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The Security and Defense Hub of the SME Connect Working Group Defence on Xpert.Digital
The Security and Defense Hub of the SME Connect Working Group Defence on Xpert.Digital

 

SME Connect is one of the largest European networks and communication platforms for small and medium-sized enterprises (SMEs). Founded in 2017, SME Connect is a non-partisan organization that advocates for the interests of SMEs at the EU level, bringing together SMEs, their supporters, and relevant stakeholders such as associations, think tanks, and universities committed to SME-friendly policies.

 

The network aims to maximize the impact and visibility of SMEs in European politics. It serves as a platform for exchanging ideas, positions, information, and knowledge about the challenges and opportunities facing SMEs in Europe. SME Connect supports the development of constructive partnerships to find common ground or at least to facilitate an honest exchange of interests.

 

The SME Connect Defence Working Group – Strengthening SMEs in European Defence

 

Innovative SMEs are an essential part of the EU defence industry. However, they face numerous obstacles to participating in defence procurement, particularly across borders. Furthermore, the global dynamics are evolving rapidly, necessitating a European response to intensified global competition. This has underscored the need to improve existing structures and processes while simultaneously implementing new ones.

 

The goal of this working group is to unite SMEs and relevant stakeholders to form a consortium of entrepreneurs representing the defense sector and military suppliers. Leveraging our expertise in products, services, and markets, we aim to improve the regulatory environment within the European Union. B2B interactions are equally important to us. By joining forces, we facilitate market access and streamline financing initiatives. Together, we strive to serve as the primary resource for SMEs in Europe's defense industry.

 

Digital Pioneer - Konrad Wolfenstein

Markus Becker

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Chairman SME Connect Defense Working Group
 
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  • Deadly trap in the Black Sea? Agricultural exports under scrutiny: The new normal in the Black Sea is spiraling out of control

    ▶️ Deadly trap Black Sea? Agricultural exports in the crosshairs: The new normal in the Black Sea is spiraling out of control

    The Black Sea is developing into a highly dangerous war zone due to increasing attacks on civilian freighters. | Global food supplies are suffering massively from the threat of drones and missiles to vital grain routes. | Neutral merchant ships are systematically caught in the crossfire, plunging maritime logistics into a deep crisis. | Exploding war risk insurance premiums reflect the drastic deterioration of the security situation for shipping companies. | | No flag of origin offers reliable protection against the escalating violence in the region anymore. | | Despite the danger, the sea route remains the only economically viable alternative for Ukrainian agricultural exports compared to expensive land routes. | The shift in global market shares documents the massive economic damage caused by the maritime conflict. | | Insurers are increasingly refusing coverage because loss ratios exceed the economic viability of traditional models. | The diplomatic protests from affected third-party states underscore the international scale of the security threat. | A short-term easing of the situation in the Black Sea is not currently foreseeable due to the hardened fronts. [...]

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    Industrial transformation: VW in crisis, Rheinmetall booming – Is Germany now becoming an arms-producing nation?

    ▶️ Industrial transformation: VW in crisis, Rheinmetall booming – Is Germany now becoming an arms-producing nation?

    The German automotive industry is in a historic crisis with massive job cuts and dwindling competitiveness. | At the same time, the defense industry is experiencing an unprecedented boom with record sales due to geopolitical tensions. | | Is Germany now facing a radical transformation from a former automotive nation to Europe's new arms manufacturer? | | Many former car factories are being physically converted to produce tanks and defense components for the German Armed Forces. | | This structural transformation primarily affects suppliers, who are struggling with declining orders and bankruptcies. | Despite growth in the defense sector, experts warn against the illusion that it can fully compensate for the job losses in the automotive industry. | | The defense industry remains too small compared to the massive automotive industry to completely close the gap. | The transfer of skilled workers between these two sectors is proving to be a major challenge due to differing corporate cultures and mindsets. | Data-driven analyses reveal a complex shift rather than a simple exchange of industrial sectors in the German labor market. Learn at xpert.digital what this fundamental industrial transformation really means for Germany as a business location and where the risks lie. [...]

