Connect with us

Europe

German military seeks high-tech edge with AI and drones

Published

on

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

Fico accuses Merz of blackmail over threat to veto EU budget

Published

on

Slovak Prime Minister Robert Fico has hit back after German Chancellor Friedrich Merz threatened to veto the EU budget unless funding for Ukraine is secured.

Merz said he would block the EU’s seven-year budget if no agreement is reached on financial assistance for Ukraine.

The chancellor’s intervention has angered Central European leaders who are net beneficiaries of EU funds but do not want to take part in the next round of funding to support Ukraine’s war effort.

“What the chancellor is doing is typical blackmail, and I will not bow to it,” Fico told reporters in Bratislava.

Fico spoke alongside his Czech counterpart, Andrej Babiš, whose government has refused to participate in a future loan to Ukraine.

“I do not know why he said this,” Babiš said, referring to Merz’s stance.

Merz wants EU leaders to discuss Ukraine’s financing needs at a summit in Dublin on Friday.

In a letter to European Council President António Costa, who will chair the meeting, obtained by The Guardian, Merz wrote:

“We must maintain our support for Ukraine in its struggle to defend itself. This is our shared vital interest. Yet bilateral aid provided to Ukraine is distributed unevenly, with the burden shouldered mostly by only a few member states.”

The EU agreed last year to provide a €90 billion loan to Ukraine, intended to cover two-thirds of its military and civilian spending for 2026 and 2027.

Since then, however, Russia’s relentless bombardment has placed a heavier financial burden on Kyiv, prompting President Volodymyr Zelenskyy to ask for €70 billion to plug the budget deficit.

The EU has endorsed Zelenskyy’s figures and pledged to find €45 billion. Ukraine’s other allies, such as Britain and Canada, are expected to cover the rest.

Last year, Merz launched an initiative to tap €210 billion in frozen Russian state assets held in the EU, but the plan fell through due to opposition led by Belgium, which holds most of the funds in Brussels.

The €90 billion loan was the backup plan. Having opted out of that loan, Hungary, Slovakia, and Czechia indicated that they would not take part in the next round either.

Bulgaria joined these three member states following the election of Prime Minister Rumen Radev last April.

The question of funding for Ukraine is now spilling over into the fraught negotiations on the 2028-34 EU budget.

Germany, the largest net contributor, wants substantial cuts to the proposed budget and opposes the EU providing generous funding to member states that refuse to contribute to Ukraine’s financial needs.

Merz states in his letter that a “collective commitment without exceptions” is a “fundamental prerequisite” for closing Ukraine’s financing gap and for “discussing other matters, particularly those with financial implications.”

He also notes that, in the context of the EU’s next seven-year budget, known as the Multiannual Financial Framework, all member states must contribute to a “robust” financial perspective for Ukraine from 2028 onwards.

A German government official said:

“For the Multiannual Financial Framework (MFF) to be successfully concluded, it is vital that all EU member states provide financial support to Ukraine.”

Berlin is also aiming to shift decision-making on funding for Ukraine from unanimity to qualified majority voting, in an effort to prevent a single government from blocking EU decisions.

The letter reflects mounting frustration among the EU’s northern member states, Ukraine’s most generous backers, over lower contributions from other EU countries in Central and Southern Europe.

The task of brokering an agreement on the budget falls to Costa, the former Portuguese prime minister.

Costa wants a deal by the end of the year, ahead of elections in France, Poland, and Italy in 2027 that could complicate the process.

A spokesperson for Costa confirmed receipt of the letter without elaborating on details. “President Costa will dedicate time to the Ukraine issue at the informal European Council meeting in Dublin this week,” the spokesperson said, adding that funding for Ukraine would be addressed at a dedicated summit on the EU budget scheduled for 26-27 November.

Continue Reading

Europe

EU expects next Israeli government to adopt less aggressive posture

Published

on

The EU expects the next Israeli government to mend its “difficult relationship” with Brussels and adopt a more constructive approach toward Gaza and illegal settlements.

Israeli President Isaac Herzog tasked Gadi Eisenkot, the leader of the anti-Netanyahu bloc, on Sunday with forming a government.

Eisenkot stated that the country faces a “catastrophic diplomatic crisis” as traditional allies begin to reassess their relations with Israel.

Speaking to Rapporteur, several European diplomats stationed in Tel Aviv said they expect ties to get back on track.

“Whatever government comes in, we can try to revitalize relations because Israel is clearly a very important partner,” one European diplomat said, adding that Brussels expects the next administration to be “less aggressive”.

The diplomat noted that relations with Europe are currently “not very good”.

Israel cut off communication with Kaja Kallas, the EU high representative for foreign affairs and security policy, after Rapporteur revealed in June that she had compared Israel to apartheid-era South Africa during a visit to Mexico.

The diplomat stated that this decision, taken ahead of elections, was political in nature. A second European diplomat based in Brussels explained that the announcement came only a few days before an official visit by Dubravka Šuica, the European commissioner for the Mediterranean.

“This could have been interpreted as a tactic to divide Europe, but Israel had asked Kallas to deny the report; she did not do so,” the second diplomat said.

Brussels has repeatedly voiced its frustration with Israel over the humanitarian crisis in Gaza and the expansion of West Bank settlements.

However, EU governments blocked almost all sanctions proposed by the European Commission.

A third diplomat said opposition parties would “almost certainly take the issue more seriously” when it comes to tackling violence by West Bank settlers:

“We see Palestinians being expelled from their homes and new illegal settlements being built in the West Bank. There is a reluctance on the part of the current government to address this issue, which causes problems in our relations.”

