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ARTICLE · 27 MARCH 2026

Defence: A New Deals Environment

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

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Emerging technologies and government focus on security will drive new entrants and consolidation in the sector, but the realities of procurement remain a political and commercial challenge

GermanyGovernment, Public Sector
Sönke Becker
Sönke Becker
Stephen Rayfield
Stephen Rayfield
Siddhartha Shukla
Siddhartha Shukla
Joseph Falcone
Joseph Falcone
Nicholas Carney
Nicholas Carney
Joseph Fisher
Joseph Fisher
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Emerging technologies and government focus on security will drive new entrants and consolidation in the sector, but the realities of procurement remain a political and commercial challenge

US Secretary of State and National Security Advisor Marco Rubio struck a conciliatory tone during his speech at the Munich Security Conference in February, though the underlying message for European leaders was the same: the continent’s defence capacity must meet the challenge of a new global environment.

Europe has responded with spending promises, pledges to remove red tape holding back defence procurement, and overtures towards greater coordination on security strategy.

The Ukraine war and a changing relationship with the US has given European governments a sense of urgency. Further conflicts and tensions elsewhere have globalised the trend. World-wide defence spending grew from US$ 2.48 trillion in 2024 to US$ 2.63 trillion in 2025, with Europe increasing spending by 12.6% year on year (to

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