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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

▶️ UAE, Qatar, Saudi Arabia: From customer to competitor – How the Gulf States are revolutionizing the arms industry
The Gulf States are transforming from major customers to serious competitors in the global arms industry. | Saudi Arabia, the UAE, and Qatar are investing heavily in domestic production, joint ventures, and technology transfer. | Visions like Saudi Vision 2030 and companies like EDGE are creating a regional defense industry with growing export capabilities. | The Iran-Iraq War in 2026 and the threat of supply bottlenecks have underscored the urgency of military sovereignty. | Western corporations are responding with collaborations but are selectively sharing technology to secure market share. | The focus is on drones, precision munitions, electronics, autonomous systems, and cyber defense. | EDGE is experiencing rapidly increasing orders, international joint ventures, and proven systems in combat. | The Gulf States are combining cooperation and domestic development to reduce dependencies and tap into new markets. | | For the West, this means potential market losses but also opportunities through partnerships. | The rise of the Gulf is fundamentally altering the geopolitical sphere of influence of the arms industry. [...]

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▶️ Europe's most expensive arms flop: Airbus versus Dassault – The dream of the super jet has burst – what this means for the German Armed Forces
Europe's largest arms project, FCAS, has failed, raising questions about Germany's defense strategy. | | The dream of a joint super-jet between Airbus and Dassault burst after nine years of tough negotiations. | | The end of the €100 billion project reveals deep tensions between industrial interests and national pride. | | For Germany, the failure simultaneously offers an opportunity for strategic realignment and technological independence. | | France's claim to leadership and export control was a key point of contention. | | Governance, ownership, and export issues demonstrated the limits of cross-border arms cooperation. | Economically, the protracted uncertainty meant high costs and missed technological opportunities in favor of competing projects like GCAP. | The Combat Cloud and drone programs will remain and could form the core of future air defense. | New partnerships with Spain, Saab, or GCAP partners are possible ways for Germany to remain capable of acting. The cancellation of FCAS is not the end of the story, but a turning point for a more realistic, sovereign, and practical European defense concept. [...]

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▶️ Europe's network: The ten pan-European transport corridors – backbone of NATO and cornerstone of the European security architecture
The ten pan-European transport corridors have transformed from an economic project into the strategic backbone of European security. | | With a focus on military mobility, rail, roads, and waterways are moving to the center of defense planning. | | The dual-use principle demands infrastructure that can handle both civilian traffic and heavy military transport. | Rail Baltica and other major projects are key initiatives, and delays exacerbate security risks. | | Funding gaps, slow permitting processes, and dilapidated bridges make Germany a risky bottleneck. | The Military Mobility Package establishes new rules, fast-track approval processes, and a system for priority movements. | The Danube as Corridor VII and ports like Thessaloniki offer strategic alternatives for supply routes. | | Resilience against cyber and physical attacks, as well as redundancy at critical nodes, are now security policy priorities. | The EU, NATO, and private investors must expand more quickly and in a more coordinated manner to make the 2030 targets realistically achievable. The speed of implementation will determine whether Europe secures its defense capabilities in time. [...]

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▶️ “Ukraine Support Act” – Rebellion in the US Congress: 18 Republicans oppose Trump on Ukraine aid
The US House of Representatives passes the "Ukraine Support Act," with 18 Republican representatives opposing President Trump. | The package combines billions in aid for Ukraine with tough sanctions against Russia. | Drastic measures are planned, such as 500% tariffs on Russian imports and a ban on crude oil imports. | The vote signals a clear commitment to NATO and Article 5 despite domestic tensions. | At the same time, US troop withdrawals and the abandonment of Tomahawk missiles threaten European deterrence capabilities. | The war with Iran has caused massive ammunition losses and weakened US operational readiness. | Europe must now build up its own defense and production capacities to close the gaps. | Economically, secondary sanctions could put third countries like China and India under considerable pressure. | Politically, the result reveals a growing divide between Congress and the executive branch on foreign policy issues. The vote is symbolically significant, but its passage depends on the Senate and the president's signature. %%title%% %%page%% %%sep%% %%sitename%% [...]

