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07 Apr 26. Spain: EIB finances with €30 million PLD Space’s small satellite launcher MIURA 5
- EIB`s financing supports the final development stage of MIURA 5 and the scaling of PLD Space’s industrial and launch capabilities.
- Support for MIURA 5 rocket boosts Europe´s capabilities to deploy small satellites for civil, commercial and defence applications.
- Backed by InvestEU, operation takes form of venture debt and marks EIB’s first direct investment in small space launchers.
The European Investment Bank (EIB) has signed a €30 million venture debt loan with PLD Space, an international space transportation company headquartered in Elche, Spain, to support the final development stage of MIURA 5, the company’s rocket designed to deploy small satellites into orbit.
The operation represents the EIB’s first direct investment in small launchers for the transport of satellites into space. The financing will also support scaling of PLD Space’s industrial and launch capabilities to transition toward commercial operations.
“I am proud to announce today the signing of a €30 million European Investment Bank loan for the European company based in Spain PLD Space, to succeed in the launch of the Miura 5 rocket and to deploy small satellites into orbit, which will be key for communications, research and our security,” said EIB Group President Nadia Calviño.
The project contributes to the EIB’s goals of boosting investments in European Union technological innovation and strengthening Europe’s security and defence capabilities through enhanced European independence in the field of space.
“Europe needs strong, independent launch capabilities to secure its autonomous access to space,” said EIB Vice‑President Robert de Groot. “With its innovative rocket technology and infrastructure, PLD Space is taking important steps in this direction. The EIB is proud to support PLD Space in scaling its launch services to reach globally competitive price levels, strengthening Europe’s autonomy in this critical segment.”
Positioned in the small lift launch vehicle segment, MIURA 5 is a two‑stage rocket designed to reduce the complexity and scheduling risks associated with launches of small satellites using medium‑ or heavy‑lift launch vehicles. From a climate perspective, MIURA 5 will undergo developments to become fully reusable, offering a more sustainable solution for transporting small satellites into space. The rocket is on track for its first test flight in 2026 and it is expected to provide a highly flexible service, carrying out up to 30 missions per year from multiple spaceports, including the Guiana Space Centre – in French Guiana, also known as the European spaceport.
“Securing this unique €30 million financing from the European Investment Bank marks a decisive milestone for PLD Space and for Europe’s space industry. It strengthens our ability to expand the industrial and launch infrastructure required to provide dependable access to space for our global pipeline of commercial and institutional customers. We are grateful to the EIB for its trust and support; this backing reinforces our long‑term vision and further consolidates Europe’s access to space,” stated PLD Space’s Executive President, Ezequiel Sánchez. “With this new financing, PLD Space has now secured €210 million so far in 2026, following the €180 million Series C closed in March. Driven by European and international institutional and strategic backing, PLD Space continues to advance its roadmap and consolidate its position among the select group of private companies worldwide developing complete launch systems to enable reliable global access to space,” added Ezequiel Sánchez.
“Today, we take an important step forward in Europe’s position in the global launch market with this €30 million investment in PLD Space’s MIURA 5.This is one step among many in a broader effort to support a dynamic new ecosystem of European access to space companies — combining strong public backing with a stable, forward-looking environment in which innovative industries can grow, scale, and invest with confidence,” said Commissioner for Defence and Space Andrius Kubilius. “As space becomes increasingly strategic, access is no longer a luxury — it is essential to our security, our economy, and our future. That is why the European Union is committed to ensuring independent and reliable access to space. By backing innovative European companies, we are building a strong, competitive, and resilient launch industry — and securing Europe’s place as a global space power,” added Kubilius.
The PLD Space financing adds to the EIB’s diversified New Space portfolio of investments, which includes venture loans to European space challengers like Aerospacelab, Sateliot, Endurosat or D-Orbit, active across the value chain — from ground stations and satellite manufacturing to Earth observation, communications, orbital logistics, data analytics and propulsion. This complementary portfolio has been strategically sourced by the EIB to support the EU’s goal of strengthening strategic autonomy in space. In addition, through initiatives such as Space TechEU and advisory support delivered with the European Commission, ESA and the European Innovation Council, the EIB Group combines financing and expertise to foster innovation and accelerate the development of Europe’s space sector.
