From cruise ships to telecommunications, European companies are finding ways to pivot more and more into military contracts as they try to win a defence boom that is wiping out the continent. The European defense sector has exploded in value this year, with publicly listed companies in the industry riding a wave of bullish sentiment that has seen some companies more than double the valuation. To significantly increase defence spending from the European Union, UK, Germany and NATO military alliances, the region’s Stoxx Aerospace and Defense Index has been earning more than 50% since the start of the year. On Wednesday, the European Commission announced a proposal for a 2 trillion euro budget, including major clashes in fundraising for the defense. This comes as part of what the authorities labelled Europe as “an era of recontracts.” This already sees plans to announce a bloc that will mobilize 800 billion euros ($928 billion) to support national security spending. With the large government budgets expected to boost revenues for local security companies, some regional companies are finding ways to pivot resources and leverage the surge in European demand for defense solutions. Among them is the telephone company Giant Orange. Orange Business, the enterprise arm of a French company, has launched a new division dedicated to defense and homeland security. Its Professional Defense and Security Division (DD&S) works in a variety of areas, including hybridization of civil and military networks, hosting of sensitive data, emergency communications systems, and cybersecurity. The new defense division will be led by Nassima Auvray, who has a background in defense procurement and armed engineering and has worked for the French Ministry of Defense for two years. “We have historically established activities in this sector, but have been fragmented by multiple entities up until now,” she said of the Orange business. “The first goal of this new division is to bring together hundreds of experts from technologies such as digital integration, connectivity and AI. [and] “Sovereign Cloud Hosting.” Auvray was asked by CNBC if it hopes to benefit from increased defense budgets in NATO and EU member states. “Of course, this is one of our ambitions,” he said. [predominantly in] Europe added. “The defense and security sector requires more and more civic technology to meet the rapid developments of cloud computing, AI, cybersecurity, quantum and more. [all our capabilities] Elsewhere, Swedish self-driving car developer Einride also places himself in this sector as well as other countries and customers like NATO. Recently, Ainrid has been moving along with the new industry through the launch of new software that will help mitigate risks in this new environment. Therefore, we were unable to share specific details about how this technology is applied in a military sense. Cruise ships and mega yacht builder Fincantieri announced at the end of last month that it had won a 700 million euro contract to build two multi-purpose combat vessels, which will be in partnership with the Italian naval fleet. Fincantieri CEO Pieroberto Forgiero said that when the company’s Department of Defense asked whether NATO’s newly agreed defense would increase domestic gross production, 5% of Fillgiero asked “it’s definitely going to continue to increase.” [defense] Investment programme… He spoke to CNBC not only at various regions in Europe but also at international levels. At the same time, Pat O’Connor, CEO of Dublin-based VRAI Simulation, told CNBC, a company that builds a virtual reality training platform for people working in high-risk environments, including the aerospace and defense sectors, that his company is intended to be an increase in regional demand for military solutions. He said. Ireland is not a member of the NATO, but a part of the EU – it has the smallest defensive budget among bloc members as a percentage of GDP, but O’Connor argued that this could work for the benefit of the country and its businesses. Ironically, it presents us with the opportunity to do the same in terms of defensive capabilities. “Ireland has become something of a high-tech hub in Europe. Major heavyweights such as Amazon, Apple, Facebook and Microsoft have suspended operations in the country. [defense] The systems provided by a small number of countries become regional leaders of technology-driven capabilities thanks to a “deep pool of technical talent… and capital.” Investment opportunities are not just for companies that are focusing on opportunities in the defence space. Meanwhile, in Europe’s defense, Rohit Sipahimalani, Chief Investment Officer of Singapore’s National Investment Fund, said last week that his team is clearly aiming to put capital into Europe’s defense.
