«We need a stronger and more resilient defence industrial base. We need an ecosystem of technological innovation… We need faster and more efficient procurement. We need to find new ways of working with allies and partners who share the same goals.»
White Paper on European Defence Readiness 2030 – March 2025
Europe faces a new reality of growing risks and uncertainty, making preparedness more urgent than ever. To address this, Sauli Niinistö, former President of Finland and Special Adviser to the EU Commission President von der Leyen, was tasked last year with assessing the challenges facing the EU and proposing ways to enhance its readiness for future crises.
This effort resulted in the publication of the Niinistö Report on the Preparedness and Readiness of the EU in 4Q2024, emphasizing the urgent need to address today’s escalating security challenges. Alongside the Draghi Report on Competitiveness, it has contributed to the key recent European proposals on defence, security, and preparedness.
The defence and security industry is not just another sector— it serves as a key driver of innovation, driving technological advancements that strengthen sovereignty and modernise nations and regions. And effective strategies require adequate funding for successful implementation. What are the latest EU action plans for defence, security, and preparedness?
The white paper for European Defence and its implications for the telecom sector
«Technology will be the main feature of competition in the new geopolitical environment. A handful of critical and foundational technologies like AI, quantum, biotech, robotics, and hypersonic are key inputs for both long term economic growth, and military preeminence.»
White Paper on European Defence Readiness 2030 – March 2025
Following the political guidelines announced in 2024 by President von der Leyen to strengthen the EU’s defence industry, the High Representative, Kaja Kallas, and the Commissioner for Defence and Space, Andrius Kubilius, presented in March 2025 the White Paper on European Defence Readiness 2030 ”to ensure that Europe has a strong and sufficient European defence posture by 2030”. Alongside this document, the Re-Arm Europe Plan introduces an ambitious package of financial measures to support EU Member States in significantly boosting defence investments. The plan aims to increase spending from €102 billion in 2024—equivalent to 1.9% of the EU’s combined GDP—to at least €800 billion over the next four years (see details below).
And to support the defence industry to overcome its weaknesses, the revision process of the EU directive on defence and sensitive security procurement scheduled for 2026 will consider the Competitiveness Compass recommendation to introduce a European preference.
In its Defence Plan, the EU highlights the risks posed by cyberspace and hybrid threats, emphasizing its commitment to cyber-deterrence. The white paper offers solutions to address critical capability gaps and enhance the defence industrial base, outlining key strategic actions in close coordination with NATO:
- Closing capability gaps by prioritizing critical capabilities jointly identified by Member States.
- Enhancing European preparedness for worst-case scenarios, including military mobility (with a joint communication expected by the end of 2025), strategic storage, and the reinforcement of external borders.
- Increasing support for Ukraine through expanded military assistance and deeper integration between the European and Ukrainian defence industries, including the European Defence Industry Programme (EDIP) and its Ukraine Support Instrument (USI), expected before the summer.
- Fostering a strong and innovative European defence industry by driving aggregated demand, strengthening the single market, simplifying regulations (with the Defence Omnibus Simplification proposal expected by June 2025), promoting collaborative procurement, and investing in skills and talent development.
- Strengthening partnerships with like-minded countries worldwide.
Seven priority capability domains have been identified in alignment with decisions made by EU Member States. Advancements in connectivity, 5G networks and cloud to support secure and efficient communication across defence systems will be essential. Other critical areas where telecom operators play a crucial role include mobility, drones, artificial intelligence (AI), quantum technologies, cybersecurity, electronic warfare, and critical infrastructure protection.
Reliable telecom operators will be key players in the European landscape , driving industrial power through their infrastructure, technologies, reach and extensive capabilities in defence and security. Investment could be a major catalyst for driving technological and industrial transformation of Europe.
No defence capability can operate securely without a trusted digital infrastructure. Europe’s security backbone depends on the reliability and sovereignty of its telecommunications networks. This is also where the telecoms sector comes in – not just as an enabler, but as a protector of Europe’s strategic autonomy.
European Preparedness Plan Strategy
Alongside the defence whitepaper, the European Union has proposed in March 2025 a range of measures, under the Preparedness Union Strategy, to better anticipate, prevent, and respond to a range of risks and threats. The EU aims to improve its overall resilience to both expected and unforeseen events, based on three core principles:
- Integrated All-Hazards approach.
- Whole-of-Society approach.
- Whole-of-Government approach.
The strategy focuses on developing a comprehensive understanding of threats, enhancing the resilience of vital societal functions, and preparing citizens by increasing their risk awareness. It also aims to strengthen public-private and civil-military cooperation, improve crisis response coordination, and deepen collaboration with external partners.
