Luxembourg will host the European base of the Canada-led Defence, Security and Resilience Bank, a treaty-based lender backed by nine allies and unveiled at the 2026 NATO summit in Ankara.
Prime Minister Mark Carney has named Germany's ThyssenKrupp Marine Systems as preferred supplier to build up to 12 Type 212CD submarines for the Royal Canadian Navy, beating South Korea's Hanwha Ocean. The deal, worth up to C$60 billion to acquire and more than C$100 billion over its life, ties Canada into a German-Norwegian production line and a NATO fleet of up to 24 identical boats — a signal victory for Europe's rearming defence industry.
KNDS, Europe's biggest land-defence group, has postponed its planned Frankfurt and Paris listing, blaming a slump in defence shares. Its €33.1bn order backlog — which includes the Jaguar and Griffon vehicles bound for the Luxembourg army — is unaffected.
German defence-AI and drone maker Helsing is closing in on a roughly $1.2bn funding round at an $18bn valuation, as record venture capital flows into European defence following NATO's 5% spending pledge and the EU's €800bn rearmament drive.
Turkey is pushing for access to the EU's €150 billion SAFE defence fund and joint procurement, exposing a deep split over whether a rearming Europe should open its industrial base to a powerful but politically awkward NATO ally.
France and Germany have agreed to co-own armoured-vehicle maker KNDS as equal shareholders, ending a long-running governance dispute and opening the way to one of Europe's largest defence listings. Germany will buy a 40% stake from the company's German family owners, with a dual Frankfurt-Paris flotation targeted for July as EU rearmament spending accelerates.
Canadian Defence Minister David McGuinty made the first visit by a member of his country's federal government to Luxembourg in 81 years on Friday, deepening ties as the transatlantic alliance scrambles to fund rearmament. The trip sits against a thickening web of allied defence finance — the EU's €150bn SAFE programme, which Canada has joined; the Luxembourg-based EIB's expanding defence lending; and the proposed Defence, Security and Resilience Bank, which Canada will host.