The PLD Space financing agreement makes a strong contribution to the eight core priorities set out in the EIB Group 2024-2027 Strategic Roadmap. In particular, the project supports the Group’s cross‑cutting initiatives of climate action, and strengthening Europe’s security and defence industry. It also contributes to the TechEU initiative, the EIB Group’s programme to accelerate EU innovation, which aims to mobilise €250 billion in investments by 2027 for startups, scale-ups and innovative companies across Europe. This EIB loan is guaranteed by InvestEU, the flagship EU programme to mobilise public and private sector investment to support EU policy goals.
09 Apr 26. EIB Advisory Supports Greece in strengthening energy resilience of military installations.
- EIB Advisory support to the Ministry of National Defence of Greece for developing energy autonomy across military installations
- Preparation of a comprehensive investment programme covering project design, prioritisation and implementation planning
- Exploration of financing solutions and market engagement to ensure efficient, sustainable and resilient energy delivery
The European Investment Bank (EIB) will work with the Ministry of National Defence of Greece to develop a comprehensive investment programme aimed at strengthening the energy autonomy of military installations across Greece.
The initiative forms part of a broader programme to modernise and restructure military infrastructure and covers an initial group of around 40 priority sites identified primarily based on their energy needs. The programme aims to establish a coherent investment framework that will ensure reliable and uninterrupted energy supply, reduce operating costs and limit dependence on external energy sources, while enhancing the overall resilience of critical infrastructure.
The cooperation was launched following a request from the Ministry, with the objective of supporting the preparation and implementation of a large-scale and complex investment programme. In this context, implementation models involving private sector participation are being considered, linking contractor remuneration to achieved energy savings and thereby promoting efficiency and long-term sustainability.
With the support of EIB Advisory, the investment programme will be structured, priorities will be defined and alternative solutions will be assessed to meet the energy needs of the installations. At the same time, an appropriate implementation framework will be developed, including project structuring and potential clustering approaches, with a view to attracting market interest and optimising delivery.
The advisory support will also cover the exploration of financing options, the preparation of tender procedures in line with EU standards and, at a later stage, support for a potential EIB financing operation.
“Energy demands for critical infrastructure are constantly evolving, requiring more modern and flexible approaches. Through this cooperation, the EIB is supporting Greece in developing solutions that strengthen the autonomy and resilience of military installations in a practical and sustainable way. This is an investment in the future, helping to safeguard infrastructure and ensure it remains ready to respond to emerging challenges.”, said EIB Vice-President Yannis Tsakiris.
The Minister of National Defense, Nikos Dendias, stated: “The contract concerns the 40 most energy-consuming military camps in our country, whose consumption nevertheless accounts for 62% of the total energy usage of the Armed Forces. In other words, this is a project with a huge environmental footprint that will reduce the energy consumption of these facilities by 50% and cut the Ministry’s energy costs by €17.2 million annually. And all of this, with almost no impact on our own budget, the budget of the Ministry of National Defense.”
Background information
The EIB Group
The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
In 2023, the EIF together with six member states (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund of funds to scale-up innovative startups. This initiative has already enabled the creation of 13 European venture capital mega-funds and scaled up 38 companies, including 11 unicorns (with more than €1 billion in capital).
About InvestEU
The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union’s strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
08 Apr 26. Polish firm teams with Northrop, ST Engineering to tap Poland’s massive ammo spending. Privately-owned Niewiadów Polish Military Group has teamed up with Northrop Grumman and Singapore’s ST Engineering to launch 155-millimeter and 40-millimeter ammunition production in Poland, catering to the country’s plans to spend PLN 23.8 billion ($6.5 billion) on ammo and rockets from the European Union’s Security Action for Europe (SAFE) loans.
