SME Europe, SME Connect, Riho Terras, Guillaume de la Brosse: European defense and the participation of SMEs

Summary of the contribution of Markus Becker the SME Europe Meeting - May 20, 2025, Brussels

As part of the high-ranking meeting "European Defense and Smes' Involvement: Innovation and New Technologies", which SME organized in Brussels, Markus Becker, in his function as Chairman of the SME Connect Defense Working Group, was able to successfully integrate the subject of military logistics infrastructure into the European defense debate.

Essential aspects of his positioning

1. Logistics depot and storage infrastructure as a critical component

Military logistics depots and warehousing frastructures were identified in the plenum as previously neglected but essential component of European defense ability.

2. Emphasis on the relevance of dual-use solutions

Markus Becker emphasized how important these infrastructures are for security of supply, operational readiness and also for basic civilian care. He also showed how such modularly scalable and automated dual-use solutions can also be used in civil economy.

3. Meaning in peace times

He argued convincingly that these infrastructures are not only useful in the event of a defense, but also in times of peace - for example for regional care in structurally weak areas. Thus, they could remain eligible as part of the cohesion and structural programs.

Advantages for LTW intralogistics

1. Theme lead with dual-use infrastructures

Without a direct naming, Markus Becker LTW strategically positioned as an actor who is able to implement automated high -security warehouse for military and civil purposes. This should be done in the future:

• Strengthen visibility towards political funding agencies,
• lead to specific pilot project inquiries, and
• Qualify LTW to participate in public-private partnerships.

2. Recognition of the infrastructure deficit as a political field of action

The discussion about the lack of military warehouse and envelope structures shows that this topic has arrived at the political level. As a result, LTW can position itself early as a provider of corresponding solutions and use the first-mover advantage at an early stage.

3. Connection to new sources of financing

With the safe initiative (EUR 150 billion), the relaxation of the EIB rules and the strategic use of the European Defense Fund (EDF) and the cohesion means, the implementation of infrastructure projects is becoming increasingly tangible. LTW could benefit from:

• direct orders,
• Consortial projects or
• Funding for dual -use innovations.

4. Positioning in the strategic supply chain

• LTW offers solutions that can close gaps in the military supply chain, such as in distribution hubs, envelope centers and intermediate stores. This was explicitly emphasized by Guillaume de la Brosse (head of department Defense Policy & Innovation - Defis.A.1).

5. Compatibility with sustainability goals and civilian funding programs

The products and solutions from LTW contribute to decarbonization, energy efficiency and regional development. This compatibility opens up additional interfaces to environmental, structural and digitization promotion programs, which increases the political-strategic connectivity-even outside of purely defense programs.

From the idea to practice: Logistics as a driver for European regional development

Markus Becker successfully brought the topic of logistics to the political agenda as a defense -relevant core component. This gives LTW intralogistics the opportunity to position yourself as a strategic partner at the interface of defense, industry and general interest.

On the basis of this positioning, the next steps should now be initiated, including:
- the selection of suitable pilot regions in several Member States,
- the identification of starting points on cohesion policy, innovation and regional development -
- the initiation of a structured application application, especially in the context of EDF, Safe, Inveu or national security programs.

Markus Becker

I would be happy to serve as your personal advisor.

Head of Business Development

Chairman SME Connect Defense Working Group

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High-ranking work meeting on European defense and SME participation

On May 20, 2025, SME Europe, together with Riho Terras, member of the European Parliament, chairman of the EPP-KMU defense initiative and deputy chairman of the Committee on Security and Defense (Sede), organized a high-ranking work meeting entitled "European defense and the participation of SMEs: innovation and new technologies" in the SME European Center in Brussels.

Expert round and focus of the discussion

Renowned experts took part in the round, including Guillaume de la Brosse, head of the unit for defense policy and innovation with the European Commission, as well as political decision -makers, industrial representatives, companies and other interest groups. The discussion focused on how small and medium -sized companies (SMEs) can contribute more effectively to the future of European defense through innovation, technological development and strategic investments. The scope of the discussion was specified by the Weißbuch of the European Commission on European Defense - Readiness 2030. The focus was on how current and future EU instruments address existing challenges and at the same time support long-term ability to build up.