The new government is expected to ease pressure on Palestinians and halt construction of the E1 settlement project, a controversial plan to build settler housing in the West Bank east of Jerusalem.

“They will probably try to deal with the problem of extremist settlers in the West Bank,” the diplomat added.

On Gaza, the diplomat described the situation as “a complete nightmare”, with two million Palestinians crowded into an area that accounts for roughly 35% of the territory.

“There are not enough tents for the winter, and not enough vaccines are reaching the area despite an increase in diseases,” the diplomat said.

The European official argued that Donald Trump’s peace plan met all the conditions for Europe. Although the EU had much to offer, neither the US nor Israel appeared interested in EU involvement in the process.

“We are currently training Palestinian police in the West Bank, and if permitted, we could do the same in Gaza,” the diplomat said.

The diplomat disclosed that Israel had agreed with Šuica that Europe would finance two projects aimed at improving sewage and water infrastructure in Gaza, continuing:

“However, none of these projects has started yet because there is a serious problem with dual-use goods. Getting materials into Gaza is very difficult because the Israelis say they could be misused if they fall into the wrong hands of Hamas.”

Israel insists that Hamas must be disarmed before subsequent phases of Trump’s plan can proceed.

With disarmament unlikely to happen in the near term, the EU argues that certain measures can be carried out in parallel.

“We can begin rebuilding sanitation systems in Gaza. We can start building desalination plants. We can begin providing energy and water to Gaza,” one diplomat said.

While Brussels hopes for progress on Gaza and the West Bank, it maintains that expectations regarding the establishment of a Palestinian state need to be “managed”.

The EU continues to advocate a two-state solution, yet most leading Jewish parties oppose the creation of a Palestinian state.

The diplomat noted that the next Israeli government will likely have “a very slim majority and not much room for manoeuvre”.

There is also a “major misunderstanding” between the EU and Israel that must be addressed. According to the diplomat, Europeans fail to recognize the “psychological impact” of 7 October on Israelis.

“This event changed the country and made the two-state solution even more distant than before,” the diplomat said.

In return, some Israeli politicians believe Europe has betrayed Israel despite what they view as a fight against “Islamist terrorism”.

“Their argument is that European politicians are somewhat afraid of the Muslim population in Europe,” the European diplomat said.

Europe strongly opposes Iran and the possibility of Tehran acquiring nuclear weapons, imposing sanctions in response.

However, the diplomat argued that the EU would not participate in a war because it lacks a common army:

“We are a diplomatic and economic power, which is why we resort to sanctions and diplomacy. The expectation that we would take part in a military operation is unrealistic.”

Continue Reading

Europe

Germany threatens EU budget veto over long-term Ukraine aid

Published

on

Germany has threatened to veto the European Union’s joint budget for the 2028-2034 period, which is currently under negotiation, unless every member state commits to providing financial support to Ukraine in 2027 and subsequent years, German Chancellor Friedrich Merz warned.

According to a report by the Financial Times (FT), Chancellor Merz set out Berlin’s condition for the budget talks in a letter addressed to European Council President António Costa.

In his letter, Merz wrote: “A collective commitment that every single one of us, without exception, will make a fair contribution to closing Ukraine’s budget deficit is an indispensable prerequisite for resolving this budget issue and, in particular, for addressing subsequent matters that carry financial implications.”

The German Chancellor stressed that a formula backed by all member states must be established to provide Ukraine with a reliable, multi-year financial perspective starting from 2028.

Merz also insisted that any agreed solution must cover the interest payments on debts incurred to finance the assistance provided to Kyiv.

Conversely, several countries within the bloc have cut financial aid to Ukraine, and the number of capitals adopting this stance is projected to rise next year.

In December 2025, Hungary, Slovakia, and the Czech Republic approved the EU’s 90 billion euro loan package for Kyiv only on the condition that they would not contribute to its costs themselves.

Alongside these three countries, Bulgaria has also stated that it does not plan to participate in subsequent financial assistance packages for Ukraine.

In France, far-right leader Marine Le Pen, who could potentially win the presidential election scheduled for spring 2027, recently told the FT that Paris has run out of funds.

Le Pen assessed: “The honest approach is to tell Mr Zelensky clearly, and even warn him: ‘Look, we cannot do more. We have already allocated the 90 billion euro EU loan, in which France’s share amounts to 18 billion euros. 18 billion euros is genuinely a huge amount of money.'”

The EU’s 90 billion euro loan, covering the 2026-2027 period, aims to meet two-thirds of Ukraine’s financing requirements.

Brussels expects the remaining 45 billion euros to be covered by other partners, including Canada, the UK, Norway, Japan, South Korea, and Australia.

Germany remains the largest net contributor to the EU budget.

In contrast, the four Eastern European countries seeking to avoid financing Ukraine rank among the largest net beneficiaries of the bloc’s budget.

Leveraging this balance, Chancellor Merz aims to use his influence in the EU budget negotiations to secure uninterrupted support for Kyiv in 2027 and the years beyond.

According to the FT, Berlin is also demanding that future aid packages be decided by qualified majority voting rather than unanimity, which is required under the current system.

A German government spokesperson told the newspaper:

“The issue of Ukraine’s financial needs must be resolved within the framework of the next EU budget. Financial support for Ukraine from all EU members is decisive for the successful conclusion of the budget talks.”

Continue Reading

MOST READ

Turkey