Adam Januszko, the chief executive of Niewiadów Polish Military Group, told Defense News the group’s strategy is focused on developing domestic ammunition production capacities that are to “ensure the sovereignty of deliveries for Poland and NATO allies.”
“The key element of this strategy is the construction of a robotized 155mm ammunition factory with a target production capacity of 180,000 rounds per year. At the same time, in cooperation with a partner from Singapore, we are developing production of 40mm ammunition with a planned output capacity of up to 480,000 rounds per year,” Januszko said.
The development comes as Niewiadów is readying to debut on the main market of the Warsaw Stock Exchange in late April 2026. The group is following in the footsteps of another ammunition producer from the region, Czechoslovak Group (CSG), whose recent stock market listing reinforced its status as central-eastern Europe’s largest defense industry player.
CSG is the main industry actor in the Czech Republic and Slovakia where it runs numerous factories that make weapons, ammunition and military gear. The business is also a major supplier of artillery shells to the Ukrainian military.
Similar to many other countries across the region, Poland is advancing efforts to accommodate new ammunition factories that would provide a domestic supply for its military, with a particular focus on artillery rounds.
In September 2025, the country’s state-run defense group PGZ selected the U.K.’s BAE Systems as its technology partner for the planned ramp-up in ammo production. The British company said in a statement the designed munitions factory “will use BAE Systems’ manufacturing technology and feature the same automated technology that will deliver a sixteen-fold increase in production capacity of 155mm artillery shells at its facilities in the U.K.”
In the long term, Poland’s Army is to operate a fleet of some 1,000 self-propelled howitzers. This necessitates a boost in domestic manufacturing capacities for 155mm rounds that not only PGZ but also privately-owned companies such as Niewiadów are seeking to accommodate.
With numerous allies across the region looking to boost their ammo stockpiles, Niewiadów acknowledges that the company has eyes on future exports. Its cooperation with foreign partners is designed to accelerate the roll out of the first rounds from production lines.
“The group is gaining access to proven solutions from global leaders which significantly strengthens its technological advantage and shortens the time required to bring products to the market,” Januszko said, referring to the partnership with Northrop Grumman and ST Engineering. “The ultimate goal of these efforts is the gradual localization of production in Poland while maintaining the highest global standards of quality and firepower performance.”
Along NATO’s eastern flank, Germany’s Rheinmetall is also making headway with its campaign to develop local artillery ammunition production capacities. In Bulgaria, Latvia and Lithuania, the firm has established joint ventures with state-owned companies to build 155mm factories. In the Romanian market, local offshoot Rheinmetall Munitions Romania will produce medium-caliber ammunition for infantry fighting vehicles and air-defense systems, while the explosive powder plant in Victoria will make propellants, with Rheinmetall supplying the know-how and technology.
Other countries from the region that are currently negotiating with foreign ammunition producers include Estonia whose defense minister, Hanno Pevkur, recently said an agreement with a yet-undisclosed supplier of 155mm shells is to be signed this month. Estonian state-run broadcaster ERR has reported the chosen company is “a Swedish defense industry firm” that is to open a €300 million ($351 million) ammunition plant in the country’s Põhja-Kiviõli defense industry park.
