The EU Council has endorsed Germany’s medium-term fiscal plan and activated the national escape clause, allowing limited temporary flexibility for higher defence spending under the Stability and Growth Pact. The clause permits deviation of up to 1.5% of GDP annually for four years while maintaining overall fiscal discipline.
Germany’s intelligence chief Martin Jäger warned that the country is already “under fire” from Russia and must prepare for further escalation. Speaking to lawmakers, he said Moscow seeks to destabilize NATO and intimidate Europe amid rising tensions, airspace violations, and drone incidents over German infrastructure.
Germany plans to order over 600 Skyranger air defence systems from Rheinmetall in a deal worth more than €9 billion to strengthen its drone defence. The mobile system, now in testing, can be mounted on Boxer and Leopard 1 vehicles and is designed to counter modern aerial threats, including drone swarms.
Dassault’s new Rafale line isn’t just about speeding up deliveries. It’s also important for the future F5 upgrade. And to boost France’s position in Europe’s next-gen FCAS fighter drama. 🎥
Thyssenkrupp is to retain a majority stake of 51% in TKMS through a new holding company. The remaining 49% of TKMS shares are to be transferred to Thyssenkrupp shareholders in proportion to their shareholdings, making them direct shareholders of TKMS.
Germany’s defence ministry said it is ready to deliver two promised Patriot air defence systems to Ukraine from its inventory of nine systems, with plans to replace them with new orders from the U.S.
18 European Union member states have asked for loans worth €127 billion under the new €150 billion SAFE fund for defence spending with the deadline for formal submission of requests under SAFE to end on 30 November 2025.
Turkey signed separate agreements at the International Defence Industry Fair in Istanbul last week, with plans to purchase 40 Eurofighter aircraft from the United Kingdom and sell 48 of its indigenous Kaan fighter aircraft to Indonesia.
The meeting is to take place on Friday in Istanbul at the level of deputy foreign ministers and would be the first round of negotiations since a ceasefire came into force after Israel’s war against Iran, which mainly targeted Iran’s nuclear and military facilities.
The treaty underscores the countries’ mutual defence obligations as NATO allies, which is made especially significant given the UK’s status as a nuclear power. The goal is to boost European deterrence and defence over the next decade. The two sides plan to jointly develop a European-made long-range weapons system capable of striking targets up to 2,000 kilometres away, addressing a capability gap with Russian medium-range missiles.
Germany’s Federal Court of Audit warned that a ‘signal of unlimited willingness to incur debt’ could lead prices in defence industry to soar, with incentives for industry to charge higher prices for the same services due to ‘almost unlimited availability of financial resources and increased demand.’
A greenfield facility being set up by Reliance will support the supply of explosives for medium and large caliber ammunition to Rheinmetall and is expected to have an annual capacity of 200,000 artillery shells, 10,000 tons of explosives and 2,000 tons of propellants.
The proposed 2,000+ km range deep precision weapon planned to be fielded in the 2030s could fill a capability gap uncovered by the death of the INF Treaty between Russia and the U.S., which barred land-based intermediate range missiles.
Europe appears to have accepted the prospect of acting independently of the United States, with a new rearmament program proposed by the President of the European Commission, Ursula von der Leyen, last week.
As NATO races to supply Ukraine before Trump takes office, Europe is struggling to touch two percent of its GDP on defence expenditure while Russia plans to spend more than 32 percent of its national budget on its military.
