Connect with us

News

How European defence companies can rise to the challenge

Published

on

How European defence companies can rise to the challenge

Unlock the Editor’s Digest for free

Bellicose rhetoric from the US on the need for Europe to play a bigger role in defence is unleashing a fresh rally in the continent’s defence stocks. Demand for tanks, soldiers and ammunition is a given. Less clear is whether industry is in a position to capitalise on it.

US defence companies have done a tidy job of parlaying government spending into robust investor returns, via hefty research and development spending, economies of scale and handy deployment of tech. But Europe is a fragmented landscape, with different countries procuring to different specifications. Lack of co-operation costs the bloc between €25bn and €100bn annually, the European Commission has calculated.

What scale European companies do have is at least partly due to the US market, which accounts for two-fifths of sales at BAE Systems, or more than Europe and the UK combined. At Airbus it contributes more than a fifth, and at Leonardo more than a quarter, on 2023 numbers.

Advertisement
Bar chart of €mn showing Cost of a third-generation main battle tank

Creating a US-style unified market of near-30 countries is not going to happen. But unified standards and specifications are perfectly possible; at least a clutch of (generally smaller) countries are in harmony on, say, rifle specs. That could be extended, thus enabling more efficient capacity utilisation and expanding economies of scale.

Likewise, facilitating joint investment across borders would strengthen supply chains and ultimately bring down unit costs. Defence manufacturers rely on a swath of parts and components and would benefit hugely from agglomeration on a European scale.

Consolidation at the top end is the stuff of fantasy. Collaboration is not. Pooled resources, be it manufacturing platforms, R&D or joint procurement, all help with both capacity and costs.

There is precedent too. Take the MBDA missile manufacturing joint venture run by BAE Systems of the UK, France’s Airbus and Leonardo of Italy. The trio are also involved in the consortium producing the Eurofighter flagship combat aircraft. Leonardo and Germany’s Rheinmetall are joining forces to develop and market the new Italian main battle tank through a 50-50 joint venture.

Challenges to all this are legion and gaps remain. When it comes to software, Europe is light years behind the US; after all, that country’s tech industry was fathered by the Pentagon. German drone and defence AI start-up Helsing, valued at €5bn, pales beside America’s Palantir — market cap $270bn — and its start-up spawn Anduril, reportedly shooting for a $28bn valuation.

Still, industry momentum has been rising since Russia invaded Ukraine. Far from just collecting big order books, European manufacturers have introduced efficiencies in factories and supply chains. Equipment delivery times have already improved, according to industry sources. They are also corralling new processes, such as 3D printing.

Advertisement

More acceleration is possible. After all, if Ukraine was able to build a drone production from zero to 4mn-plus — while fighting a war — it should not be beyond Europe’s stalwarts to start plugging gaps and readying themselves for a rush of orders.

louise.lucas@ft.com

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Former Olympian pleads not guilty in reflecting pool vandalism charges

Published

on

Former Olympian pleads not guilty in reflecting pool vandalism charges

Former U.S. Olympian David Hearn (left) walks with his attorney Norman Eisen to speak to reporters and protesters gathered after his arraignment at the Superior Court of the District of Columbia in Washington, D.C. on Thursday.

Finn Gomez/Getty Images


hide caption



toggle caption

Advertisement

Finn Gomez/Getty Images

Former U.S. Olympic canoeist David Hearn pleaded not guilty to damaging the Lincoln Memorial Reflecting Pool in D.C. Superior Court Thursday morning.

Federal prosecutors charged Hearn with a single count of destruction of property causing more than $1,000 in damage to the pool.

Hearn has previously claimed, which his attorneys repeated during a short press conference outside the court, that he simply touched the water in the pool out of curiosity.

Advertisement

The Trump administration had just completed a $14 million renovation of the pool.

But shortly after the work finished, peeling paint and algae gathered in the water. The remodel has been largely criticized as a massive failure and waste of taxpayer dollars.

Superior Court Judge Carmen McLean released Hearn on his own recognizance. His next hearing is scheduled for Aug. 5.

Norm Eisen, one of Hearn’s attorneys, spoke to reporters outside of court following the hearing. He said the administration is using Hearn as a “scapegoat … for their own failures.”

“It is not a crime to touch the reflecting pool, to touch water in the United States of America,” he said.

Advertisement

Prosecutors say there is a host of evidence against Hearn.

This is a developing story.

Continue Reading

News

Three more people charged with damaging Reflecting Pool after Trump’s multimillion-dollar restoration | CNN Politics

Published

on

Three more people charged with damaging Reflecting Pool after Trump’s multimillion-dollar restoration | CNN Politics

Three more people have been criminally charged with destruction of property at the Lincoln Memorial Reflecting Pool.

