Europe
German military seeks high-tech edge with AI and drones
The German Armed Forces (Bundeswehr), following the lead of the new US administration, want to direct their armament efforts towards new technologies such as artificial intelligence.
The new federal government must decide on new armament projects as soon as possible, focusing particularly on high-tech projects.
This demand is supported by the Bundeswehr and some parts of the arms industry, especially young startups focused on military equipment.
For example, the German Armed Forces are demanding the purchase of a satellite fleet consisting of hundreds of satellites, which could cost up to 10 billion euros.
Furthermore, the armed forces have initiated the procurement process for unmanned vehicles, including kamikaze drones controlled by artificial intelligence (AI) that enemy jammers cannot disable.
AI kamikaze drones: German startups financed by Silicon Valley
One of the first procurement projects to be financed by the new federal government will be the equipping of the German armed forces with combat drones.
According to reports in the German media, Berlin plans to purchase drones from two Munich-based startups, Helsing and Stark Defence.
Stark Defence, founded in 2024 by former military pilot Florian Seibel, produces combat drones with a range of up to 100 kilometers. According to their own statements, the company uses components only from German suppliers; however, its financing is provided by the US venture capital firm Sequoia and US right-wing tech billionaire and mentor to US Vice President JD Vance, Peter Thiel.
Helsing, founded in 2021 and initially focused on producing artificial intelligence (AI) for tanks, submarines, and fighter jets, primarily produces kamikaze drones that use their explosive payload to hit and destroy the target.
The HX-2 model unmanned aerial vehicles are autonomously controlled by artificial intelligence and can reach a target up to 100 kilometers away without external control after the target is entered. This means the drones cannot be stopped by jammers.
Helsing currently produces about 1,000 of these drones per month, and 6,000 units will be delivered to Ukraine.
NATO’s ‘Drone Wall’ plan on the eastern border
Helsing is also pursuing ambitious goals in connection with NATO’s plans to build a “drone wall” on the eastern border.
According to reports, the company signed a 40 million euro contract in 2024 to establish a surveillance system consisting of sensors and unmanned aerial vehicles on the Lithuanian border.
The experience gained from this project can be used for the “drone wall” that Helsing co-founder Gundbert Scherf said should be established based on satellite surveillance of NATO’s external borders and include reconnaissance-focused unmanned aerial vehicles and numerous suicide drones for defense against any attack. Helsing’s HX-2 model is a possible candidate for this purpose.
Helsing has received positive media reactions in Germany so far, but was recently subjected to a critical review by Bloomberg. According to the analysis, Ukrainian military personnel using Helsing products believe that the German drones are lower in quality compared to some competing models and also significantly more expensive.
Helsing is thought to have “extremely good connections”: The company’s co-founder Scherf is a former McKinsey employee who served as “Head of Strategic Armament Control” in Ursula von der Leyen’s Ministry of Defence between 2014 and 2016.
Later, a Bundestag investigative committee examined the McKinsey networks active during that period.
Munich, a stronghold for military startups
Other startups producing robots or artificial intelligence for military use also hope to receive orders from the Ministry of Defence in the near future.
These include drone defense specialist Alpine Eagles and Arx Robotics, which develops autonomous ground systems and is currently establishing a company in Ukraine. Like Helsing and Stark Defense, both are located in Munich.
McKinsey military expert Jakob Stöber says that “proximity to the Bavarian aerospace industry, highly qualified talent from institutions like the Technical University of Munich and the Federal Armed Forces University,” and “targeted startup support” “particularly support innovation in this area.”
Industry experts also praise the Innovation Center at the Federal Armed Forces University in Munich. According to the center’s own statements, it serves the purpose of “transferring the results of digitalization and technology research to deep tech spin-offs” and “preparing early-stage startups for market entry in incubator and accelerator programs.”
The narrowing of the funding gap between the EU and the US regarding defense startups constitutes a significant advantage for German companies: From 2017 to 2020, only $310 million was invested in Europe, while this figure was $1.5 billion in the US. From 2014 to 2024, this figure was $2.2 billion in Europe and $5.4 billion in the US.
Satellite constellations: The goal of establishing a German ‘Starlink’
In addition to the procurement of unmanned aerial vehicles, combat robots, and artificial intelligence for military use, the German Armed Forces are also discussing the purchase of new satellites.
