Policy Backgrounders

Europe Steps Up Defense Preparedness for Security and Business Resilience

December 11, 2024

Key Insights

Dutch Admiral Rob Bauer, the head of NATO’s Military Committee, recently stated that European businesses should become prepared for war, urging greater focus on supply chains, production and distribution and emphasizing that “a key part of our deterrence” is to “make sure that all crucial services and goods can be delivered no matter what [.]” This accords with recent changes in Europe’s defense posture and highlights an increasing trend in Europe towards preparedness for a future conflict.

• Pressure from and dependence on supply lines involving Russia and China important for European business was a major theme of Admiral Bauer’s remarks.
• Some European nations, particularly the Nordic countries, Germany, and the countries of central Europe, have begun preparing their populations and businesses for the possibility of war.
• These developments have many implications for European and US businesses, including supply chains of critical materials (particularly those connected to China), new opportunities for inter-European and transatlantic defense industry cooperation, and preparing plans for business continuity for information systems and workforces that may be called up in the event of conflict.