Officers say they detained Cameron Thiers, Sophie Dennison-Gibby and Justin Carreno one Saturday afternoon in June and described in court documents witnessing them peeling and removing pieces of blue paint from the Reflecting Pool.

One officer “witnessed Carreno reach down into the reflecting pool and pull up a piece of the blue paint,” according to the court documents.

The officer who detained Dennison-Gibby “found 1 additional piece of the reflecting pool liner” in her purse, the documents said.

All three incidents were recorded on the officers’ body worn cameras, they said in the court documents.

Advertisement

Several “partnering law enforcement agencies assigned to the Reflecting Pool” working with US Park Police were involved in detaining the two men and one woman — including officers from Texas, Oklahoma, Montana and California.

One of the officers said in court documents that Thiers “admitted to removing a piece of blue sealant from the Reflecting Pool and still had it in his hand when I made contact with him.”

The three defendants were arraigned in court Wednesday and pleaded not guilty to the misdemeanor charges of destruction of property with a value less than $1,000. The judge ordered them to stay away from the Reflecting Pool.

Lawyers for Thiers and Dennison-Gibby declined to comment. CNN has reached out to Carreno’s attorney.

If found guilty of destruction of property, the defendants could be fined up to $1,000 and face a maximum of 180 days behind bars.

Advertisement

The New York Times first reported that three additional people had been charged with damaging the Reflecting Pool.

President Donald Trump has repeatedly claimed that vandals caused major damage to the pool by gashing the lining after his administration spent more than $14 million on renovations, though he has not provided evidence to support that claim. The officers who charged Carreno, Thiers and Dennison-Gibby did not accuse them of gashing the lining.

Former Olympic canoeist David Hearn was indicted by a grand jury in Washington, DC, last week for allegedly damaging the Reflecting Pool. Hearn — unlike Carreno, Thiers and Dennison-Gibby – was charged with destruction of property with a value of more than $1,000 which carries a maximum penalty of 10 years in prison, if convicted. He is set to be arraigned in court Thursday.

Crews began draining the Reflecting Pool over the weekend to make repairs, according to Interior Secretary Doug Burgum, for the second time in three months.

The move comes after weeks of problems – algae blooms, green-hued water, a chipping bottom and the administration’s allegations of vandalism – that have plagued the iconic landmark, making its woes the subject of national interest.

Advertisement
Continue Reading

News

Supreme Court financial disclosures reveal how their books add to their income

Published

on

Supreme Court financial disclosures reveal how their books add to their income

Supreme Court Justice Amy Coney Barrett speaks at the Reagan Library on Sept. 9, 2025, in Simi Valley, Calif. Barrett discussed and signed copies of her new book, Listening to the Law: Reflections on the Court and Constitution.

Mario Tama/Getty Images


hide caption



toggle caption

Advertisement

Mario Tama/Getty Images

Even as the Supreme Court was handing down one legal thunderbolt after another last week, the justices were quietly releasing their annual financial reports. Justice Samuel Alito was the only sitting justice to request an extension, which he has done for 15 years. The disclosures do not give a complete account of the justices’ total income and wealth, but they give insights into their concertgoing, guest professorships and even their involvement in youth sports.

In addition to their salaries, much of the justices’ reported income came from their book deals. Justice Ketanji Brown Jackson led the pack earning more than $1.1 million last year for a total of roughly $4 million since her memoir, Lovely One, was published in 2024.

Justices Sonia Sotomayor, Neil Gorsuch, Amy Coney Barrett and retired Justice Anthony Kennedy also reported income from published books. Earnings from their books ranged from $849,000 for Barrett, to $300,000 for Gorsuch and $88,000 for Sotomayor, whose books include her 2013 autobiography and five children’s books. Justice Clarence Thomas, who previously earned $1.5 million for his 2007 memoir, listed no publisher payments last year, and Justice Brett Kavanaugh, one of 13 co-authors of a 2016 legal treatise, also received no payments last year. Kavanaugh is said to be working on a memoir but he listed no payments for the anticipated book. Alito does have a book coming out in the fall, but with his financial report still outstanding, there is no data on how much he was paid for the work in 2025.

Advertisement

The only two sitting justices who have not written books are Chief Justice John Roberts and Justice Elena Kagan.

Many justices also earned income from teaching at law schools. Roberts reported income from New England Law, located in Boston, and Gorsuch reported teaching income from George Mason University in Virginia. Thomas taught classes at Catholic University in Washington, D.C., and Barrett and Kavanaugh taught at Notre Dame Law School. Barrett graduated from the school and began teaching there 23 years ago; Kavanaugh has family connections to Notre Dame.

Continue Reading
Advertisement

Trending