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  • PESCO: This EU defense project works in practice – “Network of LogHubs in Europe and Support to Operations”

    ▶️ PESCO: This EU defense project works in practice – “Network of LogHubs in Europe and Support to Operations”

    Learn how the PESCO project "Network of LogHubs" is revolutionizing European defense logistics. | | By networking national military depots, a cross-border infrastructure is being created that makes operations more efficient. | | The strategic logistics system already connects over 25 locations to ensure troop mobility and supplies. | Germany is leading this project as a key link to strengthen Europe's strategic sovereignty. | Modern investments, such as the expansion in Pfungstadt, are making the network technologically future-proof. | | This cooperation has already proven successful in practice during NATO missions in the Baltic states. | Opening up to third countries like Canada underscores the close integration with global partners and alliances. | Despite its complexity, the project demonstrates that shared infrastructure reduces costs and shortens response times. | Nevertheless, the fragmentation of weapon systems remains a key challenge to achieving full operational efficiency. | | Delve into the analysis of whether this logistics concept can serve as a blueprint for future European security. [...]

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    The TEN-T system: Europe's underappreciated backbone of economic integration – Who actually pays for our roads, railways and ports?

    ▶️ The TEN-T system: Europe's underappreciated backbone of economic integration – Who actually pays for our roads, railways and ports?

    Discover the TEN-T network with Xpert.Digital: Europe's invisible backbone for economic integration and security. The mega-project TEN-T connects roads, railways, and ports to form a high-performance European transport network. | Learn how the war in Ukraine is radically shifting infrastructure planning towards geopolitics and dual-use considerations. | We analyze the 2024 reform and why efficient transport routes are essential for the single market. | The TEN-T system is far more than technocratic administration; it is a strategic instrument of power for the EU. | Find out who is paying for the expansion and what role the Connecting Europe Facility plays. | The 2030, 2040, and 2050 targets significantly define the future of our European mobility. | Discover the importance of multimodal hubs for modern, sustainable logistics across Europe. | Despite bureaucratic hurdles, TEN-T remains the engine for economic growth and regional convergence. Learn more about this multi-billion-euro project, which will decisively shape our security policy future. | | [...]

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  • From engine manufacturer to systems house: How Deutz is reinventing its defense business with the FFG acquisition

    ▶️ From engine manufacturer to systems house: How Deutz is reinventing its defense business with the FFG acquisition

    With the €1.6 billion acquisition of FFG, Deutz is undergoing a radical strategic shift from engine manufacturer to systems integrator. | The transaction promises billions in revenue and rapid growth in the European defense market. | | At the same time, capacity bottlenecks and complex integration risks threaten the accelerated expansion. | The financing combines debt and a capital increase, bringing new anchor shareholders on board with up to 29.9% stakes. | FFG brings profitable platform expertise for wheeled and tracked vehicles as well as a high-margin maintenance business. | Synergies will arise from combining Deutz's powertrain expertise and FFG's vehicle integration, but operational implementation remains challenging. | The dual role as supplier and competitor requires trust-building communication with major customers such as Rheinmetall and KNDS. | Analysts see strategic added value, but the market is cautiously assessing integration and antitrust risks. | | Political and geopolitical conditions are a key driver, but also make the business dependent on defense budgets. Long-term success depends on capacity expansion, cultural integration, and the practical implementation of the new corporate structure. [...]

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    Operation “Epic Fury” – The Logistics Network: How Ramstein became the nerve center in the Iran war

    ▶️ Operation “Epic Fury” – The Logistics Network: How Ramstein became the nerve center in the Iran war

    | Europe's military bases are exposed as secret logistics hubs in the war against Iran. | | Flight data reveals intensive airlifts via Ramstein, Fairford, and Diego Garcia. | The exact cargo remains unclear, but ammunition, equipment, and personnel are being moved on a massive scale. | | The legal question of when the provision of infrastructure constitutes participation in a war remains open. | Ramstein acts not only as a transit hub but also as a data and drone relay station. | | Great Britain has become an active launching point for bombing raids. | Diego Garcia gives the operation strategic reach in the Indian Ocean. | Arms sales and economic interests are accelerating the escalation. | | National debates in Germany and Great Britain about transparency and accountability are gaining momentum. | | The analysis draws conclusions from concealed flight movements, geopolitical interests, and high risks for Europe. [...]