Niewiadów is currently listed on the NewConnect market of the Warsaw Stock Exchange. In addition to its ammunition business, other areas of the group’s activities include drones, mines, personal weapons and military logistics operations, according to data from the company. (Source: Defense News)
07 Apr 26. Serbia: Joint venture with Israeli defence firm will increase activism risks. On 7 April, the BIRN and Haaretz media outlets revealed that Israeli defence manufacturer Elbit Systems will start producing advanced unmanned aerial vehicles (UAVs; i.e. drones) in Serbia. The factory will reportedly be a joint venture between Elbit Systems and Serbia’s main state-owned import-export company SDPR. Elbit Systems will have a majority stake of 51%. The venture will likely further strengthen Israel-Serbia defence ties, which are already significant. Serbia will likely benefit from the technology transfer, reinforcing its position as the most powerful military force in the Western Balkans. However, there is a realistic possibility that the joint venture, including companies included in its development and supply chain, will be the target of activism. Currently, the risk of pro-Palestine activism in Serbia is significantly lower than in Western Europe, where Elbit Systems and its partners have been repeatedly targeted with direct-action campaigns. Consequently, the main risk comes from anti-government movements, which will realistically oppose the project. There is a realistic possibility that pro-Palestine networks in Europe will attempt to disrupt the project, though any direct actions are likely to be small-scale and unlikely to deter the investment, given Serbia’s low-level and nascent anti-war movement (Source: Sibylline)
07 Apr 26. Germany’s Record Defence Procurement Update Date: 18 March 2026 Author: MPI Germany’s Bundestag approved a record €52 billion package of 29 defence procurement contracts back in December 2025, the largest single-session authorisation in its history, drawn partly from the €100 billion Sondervermögen special fund (nearing depletion by end-2026). This mega-wave—€22 billion for soldier gear/clothing, €4.2 billion for Puma IFVs (Rheinmetall/KNDS), €3 billion for Arrow 3 interceptors/launchers (Boeing/IAI), and €1.6 billion for surveillance satellites—anchors Chancellor Friedrich Merz’s pledge to forge Europe’s strongest conventional army amid Russian threats. Integrated into the €82.69 billion 2026 Bundeswehr budget (up €20.2 billion YoY, plus €25.5 billion Sondervermögen), it propels total spending toward NATO’s 3.5% GDP target by 2029.
Key Contract Breakdown
Soldier Gear/Clothing €2bn Various (domestic SMEs) Equips 180,000+ troops; boosts logistics base Puma IFVs (200+ units) €4.2bn Rheinmetall (€2.1bn), KNDS (€2.1bn) Doubles fleet; deliveries from mid-2028 rheinmetall+1 Arrow 3 Air Defence €3bn Boeing/IAI Upper-tier ballistic missile shield; IOC 2028–29 timesofisrael+1 Surveillance Satellites €1.6bn Undisclosed ISR enhancement; space domain dominance
Other (total 29 contracts) ~€21.2bn Mixed Ammo, vehicles, EW; full[1]spectrum readiness Industry Windfall and Momentum
Rheinmetall’s shares surged post-approval, with follow-on €1 billion Puma 30mm ammo framework (hundreds of thousands of rounds by 2029) underscoring serial production ramps. KNDS benefits from Puma/Tranche 5 Eurofighter (€3.75B for 20 jets, deliveries 2031–34). International partners like Boeing/IAI secure foothold in Europe’s premier market, while €500 billion infrastructure/defence mega-fund (debt brake exemption) looms, potentially channeling €50B+ to climate-adjacent civil defence. Budget Implications for 2026 and Beyond At 15% of the €524.54 billion federal budget, €108 billion total defence outlay (regular + special fund) signals sustained 4%+ GDP trajectory, replacing Sondervermögen via off-budget mechanisms. For industry, it means €50B+ immediate order book infusion, SME integration, and export multipliers—revitalising Dusseldorf as Europe’s “war business” hub. Risks include execution delays (Puma history) and political flux, but Merz’s “Zeitenwende 2.0” cements Germany as rearmament engine, drawing allies into joint ventures amid Ukraine’s endurance test. Rheinmetall/KNDS output could double by 2028, fuelling NATO’s industrial surge. Germany’s landmark €52 billion procurement package features staggered delivery timelines across its 29 contracts, balancing immediate sustainment needs with long-lead platforms to rebuild Bundeswehr readiness under industrial constraints. Soldier gear and clothing (€22 billion) enters service ongoing into 2026, equipping over 180,000 troops for rapid deployability. Puma IFVs (€4.2 billion from Rheinmetall/KNDS) begin deliveries mid-2028, with full production ramping through 2030 and beyond, including ammunition and simulators. Arrow 3 interceptors and launchers (€3 billion, Boeing/IAI) were due to see first batteries operational by late 2025/early 2026— achieving IOC 2028–2029—providing urgent hypersonic defence. © Hawk Information 2026, MPI ISBN 1361-0228 Page 10 Surveillance satellites like SARah/SPOCK (€1.6–1.76 billion) deliver ISR data access from 2026, scaling to full constellations by late 2020s. Remaining contracts (€21.2 billion)—IRIS-T missiles, TAURUS, torpedoes—prioritise munitions for 2026–2029 entry. These timelines sync with Sondervermögen depletion by end[1]2026, transitioning to €82.69 billion annual budgets en route to 3.5% GDP by 2029. Gear offers instant capability; platforms test supply chains as Rheinmetall/KNDS scale output. For industry, €50B+ visibility drives investment—though execution risks loom large for NATO timelines—cementing Germany’s rearmament as Europe’s industrial anchor. (Source: Hawk Information)
