Europe's Giant Rearmament Faces Major Challenges

The EU Commission proposes astronomical 9,000 billion kronor for defence investments in Europe. The proposal poses a number of challenges, notes Per Olsson, researcher in defence economics at FOI.

» Published: March 09 2025

Europe's Giant Rearmament Faces Major Challenges
Photo: Gorm Kallestad/NTB/TT

On several different points, Europe needs to be beefed up and thus be able to assist Ukraine while reducing dependence on the US defense forces.

It's an incredibly tough transformation, and however you turn it around – either you have to cut back on something else or take a loan, says Per Olsson at the Total Defense Research Institute (FOI).

But there is a growing insight that it cannot be done within the regular budget framework, and now money is needed quickly.

Gaps exist

Based on defense materiel and a comparison with Russia, there are gaps on the European side, points out Per Olsson:

It looks very different within different defense areas, even though there are absolutely holes to fill. Then it has been so that now people are running and wanting to buy almost everything.

What exactly would you say is primarily needed?

Robot defense is one such thing. We have seen in the Ukraine war that Russia is using long-distance robots and drones. Now Saab has launched a new form of "swarm" of drones, but the question is whether it is traditional defense companies or someone else who can offer this.

Another challenge is to avoid the bottlenecks that are now arising in production, where demand far exceeds supply. The German defense giant Rheinmetall has, for example, recently announced that it is converting two of the company's factories from producing vehicle components to instead focusing on producing ammunition. Something that now has greater demand.

It's a starved industry that needs to grow, it's a matter of how much can be included here, from personnel and tools to permits to build a new factory, says Per Olsson about the challenges facing the companies.

Burning question

Defense materiel is, however, only one part; military personnel are also needed behind the weapons and military vehicles. The question becomes even more burning if the US were to choose to leave Europe, emphasizes Per Olsson.

The US has around 85,000 men in Europe. You can't conjure that up in a short time. In other words, it may not be enough with money, you also need to review the personnel supply systems.

Tags

TTT
By TT - Translated and adapted by Sweden Herald under license from TT

More news

Skistar Relocates Guests Due to
1 MIN READ

Skistar Relocates Guests Due to Snow Shortage in Swedish Mountains

Asian Markets Show Mixed Movements
1 MIN READ

Asian Markets Show Mixed Movements as Investors Eye US Tariff Talks

Netflix Surpasses Market Forecasts with
1 MIN READ

Netflix Surpasses Market Forecasts with Strong Quarterly Earnings

Civil Servant Strike Averted as
2 MIN READ

Civil Servant Strike Averted as New Agreements Reached

IMF Predicts Global Economy to
1 MIN READ

IMF Predicts Global Economy to Sidestep Recession Despite Trade Strains

Judge Rules Google Maintains Illegal
1 MIN READ

Judge Rules Google Maintains Illegal Monopoly in Digital Advertising

Electricians Secure New Deal with
1 MIN READ

Electricians Secure New Deal with Pay Raises and Shorter Hours

US Economy Shows New Signs
2 MIN READ

US Economy Shows New Signs of Weakness with Housing and Manufacturing Slumps

Jonathan Anderson Named Dior Menswear
1 MIN READ

Jonathan Anderson Named Dior Menswear Creative Director

Eli Lilly Shares Surge After
1 MIN READ

Eli Lilly Shares Surge After Promising Weight Loss Pill Results

ECB Lowers Rates Again, More
3 MIN READ

ECB Lowers Rates Again, More Cuts Expected This Year

Study Reveals Long-Term Economic Strain
1 MIN READ

Study Reveals Long-Term Economic Strain for Russia in Ukraine Conflict

Trump Claims He Can Oust
2 MIN READ

Trump Claims He Can Oust Fed Chair Powell Despite Lacking Authority

Hermes Increases U.S. Prices to
1 MIN READ

Hermes Increases U.S. Prices to Offset Tariff Impact

Trump Administration Halts New York
1 MIN READ

Trump Administration Halts New York Offshore Wind Farm Construction

Genre image
1 MIN READ

Pernod Ricard Sales Dip Due to Cognac Challenges in China

TSMC Reports Strong Q1 Results
1 MIN READ

TSMC Reports Strong Q1 Results with 42% Sales Increase

ABB Gains Despite Downturn in
1 MIN READ

ABB Gains Despite Downturn in Stockholm Stock Exchange

ABB Boosts Profit, Plans Robotics
2 MIN READ

ABB Boosts Profit, Plans Robotics Division Spin-Off

Asian Markets Rise on Positive
1 MIN READ

Asian Markets Rise on Positive US-Japan Trade Talks

SBAB Predicts Decline in Mortgage
1 MIN READ

SBAB Predicts Decline in Mortgage Rates as Repo Rate Expected to Drop

Trump Reports 'Great Progress' in
2 MIN READ

Trump Reports 'Great Progress' in Trade Talks with Japan

Nvidia's Warning Sends Wall Street
1 MIN READ

Nvidia's Warning Sends Wall Street Indices Tumbling

EU Launches Safety Sweep to
1 MIN READ

EU Launches Safety Sweep to Tackle Dangerous Products Online

WTO Report: Trump's Tariffs Could
1 MIN READ

WTO Report: Trump's Tariffs Could Cut Global Trade by 1.5% by 2025

Record Restaurant Bankruptcies in March
1 MIN READ

Record Restaurant Bankruptcies in March Highlight Industry Struggles

US Retail Sales Surge in
1 MIN READ

US Retail Sales Surge in March, Driven by Car Purchases

Northvolt's Acting CEO Pia Aaltonen-Forsell
1 MIN READ

Northvolt's Acting CEO Pia Aaltonen-Forsell Steps Down

California Challenges Trump's Tariffs in
1 MIN READ

California Challenges Trump's Tariffs in Court, Citing Illegality

Social Democrats Propose Boost in
2 MIN READ

Social Democrats Propose Boost in Support for Single Parents

Autoliv Navigates Trade Tariffs with
3 MIN READ

Autoliv Navigates Trade Tariffs with Strong First-Quarter Performance

Honda Shifts Civic Hybrid Production
1 MIN READ

Honda Shifts Civic Hybrid Production to Indiana Factory

Sandvik Prepares to Boost U.S.
2 MIN READ

Sandvik Prepares to Boost U.S. Production Amid Trade Uncertainty

Viscaria's Copper Mine Clears Final
1 MIN READ

Viscaria's Copper Mine Clears Final Legal Hurdle, Prepares for Reopening

Swedish Industry Leaders Eye Co-Ownership
2 MIN READ

Swedish Industry Leaders Eye Co-Ownership in New Nuclear Venture

Anna-Karin Hatt's Role in Alecta's
3 MIN READ

Anna-Karin Hatt's Role in Alecta's Criticized Investments Under Scrutiny