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

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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.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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