Where is European defence headed? Funding, capabilities and defence-industrial capacity

European defence has long been characterised by EU and NATO member states’ uneven defence investments and their propensity to think about defence from a national perspective, leading to fragmentation and inefficiencies. However, Russia’s war against Ukraine, the threat Russia poses to Europe more broadly, and the increasing fragility of the transatlantic relationship are reshaping the European defence landscape. Most notably, the defence budgets of EU and NATO member states are increasing, pushed by a new NATO spending target and facilitated by various EU measures. These include the SAFE instrument as well as the possibility to temporarily deviate from the EU’s fiscal rules to invest in defence. Nevertheless, concerns persist about whether this will be enough to fundamentally change European defence dynamics. At present, the sense of urgency among European states still varies, as does their readiness to cooperate with one another. This seminar assesses the state of Europe’s rearmament efforts, focusing on funding, capabilities and defence-industrial capacity. Are the member states’ defence spending pledges realistic and the funding mechanisms adequate? Is the money translating into concrete capabilities and/or strengthening Europe’s defence industry? How can Europeans strike the right balance between urgent procurements and long-term investments? What should the EU’s and NATO’s roles in the equation look like? PROGRAMME Welcoming words: Juha Jokela, Programme Director, FIIA Opening words: Otto Saxén, Director General of the Defence Policy Department, Ministry of Defence Keynote: Guntram Wolff, Senior Fellow, Bruegel Comments: Vesa Vihriälä, Visiting Researcher, University of Helsinki Päivi Puonti, Director, Chief Economist, Suomen Yrittäjät Moderator: Tuomas Iso-Markku, Leading Researcher, FIIA