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  • GLOBSEC and NATO's eastern flank: Between aspiration and operational reality

    ▶️ GLOBSEC and NATO's eastern flank: Between aspiration and operational reality

    | GLOBSEC's 2026 report analyzes NATO's eastern flank and shows that money alone does not create operational security. | Logistical bottlenecks such as delayed projects (e.g., Rail Baltica) jeopardize rapid troop and supply movements. | Munitions production, maintenance, and medical supplies are identified as crucial, often neglected factors. | | The Decision-Making Timeline Index highlights significant differences in decision-making and response speeds between states. | | Finland, Estonia, and Poland are considered role models; other countries remain vulnerable due to bureaucratic procedures. | The "golden triangle" of capability, money, and speed of decision-making must function simultaneously. | Europe's defense industry faces growth potential, but also scaling and dependency problems. | Small and medium-sized enterprises (SMEs) can benefit, but are hampered by certifications, export controls, and market concentration. | Cyber ​​and hybrid threats demand societal resilience and coordinated responses at the national level. Conclusion: Operational substance, not mere declarations of strength, requires long-term investments, infrastructure, and political reforms. [...]

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    Civilian technology, military applications: That's why Karlsruhe is one of the top centers in the dual-use boom

    ▶️ Civilian technology, military applications: This is why Karlsruhe is one of the top centers in the dual-use boom

    The Dual-Use Atlas shows how civilian technologies are becoming increasingly relevant to security. | Around 3.5 million people are employed in sectors with both civilian and military applications. | Karlsruhe is among the top regions, combining a high degree of specialization with national relevance. | Mechanical engineering, electrical engineering, and ICT form the backbone of the new security economy. | Dual use offers opportunities for resilience but requires regulatory expertise and public debate. | Research, digitalization, and industry are merging to create strategic system capability. | The regional distribution reveals four distinct industrial profiles in Germany. | New markets are opening up for companies without having to abandon their civilian core business. | Policymakers and businesses must translate this potential into concrete market access and responsible strategies. | For the first time, the Atlas provides a data-driven roadmap for the strategic realignment of German industry. [...]

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  • The Phoenix Trick and the US-Iran War: The War Powers Act, which “ended

    ▶️ The Phoenix Trick and the US-Iran War: The War Powers Act, the “ended” war, and the new escalation

    The analysis by xpert.digital explains how the Trump administration is legally circumventing the War Powers Resolution, thereby undermining democratic checks and balances. | | The 62-day conflict and the letter that "ended" the war demonstrate a new tactical use of constitutional loopholes. | | The blockade and attacks in the Strait of Hormuz are having a massive impact on global shipping, driving up freight rates and insurance premiums. | | Energy prices have skyrocketed; experts warn of a prolonged price shock that could trigger global recessions. | German shipping companies are caught between high risks, stranded vessels, and a lack of military support. | | The IRGC is employing asymmetric tactics that allow for continued disruption of the strait despite the destruction. | Geopolitical beneficiaries such as Russia and Saudi Arabia are exploiting the instability, while China remains particularly vulnerable. The Versailles framework agreement fails to resolve many core issues and leaves key points open for a second phase of negotiations. | With the renewed escalation in July, the war-powers clock is ticking again, presenting Washington with difficult political decisions until September. | | Conclusion: Political unpredictability, legal maneuvering, and economic shocks make the crisis a persistent risk for trade, energy supply, and [...]

