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01 Aug 25. Chancellor backs jobs boost in Scottish defence and energy sectors. Chancellor Rachel Reeves will outline how the Spending Review will give Scotland a jobs boost, as she visits RAF Lossiemouth and St Fergus Gas Plant today (1 August).
- 18,000 North Sea jobs can be safeguarded through a £200m investment in the Aberdeen Acorn energy project whilst creating 15,000 new ones in Scotland’s clean energy transformation.
- Increase in defence spending will see more jobs added to the 26,100 skilled Scottish jobs already supported by UK Government defence investment, and three new E-7 Wedgetail aircraft will see even more jobs created by Boeing at RAF Lossiemouth.
- Defence and clean energy commitments, part of the UK Government’s Plan for Change, will provide jobs and build thriving communities from Aberdeen to the Clyde.
The UK Government is investing in defence and clean energy to protect existing jobs and create thousands more, while keep the UK secure. Increasing defence spending to 2.6%, could lead to around 0.3% higher GDP in the long run, equivalent to around £11 bn of GDP in today’s money, according to government estimates. RAF Lossiemouth shows how investment in defence delivers for ordinary families. The Moray base has undergone a huge transformation in recent years and military personnel and civilian workers now work together keep our fighter jets and sub-hunting aircraft in the air. The addition of three new E-7 Wedgetail aircraft to the RAF’s fleet will see even more jobs created by Boeing at the base, where the Chancellor will meet with some of the over 200 Boeing teammates who work alongside RAF personnel.
Chancellor, Rachel Reeves said: “We’re seizing the huge potential and opportunities that Scotland has on offer. Whether it’s in defence to keep the UK safe, or clean energy to power all corners of the country, this government is backing Scotland with bns of pounds of investment to grow the economy and create jobs.”
Scottish Secretary, Ian Murray said: “The UK Government is investing in defence to ensure Britain’s security and deter our adversaries and drive economic growth.
This investment is a massive jobs opportunity for Scotland – this ‘defence dividend’ is good news for Scotland, where it will help create skilled jobs, drive economic growth and help tackle the critical skills gaps facing the country in sectors such as nuclear, construction, maritime and project management. The Spending Review also saw investments that will make Scotland the home of the UK’s clean energy revolution. While Acorn is still subject to final investment decision, this £200m is just the beginning to this government’s commitment to investing in Scotland and has the potential to safeguard 18,000 North Sea jobs whilst creating 15,000 new ones in Scotland’s clean energy transformation.
Great British Energy will also be headquartered in Aberdeen, to drive clean power generation across the UK. Boosting homegrown energy will also make the UK more secure.”
The Chancellor’s visit comes as defence spending rises to 2.6% of GDP and figures from 23/24 reveal that MOD spend maintains 26,100 skilled jobs across Scotland. The Spending Review also committed £250 m to secure the future of HMNB Clyde – the first stage of a multi-decade, multi-bn renewal project and all three Clyde shipyards are currently fulfilling contracts for the Royal Navy.
Further information:
- The Spending Review delivered a record settlement for Scottish public services, with the Scottish Government’s largest settlement, in real terms, since devolution in 1998. Scottish Government’s settlement is growing in real terms between 2024-25 and 2028-29. This translates into an average of £50.9bn per year between 2026-27 and 2028-29.
Maria Laine, President United Kingdom, Ireland & Nordic region, Boeing, said: “Boeing has a long-standing presence in Scotland including at RAF Lossiemouth, the home to the UK’s P-8 Poseidon fleet and where the E-7 Wedgetail will be based when it enters service. As a key partner of the UK Armed Forces, Boeing welcomes the defence spending increase and has seen first-hand how defence infrastructure investments, such as the £100 m Atlantic Building and new E-7 facilities at RAF Lossiemouth, can deliver for local jobs, suppliers and UK national security.”
Michelle Ferguson, Director, CBI Scotland, said: “Scotland’s energy and defence sectors are vital to our economy, driving investment and supporting thousands of skilled jobs. The Chancellor’s announcement of £200 m for the Acorn energy project is very encouraging, but businesses are eager for final approval to unlock its full potential and secure North Sea jobs. Increased defence spending will further boost Scotland’s skilled workforce and create growth opportunities across key supply-chain. Close collaboration between the Scottish and UK governments will be essential to fully realise these benefits, driving forward national security and Scotland’s transition to a resilient, low-carbon economy.”