Currently, NATO countries in Europe have only 46 satellites for military use, while this number is 171 in the US.
10 of the 46 European satellites belong to the Bundeswehr, but two of them (two SARah reconnaissance satellites launched into space by Bremen-based OHB at the end of 2023) are not operational.
According to a report in the newspaper Handelsblatt, a complete satellite constellation will now be built; that is, a network consisting of several hundred individual satellites with communication or reconnaissance functions is being discussed.
The cost of a satellite constellation is estimated to be up to 10 billion euros, and the purchase of several constellations is not out of the question.
According to reports, the plan is to include the project in the budget after the new government is formed. The politically controversial point is that the project will likely separate from the IRIS2 project, which the Commission officially launched in December and aims to place one or more satellite constellations in space. The joint project can now be replaced by a national project.
Cockroach army
While a national satellite constellation is said to offer opportunities for the entire German space sector, especially for new space companies currently suffering from “weak commercial satellite business,” other examples show that future high-tech wars will not be limited to just satellites, unmanned aerial vehicles, robots, and other basically familiar military equipment.
For example, the startup Biotactics in Kassel is reportedly planning to build a cockroach army. According to reports, the cockroaches will be remotely controlled “like toy cars” using electronic impulses.
The Pentagon is said to have been researching this topic for decades; tiny electromechanical systems will be implanted in insects to receive impulses. The goal is to use them for surveillance purposes.
Last year, according to other reports, experts in Singapore succeeded for the first time in “remotely controlling a group of 20 cockroaches with the help of tiny computers attached to their backs and maneuvering them together over rough terrain.” Biotactics has not yet achieved a breakthrough, but according to reports, “investors are already lining up.”
Europe
German officials urge fighter jet alliance with Sweden and Spain
German Defence Ministry officials have advised Berlin to form a new fighter jet partnership with Sweden and Spain rather than join an existing UK-led consortium.
Internal ministry assessment notes obtained by Politico state that a trilateral arrangement among Germany, Sweden, and Spain represents a “more advantageous and promising” approach than joining the Global Combat Air Programme (GCAP) run by the UK, Italy, and Japan.
The proposal outlined in the document does not yet represent a final government decision, nor does it contain any indication that German Defence Minister Boris Pistorius has approved the recommendation.
The advice was drafted after Germany’s flagship project with France to build a next-generation fighter jet collapsed in June following years of industrial infighting.
Initiated in 2017 and later joined by Spain, the Future Combat Air System (FCAS) was conceived as a showcase initiative for European defence cooperation. The partnership aimed to develop an aircraft to replace Germany’s Eurofighter fleet starting in 2040.
However, the initiative foundered on disputes over operational control and workshare between France-based Dassault and Germany-based Airbus Defence and Space. Following unsuccessful rescue attempts at the political level, Berlin withdrew from the joint fighter project this year.
UK Prime Minister Andy Burnham raised the prospect of Germany joining GCAP during an 8 October meeting in Berlin with Friedrich Merz. The two leaders agreed that officials should continue discussions.
For Berlin, the choice carries implications that reach far beyond which model its air force will fly. The decision will determine who controls future military technology, which countries secure production contracts, and whether a new European partnership can avoid the frictions that dismantled FCAS.
Ministry assessment keeps distance from UK-partnered GCAP project
The ministry assessment listed several reservations regarding the GCAP project. The report argued that the existing programme focuses on operations beyond Germany’s capability requirements, whereas Berlin needs an aircraft better suited for missions over continental Europe.
The document also noted that German manufacturers would struggle to secure a significant share of development and production work within an already established partnership.
Invoking past experiences with the Eurofighter programme, which was developed in the 1990s and entered service in the early 2000s, the document took direct aim at British defence contractor BAE Systems.
The German Defence Ministry assessment accused BAE Systems of prioritizing exports over the development interests of Germany and Italy, warning that British dominance would prove incompatible with an equal partnership.
By contrast, the document stated that the military requirements of Germany, Sweden, and Spain align closely and that their starting positions are well balanced.
The assessment proposed an industrial partnership between aerospace giant Airbus and Sweden’s Saab, while recommending that the Saab-manufactured Gripen E fighter jet serve as a technological stepping stone until the new aircraft is developed.
The German Defence Ministry declined to comment on the matter. A separate ministry note, however, recorded British efforts to integrate Germany into GCAP as an observer or participant, asking German officials to examine potential industrial roles and military requirements.
