Europe
Rheinmetall and OHB in talks to build German Starlink rival for the Bundeswehr
Defense giant Rheinmetall and satellite manufacturer OHB are in advanced discussions to submit a joint bid for a satellite internet service for the German armed forces, designed to rival Elon Musk’s Starlink.
According to three sources speaking to the Financial Times (FT), the partnership talks are in their early stages. The deal would position the groups to secure a portion of Berlin’s €35 billion budget earmarked for military space technology.
The proposed joint venture aims to secure a multi-billion euro contract to develop a secure, military-grade satellite communication network in low Earth orbit (LEO) for the Bundeswehr. Officials have characterized the project as a “Starlink for the Bundeswehr.”
Discussions between Düsseldorf-based tank manufacturer Rheinmetall and Bremen-based OHB followed Berlin’s pledge last year to invest €35 billion in military space capabilities. This has sparked intense competition among European defense and aerospace firms for lucrative contracts.
As the European Union’s largest economy, Germany is moving to rapidly expand its military capacity and reduce its strategic reliance on the US. SpaceX’s Starlink, the world’s largest space-based broadband provider, currently operates over 9,000 satellites in LEO—roughly 2,000 km above Earth—serving millions of customers.
Originally a commercial service, Starlink’s high speeds and portable terminals became indispensable for Ukrainian defense forces following Russia’s full-scale invasion.
When other networks were destroyed or jammed, Starlink provided highly resilient battlefield communications. SpaceX has since launched Starshield, a dedicated LEO satellite service for defense and intelligence clients.
However, growing concerns over reliance on Musk or the US have prompted several nations to develop their own secure, sovereign networks. According to space consultancy Novaspace, Germany’s investment plans will make it the world’s third-largest spender on space technology, trailing only the US and China.
Armin Fleischmann, a space coordinator for the German military, told Handelsblatt last week that the Bundeswehr network would be established “within the next few years, primarily with German companies.”
Fleischmann noted that the initial priority would be NATO’s eastern flank, where Germany is establishing a permanent 5,000-strong brigade in Lithuania, with “everything else to follow.” He added that the military has finalized its specifications and procurement authorities are preparing to issue the tender.
While Rheinmetall has traditionally focused on the production of tanks, artillery, and ammunition, the company is rapidly diversifying as Germany ramps up its defense spending.
At the end of last year, the company secured its first space contract, valued at €2 billion. Under this agreement, Rheinmetall partnered with Finnish space-tech firm Iceye to manufacture satellites at a former automotive plant in Germany.
The companies will produce a constellation for radar reconnaissance—a technology uniquely suited for surveillance through cloud cover, adverse weather, or darkness.
The proposed venture with Rheinmetall comes as OHB, which supplies satellites for the EU’s Galileo navigation constellation, faces competitive pressure from a potential merger of the space divisions of Airbus, Thales, and Leonardo.
OHB CEO Marco Fuchs has warned that such a merger, which would consolidate Europe’s two largest satellite manufacturers into a single entity, could stifle competition.
As Europe’s third-largest satellite manufacturer, OHB may struggle to compete alone. However, Germany’s push for a new network offers an opportunity to expand its portfolio of small and medium-sized satellites.
Already a supplier of radar reconnaissance satellites to the German military, OHB is eager to expand its defense operations. Last week, the company raised its earnings and revenue forecasts for this year and next, driven in part by the anticipated surge in military space spending.
Europe
NATO unveils 32-nation defence strategy to counter adversaries
NATO Supreme Allied Commander Europe (SACEUR) Alexus Grynkewich has unveiled a new defence strategy aimed at rendering any attack against an alliance member entirely futile.
Speaking at the Warsaw Security Forum, Grynkewich said the concept, titled the “Theory of War”, is designed to prevent hostile elements from infiltrating NATO territory and waging conflict there.
Arguing that they aim to reassure the one billion people living within the alliance’s borders, Grynkewich maintained that they also wish to send a message to adversaries such as Russia that NATO is prepared for a potential invasion.
“If we are attacked, we are ready to fight even tonight,” Grynkewich said.