Mark Sommerfeld, UK Director of the Carbon Capture and Storage Association, said: “The Chancellor’s visit to Acorn further highlights the importance of CCUS in securing the future of our foundational industries and delivering a secure low carbon power system – both in Scotland and across the UK. The Government’s commitment to CCUS means that thousands of skilled jobs will be protected, with thousands more created across our industrial heartlands – delivering economic growth and clean power.
To maintain global leadership in CCUS and realise the full benefits for our industrial communities, we need to see clear deployment pathways for both Acorn and Viking CCS, as well as other projects developing at pace across the UK. By doing so, the Government can deliver on its economic growth mission and climate goals.”
Katy Heidenreich, Offshore Energies UK Supply Chain and People Director said: “We share the Chancellor’s commitment to Scotland’s energy future. Our industry plays a vital role in delivering jobs, growth, and energy security through the production of homegrown energy.
Government support for projects like Acorn is crucial. The UK Government has committed £200 m in development funding to Acorn — Scotland’s flagship carbon capture and storage initiative — marking a major milestone in advancing the country’s decarbonisation strategy. The project is expected to support around 15,000 jobs during peak construction and repurpose 175 miles of pipeline infrastructure to transport CO₂ from central Scotland to storage. (Source: https://www.gov.uk/)
31 Jul 25. German armed forces see 28% surge in recruits in NATO defence boost. Germany’s armed forces reported a 28% surge in soldier recruits from January to late July, compared with the same period last year, bolstering plans to boost NATO defences in response to what it sees as an increased threat from Russia. The Defence Ministry said on Thursday more than 13,700 people had joined the Bundeswehr – the army, air force, navy and other forces – in that period, in what it said was the steepest rise for years. Germany wants to have 260,000 active soldiers by the 2030s, from 183,000 now, to meet new NATO force targets and strengthen its defences – part of a planned surge in military spending underpinned by this year’s decision to loosen budget constraints. Interest in joining the armed forces also rose, with initial consultations rising by 11% and applications by 8%, while civilian sector applications jumped by 31%, the ministry said. (Source: Reuters)
31 Jul 25. Portugal seeks to participate in EU’s SAFE defence funding mechanism. The Portuguese Ministry of National Defence (MND) on 29 July formally expressed interest in joining SAFE (Security Action for Europe), the European Commission’s (EC’s) financial instrument intended to help European Union (EU) member states increase their investment in common defence procurement and strengthen the European defence industrial base (DIB). SAFE is part of the EC’s Readiness 2030 plan, presented in March 2025, to ramp up defence investment, and will provide up to EUR150bn (USD171bn) in long-maturity loans raised on capital markets and backed by the EU budget for EU countries that ask for financial assistance for “urgent and large-scale procurement efforts”, according to the EC. Portugal was one of 18 EU member states that expressed interest in obtaining loans through the SAFE mechanism, totalling at least EUR127 bn in potential defence procurements, Andrius Kubilius, commissioner for defence and space, said in an EC statement on 30 July. The financial assistance takes the form of loans with terms of up to 45 years, grace periods of up to 10 years, the possibility of pre-financing of up to 15%, and value-added tax (VAT) exemption on concluded contracts, the MND said on 29 July. The Portuguese government created a SAFE Working Group to establish the technical development of its projects and prepare a formal request for financial assistance by 30 November, according to the MND. This request will be accompanied by a detailed investment plan for the European DIB, with a special focus on integrating the Portuguese DIB into future value chains promoted by projects financed through the SAFE instrument, the MND added. (Source: Janes)
24 Jul 25. Ireland raise defence spending to reach €1.7bn by 2030. Around 75% of telecom cables in the northern hemisphere pass through or near Ireland’s exclusive economic zone. Ireland will raise defence spending to €1.7bn ($2bn) by 2030 in line with new plans laid out in the National Development Plan which will invest €275bn across government. The funding will increase by €600m, or 55% on the previous baseline figure of €1.1bn. On the periphery of Europe, the nation has consistently spent the least on defence as a percentage of its gross domestic product (typically ranging between 0.2 and 0.3%) in the European Union. In this backdrop, the Irish Defence Forces must account for enduring capability gaps which lead to their inability to credibly deter let alone control their own waters. Nevertheless, the Irish Defence Forces are not