Europe
Munich emerges as powerhouse of German defence industry
The German defence industry is concentrating rapidly around Munich, the capital of Bavaria, generating jobs and revenue whilst increasing its visibility.
The city is home to Helsing, currently among Europe’s most valuable private technology companies.
Advertisements for the €16 billion defence artificial intelligence firm are now visible across the city, displaying images of unmanned aerial vehicles and loitering munitions alongside the message to local residents: “We’ll handle it.”
Germany’s defence industry has expanded significantly in recent years, with Bavaria emerging as one of the primary beneficiaries.
Defence and aerospace start-ups in the state benefit from a combination of factors, meaning Helsing is merely one prominent example.
The region already hosts major corporations such as Airbus Defence & Space and KNDS, the manufacturer of the Leopard tank.
New defence start-ups proliferate in Bavaria
Yet this is only the beginning: new enterprises are emerging rapidly to supply weapons systems and space technology to the German Armed Forces (Bundeswehr) and international clients.
Another rising player in the sector is Starflight Dynamics, a space and defence company developing orbital propulsion systems and other dual-use defence space technologies.
Founder Philipp Bauer was educated in Munich and worked for several years in the region’s established aerospace industry before launching his own venture in 2023.
Bauer told Euractiv:
“Munich in general was certainly no silver bullet, but the city’s strong set-up bringing together industry, research institutions, events, partners, and investors created a clear location advantage and played an important role in our development.”
The start-up aligns closely with the region’s ambition to establish itself as a space power, having secured both its first investor and its first customer in Munich.
It is currently preparing for the first in-orbit demonstration of its propulsion system.
ARX Robotics, a key player in military ground robotics used for logistics, battlefield evacuations, or machine-gun platforms, represents another example.
Founded by former German army officers, the defence technology company chose Bavaria due to its access to the Bundeswehr, the ability to scale up easily when required, and the opportunity to tap into scientific talent.
The company is now one of Europe’s leading manufacturers of autonomous unmanned ground systems and plans to expand into the United Kingdom.
ARX is currently working to retrofit legacy defence vehicles with autonomous driving capabilities.
Bavaria claims lion’s share of arms growth
Beyond Munich, the defence sector is expanding rapidly across Germany.
The national defence industry association, BDSV, has grown from 111 registered members at the end of 2021 to 602. Approximately one-third of these (201) are registered in Bavaria.
Johannes Binder, a defence economics expert at the Kiel Institute for the World Economy in Germany, argues that four factors benefit the sector: an established defence industry, academics with an entrepreneurial culture, the presence of the armed forces, and a favourable political environment.
“What makes Munich and its surrounding area special is precisely that many of these advantages come together,” Binder said.
Starflight Chief Executive Bauer stressed that relationships between defence companies are vital.
Noting that firms must be able to trust and rely on one another, Bauer pointed out that geographic proximity helps in this regard.
Munich academic ecosystem contributes to growth
A major contributor to the defence start-up sector is the academic environment in and around Munich.
Bertram Brossardt, head of the Bavarian Industry Association, explained that universities in the region do not have “civil clauses”.
Such clauses are voluntary provisions committing institutions to focus exclusively on civilian research and exclude defence-related projects.
In 2024, Bavaria enacted the Law on the Promotion of the Bundeswehr, which banned such civil clauses in universities.
However, a court ruling in March clarified that there is no mandatory obligation to cooperate with the military.
Universities nevertheless foster an entrepreneurial spirit, and many actors in the burgeoning new defence sector originated there.
“This creates an extremely innovative environment,” said Binder of the Kiel Institute. “As a start-up, you want to be where there is a lot of dynamism, and Munich is precisely such a place that can already offer a great deal to the defence industry.”
For ARX Robotics, the region’s strong position in robotics, artificial intelligence, autonomy, and sensor technology was essential.
The company’s head of government relations added: “Munich was a logical choice. Nowhere else in Germany is there an ecosystem with such deep technological expertise.”
TYTAN Technologies is another Bavarian success story. An innovator in counter-drone defence, the company was commissioned by the Bundeswehr to develop a concept for protecting military installations and now collaborates with larger players such as Helsing and KNDS.
Having transitioned from a start-up to a scale-up, the company was founded at the Technical University of Munich and plans to expand by establishing a facility near Munich to produce up to 3,000 affordable, autonomous interceptors per month to meet orders from Ukraine and other regions.
A spokesperson noted that operating in the region “brings us close to talent, partners, investors, and end-users.”
Bundeswehr presence in Bavaria
Beyond innovation and access to academic resources, proximity to customers aids product sales.
The Bundeswehr maintains a substantial presence in Bavaria with approximately 60 bases and its own university in Munich, which forms part of NATO’s DIANA innovation accelerator programme.
In February, the Bundeswehr opened an innovation hub at a former air base in Erding, near Munich, designed to connect the military more effectively with innovative start-ups and academics.