Review and central demands of Riho Terras

Riho Terras, MDEP, opened the discussion with a look back at the last meeting in Strasbourg in autumn 2024, in which the first designs of the European defense book were developed. Now that the Weißbuch on European Defense - Readiness 2030 was published, Terras recognized its importance, but complained that SMEs would be mentioned, but in his opinion, the statements were too general and lacked specificity. He emphasized several central points from the Weißbuch, which affect SMEs: whose explicit mention in the context of disruptive innovations, support measures through targeted programs, criteria for cross-border cooperation in the European Defense Fund (EDF) and financial incentives based on SME participation. Despite a considerable participation rate of 50 % of SMEs of EDF advertisements and a planned provision of 840 million euros, Terras emphasized that this amount is modest compared to the needs of the defense sector. He referred to the ongoing challenges that SMEs faced - especially when securing financing, since banks were reluctant to finance defense projects. He asked the Commission to submit concrete solutions how to improve access to financing and to deepen the integration of SMEs into the European defense landscape.

Strategic perspectives of Guillaume de la Brosse

Guillaume de la Brosse, head of the unit for defense policy and innovation of the European Commission, explained the urgency behind the revitalization of European defense. This was triggered by the geopolitical threats from Russia and the increasing pressure from the United States that Europe must take over more responsibility. De la Brosse emphasized the importance of the new structure of the European Commission, in particular the appointment of a commissioner responsible for defense and space travel. He went into detail about the recently published white book, which aims to align the Member States to the need for urgent and large -scale defense investments. He mentioned important financial instruments such as the flexibility of the stability and growth pact as well as the SAFE initiative (Security Action for Europe), which is intended to provide defense loans of 150 billion euros. These mechanisms should enable Member States to quickly complete contracts and to expand skills. De la Brosse emphasized the double focus on the demand and offer side and emphasized the central role of the SME in scaling production, innovation and closing gaps in the supply chain. He admitted existing bottlenecks - especially in the financing of SMEs - and welcomed changes to institutional guidelines (e.g. loosening restrictions at the European Investment Bank) as steps to facilitate capital access. In addition, other EU instruments such as the European Innovation Council and Kohesion Fund would be mobilized to support the defense industry. Finally, he called on to simplify the procurement regulations and emphasized that the Member States had to use the instruments provided to ensure that the defense ecosystem, including SMEs, can deliver quickly and to a large scale.

Challenges and recommendations for action

The event was continued with a discussion that focused on specific measures in order to strengthen the contributions from SMEs to European defense efforts. It was found that SMEs are still confronted with considerable challenges in capital procurement, especially when it comes to scaling high-tech solutions and technologies with a double use. The urgent reputation of simplifying the application procedure and reducing the bureaucratic effort within the EU financing framework in order to ensure that smaller companies can participate more efficiently.

Specification of talent as a key challenge

Talent acquisition was also identified as a critical topic. The lack of highly qualified specialists in areas such as AI, quantum computing and software development limits the capacities of many SMEs to participate or expand in top -class defense projects. The participants discussed strategies to strengthen the cooperation between the private sector and research institutions in order to build up a qualified and ready -to -defense labor base.

Necessity of cross -border cooperation

In addition, the importance of strengthening cross-border cooperation and the improvement of synergies between national and EU initiatives was emphasized. The need for a stronger adjustment in defense creation and certification standards were mentioned as a way to increase competitiveness and open up new opportunities for SMEs in the internal market.

Infrastructure and technologies with a double purpose

A central point was the lack of military logistics infrastructure in Europe - especially depots for storing and distributing critical objects such as ammunition, protective equipment and uniforms. Without suitable infrastructure, it is difficult to deliver replenishment quickly in times of crisis.

The potential of technologies with a double use was also largely recognized as an accelerator for innovations. The creation of environments that support commercial scalability while at the same time compliance with defense standards was regarded as a strategic priority.

Conclusion and outlook

The event ended with the consensus about the importance of SMEs for the future of European defense. In order to achieve the goals formulated in the "Readiness 2030" white book, the European Union has to create a more inclusive and innovation -friendly defense ecosystem. This includes better access to financing, strengthening the talent base and reducing regulatory fragmentation.

The publication of this document was financially supported by the European Parliament. The sole responsibility lies with the author. The European Parliament is not liable for the use of the information it contains.

More here: https://www.smeeurope.eu/european-defense-and-smes-involvement-inovation-and-new-technologies/