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⭐️ Hub for Security and Defense

: 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.

Markus Becker

I would be happy to serve as your personal advisor.

Head of Business Development
Chairman SME Connect Defense Working Group

LinkedIn

▶️ Europe's answer to Starlink? The billion-dollar race in orbit: What's behind the German Armed Forces' secret mega-satellite project
Germany's new €35 billion military space program is triggering an unprecedented gold rush in German industry. | | This strategic initiative marks a historic turning point toward technological sovereignty in low Earth orbit. | The German Armed Forces are investing heavily in their own satellite networks, early warning systems, and secure communication channels in response to global threats. | | A key objective is to build an independent infrastructure to minimize dependence on international providers like Starlink. | This presents enormous opportunities for companies in civilian technology sectors, such as data analytics and sensor technology, to repurpose their solutions for lucrative commercial applications. | The formation of large consortia is creating new business models, ranging from hardware manufacturing to specialized data services. | Industry is currently reorganizing, with visibility and the right network connectivity being crucial for access to rigorous tendering processes. | Early strategic positioning is essential for companies to be integrated as reliable partners into the complex defense structures. | | Despite the high growth potential, the Bundeswehr's long procurement cycles require realistic planning and financial staying power from the companies involved. | Those who set the course now can establish themselves as a long-term, integral part of [...]

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▶️ Military and Defense: Race in Orbit – The new mission of the German Armed Forces Space Command
Space is no longer an untouched place, but a highly sensitive area for our global security. | | Germany is responding to this threat with the Bundeswehr Space Command in Uedem. | | Satellites secure our modern everyday lives, from navigation to finance, and must therefore be protected. | | Space debris and targeted jamming maneuvers by major powers like Russia and China are increasing dramatically. | With the GESTRA radar system, Germany is now monitoring the orbit increasingly independently. | | The Bundeswehr is continuously expanding its capabilities to defend space as a strategic dimension. | Protecting orbital infrastructure is now an existential necessity for our economy. | Close civil-military cooperation makes the German model unique in Europe. | | Despite diplomatic efforts at arms control, Germany is preparing for conflicts in space. | Learn all about the new mission and the race for security above our heads. [...]

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▶️ Weapons, growth, economic miracle: Bulgaria is getting serious – National plan implements NATO's five percent target by 2035
Bulgaria is rapidly transforming from a NATO laggard to a key player in the European defense industry. | An ambitious national plan aims to gradually increase defense spending to five percent of GDP by 2035. | German security companies like Rheinmetall are increasingly focusing on Bulgaria as a production location to overcome Europe's ammunition shortages. | | Billions of euros in investment are creating state-of-the-art factories designed to meet both Bulgarian and European defense needs. | Economic stability and Eurozone membership are creating an attractive investment climate for international partners. | Despite this positive momentum, structural challenges such as corruption and a shortage of skilled workers persist. | | The German-Bulgarian Defence Day is sustainably strengthening the strategic partnership between the two nations. | Today, the country serves as an indispensable arms manufacturing hub directly on NATO's security-sensitive eastern flank. | Long-term cooperation is intended to ensure the transition from a former socialist production system to modern European high-tech manufacturing. This strategic realignment makes Bulgaria a crucial building block for the future defense capabilities of the European Union. | | [...]

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▶️ Kyiv's asymmetric economic warfare: The "Amazon of Russia" is burning – How Ukraine wants to cripple Putin's economy
Since July 2026, Ukraine has been pursuing a new strategy of asymmetric economic warfare against Russia. The focus of the massive drone attacks is Wildberries, considered the "Amazon of Russia" and deemed systemically important. | | The destruction of warehouses has resulted in billions of dollars in physical damage and the destruction of goods. | The attack threatens the livelihoods of over 400,000 small retailers and puts enormous pressure on the Russian credit system. | These targeted strikes are further fueling inflation and placing the Russian central bank in a difficult dilemma. | The existing resilience of the Russian system is being severely tested by this new front line at the economic base. | The geographical dispersal of the attacks prevents simple compensation through regional alternative storage facilities. | | In addition to the economic consequences, the destruction is also creating psychological uncertainty among the Russian population due to empty shelves. | Despite the routine of wartime economics, these events reveal the Kremlin's dwindling fiscal reserves. This analysis examines whether targeted economic warfare could act as a catalyst for a structural crisis in Russia. | | [...]