07 Apr 26. Turkey’s Defence Industry Transformation in 2026 Date: 27 March 2026 Author: MPI Türkiye’s defense industry is poised for a transformative 2026, targeting a cascade of high-impact milestones that will cement its status as a global aerospace and unmanned systems powerhouse, with first deliveries of the Kızılelma unmanned combat aircraft, serial production contracts for the Kaan national fighter jet, and over $10 billion in 2025 exports as a springboard for further market dominance.
Defense Industries President Haluk Görgün positions the year as a “critical threshold” for aviation independence, propulsion breakthroughs, and multi-domain capabilities, building on $17.9 billion in new export contracts across Asia-Pacific ($5.5B), Europe ($5.3bn), Americas ($3.3B), Middle East ($2.2B), and Africa ($1.7bn). This aggressive roadmap signals investor opportunities in one of the world’s fastest-scaling defense ecosystems. Aviation and Unmanned Systems Milestones 2026 will mark initial deliveries of Baykar’s Kızılelma stealth UCAV alongside Hürkuş trainer aircraft, while a serial production contract launches full-scale Kaan (TF-X) manufacturing. Naval TB3 UAVs for carrier operations and AI-enhanced TB2T-AI variants expand the drone portfolio, complemented by TS1400 engine integration into Gökbey helicopters and Kaan’s indigenous engine advancing to critical design review—slashing foreign propulsion dependence. Naval and Maritime Acceleration Submarine fleet modernisation peaks with TCG Muratreis entering service, TCG 18 Mart upgrades completing, and sixth Milgem corvette TCG İzmir delivering with domestic missiles, radars, and sensors. Akya torpedo serial production begins, Atmaca missile integration advances, and MİDLAS vertical launch systems deploy on surface combatants. The 60,000-ton Mugem national carrier—three times TCG Anadolu’s size—starts production, alongside four LCTs, 70 RHIBs, and kamikaze USV swarm demonstrations. Land and Armoured Vehicle Deliveries Double-digit Altay MBTs roll out to Land Forces, with 15 medium UGV configurations entering service and serial contracts launching. These platforms enhance high-threat maneuverability, positioning Türkiye for ground export surges. Electronic Warfare and Survivability Layered airspace defence strengthens via two additional ALP[1]100G/ALP-300 early warning radars, KORAL 200 next-gen land EW system inventory entry, and ILGAR-2 (ES/EA) deliveries. Aselsan’s DIRCM enters service on helicopters, while Gizem high[1]power laser weapons advance via contracts—joining elite global ranks. Emerging Tech Frontiers Gökbağı launches near-orbit satellites with military 5G/6G networks; Bulut cloud infrastructure activates a pilot center. Autonomy projects Göksancak/Yaman begin, quantum efforts target superconducting processors and GNSS-independent . Advanced materials R&D complements the stack. Strategic Investment Outlook These milestones—spanning 2026 deliveries, contracts, and tech leaps—project Türkiye’s defense sector toward $20B+ annual exports by decade’s end, with domestic content nearing 80% across platforms. For investors, the convergence of serial production ramps, engine autonomy, carrier ambitions, and quantum/laser pioneers offers entry points into resilient supply chains, particularly as NATO allies and Indo-Pacific buyers seek alternatives to legacy suppliers. Watch for 2026 Kızılelma/Kaan announcements as catalysts for industrial partnerships and market expansion. (Source: Hawk Information)
07 Apr 26. Finland, the Netherlands and the United Kingdom on Joint Defence Financing and Procurement Date: March 17 2026 Author: MPI “Increased threats from hostile actors, such as Russian aggression in Ukraine, are causing global instability and disrupting the rules[1]based international order.” This was the opening line in the statement from HM Treasury (UK) as they went on to declare: “Challenging times for global security call for creative solutions. A core group of NATO allies – Finland, the Netherlands, and the UK, together with other partners – today announce that they are exploring setting up a new mechanism by 2027 for financing with the aim to aggregate demand, drive joint procurement, accelerate defence investment, and increase the availability of critical capabilities such as munitions as they step up shared defence and security commitments.”