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    Mission military mobility: How Tomáš Zdechovský and Markus Becker want to reconnect Europe's logistics hubs

    ▶️ Mission military mobility: How Tomáš Zdechovský and Markus Becker want to reconnect Europe's logistics hubs

    Europe's security depends on interconnected logistics hubs, not just new transport corridors. | LOHR's ​​CRISTAL and DRAISY demonstrate how civilian mobility can become dual-use capable for crisis situations. | MODALOHR connects road and rail, facilitating intermodal freight transport and military redeployment. | Medium-sized innovators are the missing link for systemic logistics solutions in Europe. | Dual-use infrastructure offers economic efficiency and political acceptance for investments. | Light rail vehicles like DRAISY can reactivate regional networks and halve operating costs. | Rapid deployment requires systems thinking: the overall throughput time is crucial, not just speed. | Investments must flow into intelligent hubs, buffering, and prioritization; otherwise, bottlenecks are inevitable. | Political implementation requires dual-use standards, SME involvement, and targeted funding instruments. | Europe's resilience is determined by the quality of the connections between infrastructure, industry, and politics. [...]

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  • Is Putin's war chest about to collapse? 90 ships hit in one week: The devastating blow against Putin's oil empire

    ▶️ Putin's war chest on the verge of collapse? 90 ships hit in one week: The devastating blow against Putin's oil empire

    | Putin's shadow fleet in the Sea of ​​Azov is being systematically attacked by Ukrainian drones. | Within a week, around 90 ships are reported to have been hit, and tankers are on fire. | The attacks are cutting off Crimea's fuel supplies and threatening Russian supply lines. | New medium-range drones like the Fire Point FP-2 are fundamentally changing maritime warfare. | Moscow's oil revenues and budget are under massive pressure due to destroyed tankers and declining refinery output. | Russia is experiencing fuel shortages, rationing, and drastic price increases at gas stations. | The strategic isolation of Crimea is significantly weakening Russia's frontline supply and logistics. | The operations complement sanctions militarily but do not automatically have a decisive impact on the war effort. | In the long term, financial erosion, political destabilization, or a Russian adaptation response are possible. | The attacks send a geopolitical signal: The Sea of ​​Azov is no longer Russia's safe haven. [...]

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    Europe's munitions crisis: Billion-dollar deal on the brink – Why Rheinmetall's mega-factory in Bulgaria is faltering

    ▶️ Europe's munitions crisis: Billion-dollar deal on the brink – Why Rheinmetall's mega-factory in Bulgaria is shaky

    Europe's munitions crisis: Why Rheinmetall's multi-billion-euro project in Bulgaria is faltering. | Financial gaps and a misinterpretation of the SAFE instrument threaten the financing of the mega-joint venture. | Planned factories near Sopot were supposed to bring production and jobs, but are mired in legal and technical uncertainties. | The 51:49 corporate structure shifts control to Rheinmetall and burdens Bulgarian taxpayers with high risks. | The lack of binding contracts and opaque payment flows raise questions about contract design and transparency. | Bulgaria is caught between industrial development, NATO obligations, and fiscal realities. | Renegotiations could readjust subcontractor quotas, license caps, and equity stakes. | Land-related problems and permitting issues are delaying construction and jeopardizing schedules. | Geopolitically, Bulgaria depends on good relations with Germany but must not sell out its national interests. The project remains possible, but requires reliable funding, clear contracts, and political support by the end of 2026. [...]

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  • Eight barracks – from Boostedt to Sigmaringen: This is what's behind the German Armed Forces' gigantic billion-euro plan

    ▶️ Eight barracks – from Boostedt to Sigmaringen: This is what's behind the German Armed Forces' gigantic billion-euro plan

    The reactivation of eight barracks demonstrates Germany's strategic return to a comprehensive defense infrastructure. | Billions in investment and accelerated construction methods are intended to quickly create training and accommodation capacities. | The real estate moratorium halts conversion projects and poses major challenges for municipal planning. | The locations are concentrated in former West Germany and raise questions of regional equity. | Reoriented basic training focuses on homeland security, drone defense, and individual resilience. | The expansion targets require increased personnel, substantial budgets, and massive borrowing. | A backlog of repairs and cost increases are driving infrastructure bills into the billions. | Regional economies benefit from contracts but suffer from competition for skilled workers due to the arms boom. | The voluntary nature of the new military service is under review; the reintroduction of conscription remains politically possible. | Overall, these measures mark a profound shift in security and structural policy for the coming decades. [...]