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▶️ Deadly AI components: How a $999 chip from Nvidia ends up in Russian rockets
Learn how modern AI chips from Nvidia end up in Russian missiles and how Western sanctions are circumvented. | A discovery in an S-71M wreck proves the alarming integration of civilian high-tech electronics into weapons systems. | Global supply chains and opaque gray markets make complete control of state-of-the-art semiconductors virtually impossible. | Despite an official market withdrawal, Western components find their way into the Russian war machine via third countries like Turkey or Hong Kong. | | Technology companies deny responsibility, as mass-produced civilian products are hardly traceable. | | The democratization of artificial intelligence enables Russia's arms industry to wage war cost-effectively and autonomously. | Analyses show that 72 percent of the foreign components in Russian weapons originally come from the USA. | The dilemma for policymakers and industry is growing, as trade infrastructures often operate outside existing sanctions lists. | | Export controls are reaching their limits as the integration of consumer electronics and weapons technology deepens. Discover on xpert.digital why targeted measures against transshipment points are crucial to stopping this fatal technological supply chain disruption. [...]

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▶️ Cardboard drones versus high-tech: How simple AirKamuy 150 cardboard drones outsmart the multi-billion-dollar air defense system
Cardboard drones like the AirKamuy 150 are revolutionizing defense economics through radical cost efficiency. | These "flat-pack" systems are shifting the strategic focus from expensive high-tech to industrial mass production. | | As expendable consumables, they force enemy air defense systems into an asymmetric cost trap. | | Assembling them from corrugated cardboard and foam board cleverly bypasses complex, slow production processes. | Logistics benefits enormously, as hundreds of units can be transported in standard containers, saving space. | Militarily, they serve not only as weapons but also as effective decoys and radar saturation elements. | | The modular design enables rapid deployment directly in the area of operations without costly infrastructure. | | Europe must learn from this development and create a scalable strategy that balances precision and availability. | The industrialization of airborne consumption makes mass production a crucial, predictable factor once again. | Learn in our analysis how simple cardboard drones are globally transforming defense strategies. [...]

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▶️ Igniter and thermal batteries: No rocket flies without this component – The secret arms boom in Bavaria
Learn how Diehl Defence's new battery tech hub in Bavaria is becoming a symbol of Germany's defense revolution. Specialized batteries are the indispensable key component for modern missiles and defense systems. | The unprecedented multi-billion-euro boom in the defense industry is being massively fueled by special government funds and a changing security landscape in Europe. | While traditional sectors like the automotive industry are struggling, skilled workers are finding a new, future-proof home here. | | Innovative state laws are accelerating the construction of defense factories in record time for maximum defense capability. | | Between environmental protection measures for sand lizards and cutting-edge high technology, the industry is presenting itself as a responsible partner. | Despite ecological efforts, the industry remains in a tense balancing act between ethics and necessary rearmament. | With record sales of over €5 billion at Diehl, the immense dynamism of the defense sector is evident. | Geopolitical threats from drones and hypersonic weapons make these investments in national security unavoidable. | This development marks a fundamental realignment of German industry in the face of global crises. [...]