Modelled on the US Defence Advanced Research Projects Agency (DARPA), German Defence Minister Boris Pistorius said of the centre: “Erding is set to become the centre of innovation within the Bundeswehr.”
Close ties with the Bundeswehr offer an additional location advantage. The national defence budget is projected to reach approximately €140 billion in 2027, an increase of about one-quarter over this year’s budget.
Bavarian state government backs arms industry
Industry in Bavaria also attributes part of its defence success to the region’s political environment.
Industry representative Brossardt recalled that the Bavarian government has always provided a supportive framework.
This dynamic became even more pronounced following the outbreak of the war in Ukraine in 2022.
Through the Bundeswehr Act passed in 2024, Bavaria lifted restrictions to accelerate military construction projects.
Earlier this year, similar bureaucratic hurdles for the defence industry were removed under the Law on the Promotion of the Defence Industry.
Led by the conservative Christian Social Union (CSU), the sister party to the ruling Christian Democratic Union (CDU), Bavaria can also leverage its political weight in Berlin.
“The CSU currently controls the Space Ministry and therefore wields certain influence in Berlin, enabling it to channel projects to its own state,” Binder explained.
However, Bernhard Poeltl, managing director of defence consultancy T60, argues that the sector’s strong presence is not necessarily due to favourable policies, but rather indirect effects:
“What I think is really moving fast right now and receiving political backing is planning permissions for new construction and expansion work. The days when things took an eternity and any environmentalist could veto them are long gone.”
According to Binder, the combination of these factors leads to “the emergence of specific clusters where many start-ups can thrive, ideas can spread, new companies can be established, and supply chains can be built up at a relatively local level.”
Europe
EU rejects US proposal to resume Russian gas flows through Ukraine
The European Commission has rejected a peace plan proposal from the US administration that entails resuming Russian natural gas purchases via Ukraine.
Commission spokesperson Paula Pinho stressed that Brussels has not changed its stance.
Pinho recalled that European Commission President Ursula von der Leyen had previously stated clearly that no restrictions on Russia would be lifted until the conflict comes to an absolute end.
The New York Times reported that the US president’s new peace proposal includes Europe returning to large-scale Russian gas purchases through Ukraine.
According to the report, Special Envoy Steve Witkoff and Jared Kushner raised the matter during talks in Kyiv last month with Ukrainian and European officials, including Ukrainian President Volodymyr Zelenskyy.
Sources contacted by the newspaper noted that some European and Ukrainian officials believe Washington would seek to secure a share of Russian gas exports.
Under this plan, the objective is to channel a share of the profits to American companies or the US government.
Russian President Vladimir Putin had said Moscow was ready to work on supplying fuel to European nations, but noted that a signal must come from the other side.
Putin stated that Moscow must evaluate the feasibility and necessity of fuel flows to the Western market, adding that they would not wait for Europe to shut the door ostentatiously on energy supplies.
Kremlin spokesperson Dmitry Peskov remarked that European nations rejecting Russian gas would make them dependent on the US and deprive them of the ability to diversify their supply sources.
Peskov noted that the US sells gas at very high prices and that if European nations pay more for energy, their industries will suffer.
The EU plans to halt liquefied natural gas imports from Russia entirely by 1 January 2027 and pipeline gas by 30 September 2027.
Von der Leyen had previously announced that the bloc would reduce Russian gas imports to zero by the end of 2027.
Russia halted gas flows to Europe via Ukraine as of 1 January 2025, when the five-year contract between Gazprom and Naftogaz of Ukraine expired.
Putin had stated that Kyiv refused to extend the transit agreement. Following the closure of the Ukrainian route, the TurkStream pipeline remained the only operational corridor carrying Russian pipeline gas to Europe.
Europe
Serbian prosecutor in Trump Tower inquiry targeted by Israeli spyware
A prosecutor investigating corruption allegations surrounding a real estate project linked to US President Donald Trump in Serbia was targeted with spyware, a new investigation has revealed.
The findings, published by the University of Toronto’s Citizen Lab alongside the Serbia-based digital rights group SHARE Foundation, showed that Rade Bajić, who served at the Prosecutor’s Office for Organized Crime, was selected as a target.
Bajić became a target of the Pegasus spyware developed by Israel-based NSO Group after he publicly spoke out about political interference and abuses of power.
The prosecutor stated that on 13 August, he received a warning alert from Apple cautioning him against state-sponsored or mercenary spyware attacks.
Project cancelled, but investigation and pressure continue
The probe centres on a plan to transform the historic complex in Belgrade that housed the former Yugoslav Ministry of Defence headquarters into a luxury Trump Tower skyscraper.
Linked to US President Trump’s son-in-law Jared Kushner, the real estate development drew fierce backlash amid political pressure disputes and allegations that the site’s protected heritage status had been unlawfully revoked.
The investment firm founded by Kushner announced late last year that it was pulling out of the project, citing respect for the Serbian public and the city of Belgrade.