Three-stage defence plan enters into force
Approved by all 32 alliance members, the plan combines land forces and conventional weapons systems with advanced technologies such as unmanned aerial vehicles, counter-drone systems, and artificial intelligence.
Lessons drawn from ground and air combat in Ukraine, as well as current conflicts in the Middle East, play a decisive role in shaping the strategy.
According to Grynkewich, the new defence doctrine rests on three fundamental phases that form the core of NATO’s approach:
The first pillar of the plan, the “block” phase, focuses on preventing hostile forces from seizing allied territory.
In this context, NATO ground components will engage directly with attacking units, restrict their manoeuvrability, and neutralise forces attempting to breach alliance borders.
Should the assault continue, the second phase (“blunt”) will come into play, deploying autonomous systems requiring minimal human intervention alongside advanced sensor networks to slow the momentum of the attack and wear down advancing forces.
These systems will detect threats in real time, combining capabilities across different operational domains to halt the adversary’s advance.
The final stage, the “break” phase, will target not the attacking units directly, but the operational warfighting system that sustains them.
Command centres, supply chains, and logistics routes will be struck using long-range precision strike systems and sensor networks, eliminating the adversary’s ability to sustain military operations.
“Enemy commanders will not be able to direct their troops, their supply lines will be severed, and their logistics vehicles will be destroyed,” Grynkewich said.
Strategy aims to defend borders rather than gain territory
Noting that NATO has no intention of acquiring territory and that the strategy is entirely defence-oriented, Grynkewich said, “We have no plan, intention, or ambition beyond protecting our citizens and our territory.”
Stating that he considers the likelihood of a direct attack on alliance territory to be low, the commander nevertheless stated that they would respond without hesitation to any attempt targeting allies.
Addressing questions regarding US commitment to the alliance, Grynkewich recalled that Washington reaffirmed its adherence to Article 5 at the NATO summit in July.
Article 5, which forms the cornerstone of NATO’s collective defence principle, stipulates that an armed attack against one ally is considered an attack against all members.
Europe
Germany detains two Turkish suspects over Polish Starlink arson
Polish authorities have announced that German police detained two Turkish citizens suspected of setting fire to a Starlink station near Warsaw last month.
Tomasz Siemoniak, Poland’s minister coordinating the special services, told a news conference in Warsaw on Monday that Poland has requested the suspects’ extradition and has “no doubt” that Russian secret services were behind the arson attack.
“It should also be noted that Russian intelligence agencies are increasingly turning to people linked to the criminal underworld,” Siemoniak said at the press conference.
In a post on X, Prime Minister Donald Tusk described the incident as another “act of hybrid warfare” and said those responsible for the sabotage would be brought to justice in Poland.
Interior Minister Marcin Kierwinski said the two Turkish citizens would be charged in Poland with carrying out an act of sabotage on the orders of a foreign intelligence agency.
Power supply equipment at a Starlink ground station serving Eastern Europe, including Poland and Ukraine, caught fire on the night of 23 September.
The incident did not cause a major disruption to internet service. The blaze, however, completely destroyed the station’s electrical system and backup generator.
Poland, a key transit route for Western aid to Ukraine, has faced a series of suspicious incidents recently.
Numerous cyberattacks have targeted public utilities, including water and energy infrastructure as well as hospitals.
In addition, damage to a railway line between Warsaw and the Ukrainian border was attributed by officials to Russian sabotage.
In late July, a Russian missile also landed in Poland.
Europe
LSE study finds post-bailout Greece turned into a cafe economy
A new study prepared by the Hellenic Observatory at the London School of Economics (LSE) has examined the structural transformation of the Greek economy following the bailout era.
According to reporting by the Greek Reporter, the study titled “The Café Economy”, authored by Michalis Nikiforos, Vlassis Missos, Christos Perros, and Nikolaos Rodousakis, revealed that the country has become excessively dependent on Accommodation and Food Service Activities (AFSA), a sector encompassing all tourism-related fields including restaurants, bars, hotels, entertainment, and short-term rentals.
The researchers pointed to a fundamental issue that is often overlooked behind the “café economy” characterisation. According to the study, despite promises of a new “development model”, Greece has over the last 15 years remained trapped in a growth cycle built on an exceptionally fragile foundation.