without any capabilities. Just over a year ago, the Irish Air Corps inducted two Airbus C295 maritime patrol aircraft to tackle illegal fishing and organised crime. However, due to the rise of malign Russian activity beneath the surface of the sea, Ireland’s interests have grown extensively – at least indirectly. The Irish Naval Service appear to have recognised this with a multi-m euro contract for the acquisition of several towed array sonar systems from Thales in June 2025 to kit out its modest fleet of four offshore patrol vessels, two large patrol vessels, and two inshore patrol vessels. This capability will allow Ireland “to build a picture of our subsea, thus contributing to the important task of protecting our critical underwater infrastructure,” Harris said at the time. “This is one of many strands of work being progressed to address the threats in our maritime domain”. While the Department of Defence remain tight-lipped about its priority defence programmes it would be reasonable to suppose that Ireland may invest its new funds in areas of defence related to infrastructure. Although Ireland is not a Nato member, one notable takeaway from the alliance summit in the Hague in June 2025, was that defence spending now encompasses more than just military effects but the protection and resilience of critical infrastructure. In fact, 1.5% of the 5% defence spending target agreed upon by allies is based on infrastructure. The Russian invasion of Ukraine has already brought this new shift in perspective in the last three-and-a-half years. The Irish government have even recently contributed €100m in humanitarian and non-lethal assistance to the Ukraine earlier in July. Nevertheless, Ukraine’s First Deputy Minister of Defence also emphasised the critical military needs for Ukraine’s defence and protection; this is something, perhaps, the Irish Department of Defence must consider to be able to respond to transgressions whatever form they may take. (Source: army-technology.com)
29 Jul 25. US grants Poland $4bn loan guarantee for defence equipment. The FMF loan bolsters the national security of the US by enabling allies such as Poland to procure defence systems manufactured in the US. The US State Department announced a $4bn (14.9bn zlotys) foreign military financing loan guarantee for Poland to procure military equipment and advanced technologies for the Polish Army. This financial backing highlights Poland’s commitment to strengthen its defence capabilities and contributing to Nato’s collective security efforts. Poland Deputy Prime Minister Władysław Kosiniak-Kamysz said on X: “This will build the deterrence and strength of Poland, Europe, and Nato. We continue our modernisation path, based on domestic industry and strong cooperation with allies.” Poland has embarked on a military modernisation initiative since 2023. This includes the acquisitions of American-made defence systems such as Apache helicopters, airspace and surface radar reconnaissance system, HIMARS rocket systems, and Patriot missile defence units.
US State Department spokesperson Tammy Bruce said in a press statement: “Today’s announcement reaffirms the United States’ commitment to strong bilateral partnerships based on mutual respect, shared investment, and strategic priorities. Working together, the United States and Poland are securing the future of Nato, deterring aggression, and standing firm for freedom, sovereignty, and peace in Europe.”
The FMF loan bolsters the national security of the US by enabling allies such as Poland to procure defence systems manufactured in the US. This, in turn, sustains employment in states like Alabama, Arizona, Arkansas, Florida, and Texas, while fostering industry growth and technological advancement. The programme advocates for a robust defence posture, enabling US allies to maintain their own security with dependable systems produced by the world’s leading defence manufacturers, said the spokesperson. According to GlobalData report, Poland’s defence budget is $36.4bn for 2024. The nation’s defence spending is projected to expand with a compound annual growth rate (CAGR) exceeding 4% from 2025 to 2029. In June 2025, Poland Deputy Minister of National Defence Paweł Bejda held talks with US defence contractor RTX CEO to explore strategic opportunities for collaboration. A primary focus of their discussions was the potential initiation of cable harness production for the Patriot missile system in Poland. (Source: army-technology.com)
25 Jul 25. Germany dispel doubt over commitment to FCAS, MGCS. The German Defence Minister Boris Pistorius maintained that European countries remain committed to several next generation defence projects, notably the Future Combat Air System (FCAS) and the Main Ground Combat System (MGCS). During a visit from his French counterpart, Sébastian Lecornu, to Osnabrück, Pistorius’ hometown, after visiting Rheinmetall’s site in Unterlüß.
“We must move Europe forward to make it more secure,” Pistorius said, after the visit this week. This assurance comes at a time when certain projects are facing hurdles.