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▶️ Washington's quiet withdrawal from NATO: These are the weapons the US is now pulling out of Europe
Washington is planning massive NATO cuts that will shake Europe's security architecture. | Aerial refueling, fighter jets, and long-range drones are to be drastically reduced. | Aircraft carrier strike groups and many cruisers will be withdrawn from NATO planning. | Secret lists of planned cuts illustrate the US strategic pivot in the Indo-Pacific. | Europe faces enormous costs and an accelerated rearmament dilemma. | Fragmented defense industries and interoperability problems hinder rapid solutions. | A dangerous window of opportunity is emerging before projects like the Defence Readiness Roadmap 2030 take effect. | Germany must assume a key role between ambition and structural deficits. | The future of the nuclear umbrella remains unclear, increasing strategic risk. | The list of cuts is accelerating the debate about Europe's strategic autonomy. [...]

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▶️ The price of double standards: How German foreign policy squandered global support
Germany's UN debacle as the consequence of years of foreign policy double standards. | Billions in payments don't buy influence in the "one vote per state" system. | | The defeat in the Security Council elections reveals damaged trust in the Global South. | Broken alliances and inconsistent positions weaken Germany's credibility. | | The contradictory Gaza policy has alienated many partners. | Personnel reshuffles and broken agreements send a signal of unreliability. | A loss of economic importance and new Global South actors make Germany's ambitions harder to enforce. | Need for reform: Consistent adherence to norms and honest diplomacy are necessary for credibility. | | A European common seat instead of national ego claims could be strategically more sensible. | The defeat offers an opportunity for realignment: Consistency before paymastery. [...]

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▶️ Ukraine's Delta System: "We're screwed" – How 10 Ukrainian soldiers took out two entire NATO battalions
| Ukraine's Delta system connects drones, satellites, and ground troops in real time, transforming warfare. | At "Hedgehog 2025," a team of ten drone pilots demonstrated the disruptive impact of data-driven tactics. | | Delta reduces target acquisition time from 72 hours to around two minutes, thus creating crucial reaction speed. | The platform runs on commercially available devices, making modern warfare accessible everywhere. | With AI modules, Delta automatically identifies and prioritizes targets, supporting rapid decision-making. | The economic logic of war is shifting: Information trumps expensive conventions. | | Europe's defense strategy must now invest heavily in digital warfare. | Risks remain: Network dependency and vulnerabilities to cyber operations are real. | Delta has export potential and could reshape the European defense industry. | xpert.digital analyzes how Delta, as a paradigm shift, has strategic, economic, and geopolitical consequences. [...]

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▶️ New locations, new structure: Who benefits from the major BAAINBw reform – and who loses out
The BAAINBw reform aims to reduce bureaucracy and make Bundeswehr procurement more agile and efficient. | New locations in Dresden, Bremen, Kiel, and Brussels are intended to attract talent and strengthen regional technology clusters. | The introduction of a matrix structure promotes interdisciplinary teams and shorter procurement cycles for modern systems. | Stricter price controls and centralized market monitoring are intended to curb defense inflation and unlock savings potential. | Strengthening government-to-government business professionalizes exports but carries political risks. | European engagement through a Brussels office can promote cooperation but requires compromises regarding national industrial interests. | Regions, startups, and agile providers are the winners; established corporations and sluggish administrative processes could be the losers. | Implementation during ongoing operations is risky and places enormous burdens on managers and employees. | Fiscally, the reform is under pressure from large defense budgets and the need to use expenditures effectively. The success or failure of the reform will determine the operational readiness of the Bundeswehr and Germany's credibility as a reliable partner. [...]

