Defence Finance Monitor Digest #86
Defence Finance Monitor is designed to help professionals interpret how NATO, EU and allied strategic priorities are reshaping capability development, industrial policy and technological pathways. Each edition clarifies the structural shifts—rather than the daily news—that redefine institutional demand, procurement choices and the strategic relevance of companies across the defence and dual-use ecosystem.
The goal is to provide a stable, decision-oriented framework for recognising which capabilities are becoming priorities, which technologies are gaining structural weight, and which enterprises align with the long-term strategic requirements of liberal democracies. Every briefing builds on this framework, enabling readers to understand the trajectory of the system and to anchor decisions in institutional signals and enduring industrial dynamics.
For a limited time, annual subscriptions to Defence Finance Monitor are available with a 30% discount on the standard price. Upgrading now provides full access to our structured company database, in-depth reports and daily monitoring across the defence–finance landscape.
Special Report
Europe’s Evolving C-UAS Capabilities and the Quest for a “Drone Wall”
This Special Report provides a clear reconstruction of how Europe is moving from isolated responses to a structured low-altitude air-defence architecture, showing why the emerging “drone wall” has become a strategic necessity. It details the evolution of UAV incursions into NATO airspace and the corresponding reactions of Poland, Denmark, the Baltic states and Romania, explaining how these pressures are reshaping doctrine, capabilities and investment priorities. The analysis offers immediate value by identifying how European C-UAS markets are shifting, which technologies are advancing and which industrial actors are positioned to lead. Subscribing now grants access to a level of insight that anticipates operational and industrial developments across the continent.
European Security & Defence Industry
Germany’s €108 Billion Defence Budget: A Strategic Breakthrough for the Bundeswehr
The approval of Germany’s 2026 defence budget by the Bundestag’s budget committee marks a significant moment in the reconfiguration of Berlin’s military strategy. With more than €108 billion allocated, the government aims to address long-standing structural weaknesses and equip the Bundeswehr with capabilities consistent with current security demands. The decision comes at a time of heightened pressure across Europe, shaped by persistent conflict on the eastern flank, global instability and growing exposure of critical infrastructures to technological vulnerabilities. This financial commitment reflects a political determination to transform previous declarations of intent into concrete measures of modernisation following the strategic shifts triggered by recent geopolitical events.
Capital Markets & Investment Flows
Defence-Thematic ETFs and the Pricing Question: A Financial Analyst’s Perspective
This analysis examines a question that is becoming central for investors: after two years of exceptional inflows and rapid multiple expansion, are defence-thematic ETFs already fully priced, or does the structural rearmament cycle still leave meaningful upside? The piece clarifies how DFNS and WDEF have grown into the core vehicles of this theme and why their valuations now sit at the intersection of geopolitical pressure, long-dated procurement plans and market crowding. It shows where pricing has likely run ahead of fundamentals, where it has not, and how to distinguish short-term momentum from long-term policy-anchored growth. Reading the full analysis allows investors to understand whether today’s defence valuations reflect a temporary peak or the early phase of a decade-long structural repricing. Subscribing now provides access to the complete assessment and to all future briefings on the financial dynamics shaping the defence-thematics space.
Company Profiles & Industrial Intelligence
Drone Threats Push Europe to Adopt Battlefield Technologies
This analysis shows how two European companies, Weibel Scientific and MyDefence, have become central to the shift from ad-hoc countermeasures to structured low-altitude protection across NATO airspace. It explains why technologies originally tested in Ukraine are now entering civilian procurement after the September 2025 intrusions in Denmark exposed structural vulnerabilities at airports and critical infrastructure. The piece clarifies how these systems work, why demand is accelerating, and how this trend is reshaping the European defence-technology landscape. Reading it offers a precise understanding of where counter-drone capabilities are heading and which firms are positioned to benefit. Subscribing now provides access to this full analysis and to all future briefings that track Europe’s rapidly evolving C-UAS sector.
Rheinmetall and ICEYE Launch Joint Venture for SAR Satellite Production in Germany
Rheinmetall AG and ICEYE Oy have formalised the creation of a new joint venture, Rheinmetall ICEYE Space Solutions, headquartered in Neuss, Germany. The agreement, signed in May 2025, marks a major strategic move in Europe’s effort to consolidate sovereign capabilities in the space and defence sectors. Rheinmetall holds a 60 percent majority stake, while Finnish partner ICEYE retains 40 percent. The partnership will initially focus on manufacturing Synthetic Aperture Radar (SAR) satellites—systems capable of delivering high-resolution imaging in all weather conditions and at any time of day. Production is scheduled to begin in the second quarter of 2026 at Rheinmetall’s Neuss facility, a site formerly used for automotive manufacturing and now repurposed to support Germany’s expanding space-industrial base.