Across Europe, defence and security policy is shifting from incremental reform to structural change. The UK Strategic Defence Review 2025 (SDR), France’s National Strategic Review 2025 (NSE) and Germany’s National Security Strategy (NSS) set out ambitious agendas that go beyond the armed forces. They reshape expectations of industry, the role of financiers and private capital and the rapid acceleration of technologies.
What unites these three strategies is a shared recognition that Europe must take primary responsibility for its own security and act quickly to provide strategic coherence and capacity across five central themes.
Top 5 Themes
Nuclear deterrence: divergent roles, yet shared commitment
All three strategies take nuclear deterrence and collective defence as the baseline for national security:
- UK: describes the independent nuclear deterrent as the “ultimate guarantee” of national and allied security. It recommends maintaining ringfenced funding for the Defence Nuclear Enterprise, including submarine build and a new sovereign warhead; investments in long range precision strike and integrated air and missile defence; and exploring “enhanced UK participation in NATO’s nuclear mission”.
- France: highlights nuclear deterrence as “independent, credible and consistent”, and the “cornerstone” of defence policy. It underpins France’s role as a framework nation in high intensity conflict and its contribution to European deterrence.
- Germany: Germany does not currently seek its own nuclear capability but states that “as long as nuclear weapons exist, maintaining credible nuclear deterrence is essential for NATO and for European security”. It anchors its policy in NATO’s nuclear position while supporting arms control, disarmament and non proliferation. However, against the backdrop of massive geopolitical shifts, discussions have commenced about scenarios in which changes to this approach may become inevitable.
Market & Investment Implications
Nuclear modernisation and associated conventional capabilities will drive sustained investment in submarines, propulsion, command and control, secure communications and supporting infrastructure. This supports long tenor contractual structures and, in some cases, asset backed or project style financings.
High barriers to entry and limited competition will likely favour established domestic players in naval nuclear propulsion, strategic missile systems and secure supply chains. Classified programmes, security clearance requirements and strict foreign direct investment (FDI) screening regimes may constrain participation, particularly non European investors. Deal structures, governance and mitigation commitments will need careful planning.
For further information, please contact:
Simon Branigan, Partner, Linklaters
simon.branigan@linklaters.com
