Conflict is driving investment in European defence firms

By Kenneth Cukier, Deputy executive editor, The Economist

If there IS one iconic image from the Ukraine war, it may be that of a small drone destroying a Russian tank. Examples of such destruction abound on social media. The asymmetry of cost and damage typifies modern warfare. It is also spurring a major retooling of armed forces. In 2025 Europe’s traditional defence businesses will bump up against the innovation ecosystem of entrepreneurial startups.