European companies are jumping on the defense bandwagon as EU plans security splurge

European Defense Sector Growth: European companies are increasingly shifting towards military contracts amid a defense boom, with the Stoxx Aerospace and Defense index rising over 50% this year due to heightened government spending on national security, including a proposed 2 trillion euro budget by the European Commission.

Corporate Adaptation and Investment: Companies like Orange, Einride, and Fincantieri are pivoting their technologies and resources to meet growing defense demands, while institutional investors are also increasing allocations to the sector, recognizing the potential for significant capital investment in European defense solutions.