FCAS trouble
In particular, FCAS – in which France, Germany, and Spain work together to develop a combat aerial system-of-systems – face internal disputes among leading contractors. During the Paris Air Show in June 2025, Jean-Brice Dumont, head of air power at Airbus Defence and Space, briefly referred to contention over leadership with the French contractor, Dassault.
“There are naturally roles for all of us in the forum”, he said, adding that Airbus will “demonstrate our leading contribution”.
FCAS and other such projects represent Franco-German cooperation and partnership. “They do not represent national egoism,” hinted a release issued by the German Ministry of Defence.
Dumont also addressed “difficulties in execution” right now, at “the beginning of the end” of Phase 1B, in developing and testing demonstrators. We have to accelerate… because there’s war everywhere. “We have to consider that some areas of this major programme have to deliver products earlier” to meet the 2040 deadline.
MGCS confusion
Rheinmetall, together with other German-French industrial partners, is playing an important role in the development of innovative technologies for the MGCS. The project is also scheduled to launch in 2040. Pistorius similarly emphasised that everyone involved remains committed to the programme’s ambition. However, there is a lack of clarity, if not outright duplication, between MGCS and the more recent MARTE tank development programme. Both projects appear to be running side by side, with both led by Rheinmetall (alongside KNDS for MARTE). Moreover, it is unclear whether MGCS will develop a main battle tank (MBTs) or an armoured vehicle. Although, Hensoldt, a German defence supplier, has identified MGCS as a key strategic programme intended to develop a successor to the Leopard 2 and Leclerc MBTs, a gap that MARTE claims to fill. Critically, this lack of clarity may obstruct fiscal commitments in Europe, leading to an unclear vision for the future force structure in Europe. (Source: army-technology.com)
30 Jul 25. EU members eye €127bn in loans for defense procurement. European Union member states expressed interest in at least €127 bn ($146 bn) in EU-backed loans to pay for defense procurement, the bloc’s executive arm said on Wednesday. Eighteen countries including Italy, Poland, Spain and France expressed interest in accessing the loans under the Security Action for Europe financial instrument, or SAFE, the European Commission said in a statement. SAFE is part of EU plans to ramp up defense investment announced in March, and will provide up to €150 bn in “competitively priced,” long-maturity loans to EU countries that ask for financial assistance to invest in defense capabilities, according to the Commission.
“Delighted to see big interest of EU member states in SAFE loans,” EU Commissioner for Defence and Space Andrius Kubilius said in a social media post. “This is a major step towards achieving our defense goals quickly and decisively.”
The Commission said the early indication of interest will allow it to assess demand and prepare for raising funds on the capital markets. The deadline for formal submission of requests and the submission of national defense investment plans is end-November.
The loans seek to finance “urgent and large-scale procurement efforts,” according to the Commission. Projects will be based on common procurement, involving at least one member state that benefits from SAFE, together with another member state, Ukraine or the EEA-EFTA countries Iceland, Liechtenstein and Norway.
“However, in light of current geopolitical realities, SAFE will also temporarily support procurements by individual member states to ensure timely delivery of critical assets,” the commission said.