The EU plans to implement this strategy in collaboration with Member States through a series of 30 key targeted actions (among more than 60), aligned with its objectives between 2025 and 2027. However, the strategy lacks a clear economic plan and budget, even though its implementation will inevitably come at a cost.
What additional developments are expected in the security sphere?
«Today we face an increasing number of external security challenges and a growing number of hybrid attacks in our common European space.»
EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas
The Defense whitepaper and the Preparedness Union Strategy has been followed by ProtectEU: a EU Internal Security Strategy, published in April 2025, which aims to provide a comprehensive and unified framework to prevent, detect and respond effectively to security threats. It includes:
- A new European internal security governance with regular assessment and tracking of security and preparedness initiatives.
- Increased threat awareness, anticipating security threats and enhancing intelligence-sharing.
- More effective tools for law enforcement and stronger Justice & Home Affairs agencies with new mandates for Europol, ENISA, a new European critical communication system (EUCCS), a lawful and effective access to data for law enforcement and a roadmap on encryption.
- Building resilience against hybrid threats, fully implementing the CER and NIS2 Directives, with a new Cybersecurity Act to improve the European certification framework, with a review of the Cybersolidarity Act, with measures to de-risk supply chains from high-risk suppliers and steering the development and uptake of new technologies like post-quantum cryptography and quantum communication infrastructure (eg., EuroQCI).
- Fighting serious and organised crime, by enhancing law enforcement capabilities to trace illicit finances, strengthening protections, and implementing more effective strategies.
- Combatting terrorism and violent extremism, with a new agenda and toolbox.
- The EU as a strong global player on security, boosting international cooperation.
Additionally, alongside the current implementation of the cybersecurity complex regulatory landscape (e.g. DORA, NIS2, CER, CRA), the European Commission adopted an action plan on the cybersecurity of hospitals and healthcare providers in January 2025 and delivered an action plan to secure submarine cables in February 2025. Finally, the European Commission’s upcoming Digital Package, expected in 4Q2025, aims to reduce administrative burden and simplify cybersecurity legislation.
Budget and funding for defence, security and preparedness
«Robust preparedness does not come for free. Investments in preparedness imply costs, but these are outweighed by the long-term gains in resilience, reduced disruptions, lower recovery expenditures, and long-term competitiveness.»
European Preparedness Union Strategy – March 2025
As investment in resilience becomes increasingly important, strategies must ensure that budgeting and funding are seamlessly integrated into policymaking. Some plans include budget proposals and investment strategies, but many security strategies currently under consideration still lack adequate funding or financial support, which remains a significant concern.
On defence, the ‘ReArm Europe Plan’ aims to allow for an expenditure of more than €800 billion euros over 4 years, structured around 3 axes:
- Deploy the use of public funds in defence at a national level, with the possibility of activating the escape clause of the Stability and Growth Pact, up to a maximum of 1.5% of GDP per year and for 4 years (e.g. annual expenditure of around €20 billion in Spain).
- A new instrument for the Security Action for Europe – SAFE, where the Commission will raise up to 150 billion euros on the capital markets to help member states raise investment (loans).
- Rely on the EIB Group and mobilise private capital by accelerating the Savings and Investment Union, an idea proposed by Draghi and just recently unveiled in March 2025.
As the Multiannual Financial Framework 2021-2027 nears its conclusion, the work programme for the Digital Europe Programme (DIGITAL) for 2025-2027 was adopted on March 28, 2025, allocating €1.3 billion to support the deployment of critical technologies in artificial intelligence, cybersecurity, and digital skills.
And the European Commission is preparing the next Multiannual Financial Framework (MFF), the EU’s long-term budget for 2028-2034. The aim is to design a simpler, more focused and more responsive budget, aligned with Europe’s strategic priorities. The proposal is currently under consultation and its outcome will be crucial for Europe’s overall progress.
Ultimately, the telecoms sector is a key strategic partner in enhancing Europe’s technological progress and resilience in a complex geopolitical context. Increased security requires simplification of regulatory compliance, proportionality of obligations and foster investment.
The economic sustainability of the telecom sector will be essential for driving the investments required to enhance resilience and foster future industrial technologies. But the private sector should not bear the burden of providing public goods, or funding redundancies to enhance resilience beyond commercial or reasonable requirements; instead, governments must take responsibility for financing key priorities, ensuring public funding to meet new obligations, and achieving objectives on digital security.
Finally, public procurement may play a key role in advancing European technologies and must be used strategically, prioritising resilience and uptake of European technological innovation rather than a solely narrow focus on seemingly low prices.
Strategic ambitions must be matched by enabling conditions. Regulatory complexity, fragmented requirements or unfunded obligations risk undermining the very resilience we aim to build. A coordinated, simplified and well-funded framework is not optional — it is a prerequisite for delivering Europe’s security goals.
