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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

▶️ 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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▶️ 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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▶️ 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 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
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
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
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 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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▶️ 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 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 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 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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▶️ Ukraine/Russia | Propaganda or reality? The truth about the Donbas: Is the Ukrainian front really collapsing?
Propaganda or reality? A sober analysis of the situation in Donbas clarifies myths and facts. | Data-driven maps and reports show that local gains do not necessarily mean a collapse of the front. | Kostiantynivka is under pressure, but by mid-June 2026 it is not yet completely lost. | Lyman remains a contested hotspot with alternating attacks and counterattacks. | Drone warfare, especially fiber-optic drones, is fundamentally changing the tactical landscape. | Russia has numerical advantages, but territorial gains are limited and come at a high price. | Economically, Russia shows weaknesses in 2026 despite short-term growth figures and problematic public finances. | Media images emphasize spectacular attacks but neglect long-term front dynamics. | A reliable assessment of the situation requires multiple sources and critical source verification. | Read the full, data-driven analysis on xpert.digital. [...]

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▶️ The maritime industry as a growth engine for Northern Germany: Bucking the trend – One sector grows while others shrink
Northern Germany's maritime industry is experiencing a historic boom and strengthening the regional economy. | | Shipyards like TKMS, Rheinmetall, and Neptun are reporting record orders and seeking thousands of skilled workers. | Offshore wind and converter platforms are opening up new industrial value chains. | | Specialized vessels, from submarines to research ships, secure Germany's technological niche. | The multiplier effect creates far more jobs than just in the shipyards. | | At the same time, there are threats of skilled labor shortages, supply chain bottlenecks, and dependence on defense contracts. | | Government funding programs and large-scale loan guarantees are stabilizing investments and innovations. | Examples like Wismar, Hamburg, and Rostock demonstrate regional transformation opportunities. | The balance between economic profit and ethical responsibility remains a key debate. | With smart policies and training potential, the industry can secure sustainable, broadly shared growth. [...]

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▶️ Historic humiliation: Why oil giant Russia is buying back its own gasoline from India
| Russia is now buying back refined fuels from India – a historically humiliating paradox. | Ukrainian drones have severely damaged Russian refineries, triggering a supply crisis. | Domestic gasoline production is insufficient, and rationing is in effect in numerous regions. | This is leading to rising inflation, economic losses, and growing social discontent. | Indian refineries are refining cheap Russian crude oil and exporting finished products back at higher prices. | The buybacks are wiping out refinery margins and incurring high transportation costs for Moscow. | Sanctions are hindering repairs; many facilities will remain weakened in the long term. | The crisis is revealing the limitations of Russia as a reliable energy superpower and shifting geopolitical power dynamics. | India's role as an intermediary is becoming a key variable in the global economy. | | The supply crisis threatens Russia's domestic political stability and has far-reaching economic consequences. [...]

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▶️ F126 – The Billion-Dollar Disaster: How Germany Sinks Its Largest Naval Project Twice – Shock for Rheinmetall and the Navy
The F126 project was halted and is considered the biggest arms procurement debacle in postwar Germany. | Over two billion euros are considered lost, while the total costs could have risen to over 18 billion euros had the project not been stopped. | | Technical problems, particularly with IT interfaces and software, exposed structural weaknesses in the tendering process and oversight. | | The awarding of the contract to the Dutch prime contractor DSNS and its subsequent failure revealed deficiencies in suitability assessments. | A planned change of prime contractor to NVL/Rheinmetall failed for budgetary and legal reasons. | The failure hit Rheinmetall hard on the stock market and altered the market valuation of German defense projects. | As a pragmatic alternative, eight MEKO A-200/F128 frigates from TKMS were chosen instead of the ambitious new F126 development. | The disaster highlights recurring problems in the procurement system: requirements creep, bureaucratic paralysis, and inadequate contract drafting. The strategic question remains whether Germany will learn from this failure and permanently reform its defense procurement. | The decision for the MEKO A-200 is considered a realistic, operational, and priced solution, but the real test lies in long-term structural reforms. [...]

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⭐️ Hub for Security and Defense

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

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