Only EU countries can obtain SAFE loans, though countries that have signed security and defense partnerships with the EU can participate in common procurement, including the United Kingdom, Norway, Canada, South Korea and Japan. Under the eligibility conditions for SAFE loans, procurement contracts have to ensure that no more than 35% of component costs comes from outside the EU, Ukraine or EEA-EFTA countries. For equipment including air and missile defense systems, maritime surface and underwater capabilities and strategic enablers such as air-to-air refueling, eligibility conditions for procurement contracts are more strict, including the ability for contractors to modify the equipment if necessary, without any non-EU restrictions. (Source: Defense News)
28 Jul 25. Rheinmetall expands local production in Romania and strengthens the Romanian defence industry – Focus on ammunition and Lynx infantry fighting vehicle. Rheinmetall has founded a comprehensive local production network in Romania, which includes both its own companies in the country and new partnerships with Romanian companies. The technology corporation is thereby expanding both, its presence in Romania and its status as a leading manufacturer and service provider for the Romanian armed forces. The provision of advanced turnkey solutions for the production of infantry fighting vehicles, ammunition and powder, as well as state-of-the-art training services, ought to strengthen the Romanian defence industry in the long term. The network includes Rheinmetall Automecanica, further local Rheinmetall activities as well as a new centre of excellence for training and further education. A cornerstone of Rheinmetall’s localisation efforts is the cooperation with key Romanian companies, including among others Uzina Automecanica Moreni, Interactive Software SRL and MarcTel-SIT. These partnerships will promote local procurement and assembly processes, and will foster the integration of Romanian expertise into the production chain. The initiative focuses on local production of the Lynx infantry fighting vehicle at Rheinmetall Automecanica, with a robust supply chain and a reduced dependency on external suppliers. Rheinmetall Munitions Romania will manufacture medium-calibre ammunition for infantry fighting vehicles and air defence, while Victoria Explosive Powder Factory will produce the propellants, for which Rheinmetall is providing expertise and technology for a propylene plant. Local service facilities will be responsible for the ongoing maintenance and support for military equipment, thus always ensuring operational readiness. The Rheinmetall Excellence Centre in Romania is to ensure the transfer of critical know-how to the local workforce. Equipped with cutting-edge simulators and comprehensive training programmes, the centre will provide Romanian employees with practical experience and technical expertise in the operation, maintenance and development of advanced defence technologies, particularly in relation to the Lynx infantry fighting vehicle. Rheinmetall’s investment in local production will make a significant contribution to the Romanian economy by creating hundreds of jobs in various sectors, including manufacturing, engineering and technical services. Cooperation with Romanian companies will also boost local supply chains, create additional business opportunities and promote industrial growth. With this strategic initiative, Rheinmetall Automecanica is not only improving Romania’s defence capabilities, but also laying the foundation for a sustainable and independent defence industry. By integrating advanced technologies and training, Rheinmetall is ensuring the future viability of Romania’s defence sector while further expanding its own global production network.
25 Jul 25. Baltic States Pledge to Meet NATO’s 5% GDP Military Target. Defense Secretary Pete Hegseth held an enhanced honor cordon and quadrilateral meeting today at the Pentagon, welcoming Estonian Defense Minister Hanno Pevkur, Latvian Defense Minister Andris Sprūds and Lithuanian Defense Minister Dovilė Šakalienė. During the meeting, the Baltic states pledged to meet the target of 5% of their gross domestic product for defense spending, which Hegseth said serves as a reminder to the entire NATO alliance of its responsibilities. The defense secretary thanked his counterparts from the Baltic states for their friendship, support and respect for U.S. troops, as well as their leadership by example.
“The United States remains fully committed to NATO, and together, we’re achieving peace through strength in Europe by setting the conditions for negotiated lasting peace in Ukraine, establishing sustainable deterrence and increasing ally capabilities and interoperability,” he said.
The United States has numerous obligations around the world, including defending the homeland and deterring war in the Indo-Pacific region, Hegseth said, adding that this is why European investment in its own conventional defense is more important than ever.
“Your efforts to modernize and invest in new military capabilities are critical to deterring attacks and building readiness,” he said.
The secretary also thanked the defense ministers for hosting multinational training exercises, which bolster collective readiness.
“I’m also glad that our deployed HIMARS have been able to help with your troops on training ahead of receiving your own HIMARS equipment,” he said, referring to the High Mobility Artillery Rocket System.
“This cooperation accelerates our ability to defend countries with capable systems,” Hegseth added.
Pevkur said the meeting today was a testimony to the strong and trusted partnership between the Baltic states and the United States.
“We are allies who are willing to strengthen our common defense, and we are more than determined to continue this very close cooperation. We stand up for one another, and we defend each other when it’s needed. This is what brotherhood-in-arms truly means,” he said.
Sprūds agreed with his Estonian counterpart, adding that “In these challenging times, it is important that we are becoming much more efficient and lethal.”
The United States plays a key role in NATO’s Article 5, he said, which established the principle of collective defense.
Šakalienė said, “Every one — every single one — of United States troops is one of our own in Lithuania, and we do deeply care about them. We do deeply care about our friendship, and we consider them family.”
She also urged other NATO nations to follow the lead of the Baltic states in increasing their defense investment to meet the 5% of GDP military spending target. Lithuania, she said, has invested in U.S.-made systems, including HIMARS, Black Hawk helicopters, Switchblade loitering munitions, Joint Light Tactical Vehicles and Javelin missiles. (Source: U.S. DoD)
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