The initiative by the United Kingdom, Finland, and the Netherlands to establish a joint defence financing and procurement mechanism marks a significant shift toward “mini[1]lateral” cooperation within Europe. By bypassing the often[1]cumbersome bureaucratic processes of larger institutions like the EU or NATO, these three nations aim to create a streamlined system by 2027 that can respond rapidly to the shifting security landscape. This partnership is specifically designed to aggregate demand, providing the defence industry with the long-term financial certainty required to reopen production lines for munitions and high-tech equipment that have been depleted by the ongoing conflict in Ukraine. For the UK, this move represents a strategic “re-entry” into European security structures without formally joining EU-led defence pacts. By aligning with Finland—a new NATO member with a massive reserve force—and the Netherlands—a key advocate for European military integration—the British government is positioning itself as a central pillar of continental © Hawk Information 2026, MPI ISBN 1361-0228 Page 20 defence. This cooperation focuses heavily on interoperability, ensuring that the hardware produced is not only cheaper due to bulk purchasing but also ready for immediate use across different national commands, a critical requirement for NATO’s “Readiness 2030” goals. The financial underpinnings of this deal, spearheaded by British Chancellor Rachel Reeves and Dutch Finance Minister Eelco Heinen, suggest a new “value-for-money” approach to sovereignty. Rather than competing for limited industrial capacity, these allies are pooling capital to de-risk investments for private defence contractors. This move is intended to complement broader EU initiatives, such as the €150 billion SAFE loan instrument, by filling specific capability gaps in Northern and Eastern Europe. Ultimately, the goal is to build a “fortress” of regional production that can sustain a high-intensity conflict independently of shifting political winds elsewhere. The primary focus of the joint financing and procurement mechanism between the UK, Finland, and the Netherlands is to aggregate demand for high-volume, high-priority military assets that have been most affected by the war in Ukraine. While the initiative is designed to be flexible, several specific categories and systems are at the forefront of their joint production and procurement plans: 1. Critical Munitions and Stockpiles The most immediate priority is the mass production of artillery shells (specifically 155mm NATO standard) and other “consumable” munitions.
