Spain must break its defence taboo.
It is a pleasure to be in Madrid here at the Hyperion Investor Day, and let me begin by thanking you, Pablo Casado, for your leadership and for your success in taking Hyperion to this level.
I remember when we first had a chat, Pablo, about this new investment fund you wanted to launch.
At the time, not many were thinking about European investments in defence of this kind. Like me, you made the switch from political life to a business life, and successfully so.
Today, Hyperion has become a reality, a European success story.
At Rasmussen Global, we are committed to working more directly in Spain. Our CEO, Fabrice Pothier, is already based here in Madrid, and we also have a new Spanish senior advisor joining us at Rasmussen Global, Sebastian Laiseca Segura.
Ladies and gentlemen, today I want to briefly speak to you about three key issues.
First, about Spain’s defence sector. Second, about the state of European security.
And third, about how you, as investors and industry leaders, can play a role. First, Spain’s defence sector. And let me speak frankly.
Spain’s contribution to defence, as a member of both NATO and the European Union, should be much bigger. Yes, Spain has raised its GDP growth forecast for 2025 to 2.7%.
And yes, Spain is making important economic progress. Congratulations.
However, at the same time, we do not see this translated into defence investment.
And remember, defence spending is not a burden. It strengthens our economy, it creates jobs, and it protects our way of life.
Let me be absolutely clear.
With Russia, a nuclear power, violating European airspace, and waiting an 11-year war on Ukraine, Spain’s underinvestment in defence is a grave mistake. I know the pressures of balancing budgets.
I have faced them myself as Prime Minister of Denmark.
But Spain must break its defence taboo.
The time for hesitation is over.
Spain risks falling behind Allies and Europe risks falling behind the threats we face. Ultimately, it is about sovereignty. It is about having a say in the global security order.
And it is about protecting Spanish citizens, Spanish companies, and Spanish values in a world that is becoming harsher and more competitive. This brings me to my second point. European security.
We are now living in a world of great power rivalries. Russia continues its brutal war against Ukraine. And we have seen with its recent and repeated violations of European airspace, Russia’s threat is getting closer all the time.
The Polish Prime Minister Donald Tusk recently said he would shoot down Russian aircraft. The stakes couldn’t be higher. Meanwhile, China is flexing its muscles in Asia and beyond.
Iran and North Korea are arming Russia’s war machine. And amongst all this, we have Europe increasingly alone. Friends, let me be frank.
For too long, we have based the European generous welfare systems on an outdated model consisting of a combination of cheap energy from Russia, cheap goods from China, and cheap security from the United States. This model doesn’t work any longer. We Europeans must be able to stand on our own feet.
We must invest much more in our own security. And key to all this is Ukraine. Ukraine is the centre of modern warfare.
Ukraine has more high-tech drones than Spain does.
So my third and final point is a message to you as investors and industry leaders. And I will leave you with two pieces of advice.
The first is invest directly in Ukraine. Today, a concrete measure for you as investors, but also for the Spanish government, is to invest directly into Ukraine’s defence sector. This is what my country Denmark, albeit much smaller than Spain, is doing.
It offers both impact and opportunity. It supports a frontline democracy. It strengthens Europe’s security.
And it taps into one of the world’s fastest-growing defence innovation hubs. For investors, this means access to battlefield-tested technologies, strong demand, and new partnerships in a frontline market.
Then my second piece of advice: donmore to build Spanish defence champions.
We need a variety of defence companies, small and medium-sized companies, but we also need big defence champions. And the fact is Spain, and by the way all European countries, but Spain is too little to build real champions.
So look beyond your borders.
And here I would say look to the northern European defence market. I’m thinking of Germany, Poland, the Baltic states, the Nordics.
The latest estimate is that these countries, Germany, Poland, the Baltics and the Nordic states, will add extra in defence investment, equivalent to around 300’to 500 billion euros until 2030. It’s a huge amount of money. Furthermore, the Nordic countries are traditionally very open to foreign companies.
And what matters for Nordic countries is can you produce a sufficient quantity? Can you do it quickly? Can you do it at a competitive price? That is what counts. And I think many Spanish companies could do that. So that’s my piece of advice.
Look beyond your borders, open up, and look at a very fast-growing Nordic defence market. Ladies and gentlemen, once again it is a pleasure to be here at Hyperion. We need much more private investment in defence.
And to that end, Hyperion is an extremely important vehicle. When it comes to defence investment, you can count on me to be on your side.
Thank you.
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For more information, please contact our Senior Director of Communications, Daniel Puglisi, at dpu@rasmussenglobal.com