Recalling his investigation into claims that senior government officials had improperly lifted the historic military complex’s protected status, former prosecutor Bajić said: “In my opinion, my role in this case was the sole reason for the illegal spyware attack.”
Target list widens to university and judicial figures
The spyware scandal in Serbia has widened, sweeping in political opposition figures, civil society, and academic circles.
It was also confirmed that an iPhone belonging to University of Belgrade Rector Vladan Đokić was infiltrated by Pegasus spyware.
Đokić, who refused to back the government’s crackdowns on student demonstrations, has become one of the prominent figures of the protest movement.
Police raided his office on 31 March, seizing his computers and servers. Đokić had also been touted as a likely leader for a student-backed opposition list ahead of early general elections scheduled for Sunday.
Shortly before the report was published, a pro-government tabloid released audio recordings allegedly capturing Đokić discussing his political ambitions, putting him directly in the crosshairs.
While the source of the recordings remained undisclosed, Đokić stressed that the breach of his phone represented a grave assault on his personal privacy, safety, and the dignity of the rector’s office, demanding that those responsible be punished.
State institutions silent on allegations
Speaking to Politico, SHARE Foundation policy advisor Andrijana Ristić noted that surveillance operations had spread from civil society and journalists to student activists, politicians, and finally to members of academia and the judiciary.
Ristić stated that the lack of state action despite formal criminal complaints has fuelled this escalation.
Citizen Lab senior researcher John Scott-Railton emphasized that technology from NSO Group, which claims to turn over a new leaf every time an abuse is uncovered, is being deployed directly for repression.
Scott-Railton pointed out that targeting individuals who defend freedom against corruption was no coincidence.
The Serbian Ministry of Internal Affairs left questions unanswered, though officials had previously denied allegations of cyber espionage.
NSO Group, which maintains that it sells its products exclusively to governments and was blacklisted by the US government in 2021 over human rights abuses, also made no comment.
Apple confirmed that it had sent mass threat notifications to users on 13 August, but provided no specific details regarding the cases of Bajić or Đokić.
In September, Citizen Lab and the SHARE Foundation disclosed that at least 14 individuals, including student activists and opposition figures, had received similar spyware alerts.
Europe
Macron rejects interior minister’s resignation over violent unrest
French Interior Minister Laurent Nuñez tendered his resignation amid some of the country’s most violent street unrest in recent years. President Emmanuel Macron rejected the resignation.
According to a statement from the Elysée Palace, Macron made the decision because law enforcement required uninterrupted command under current conditions. Macron instructed Nuñez to roll out new methods on the ground as quickly as possible.
The president also demanded that all necessary measures be taken to ensure transparency regarding the lapses in intelligence and foresight that led to the violence.
How many people were on the streets during Saturday’s protests?
The demonstrations were organised on 17 October over the rising cost of living and discontent with the government’s social policies. According to the Interior Ministry, approximately 550,000 people took part, while trade unions put the figure at 800,000.
Hundreds of thousands marched peacefully on Saturday. However, clashes with law enforcement broke out in Paris, Lyon, Marseille, and other cities, where shops were looted and buildings set on fire.
In Marseille, protesters stormed the city hall. As they forced their way in, they shouted, “This is a revolution, we are taking the Bastille!”, and went on to loot numerous stores.
In Lyon, the office of a tourism company housed in a 19th-century building was vandalised and torched. In Limoges, a 19th-century city hall was set ablaze.
Damage incurred by French businesses is reportedly estimated in the hundreds of millions of euros.
Citing Nuñez reported approximately 1,800 detentions and more than 500 injuries among police officers, gendarmes, and firefighters. Reuters reported that Nuñez stated 2,400 people had been detained nationwide and around 1,000 security personnel injured.
During the demonstrations in Paris, one person suffered a fatal heart attack while being detained.
Macron: We feel anger and shame
In a televised address, Macron said that nothing could justify the events. “There is nothing that can justify, explain, or excuse this. Tonight, we all feel anger and shame,” he said.
In the same speech, he stressed that peaceful demonstrators had legitimate grievances and should not be equated with those resorting to violence. He also noted that the protesters’ voices must be heard and that the government had already begun efforts to address them.
Macron said that legitimate demands must not be conflated with violence, and that violence should not prevent those demands from being heard.
Right demands state of emergency, Macron holds off
Right-wing politicians demanded the declaration of a state of emergency.
Macron declined to do so, stating that the government could allow local authorities to ban protests if necessary to protect public buildings and businesses.
Marine Le Pen, who is expected to run as the candidate for the far-right National Rally in next year’s presidential election, called for restraint. Le Pen said the situation in the country must not be treated as normal.
Meanwhile, Jean-Luc Mélenchon, leader of the far-left France Unbowed, stated that Macron must meet the demands of high school students staging demonstrations.
Macron’s term in office ends in 2027.
Throughout his nearly decade-long presidency, the country has frequently witnessed widespread protests, alongside persistent criticism over economic weakness and mounting public debt.
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