By pooling orders through a new financial institution—often described as a “defence investment bank”—these nations aim to provide defence contractors with multi-year “always on” production contracts. This shift away from one-off purchases is intended to incentivize manufacturers to expand their industrial footprint in Northern Europe. 2. Low-Cost Air Defence and Drones The partnership is heavily prioritizing Uncrewed Aerial Systems (UAS) and low-cost interceptors to counter them. • The LEAP Initiative: Parallel to the trilateral financing talks, the UK has joined the “Low-cost Effectors and Autonomous Platforms” (LEAP) initiative. This program focuses on developing autonomous drones and lightweight surface-to-air missiles designed specifically to intercept cheap enemy drones without exhausting expensive, high-tier missile stocks like the Patriot or Aster systems. • Counter-Drone Technology: Following a summit between Keir Starmer and Volodymyr Zelenskyy, the partners are exploring shared development of electronic warfare (EW) and kinetic counter-drone tools that can be rapidly deployed to the frontline. 3. A
dvanced Tactical Systems Beyond immediate needs, the mechanism is designed to fund “multi-year defence projects” that enhance interoperability: • Next-Gen Missile Defence: There is an emphasis on integrating disparate capabilities—from close-range drone detection to long-range ground-to-air missile systems—into a single, unified “shield” for Northern Europe. • Directed Energy Weapons (DEWs): The UK’s 2025 Strategic Defence Review specifically identifies “novel directed energy weapons” (lasers) as a key collaborative opportunity, offering a virtually unlimited “magazine” for air defence at a fraction of the cost per shot compared to traditional missiles. 4. Shared “Off-Balance Sheet” Stockpiles A unique feature of this 2027 mechanism is the potential for the participating countries to hold jointly-owned equipment stockpiles off their national balance sheets. This would allow for a shared pool of equipment—such as tactical vehicles or mobile radar units—that any of the three nations (or future partners like Germany) could draw upon during a crisis. (Source: Hawk Information)
07 Apr 26. Countries are Scrambling to Ramp Up Defence Financing Poland’s finance minister Andrzej Domanski has positioned the EU’s Security Action for Europe (SAFE) programme as the cornerstone of Warsaw’s defence financing strategy, tapping into up to €44 billion in immediate low-cost loans amid escalating Russian threats. This prioritisation underscores Poland’s urgent need to scale military capabilities in Europe’s volatile east flank, where Russia’s protracted Ukraine war demands rapid rearmament without crippling national budgets.
Yet, Domanski’s active engagement in parallel international working groups signals a pragmatic hedging approach, blending EU solidarity with broader alliances to unlock private capital flows. EU SAFE: Immediate Funding Lifeline SAFE, backed by EU budget guarantees, offers €150 billion in loans for joint procurement and defence readiness, with Poland, Romania, France, Hungary, and Italy among top beneficiaries. Domanski highlighted its “historic” appeal for cheap financing, enabling investments in munitions, platforms, and infrastructure without full national debt burdens. For Poland, this translates to swift access to €44 billion, accelerating procurement amid NATO’s 2% GDP spending push and beyond. Competing Global Mechanisms Canada is spearheading the Defence, Security and Resilience Bank (DSRB), with Montreal-hosted talks from March 23-26, 2026, negotiating a charter among 18 nations to pool private capital for SMEs facing surging defence demand. Aimed at supply chain resilience, it aligns with PM Mark Carney’s “Build-Partner-Buy” strategy, targeting 90% SME-dependent Canadian firms. Meanwhile, the UK-Finland-Netherlands Multilateral Defence Mechanism (MDM)—which Domanski deems “much more interesting” than DSRB—seeks a 2027 launch for joint procurement, munitions stockpiling, and industrial scaling, open to non-EU allies. Poland’s technical involvement in both reflects a multi-track strategy to aggregate demand and bypass fragmented national funding. Strategic Implications.
These initiatives mark a pivotal shift from sovereign spending to multilateral leverage, channelling private investment into high[1]intensity conflict readiness as Ukraine enters year four and Middle East tensions persist. SAFE provides Poland—and the EU—with speed and scale (€150bn+), but risks bureaucratic delays; MDM and DSRB promise flexibility for interoperability and innovation, potentially reshaping NATO’s industrial base. For frontline states like Poland, this convergence means diversified funding streams, reduced costs, and faster capability delivery – critical as threats demand “rearming at scale” without economic rupture. The real test will be harmonising these without fragmenting alliances. Focus on Unlocking Defence Investment – Poland’s Current Status Date: March 19 2026 Author: MPI Poland’s €43.7 billion allocation under the EU’s Security Action for Europe (SAFE) programme—part of a €150 billion EU-wide loan pool repayable until 2070—has unlocked 139 classified projects, marking Europe’s largest defence financing tranche to date and turbocharging Warsaw’s response to Russian aggression. The European Commission’s January 2026 approval, followed by Council endorsement, enables rapid procurement of urgent capabilities like counter-UAS systems, armoured vehicles, and tankers, with over 80% of funds mandated for Polish firms to build industrial capacity. This first mega-deal under SAFE exemplifies the programme’s speed, blending domestic innovation with European partnerships amid political debates over US interoperability. Key SAFE Investments Unlocked Poland’s plan spans ministries, prioritizing Eastern border fortification (Eastern Shield), mobility infrastructure, and dual-use assets. The Ministry of Internal Affairs earmarks funds for drones, counter-drone systems, helicopters, boats, light armoured vehicles, weapons, munitions, ballistic protection, and modern C2 systems for Police and Border Guard.