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▶️ The state demands everything from us, but knows nothing itself: The 111 billion euro scandal of the Pistorius Ministry
This turning point reveals an unprecedented failure of oversight: €111 billion and 47,000 contracts without reliable tracking. | The Ministry of Defense cannot say which military equipment has been delivered or is ready for deployment. | Outdated IT systems and a failed SAP migration are blocking centralized controlling. | While small and medium-sized enterprises (SMEs) groan under bureaucracy, the government itself lacks transparency regarding expenditures. | The Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) is organizationally overwhelmed and favors large corporations over SMEs. | Parliamentary reporting requirements have been reduced instead of increasing the intensity of oversight. | Significant economic damage and market distortions are threatened by uncontrolled procurement. | Without automated monitoring, the reform agenda remains organizational, not solution-oriented. | Germany's credibility with NATO partners suffers when expenditures cannot be documented. | The clear demand: more transparency, digital controlling, and genuine accountability. [...]

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▶️ “State Tank” Leopard – The Billion-Dollar Deal: Why Germany is suddenly investing in tank manufacturer KNDS
Germany acquires a 40% stake in KNDS to secure strategic control over the Leopard 2. | | The agreement establishes equal voting rights with France and guarantees bilateral decision-making. | The multi-billion euro deal prevents a potential takeover by foreign investors and stabilizes the IPO process. | | KNDS is considered a growth company with full order books and long-term production visibility. | | The acquisition combines industrial and security policy and signals a new German state presence in the defense industry. | From a fiscal policy perspective, the structure is designed to minimize criticism of subsidies and overpayments. | The deal strengthens Europe's defense landscape and paves the way for major projects like the MGCS. | | Risks lie in slower corporate governance due to state influence and potential governance conflicts. | The Czech takeover attempt by CSG accelerated the decision and underscores the geopolitical urgency. | Ultimately, the question remains: What will the Leopard cost taxpayers, and how will the acquisition be implemented in terms of budgetary policy? [...]

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▶️ Europe has been asleep – now the middle class is supposed to save the defense
| Europe's security architecture is facing an epochal shift because cheap, mass-produced drones are economically devaluing expensive major weapons systems. | The new economics of war shows that €300 drones can neutralize targets worth millions, thus changing procurement logics. | Europe's SMEs have innovative strength, but a fragmented internal market and paralyzing approval processes are blocking rapid industrial scaling. | Dependence on Chinese key components for engines, flight controllers, and batteries is a strategic risk that makes production vulnerable. | Despite billion-euro programs, the majority of funds flow to established corporations, while startups in the critical scaling phase receive too little capital. | | Government purchase guarantees and a genuine internal defense market are necessary for European production lines to become economically viable. | | Procurement procedures must be reformed so that SMEs can realistically participate in contracts and innovations can be rapidly translated into operational capability. Logistics and dual-use infrastructures are key strategic factors for ensuring production, storage, and rapid availability in times of crisis. | The EU needs faster, more agile processes and binding industrial policies to reduce technological dependencies and build resilience. | Only through a comprehensive systemic [...]

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▶️ Twenty years of hesitation, one minute of detonation: How a homegrown administrative scandal is endangering the backbone of the German Armed Forces
A self-inflicted administrative scandal will halt automatic promotions in the German Armed Forces (Bundeswehr) from July 2026, shaking the NCO corps. | Thousands of non-commissioned officers see their career prospects and life plans jeopardized by a legal issue ignored for decades. | The merit principle enshrined in Article 33 of the Basic Law (GG) compels the Bundeswehr to implement a performance-based promotion system instead of solely seniority-based promotions. | Court rulings between 2004 and 2025 rendered the old practice unlawful, leading to a "maintenance order." | For many, the halt means significant financial losses and a lifetime income shortfall of thousands of euros. | While new recruits are lured with bonuses, frustration and a sense of injustice are growing among existing soldiers. | The Ministry of Defense is facing criticism for delays and poor communication – such as the Instagram announcement. | Personnel retention and the combat readiness of the troops are acutely threatened by this breach of trust. This predicament also presents an opportunity to create a transparent, validly evaluated promotion system. | Crucial for success are speed, legal certainty, material improvements, and clear communication by 2027. [...]

