From strategy to speed: building Europe’s dual-use infrastructure
Europe’s security has fundamentally changed. Four years into Russia’s war against Ukraine, the debate is no longer about whether Europe must strengthen its defence capabilities, but how quickly it can do so, and how to finance the necessary infrastructure.
From left to right: Florian Wimber, Marie-Agnes Strack-Zimmermann, H.E. Nerijus Aleksiejūnas
In light of the recently published Military Mobility Package by the European Commission, GDV Brussels organized a high-level discussion panel, to examine what Europe needs to reinforce dual mobility infrastructure, and highlight why insurers are natural partners in this endeavour.
A permanent shift in security preparedness
We heard from our speakers that the war in Ukraine has demonstrated that conventional, cyber and hybrid threats are no longer abstract risks. Attacks on critical infrastructure, cyber sabotage and disinformation campaigns are part of Europe’s daily security landscape. Even if a ceasefire were to materialise in Ukraine, a return to “business as usual” would be a strategic mistake. Defence preparedness must become a structural and long-term priority.
As our speakers made it clear, this mindset represents a profound shift. Only a decade ago, defence investment was politically sensitive in many EU Member States. Today, defence spending is increasing, new institutional responsibilities have been created at EU level, and military mobility has become a mainstream policy issue. The EU may not be a defence union, but it is increasingly seen as a necessary backbone within NATO.
The need for military mobility
One area identified at our event where the urgency is particularly visible is military mobility. If the troops and equipment cannot move swiftly across borders, capabilities remain theoretical. Regulatory fragmentation, administrative hurdles and infrastructure bottlenecks still slow down cross-border movements.
Encouragingly, practical solutions exist. Regional cooperation corridors and simplified approval procedures show that progress is possible. What is needed now is broader harmonisation across the EU and a stronger dual-use perspective: transport networks, bridges, railways and energy grids must be built and upgraded to serve both civilian and defence purposes.
Equally important is resilience. Building infrastructure is one challenge; protecting and rapidly restoring it in case of attack is another. Recovery capability must become part of infrastructure planning from the outset.
Financing: public funds and private capital
We learnt that policy ambition alone will not be sufficient, and the scale of investment required will exceed the public budgets. While the EU has expanded its funding instruments and financial institutions have broadened their mandates to include security-related projects, the investment gap remains significant. We learnt that to better serve European needs, the European Investment Bank started engaging in projects with NATO and the European Defence Agency, following its long-term commitment to TEN-T projects.
Taking this into account the institutional investors can play a decisive role to complement the existing approach. Insurance companies, in particular, are natural long-term infrastructure investors. Our business model requires assets with long maturities, stable cash flows and high quality; characteristics that infrastructure projects typically provide. Insurers have significantly increased their infrastructure investments from €10 billion ten years ago, to €100 billion today, demonstrating both appetite and capacity.
Nevertheless, private capital requires clear political signals, regulatory stability and, above all, a reliable project pipeline. Standardisation, bundling of projects and efficient public-private cooperation models can accelerate implementation. Speed is essential in this context.
From policy to implementation
Europe has made substantial progress at the policy level. The remaining challenge lies in translating frameworks and funding tools into concrete projects on the ground: reinforced bridges, upgraded rail corridors, protected energy grids, and interoperable cross-border Systems.
The event was particularly timely because of the growing geopolitical uncertainty, hybrid attacks on critical infrastructure becoming more frequent, and the next Multiannual Financial Framework under preparation: the decisions taken now can affect Europe for decades to come.
It is therefore no coincidence that insurers chose to speak up at this moment. German insurers are among Europe’s largest institutional investors and have significantly expanded their infrastructure investments in recent years. As long-term investors with liabilities stretching decades ahead, they depend on stability and functioning infrastructure. At the same time, they can help close the investment gap, provided there is regulatory clarity, standardised project structures and a reliable pipeline.
Defence-ready infrastructure is not solely a military concern: it connects economic stability, investor confidence and public trust. Strengthening it is therefore an investment in Europe’s security, competitiveness and resilience.
The task now is clear: move from strategy to execution, and do so without delay.