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    Defence as an economic engine: Why the initiative by Deutz and Honold is waking up the entire logistics industry

    ▶️ Defence as an economic engine: Why the initiative by Deutz and Honold is waking up the entire logistics industry

    The changing times are driving long-term structural change: Defense is becoming the new economic engine. | ​​Deutz's multi-billion-euro acquisition and entry into AI robotics demonstrate how traditional industry is reinventing itself. | A defense cluster is emerging in southern Germany, combining engine manufacturing, robotics, and logistics. | Honold is focusing on the Defence Cube and establishing secure logistics space as a key resource. | Historical defense budgets and special funds are generating billions for procurement and infrastructure. | The market is characterized by high barriers to entry—compliance, security audits, and critical infrastructure (KRITIS) requirements are decisive. | Long-term, high-margin contracts are opening up for strategically positioned medium-sized companies. | For many small transport companies, market entry remains unrealistic without significant investment. | Those who establish partnerships and cluster relationships early secure market leadership and references. | xpert.digital analyzes opportunities, risks, and recommendations for industry and logistics in the defense economy. [...]

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  • NATO Summit Ankara 2026 – Detailed Analysis: Winner Erdoğan, Loser Spain? The explosive background of the NATO Summit 2026

    ▶️ NATO Summit Ankara 2026 – Detailed Analysis: Winner Erdoğan, Loser Spain? The explosive background of the NATO Summit 2026

    The article analyzes the 2026 NATO summit in Ankara and explains how Erdoğan emerged as the geopolitical winner. | | Trump's provocative actions, from trade threats against Spain to the Greenland affair, triggered diplomatic upheavals. | Europe responded with a historic €140 billion aid package for Kyiv, which is fundamentally changing the security architecture. | | Germany will assume a significantly larger burden in the future and is accelerating massive defense investments. | | "Burden sharing" is increasingly becoming "burden shifting"—a paradigm shift in NATO's burden-sharing approach. | | Arms deals and industrial cooperation, such as submarine and aircraft contracts, are strengthening the European defense industry. | Article 5 was reaffirmed, but the reliability of the US commitment under Trump remains uncertain. | The analysis highlights open lines of conflict, particularly regarding the handling of Iran and intra-alliance tensions. Economically, the decisions mean significant redistribution and opportunities, but also efficiency risks for European economies. | Conclusion: Ankara marks a turning point – Europe is gaining strategic responsibility, but many structural risks remain unresolved. [...]

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    Canada buys German submarines for up to 61 billion euros: Turning away from the USA – Canada's historic mega-deal with German submarine shipyard

    ▶️ Canada buys German submarines for up to 61 billion euros: Turning away from the USA – Canada's historic mega-deal with German submarine shipyard

    Canada orders up to 12 submarines from TKMS – a historic €61 billion deal with global implications. | The order marks a strategic shift away from the US and a stronger commitment to European partners. | The Type 212CD offers state-of-the-art AIP technology and is optimized for operations under ice and in the Arctic. | For the German shipyard, the contract means a massive expansion of capacity, investments, and thousands of new jobs. | The deal combines security policy, industrial policy, and long-term trilateral cooperation with Norway. | Canada is thus strengthening its sovereignty claims in the Northwest Passage and its maritime deterrence capability. | TKMS promises extensive industrial partnerships, local value creation, and technology transfers. | Being named the preferred bidder is a milestone, but the final contract and negotiations are still pending. | The order has far-reaching economic effects, creates economies of scale in supply chains, and strengthens Kiel and Wismar as naval bases. A geopolitically significant treaty that will shape the future of underwater defense and European arms cooperation. [...]