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▶️ Europe's diplomatic self-disenfranchisement: Biggest payer, zero say – Why the EU is relegated to the kids' table in the Ukraine war
Europe's role in the Ukraine war is critically examined: the largest contributor, but without real influence. | | Armin Laschet speaks of the EU's "diplomatic self-disenfranchisement." | Despite massive financial support, Europe remains marginalized in negotiations. | | The unanimity principle and fragmented decision-making structures paralyze swift foreign policy responses. | The EU severed many channels with Russia, thereby losing its own mediation options. | Demands for reforms range from qualified majority voting to a "two-speed Europe." | | Economic strength, common defense, and capital market reforms are considered key to regaining strategic capability. | Surveys show declining public trust in the EU's protective function, despite the desire for a strong Europe. | Draghi's reform proposals and Merz's call for reorientation are intended to restore Europe's capacity to act. | The analysis concludes with the warning: Europe's self-disenfranchisement is self-inflicted—and can only be remedied through decisive institutional and economic reforms. [...]

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▶️ Saudi Arabia and the Emirates directly attack Iran: A historic turning point in the Middle East
Saudi Arabia and the UAE are conducting direct and covert strikes against Iran for the first time—a historic turning point in the Middle East. | This escalation is changing the regional security architecture and threatens to exacerbate global tensions. | Targeted attacks and counterattacks have hit critical infrastructure and civilian targets. | The de facto blockade of the Strait of Hormuz has triggered a massive oil price shock and worldwide supply disruptions. | High energy prices and disrupted trade routes are driving inflation and jeopardizing global growth. | Industrial and emerging economies are particularly hard hit by increased costs and production losses. | Saudi Arabia is relying on controlled deterrence and diplomacy, while Abu Dhabi is taking a tougher stance. | The fragile ceasefire offers only a temporary reprieve and does not eliminate structural risks. | Water and desalination plants are vulnerable targets with the potential for humanitarian escalation. | The crisis is forcing states to strategically realign themselves and is calling into question the future of the Vision 2030 projects and the GCC model. [...]

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▶️ Russia's new power game – the Baltic Sea, Armenia and the costs of confrontation
| Russia's navy is increasing its presence in the Baltic Sea and provoking NATO with escalation signals. | The deployment of large destroyers and shadow fleets protects illegal crude oil shipments and circumvents sanctions. | Attacks on submarine cables and infrastructure demonstrate the growing dimension of hybrid warfare in European waters. | | NATO's Operation Baltic Sentry unites 13 states to protect critical maritime infrastructure. | Russia's shadow fleet secures billions in revenue, thus weakening the effectiveness of Western price caps. | | At the same time, Moscow is exerting pressure on Armenia and threatening consequences if it moves closer to the EU. | The EU is offering Armenia investments and accession options but faces limited rapid protection capabilities. | | Moscow's strategic logic combines military threats and economic coercion against its neighbors. | The costs of the confrontation are rising for all sides—militarily, economically, and politically. | Europe's challenge is to pool resources and remain capable of acting sustainably against Russia's multi-front strategy. [...]

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▶️ Sparta 2.0 – Europe's defense-industrial rebirth and radical master plan for a new military superpower
Sparta 2.0 describes Europe's radical realignment towards technological and industrial defense sovereignty. | An €800 billion framework and national flexibility are intended to enable rapid modernization and joint procurement. | Start-ups like Helsing, Quantum Systems, and Hypersonica are driving new military capabilities with AI, drones, and hypersonic technology. | The doctrine rests on five pillars: sovereign technology, accelerated procurement, dual-use design, interoperability, and an entrepreneurial culture. | The goal is to transform heavy arms manufacturers into agile, software-driven producers with SaaS-like business models. | Risks remain: fragmented procurement, skills shortages, transatlantic competition, and the challenge of industrial mass production. | Sparta 2.0 favors resilient coalitions over a monolithic European defense state. | Investments in semiconductors, space, communications, and command and control systems are expected to generate sustainable economic spillovers. The plan emphasizes that technological sovereignty makes Europe more strategically independent and innovative. | | Whoever connects capital, politics, and industry now will shape Europe's security landscape for the next two decades. [...]

