Weekly Briefing
This week: Germany breaks ground on Europe's largest gunpowder plant, Croatia lands a Beretta ammunition deal, Lithuania passes 5 percent of GDP on defense, and a Bosnian manufacturer's costly email fraud.
Italy
Czechoslovak Group owner Michal Strnad has acquired a 14% stake in Italy's Pirelli from China's Sinochem in a deal worth about €987 million, strengthening European ownership of the tire manufacturer amid growing geopolitical scrutiny.
Croatia
Croatia has signed a memorandum with Beretta Holding and a domestic investor to build the country's first small-caliber ammunition factory in Obrovac, expanding its defense-industrial base.
Czechoslovak Group owner Michal Strnad has acquired a 14% stake in Italy's Pirelli from China's Sinochem in a deal worth about €987 million, strengthening European ownership of the tire manufacturer amid growing geopolitical scrutiny.
Croatia has signed a memorandum with Beretta Holding and a domestic investor to build the country's first small-caliber ammunition factory in Obrovac, expanding its defense-industrial base.
Europe relies on two distinct 120 mm ammunition families for tanks and mortars. Ukraine has reinforced demand, while new 130 mm and 140 mm guns remain developmental.
Five EU defense funding instruments now total over 250 billion euros. Here is who can actually access EDF, EDIP, SAFE, and AGILE, and what changes for companies outside the EU.
XTEND has completed the integration of Latvian robotics company Atlas, expanding its European manufacturing footprint and XOS robotics ecosystem. The company said the move strengthens its ability to support NATO and EU customers through regional production and engineering capabilities.
Drones and counter-drones are fully funded. Missiles, subsea, space, propulsion, and biodefense are the seven defense-tech investment categories still open in 2026, several map directly onto Western Balkans capability.
Daily defense news, analysis and industry intelligence from Central and Eastern Europe and Southeast Europe.
Lithuania is spending more than 5% of its GDP on defense in 2026, the highest share among NATO allies, reinforcing its military modernization and long-term deterrence strategy on the alliance's eastern flank.
Aero Sentinel has announced its participation in a counter-unmanned aerial systems (C-UAS) training exercise conducted alongside the Croatian Special Forces, marking another operational demonstration of the company's drone detection and targeting technologies. According to the company, the exercise was supported by its European representative, Petar Dragičević,
Igman d.d. Konjic says most funds affected by a sophisticated business email fraud have been frozen and are expected to be recovered. The Bosnian ammunition manufacturer says production and business operations continue without disruption.
Bosnian ammunition manufacturer Igman has reportedly lost more than €767,000 in an alleged business email compromise. Authorities have launched an investigation into the incident, which highlights growing cyber risks facing the defense industry.
Rheinmetall has begun building one of Europe's largest gunpowder production facilities in Bavaria, investing €500 million to more than double output and strengthen NATO's ammunition supply chain.
Ukraine has appointed Liubov Halan and Serhii Boiev as deputy defense ministers, assigning them responsibility for military personnel policy and European integration as Kyiv continues restructuring its Defense Ministry leadership.
Europe relies on two distinct 120 mm ammunition families for tanks and mortars. Ukraine has reinforced demand, while new 130 mm and 140 mm guns remain developmental.
Bulgaria is seeking MiG-29 spare parts and exploring second-hand fighter options as the Defence Ministry works to sustain NATO air policing until the F-16 Block 70 fleet reaches full operational readiness.
The European Defence Agency has selected five companies for the final stage of its Sentinel Strike Challenge, with operational testing scheduled in Portugal during OPEX26 before winners are announced in 2027.
CSG has launched the MAIA digital airspace management platform through Czech subsidiary UpVision, expanding its aerospace software portfolio as Europe accelerates U-space implementation for drone traffic management.
Five EU defense funding instruments now total over 250 billion euros. Here is who can actually access EDF, EDIP, SAFE, and AGILE, and what changes for companies outside the EU.
Romanian technology company OVES Enterprise and Ukraine's EDRONE will jointly manufacture military drones in Cluj-Napoca, creating an initial production capacity of 1,000 systems per month with plans for significant expansion.
