Why Can Europe Build New Defense Companies Now?

Uwe Horstmann says Europe can build new defense companies now because two changes arrived together: Europe accepted that it must take more responsibility for its own defense, and people saw the battlefield shift toward software, AI, inexpensive production, and small-scale systems.

He says the United States has told Europe repeatedly to step up, and that the warning is right. Europe has to defend itself, because deterrence is how to keep living in peace. The world is probably not peaceful by default, yet it still has to be defended, and the only way to stay safe is by deterring a potential attacker. The understanding took hold just as new technology emerged. The systems are software driven and AI driven, relatively inexpensive to produce, and small in scale. Germans and other governments earn credit, in his account, for procuring where existing capabilities leave a gap, and for changing the buying process, because a drone is not procured like a battleship.

The overlap was probably the starting point for founding the company and for leaning in. In a few years people will probably ask what was done during the time. An interest in the military, security, and international relations met the technology side, and stepping in was a clear decision. Pat Grady asks why this moment favors new defense companies. He hosts this episode with Luciana Lixandru.