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▶️ Economy collapses, front stagnates: The real reason for Putin's new peace signal?
On May 9, 2026, Putin's proposal to appoint former Chancellor Schröder as mediator hit Berlin like a political bombshell. | At first glance, it appeared to be a peace offer, but analysis reveals it to be a well-calculated propaganda coup. | The Kremlin's goal is less about Kyiv than about dividing the German public and causing internal unrest within the SPD. | The backdrop to this is Russia's growing economic problems and increasing pressure from Western sanctions. | | Schröder's close ties to Russia make him unsuitable as a neutral mediator for Ukraine and many European partners. | | Militarily, the conflict is at a stalemate in 2026, therefore diplomatic signals are gaining in importance—and potential for abuse. | Putin's maneuver also aims to weaken European unity and transatlantic cohesion. | The debate in Germany shows widespread rejection, but also support from pro-Russian fringe parties, which the Kremlin is clearly targeting. Conclusion: The offer appears to be designed to buy time and undermine Western unity, not to offer genuine compromises. | The solution lies in a coherent European strategy of pressure, sanctions, and credible negotiating conditions—not in a transparent stab in the back. [...]

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▶️ Vertical container storage applications: Why the biggest logistics revolution of our time isn't just happening in the port
| Discover how fully automated container high-bay warehouses are transforming cities in a space-saving and climate-friendly way. | Learn why the biggest logistics revolution is happening not in ports, but at rail junctions and city hubs. | Read how containerized energy storage accelerates the energy transition and solves land-use problems. | Learn how integrated rail high-bay warehouses economically strengthen the shift to rail. | Find out how reefer high-bay warehouses make pharmaceutical logistics safer and faster. | Discover the potential for vertical farming and urban food factories in container towers. | Understand how automated container warehouses make crisis preparedness and military logistics more resilient. | See how recycling and urban mining processes become more efficient through automated container management. | Marvel at concepts like floating high-bay warehouses for port cities with limited land. | Gain insights into the digitalization, data value, and economic calculations of this groundbreaking infrastructure. [...]

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▶️ Trump's ingenious move: The silent starvation – The US-Iran naval blockade and the economic collapse of the mullah regime
| Trump's naval blockade in the Persian Gulf is putting economic pressure on Iran and turning its oil weapon against the regime. | Iran is losing hundreds of millions of dollars in oil revenues daily, and storage capacities are dangerously full. | Experts predict a possible collapse or production halt within a few weeks to months. | | The blockade is creating political rifts within the Revolutionary Guard's power structure and exacerbating domestic tensions. | Global oil prices and inflation are reacting nervously, increasing risks to worldwide growth. | | At the same time, Washington is indirectly targeting China's energy access and altering geopolitical dependency structures. | | Technical problems with throttling and restarting production threaten long-term damage to Iran's production infrastructure. | Negotiations, escalation, or a slow economic decline remain realistic scenarios with uncertain outcomes. | Europe and other trading partners are feeling the effects through rising energy and transportation costs. | Xpert.Digital comprehensively analyzes the strategic, economic, and geopolitical consequences of this naval blockade. [...]

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▶️ Billions for weapons, but no way to the front: Why Europe's real defense gap lies in logistics
Europe's defense deficit is not due to technology, but to a lack of logistics and implementation. | Tank transports take weeks because of dilapidated infrastructure and bureaucratic hurdles. | Experts call for dual-use infrastructure that makes civilian economic capacity available in times of crisis. | | Approval deadlines and a lack of standards create a critical know-how gap. | | Investments in intermodal logistics and secure storage facilities are necessary from both an economic and security policy perspective. | Harmonized standards and rapid procedures could bring response times up to NATO standards. | Technology helps, but it is only a tool—implementation and scalability are key. | Europe's budget increases are wasted without the operational capability for rapid activation. | | Practical projects show: Modularity, resilience, and multiple uses are immediately implementable. | xpert.digital explores pathways to an integrated dual-use strategy for greater security in Europe. [...]

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⭐️ Hub for Security and Defense

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

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