The French defense giant CEO said Europe should “take control of its own destiny” and strive to keep its new defense budget within its borders. Thales.
EU plan Mobilize up to 800 billion euros (USD 841 million) Increase defense spending. According to reports, the United States has released the news Stopped military aid For Ukraine, pressure on action against the group has been increased.
Thales CEO Patrice Caine told CNBC’s Charlotte Reed on Tuesday after European Commission President Ursula Von Der Leyen announced the so-called REATM Europe plan, Thales CEO Patrice Caine told CNBC’s Charlotte Reed, “For Europe, Europe’s destiny is able to control its own destiny and to grow more and more capabilities in engineering, research and development, industry.”
Caine told CNBC that he believes it makes sense for European companies to be the beneficiaries of increased spending.
“This is exactly what happened in the United States, we are also players in the United States, so we know the situation. The United States has provided defense equipment systems to American suppliers, which is normal. Australia they do the same, and Britain does the same – so why should Europe do it differently?”
“If you want to remain autonomous, if you want to give meaning to the term sovereignty, you need to be independent of a third party and be as self-sufficient as possible in this capability,” he said, adding that the European defense industry is able to meet the needs.
The CEO said France is an example of European countries, which is 100% self-sufficiency. “It’s just a political will to buy more and more European suppliers than outside Europe,” he said.
Thales on Tuesday Reported income and income higher 2024. Stocks accounted for 12% before sales growth to grow 3%.
Kane said the EU’s “re-European plan” strategy will strengthen the company’s confidence when it comes to future performance.
“This intensifies our own belief that we see a decade of growth in the Department of Defense – it won’t change the equation for 2025, but it’s obviously positive in the long run,” he said.
“It can be said that two years will take some time from a political decision to a valid contract. So the future will prove, but for Europe, it is very positive, and for Europe, seeing this strong political momentum.”
Europe is under pressure after increasing its defense budget US President Donald Trump’s request European NATO allies spend up to 5% of GDP on defense. Like the EU, the UK recently announced Major interest on defense spendingPrime Minister Keir Starmer guarantees that the UK will spend 2.5% of its GDP on defense in 2027.
President of the European Commission Urusula von der Leyen, Starmer and Other leaders Regarding strengthening the defense budget. Thales has risen 60% since the beginning of the year, while Germany’s Hensoldt And Sweden Saab In the process in 2025, 85.5% and 52% were obtained respectively.
But, like Caine, some analysts warn that new defense spending policies will take time to drip into revenue.
“Defense is a national security issue, so pricing these companies based on the news traffic we currently have,” Christian Mueller-Glissmann, head of asset allocation research at Goldman Sachs, told CNBC’s “Street Sign Europe” on Monday.
“The problem is, when you have such a huge regime change, these companies may change the way they make money and how they fit into the structure of national security. I understand why they are rallied, there will be more spending on defense, but it will be a years-long process.”
