment and jobs pledge.
While Airbus does not produce helicopters in the UK, it has had maintenance, delivery and training operations in the country for half a century.
Mr Even’s comments came after the opening of a new £55m headquarters and hangar for the business at Oxford Airport, which was attended by the Prince of Wales.
The company supplies more than half of the civil helicopters flying in Britain, including all police models and two thirds of air ambulances, many of them serviced in Oxford.
RAF, Navy and Army pilots train exclusively on Airbus H135 and H145 helicopters. The H145 was also recently chosen to replace a small number of Pumas operating with British forces in Cyprus and Brunei.
Mr Even said that the Puma, which can carry 16 passengers or two tonnes of cargo, nevertheless remained “a fantastic helicopter” which, though designed in the 1970s, was capable of fulfilling mission requirements, if the MoD opted to retain it.
Used to move troops, weapons and ammunition on the battlefield, the RAF models have had a midlife upgrade including new engines.
He said: “We are committed to the Puma and ready to continue to support the Puma in the current defence planning review and under the current budget constraints.”
The executive said that Airbus had other export prospects for the H175 and did not rule out alternative locations for a new plant outside the UK should those come to fruition.
He said: “Depending on the conclusion we reach with some customers, it could be that we decide to develop this footprint elsewhere.” (Source: Daily Telegraph)
16 Sept 24. Italy invests in UK (extract).
Prime Minister Keir Starmer said: “I am in Italy with a clear message for one of our closest international friends and partners: Britain is a place to do business. It is only by resetting our relationships around the world that we can break down the barriers that have been holding the UK back for so long. It means we can attract investment such as the significant sum I’m announcing today, create jobs for hardworking British people and deliver on my ultimate mission for the UK – economic growth.”
Today’s confirmed investments include:
- Leonardo, one of the world’s leading defence, aerospace and security companies, will invest £435 m in 2024, to be spent at their Yeovil site, and in technology development and research programmes across the UK. It operates 8 major sites in the UK, supporting 8,000 employees.
- Marcegaglia, a steel manufacturer, will invest £50 m in Sheffield to build a new clean steel electric arc furnace, creating 50 new jobs.
Stefano Pontecorvo, Chairman of Leonardo said:
It was a pleasure to meet with Prime Minister Starmer and discuss our new £435m investment in the growth of Leonardo in the UK. This investment will support advanced research, thousands of highly skilled jobs and outstanding early careers opportunities at our eight UK sites as well as the resilience of our nationwide supply chain.
It is clear that the Prime Minister represents a pronounced change in approach for the UK and its relationship with the European Union. Leonardo’s presence in the UK is underpinned by transnational collaboration at a governmental level, which also supports cooperation at an industrial level. I look forward to working closely with the Prime Minister as we continue to invest in the UK and support the defence of Europe. (Source: https://www.gov.uk/)
16 Sept 24. Spain defense budget set to reach 2% GDP target by early 2030s, says GlobalData. Spain’s political divisions are a major challenge to its long-term defense spending increases and acquisition programs. The Spanish government’s original goal was to reach NATO’s 2% spending target before 2030. While this is unlikely, at the current rate of growth, Spain’s defense budget is projected to rise to 1.54% of GDP by 2029, up significantly from 0.74% of GDP in 2020. The country is expected to reach the 2% GDP goal by the early 2030s, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Spain Defense Market 2024-2029” reveals that the country’s defense budget is set to reach $27.3bn in 2029, up from $10.3 bn in 2020. The acquisition budget, which was $3.3bn in 2020, will rise significantly to $17.0bn by 2029. The personnel spend, which is estimated at $5.7bn in 2024, will grow moderately to $7.8bn by the end of the forecast period.
Wilson Jones, Defense Analyst at GlobalData, comments: “Spain’s historic military spending was stagnant and only began increasing in 2020. Following rising Russian aggression in Eastern Europe, and especially after the 2022 invasion of Ukraine, the Spanish government recommitted to raise its military spending. The country’s most recent general election occurred in July 2023 and was extremely close, resulting in a temporary pause on defense spending increases.”
The election result led to a months-long process to form the eventual government under Prime Minister Pedro Sanchez in November 2023. Due to this complicated process of forming the government, no new budget could be passed for the 2024 financial year. The new government elected to repeat its 2023 budget for the 2024 year, which carried over to defense spending as well, further delaying Spain’s pathway to 2% GDP spending. However, it is anticipated that the 2025 budget will include increases to cover any losses in the interim year.
Jones continues: “Despite the major rise in acquisitions and moderate rise in personnel spend, Spain’s overall defense spending remains low. Spending on operations and maintenance (O&M) is only set to grow to $2.4 bn. Although spending on new platforms is high, it is also essential to train and prepare crews in their operation, especially under adverse conditions. This may negatively affect Spanish military readiness and combat effectiveness.”
Jones concludes: “The Spanish government is committed to NATO’s 2% defense spending target and has adopted budgets that could meaningfully bring it towards this goal. While challenges remain, including political gridlock that prevents fund allocation, major parties and the Spanish people are united in this goal. This is clearly seen in Spain’s acquisition of major new platforms. These programs not only expand Spain’s power projection and ensure spending increases, but also provide a boon to the economy and retain skilled jobs in Spain.” (Source: GlobalData)
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