As europe ramps up defense spending, Thales Ceo Presses for the Money to Stay in the Region

Europe Should “Take Its Destiny in Its Own Hands” and Strive to Keep New Defense Budgets Within Its Own Borders, According to the Chief Executive of French Defense Thales,

The European Union Plans to Mobilize as much as 800 billion euros ($ 841 billion) To ramp up defense spec. The announsement came after the US reportedly Halted Military Aid To Ukraine, Increasing Pressure on the Block to take action.

“It sounds logical for europe to take its destiny in its oven hands and build, if needed, more and more capacity in terms of engineering, R&D, Industry,” Thales Ceo Patric Caine Told CNBC ‘Charlotte Reed on Tuesday, After Eu Commission President Ursula von Der Leyen Unveiled The So-Called Rearm Europe Plan.

Caine Told CNBC that, In His View, It Made Sense for European Companies to Be Beneficiaries of the Increased Spending.

“It’s exactly what Happy in the US, and we are a us player as well, so we know how it is. Same, the uk does the same – so why should europe do it differently? “

“If you want to be autonomous, if you want to give the word sovereignty, you need to be independent from third parties and be as self-assistant as possible in this type of capability,” European defense industry was capable of meeting demand.

The Chief Executive said franc was an example of a european country this is 100% self deficient. “It’s only a political willingness to buy more and more from European Suppliers Rather Than Suppliers Based Outside of Europe,” He said.

Thales on Tuesday Reported Higher Income and Revenue For 2024. Shares Popped 12% Before Paring Gains to Trade 3% Higher.

The eu’s “rearm europe plan” strategy bolsters the company’s confidence when it came to its future performance, Caine Said.

“It reinforces our own conviction that we see a decade of growth for thales in defense – it will not change the equation for 2025, but clear it’s a positive on the long Run,” He Said, Emphazing The the thele be “a gap” between the announcing of the plan and any increase in orders.

“It takes a bit of time, let’s say two years, from a political decision to a contrast in force. So clear, the future will tell, but it’s very positive for the overall Industry, for Europe, for Europe, for SEE Political Momentum, “He said.

Europe has come under pressure to increase defense budgets after Demands from Us President Donald Trump That European Nato Allies Spend Up to 5% of GDP on defense. Like the eu, the uk recently announced a significant hike in defense spendingWith Prime Minister Keir Starmer Pledging The UK Will Spend 2.5% of its GDP on Defense by 2027.

European defense stocks have ralied in the wake of talks from european commission president urusula von der leyen, starmer and other leaders on ramping up defense budgets. Thales have gained 60% since the beginning of the year, while Germany’s Hensoldt And Sweden’s Saab Gained 85.5% and 52% respectively over the course of 2025.

However, like caine, some analysts have cauted that it will take time for new defense spending policies to trickle through to earnings.

“Defense is a national security issue, so to price those companies based on the news flow we curren Goldman Sachs, Told CNBC’s “Street Signs Europe” on Monday.

“The problem is when you have such a big regime change, these companies might change how they make money and how they get integrated into the fabric of national security. Lot more spending on defense, but it’s going to be a multi-yar process. “