The headline procurement is the €3.5 billion (PLN 15 billion) San Counter-UAS system, signed December 2025 and fully SAFE[1]financed, featuring Polish APS C2 and radars, Danish Weibel radars, Gatling 12.7mm/35mm guns, Norwegian Kongsberg turrets with 30mm Bushmaster and APKWS missiles, EW, drone interceptors, and 700 Jelcz vehicles—delivered by 2028 with spiral upgrades. Ground forces dominate with 19% (€8.3 billion) for Borsuk IFVs, Rosomak-L wheeled APCs (offered for joint procurement), Krab 155mm howitzers, Rak mortars, and © Hawk Information 2026, MPI ISBN 1361-0228 Page 25 engineering vehicles, alongside 14% (€6.1 billion) for ammunition/missiles. The San system’s armoured components, like these Polish vehicles, integrate into a layered C-UAS architecture, showcasing SAFE’s role in rapid, homegrown production. Air refuelling pivots to two Airbus A330 MRTTs under SAFE, confirmed by PM Donald Tusk and military leaders, competing with Boeing’s KC-46 despite Poland’s heavy US buys (Patriots, HIMARS, F-35s, Apaches). Additional hints include Piorun MANPADS expansion, logistics, ISR/EW drones (potentially €2.3 billion with Ukraine co-procurement), and state-owned capacity upgrades. Tusk allocates 36% to cutting-edge tech: satellites, space, cyber, drones, and anti-drone systems. Political and Strategic Fault Lines Opposition leader Mariusz Błaszczak and President Karol Nawrocki warn SAFE risks eroding procurement sovereignty, favouring “politically correct” European gear over optimal NATO[1]interoperable US systems, potentially hiking debt with EU strings attached. Tusk counters that SAFE frees budget for US buys (over $100 billion committed), injecting “breakthrough” growth into Polish industry while enhancing alliance value. What It Means for European Defence Finance SAFE’s rollout – €74 billion approved across eight states in wave two — validates low-cost loans as a rearmament accelerator, prioritising urgency (“deliver on time or die”) over full joint procurement, with single-state buys allowed if contracted by May 2026. For Poland, it means €43.7 billion scales frontline deterrence (San, Eastern Shield) and sustainment (Krab, Borsuk), capturing 60%+ value domestically while fostering EU supply chains. Broader implications: a hybrid model blending national speed with multilateral scale, hedging US reliance, but testing fiscal discipline amid 4.8% GDP defence spend. (Source: Hawk Information)
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Founded in 1987, Exensor Technology is a world leading supplier of Networked Unattended Ground Sensor (UGS) Systems providing tailored sensor solutions to customers all over the world. From our Headquarters in Lund Sweden, our centre of expertise in Network Communications at Communications Research Lab in Kalmar Sweden and our Production site outside of Basingstoke UK, we design, develop and produce latest state of the art rugged UGS solutions at the highest quality to meet the most stringent demands of our customers. Our systems are in operation and used in a wide number of Military as well as Homeland Security applications worldwide. The modular nature of the system ensures any external sensor can be integrated, providing the user with a fully meshed “silent” network capable of self-healing. Exensor Technology will continue to lead the field in UGS technology, provide our customers with excellent customer service and a bespoke package able to meet every need.
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