Across Europe and Asia, a new wave of military investment and mobilization is reshaping the security landscape in response to mounting geopolitical threats and uncertainties about traditional alliances. From the Nordic countries to France and Taiwan, governments are ramping up defense spending, rebuilding military reserves, and forging new industrial partnerships—moves that are not just about fortifying borders, but also about redefining what it means to be secure in the 21st century.
In Norway, the government’s announcement on August 24, 2025, of a $700 million aid package to Ukraine marked more than a show of solidarity. As reported by AINVEST, this aid—focused on advanced air defense systems and unmanned maritime platforms—has become a catalyst for the Nordic defense sector. At the center of this transformation is Kongsberg Gruppen ASA, a Norwegian industrial heavyweight whose subsidiary, Kongsberg Defence & Aerospace (KDA), has emerged as a key player in Europe’s new security calculus.
The war in Ukraine has exposed the vulnerability of conventional air defense systems to relentless drone attacks, accelerating the need for scalable, cost-effective solutions. Norway’s package is a strategic move to help Ukraine modernize its defenses, but it also accelerates the modernization of Norway’s own military capabilities. Kongsberg’s KDA has seized this opportunity by signing multiple memoranda of understanding with Ukrainian industrial partners to co-develop low-cost, high-volume air defense missiles and unmanned surface vessels (USVs). These new systems will integrate with Kongsberg’s acclaimed NASAMS platform—already proven effective against Russian drone swarms.
By localizing production in Ukraine and leveraging Norwegian government funding, KDA is not just meeting immediate operational needs. The company is laying the groundwork for a sustainable, scalable supply chain that could serve future conflicts throughout Europe and beyond. The financial results speak volumes: KDA reported a 38% year-on-year revenue increase in the second quarter of 2025, with an order backlog of NOK 109 billion as of June. Major deals, such as a NOK 6.5 billion Joint Strike Missile contract with Germany and the acquisition of U.S.-based Sonatech, have strengthened KDA’s foothold in both the missile and subsea defense sectors.
But this is not just a Norwegian story. The surge in defense spending and mobilization is playing out across the continent. In France, more than two decades after ending compulsory military service, tens of thousands of citizens are signing up for the military reserves. According to Nicole Goebel for CBC, the number of operational reservists in France has jumped from 28,000 in 2014 to over 46,000 in 2025. The government’s aim is ambitious: to more than double the number to 105,000 by 2035, with a keen focus on youth volunteering and specialized skills like drones and information technology.
This push aligns with President Emmanuel Macron’s plan to boost military investment to €64 billion ($75 billion) by 2027—twice the level when he took office in 2017. Macron has been explicit about the stakes, declaring in a July address, "Never...has our freedom been so threatened. We need to accelerate efforts for our reserve. We need to give youth a new framework to serve." The urgency is palpable, fueled by alarm over an increasingly aggressive Russia and doubts about whether the United States, especially under a possible second Trump administration, would come to Europe’s defense.
The new French reservists undergo rigorous training at regiments like the 24th Infantry in Versailles, where recruits aged 17 to 57 endure marathon days of drills, weapons training, and live-fire exercises. As one Sorbonne law student put it, "I think it's really important to protect our country—especially in the very complicated context we're going through." Polls suggest strong public support for these efforts: an IPSOS-CESI survey earlier this year found that 86% of French people back armed service, with more than half supporting a return to mandatory service.
France is not alone in this trend. Lithuania, Sweden, and Latvia have reintroduced compulsory military service over the past decade, while Poland has announced plans to offer military training to 100,000 civilians each year. Germany is also on a recruitment drive, with Defense Minister Boris Pistorius warning that conscription may be reinstated if voluntary enlistment falls short. A report by think tanks Bruegel and Germany’s Kiel Institute estimated that Europe could need 300,000 more troops in the short term to deter Russian aggression if U.S. support falters.
Meanwhile, on the other side of the world, Taiwan is also ramping up its defense posture in the face of growing pressure from China. On August 23, 2025, Taiwan’s leader Lai Ching-te announced the goal of raising defense spending to 5% of GDP before 2030—a significant leap from the 3.32% planned for 2026, which, for the first time, includes coast guard spending. According to INQUIRER.NET, Lai said, "This not only demonstrates our country’s determination to safeguard national security and protect democracy, freedom and human rights. It also shows our willingness to stand shoulder to shoulder with the international community to jointly exert deterrent power and maintain peace and stability in the Indo-Pacific region."
Lai emphasized that Taiwan would pursue closer cooperation with international allies on weapons research and production. Although the U.S. remains Taiwan’s most important arms supplier, the island’s domestic defense industry has made significant strides, producing everything from fighter jets to cruise missiles. The government’s new spending target is widely seen as a response to both China’s escalating military activity and Washington’s calls for allies to shoulder more of their own defense burden—a refrain echoed in U.S. discussions with European partners.
These developments are unfolding against a backdrop of shifting alliances and strategic uncertainty. During a trip to Poland, Germany, and Latvia on August 23, 2025, the Prime Minister discussed trade and defense spending with European partners, underscoring the interconnectedness of economic and security interests in the current climate, according to CTV News.
For defense contractors like Kongsberg Gruppen ASA, the new era of investment and mobilization has created both opportunities and challenges. The company’s expansion into Australia and the United States, coupled with strategic partnerships and government backing, has positioned it to meet surging demand while hedging against geopolitical risks. As AINVEST notes, Kongsberg’s global production footprint, scalable products, and robust order backlog make it a standout in a sector experiencing a renaissance.
Yet, risks remain. Geopolitical shifts could redirect priorities, and supply chain vulnerabilities—especially in semiconductors and rare earths—pose persistent threats. Kongsberg’s diversified contracts and government-funded R&D offer some protection, but the broader lesson is clear: in a world where security is increasingly the premium, adaptability and innovation are the new watchwords.
From the training grounds of Versailles to the shipyards of Taiwan and the boardrooms of Oslo, the message is unmistakable: the age of complacency in defense is over. Governments, industries, and citizens alike are stepping up, each in their own way, to meet the demands of a more uncertain world.