Keir Starmer used the Munich Security Conference on 14 February 2026 to make a direct ask of Europe: spend more, deliver faster and coordinate procurement with the UK. He framed deeper UK–EU links across defence, industry and tech as fundamental to long‑term security and growth. The speech set a clear direction of travel rather than a rhetorical flourish. (gov.uk)

That message lands alongside a new benchmark. NATO has agreed a long‑range pathway for allies to invest 5% of GDP on defence and wider security by 2035, including at least 3.5% on traditional defence outlays and up to 1.5% for resilience, critical infrastructure and industrial base. For finance directors, that is a multi‑year capex story rather than a one‑off spurt. (nato.int)

Before reforms reach factory floors, London is moving kit. The Ministry of Defence confirmed a Carrier Strike Group led by HMS Prince of Wales will deploy across the North Atlantic and the High North this year to deter Russian activity and protect undersea assets. Days earlier, ministers said the UK will double troop numbers in Norway to 2,000 over three years to support NATO’s Arctic posture. (gov.uk)

Starmer also called out Europe’s cost problem: too many different platforms driving duplication and delay. He argued for pooled procurement and a joint European defence industry with deeper UK–EU ties-while the UK added fresh money this week for Ukraine’s air defence, signalling immediate demand for missiles and components. (gov.uk)

Financing is shifting too. EU governments have advanced a legal framework for a €90 billion loan to Ukraine in 2026–27, funded via joint EU borrowing. The deal prioritises European production but allows participation by trusted partners that share costs-an opening the UK says it wants to explore as part of wider cooperation. (consilium.europa.eu)

On maritime power, the UK–Norway frigate programme has become the emblem of scale. Norway selected British Type 26s in a £10 billion agreement, creating a combined fleet of at least 13 anti‑submarine warships and supporting thousands of UK jobs across the supply chain well into the 2030s, according to official releases. (gov.uk)

Command responsibilities are evolving in the same direction. NATO said European allies will take charge of all three of the alliance’s Joint Force Commands, with the UK set to lead JFC Norfolk in Virginia as the High North becomes a single operational theatre. The United States retains leadership of land, air and maritime component commands. (nato.int)

Budgets must match the brief. Government material points to UK defence spending rising toward roughly 2.6% of GDP by 2027, while NATO’s 5% pathway raises the long‑run bar across Europe. That frames defence not just as security policy but as a sustained industrial programme with predictable order flow. (gov.uk)

Policy is being localised to spread that order flow. The Defence Industrial Strategy commits £250 million to five Defence Growth Deals-Wales, Scotland, Northern Ireland, Plymouth and South Yorkshire-linking local firms and universities into long‑term MOD pipelines. Early outlines point to drones in Wales, maritime autonomy in Plymouth and advanced materials in South Yorkshire. (gov.uk)

For workers and SMEs, the near‑term opportunity is in replenishment and sustainment. This week’s package includes 1,000 Belfast‑built LMM missiles and a £150 million UK contribution to NATO’s rapid‑buy scheme, putting cash into UK supply chains now while accelerating deliveries to Ukraine. (gov.uk)

Sector data suggest demand is broadening. Europe’s industry association reports defence turnover up 13.8% year‑on‑year to €183.4 billion in 2024 with headcount rising. Oxford Economics estimates BAE Systems alone added £13.7 billion to UK GDP in 2024, supporting around 159,000 jobs across its footprint. (uk.news.yahoo.com)

Alignment with Europe matters for the industrial side too. The Chancellor told the LSE this week that closer economic integration with the EU is the “biggest prize”-short of single‑market membership-signalling scope for sector deals that reduce friction on standards, testing and data flows. (independent.co.uk)

Risks remain. Europe still has to agree common designs and interoperable standards at pace, and UK regional deals must translate into signed contracts and timely payments for smaller firms. A new £20 million start‑up fund and an Office for Small Business Growth are meant to ease entry, but the test will be throughput. (ft.com)

Bottom line for investors and operators: Munich is a political green light for integration‑led rearmament. Track the tangible markers-High North carrier deployments, the UK–Norway frigate line, Ukraine air‑defence replenishment and the EU’s €90 billion facility-because that is where orders, hiring and capex will concentrate next. (gov.uk)