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▶️ Will shelters now be mandatory? Shelter shock: Why there's only room for 1 percent of the population in Germany
| Germany faces a security policy challenge, as public shelters exist for only one percent of the population. | Following the politically motivated funding freeze in 2007, a dangerous gap has emerged in the Federal Republic's structural civil protection infrastructure. | | While countries like Switzerland and Poland rely on mandatory building regulations, Germany is debating future safety standards. | Geopolitical crises and new threat scenarios are forcing policymakers and the construction industry to rethink shelter planning. | | A planned amendment to the building code is intended to give municipalities more flexibility in integrating shelters into urban planning. | Anyone building a new home today should compare the costs of integrated shelters with the cost of retrofitting existing basements. | The price range for private security solutions extends from simple panic rooms to elaborate underground shelters. | Homeowners and project developers must integrate this issue into their planning early on to ensure long-term safety. | Despite the lack of national standards, Swiss standards offer guidance for builders who want to take their own precautions. A renewed focus on structural civil protection could also become a decisive factor for the future resilience of German residential buildings. [...]

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▶️ The defense logistics market: When war becomes a logistics problem and logistics becomes a weapon
Learn how defense logistics is evolving from an invisible support process to a strategic power factor in a multi-billion dollar market. The war in Ukraine demonstrates that modern warfare is won or lost primarily through efficient supply lines. | With an expected volume of over US$344 billion by 2034, the sector is rapidly doubling in size. | Artificial intelligence, drones, and 3D printing are revolutionizing the military supply chain and ensuring greater autonomy. | Defense giants are investing heavily to keep tanks and aircraft operational under adverse conditions. | At the same time, the lines between military requirements and civilian logistics solutions are becoming increasingly blurred. | Despite bureaucratic hurdles and a shortage of skilled workers, the pressure to modernize is driving innovation and cooperation. | North America leads the market, while the Asia-Pacific region is rapidly catching up through significant investments. | Cybersecurity is becoming a central priority as logistics networks increasingly become targets of digital attacks. | Discover at xpert.digital why resilient defense logistics is redefining security today. [...]

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▶️ Crisis of confidence: Russia's credibility problem and Germany's path to war
The discovery of a drone at Leipzig Airport marks a new, dangerous escalation in the hybrid war against Germany. | Russian disinformation campaigns and acts of sabotage are specifically targeting critical infrastructure and trust in our security policy. | | Moscow's credibility has now been completely eroded by systematic lies and manipulative narrative strategies. | | Experts are hotly debating whether Germany, through its logistical role in arms deliveries, has effectively become a belligerent. | | The drone incident in Leipzig, in particular, reveals alarming gaps in the security of our sensitive transport hubs. | Targeted fake videos defaming the Chancellor demonstrate the new dimension of digital attacks on our stability. | | The German government faces the difficult task of striking the right balance between necessary firmness and diplomatic de-escalation. | Economic consequences from disruptions to global supply chains could put the country under considerable and lasting pressure. Constitutional questions concerning the obligation of peace and the ability to defend oneself are once again coming into sharp focus due to these incidents. | | Learn at xpert.digital how our security architecture must respond to these new hybrid threats. [...]

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▶️ Burning freighter and fake chancellor: How much war can everyday German life tolerate without anyone noticing?
Learn how hybrid warfare, through attacks on logistics bottlenecks in the Black Sea, threatens our economic stability. | A burning freighter and fake government videos mark a dangerous new dimension of destabilization for Germany. | | Analyze the background of targeted disinformation campaigns by networks like Storm-1516 against German institutions. | Learn why the combination of physical sabotage and digital media spoofing is putting massive pressure on our security architecture. | We examine how German companies urgently need to adapt their risk models in light of this unconventional threat landscape. | | Investigate the legal gray areas and the complexities of international ownership structures in globalized shipping. | Stay informed about current developments designed to deliberately undermine trust in politics and the media. | Understand why the line between military conflict and our everyday lives is becoming increasingly blurred in 2026. | | Discover in-depth insights into strategies for protecting our critical infrastructure from hybrid attacks. Read now at xpert.digital how we effectively secure economic resilience and political credibility in a networked world. [...]

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▶️ 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?
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”
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?
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
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
| 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'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: 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, 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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⭐️ Hub for Security and Defense

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

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