An Airbus spokesperson said the company was “generally open to cooperation”, provided that German and Spanish industry secured a “substantial and equal role” across development, production, and operational phases.
“Purely political decisions without an industrial foundation remain insufficient,” the spokesperson said, urging authorities in Berlin and Madrid to clarify the path forward swiftly.
In an interview published in Handelsblatt on Monday, Airbus defence chief Michael Schollhorn pointed to ties with Saab, noting that the two companies have always worked well together.
A Saab spokesperson also indicated that the company is receptive to broad defence cooperation, including in fighter aircraft.
Emphasizing that large-scale collaborative projects are handled at the political level and that participation decisions rest with the respective governments, the spokesperson said: “All questions regarding potential Swedish participation should be directed to the Swedish government. Saab stands ready, as always, to support Sweden’s future fighter aircraft requirements.”
Europe
EU reopens debate on naming envoy for Ukraine talks with Putin
The European Union has returned to the idea of appointing an envoy to hold talks on Ukraine with Russian President Vladimir Putin.
According to sources familiar with the matter who spoke to Politico, this search gained fresh momentum following a visit to Russia by Steve Witkoff, the US special envoy.
During his trip, Witkoff proposed to Putin that Russia, the US, and Ukraine hold trilateral talks.
European countries, meanwhile, fear that Washington could accept terms unfavourable to Kyiv in negotiations that exclude them.
Sources speaking to Politico said the names being discussed for the envoy role include European Commission President Ursula von der Leyen, European Council President António Costa, and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas.
Some European diplomats believe Finnish President Alexander Stubb may be the most suitable candidate for the post.
Stubb’s good relations with Trump and Finland’s experience in dealing with Russia are cited among the factors setting him apart.
An unnamed EU diplomat described Stubb as the only European politician so far to have demonstrated senior-level leadership.
Another group of diplomats argues that Costa should lead the talks. European leaders asked Costa during last week’s EU summit in Brussels whether the time had come to speak with Putin.
Politico’s source recounted that exchange: “Costa said no, saying he would not speak to Putin right now. But if we want to play a role in the negotiations, Costa still needs to initiate dialogue with Putin.”
According to an assessment by another source, the European Council president could serve as a more neutral mediator than von der Leyen or Kallas, who are seen as overly focused on supporting Ukraine.
“Three or four people cannot go there with each of us speaking on behalf of the European Union,” one of the sources told the publication. “Ultimately, the choice of who represents the EU must be based on maximum efficiency, not on a personal power struggle or someone’s narcissistic ambitions.”
Politico previously reported in January that the EU was considering appointing a special representative for Ukraine negotiations. At the time, the initiative drew support from several European leaders, including French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.
Putin said he was ready to negotiate with European countries, but asserted that Europe had “no peace agenda” and stood “on the side of war”.
The Russian leader also named former German chancellor Gerhard Schröder as Moscow’s preferred negotiator from Europe.
Kallas ruled out such an appointment, noting that Schröder was “a lobbyist for Russian state companies” and would sit “on both sides of the negotiating table”.
Stubb details obstacles to talks and Oslo diplomatic drive
Finnish President Alexander Stubb said the principal obstacle to ending the war between Russia and Ukraine was the territorial issue.
Stubb took part in talks in Oslo with US envoy Steve Witkoff, who subsequently travelled to Saint Petersburg to meet Vladimir Putin.
As reported by the newspaper Helsingin Sanomat, Stubb stated that advancing the peace process required either bilateral talks between Russia and Ukraine or trilateral negotiations involving the US.
The Finnish president listed the other major items to be addressed within a settlement as US security guarantees for Ukraine and the construction of a new European security architecture after the war ends.
Without stating it outright, Stubb implied that the core issue within this framework was Ukraine’s NATO membership. The Finnish leader pointed to monitoring the ceasefire, establishing the line of contact, ensuring energy and food security, and exchanging prisoners as practical tasks.
Stubb also detailed the talks held in Oslo on 20 October, which included Witkoff, Ukrainian President Volodymyr Zelenskyy, and Norwegian Prime Minister Jonas Gahr Støre.
The discussions, which spanned approximately eight hours across various formats, had three objectives: to lower tensions in public discourse, to convey European and Ukrainian proposals to the US envoy before his visit to Russia, and to determine the next steps toward a peaceful settlement. Stubb announced that these goals had been achieved.