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  • Military Schengen and the EMERS emergency plan – Europe's strategic turning point in defense logistics

    ▶️ The military Schengen Area and the EMERS emergency plan – Europe's strategic turning point in defense logistics

    | Europe is facing a strategic turning point: military Schengen and EMERS are intended to enable rapid troop deployments. | Currently, 27 different sets of regulations and dilapidated infrastructure are hindering the mobility of heavy equipment. | | A standardized approval process within three working days and a 48-hour emergency mechanism could turn months into days. | | The expansion of roads, ports, and railways according to the dual-use principle combines defense capabilities with civilian economic development. | The funding gap of around €100 billion poses a formidable challenge to the project. | | Germany, as a logistical hub, is also a critical bottleneck for NATO deployments. | | The balance between national sovereignty and collective solidarity remains politically delicate. | Democratic control and legal clarity are necessary to ensure that EMERS does not bypass parliaments. | | Coordination between EU institutions, PESCO, NATO, and national authorities is a prerequisite for its functionality. If implementation succeeds by 2027/2030, Europe will strengthen deterrence and economic resilience; otherwise, its defense capabilities will remain vulnerable. [...]

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    Europe's Defence Tech Wave: When Innovation Fails Due to Procurement

    ▶️ Europe's Defence Tech Wave: When Innovation Fails Due to Procurement

    Europe's Defence-Tech Boom: Startups are developing AI, drones, and autonomous systems in record time. | Despite billions in investment, a sluggish procurement system is blocking the transition from pilot projects to operational use. | Munich and the DACH region have become Europe's hub for defense innovation. | The sector saw record funding in 2025, but capital alone cannot solve structural procurement problems. | GovRadar and AI-PROcure demonstrate how AI can accelerate tenders and enable time savings of up to 90%. | A lack of institutionalized transition processes and siloed thinking prevent the scaling of successful solutions. | Alliances between startups are becoming more important because true defense capability requires systems of systems. | Without reforms, Europe risks seeing the wave of innovation fizzle out instead of becoming a lasting capability. | Proposals include digital tendering procedures, increased direct award thresholds, and binding deadlines for specifications. The key question remains: Can Europe create the institutional mechanisms to ensure that inventions actually reach the troops? [...]

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  • Europe's new defense axes: Four military corridors in the TEN-T system, dual-use hubs and the strategic EU infrastructure

    ▶️ Europe's new defense axes: Four military corridors in the TEN-T system, dual-use hubs and the strategic EU infrastructure

    Europe's four military corridors in the TEN-T network are accelerating troop movements and infrastructure modernization. | The EU is planning decentralized, highly automated dual-use hubs as logistical centers for civilian and military needs. | Rail expansion, bridge strengthening, and Rail Baltica are at the heart of the €100 billion investment debate. | A digital EMERS system and solidarity pool are intended to harmonize permits and real-time tracking nationally. | AI, robotics, and smart warehouses increase efficiency and enable rapid transitions in crisis situations. | Dual-use hubs combine defense autonomy with the circular economy and nearshoring reindustrialization. | Public funding instruments such as CEF, SAFE, and the European Defence Fund reduce investment risks for private investors. | Cyber ​​and hybrid threats, as well as governance hurdles, remain key risks to infrastructure resilience. Speed ​​of implementation determines strategic effectiveness and the ability to react within 24 hours. | | xpert.digital analyzes the geopolitical, technological, and financial implications of this historic infrastructure transformation in Europe. [...]

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    Decentralized, automated dual-use hubs: Key to European defence resilience and EU circular economy

    ▶️ Decentralized, automated dual-use hubs: Key to European defence resilience and EU circular economy

    Decentralized, automated dual-use hubs combine civilian efficiency with military resilience, strengthening Europe's supply security. | They create a robust logistical backbone that accelerates troop and materiel movements and reduces bottlenecks. | As nodes in the circular economy, the hubs enable efficient reverse logistics, recycling, and closed-loop supply chains. | Trimodal connections to rail, road, and sea, as well as TEN-T integration, ensure maximum flexibility and fast turnaround times. | Highly automated smart warehouses with AI and AMR optimize throughput and switchability between civilian and military operations. | Public funding programs such as CEF, SAFE, and ReArm-Europe reduce investment risks and mobilize private capital. | Nearshoring trends and reshoring create new trade routes for which dual-use hubs serve as logistical anchor points. Decentralized architecture increases resilience against outages and reduces single-point-of-failure risks. | Digital platforms for military mobility and cybersecurity measures ensure interoperability and data integrity. | Xpert.digital offers analyses and strategies on how Europe can become a logistics superpower and sustainable economic power through dual-use hubs. [...]

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