Labour productivity declined as tourism expanded
The study reported that following austerity policies and structural reforms that liberalised labour and product markets, tourism-linked activities expanded disproportionately compared to other sectors. This unbalanced growth became one of the primary drivers of the economy’s broader loss of productivity.
Contrary to the productivity gains promised by bailout reforms, an opposite trend took hold across the Greek economy. While labour productivity suffered a steep decline, employment shifted toward low-productivity sectors, led by accommodation and food services.
The researchers identified the contraction in aggregate demand and the sharp erosion of real wages as the main causes of this productivity collapse. Between 2009 and 2024, labour productivity fell by 16% and remained below pre-crisis levels.
The slide in real wages was even more pronounced. Across the country, real wages dropped by between 26% and 35%, while losses in the tourism sector reached as high as 60%. The authors described this outcome as a severe process of income redistribution operating against labour.
The shift of employment toward the AFSA sector accounted for approximately one-third of the total decline in labour productivity. The loss of hundreds of thousands of jobs in productive sectors such as manufacturing, alongside the scarcity of employment in high-technology and innovation fields, deepened this decline.
Greece enters regression under a dual model
According to the study, Greece’s development model is displaying a historical regression by evolving into a “dual” structure typically observed in underdeveloped or transition economies. In this model, economic growth relies on deploying labour, cheapened through wage suppression, into low-productivity sectors.
Noting that the three bailout programmes implemented between 2010 and 2018 triggered a deep recession instead of boosting competitiveness, the researchers stated that the Greek economy has never fully emerged from this slump.
The study also recalled that the International Monetary Fund (IMF) had in the past apologised for underestimating the negative impacts of severe fiscal contraction.
Educated young population works in low-wage jobs
Data published by the LSE showed that the workforce in the AFSA sector underwent a fundamental transformation between 2009 and 2023:
Employment in the sector surged by 87%. Gross Value Added recorded 11% growth. AFSA became the largest employer in the Greek economy.
On the other hand, the sector is characterised by low wages, precarious working conditions, and an increase in part-time work. Although the educational attainment of tourism employees has risen, workers are increasingly employed below their qualifications.
Eurostat figures confirm that Greece, behind Spain, has one of the highest rates in Europe of young graduates who are overqualified yet employed in unskilled jobs.
More than 86% of young university graduates working in the tourism and hospitality sector are employed below their qualification levels.
Structural risks deepen while external balance improves
The report titled “The Café Economy” listed the advantages along with the severe vulnerabilities generated by this development path:
The positive effect emerged in the external balance. The tourism sector provided a significant contribution to correcting the current account balance. The trade surplus in travel services rose by five percentage points between 2009 and 2023, covering approximately half of the total current account deficit contraction over the same period.
Conversely, overreliance on tourism and a low-productivity, low-wage, labour-intensive services economy brought heavy structural weaknesses:
Social and environmental degradation: The disproportionate growth of the sector lays the ground for environmental and cultural deterioration, frequently described through the concept of “overtourism”.
Housing crisis: The proliferation of short-term rentals and foreign property acquisitions drives up rents, making housing costs unaffordable for local workers.
External dependence: As the café economy expands at the expense of other sectors, reliance on external demand and seasonal fluctuations multiplies; entire regions remain exposed to shifts in tourist flows.
The researchers warned that low-wage policies erode economic competitiveness over the long term by weakening incentives for technological innovation and progress.
Noting that the thesis claiming market liberalisation automatically delivers productivity has been undermined by the Greek experience, the study stated that dependence on low-productivity sectors such as AFSA creates an economic dilemma. Even if these activities support demand and foreign currency inflows, they damage long-term productivity and social sustainability.
The report noted: “A successful way out for Greece requires policies that do not merely stimulate demand, but also strategically promote high-productivity sectors, support technological upgrading, and ensure inclusive growth. Without such a change of course, the ‘café economy’ risks becoming not a temporary adjustment process, but a long-term stagnation equilibrium.”
The study concluded with a call to re-evaluate structural reforms in light of real economic and institutional conditions, and to prioritise development focused on high productivity.
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