Moscow ready to resume trilateral talks in November
Witkoff met Putin in Saint Petersburg on Wednesday.
Following the meeting, Russian presidential aide Yuriy Ushakov announced that Moscow was prepared to resume trilateral negotiations with the US and Ukraine during the first half of November.
Ushakov also said that the EU and NATO had begun to “take a more serious approach” to Kremlin proposals on Ukraine, adding that “matters” were moving toward an end to the conflict.
Witkoff described the meeting as “constructive”.
Sources told Bloomberg in September that Putin continued to insist the Donetsk region must come fully under Russian control, expressing confidence that the territory would be captured within the next six months.
Putin previously set conditions for ending the war, demanding that Ukraine abandon plans to join NATO, maintain a neutral and non-nuclear status, and that anti-Russian sanctions be lifted.
Europe
Trump midterms calculus halts Israeli strike plan against Iran
A comprehensive military operation planned by the Israeli military for 10 October did not take place because US President Donald Trump chose to avoid a broad conflict before the 3 November congressional midterm elections.
Preparations had been made on the orders of Prime Minister Benjamin Netanyahu for an aerial bombardment meant to last several days, according to a report by the Financial Times citing sources familiar with the matter.
The list of targets included nuclear facilities and locations associated with the Iranian leadership, along with power stations and other civilian infrastructure sites.
The planned strikes were projected to exceed the joint operation launched by the US and Israel in February in terms of intensity.
White House Deputy Press Secretary Anna Kelly told the newspaper: “The United States is not going to strike Iran at any point before the midterms.”
Kelly argued that the administration in Tehran was in distress both economically and militarily, adding that the blockade imposed on Iranian ports and US efforts to secure oil shipments through the Strait of Hormuz were producing results.
Speaking to the newspaper, one source addressed the possibility of strikes resuming in the coming weeks, saying: “There’s either going to be a deal or a strike.”
The same source reported that Washington aims for a comprehensive settlement that resolves the conflict over both the Strait of Hormuz and the nuclear programme, although it remained unclear whether the US would have participated directly in the cancelled operation.
Another source said the preparations for the operation might have served as leverage to pressure Tehran in negotiations, adding that the final decision on any new military step rests with the US president.
Hegseth reviews updated target list in Israel
An Israeli official said US Secretary of War Pete Hegseth visited Israel on 19 October to meet with Netanyahu and senior representatives.
Another source stated that the Israeli side presented an updated target list to its American counterparts, compiled with fresh intelligence and incorporating civilian infrastructure sites that had not been struck earlier this year.
The Pentagon did not respond to questions regarding the meetings, while Netanyahu’s office and the Israeli military declined to comment.
Despite the postponement of the operation, Trump and Netanyahu continued to issue military warnings to Iran in public.
In a video released on 19 October, Netanyahu addressed Trump, saying: “Donald, you said we need to finish this, and we will finish it together.” Speaking on speakerphone, Trump responded: “You’re a great warrior, and we’re going to prove it very soon.”
These engagements between the leaders coincide with critical election cycles in both countries.
Parliamentary elections in Israel are scheduled for 27 October, one week before the vote in the US.
Most public opinion polls in the country show the opposition bloc holding a narrow lead over Netanyahu’s coalition, though neither side commands a clear majority.
Axios, a US-based news outlet, previously reported that the Pentagon instructed military planners to finalize strike plans against Iran, though the directive specified no date and Trump had not reached a final decision.
On 15 October, CNN reported on plans to use the GBU-43/B munition, known as the “mother of all bombs”, against Iranian nuclear facilities, with US officials who spoke to the broadcaster expressing scepticism about the weapon’s ability to destroy deep bunkers.
While Tehran announced that it remains open to a diplomatic solution, it declared that any potential operation would draw a fierce response.
Iranian Foreign Minister Abbas Araghchi stressed that if its adversaries chose military conflict, the response would be “much harsher than before”.
Following the joint operation launched by the US and Israel on 28 February, Iran retaliated by striking targets across the region and restricting maritime passage through the Strait of Hormuz.
Although the parties reached an agreement in June covering a ceasefire and negotiations to lift the blockade in the strait, reciprocal strikes between the US and Iran have not ceased.
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