European Commissioner for Defence and Space Andrius Kubilius, in a keynote speech at the NATO-Ukraine Defence Innovators Forum on 1 June 2026, called on the EU to create a Single Defence Market and modernise war doctrines, drawing lessons from Ukraine's defence industry transformation. Kubilius argued that Ukraine's battlefield success stems from an innovative defence industry that scaled production 50-fold from 1 billion euro in 2022 to 50 billion euro in 2025, and that Europe must replicate this dynamism to counter Russian overproduction.
Kubilius attributed Ukraine's defence innovation to a shift where supply of drones and startups, led by the 'Brave 1' cluster and figures like Defence Minister Mykhailo Fedorov, transformed military demand. He contrasted this with Europe, where up to 80% of defence procurement is awarded directly to traditional primes without competitive tenders, fragmenting the market into 27 national silos. 'There is no single defence market in Europe,' Kubilius stated, warning that without harmonised procurement and certification rules, startups and SMEs cannot scale innovation.
The Commissioner linked the need for a Single Defence Market to broader EU initiatives. He noted that the European Defence Industrial Programme (EDIP), operational since early 2026, includes a Ukraine Support Instrument for industrial integration and pan-European projects such as the Eastern Flank Watch and Drone Defence Initiative. Kubilius also highlighted the AGILE programme, proposed to transform defence industry, and the Brave Tech EU initiative launched in 2025 to pair EU startups with Ukrainian frontline needs.
Kubilius stressed the urgency of integrating Ukraine into European defence structures, advocating for Ukraine's membership in a future European Defence Union even before full EU accession. 'We need Ukrainian battle-tested military forces and defence industry to strengthen our defence,' he said, calling on defence industries to lobby national governments for integration as a 'good business case.'
a Single Defence Market with harmonised rules, competitive procurement, and modernised war doctrines. It shifted the EU's approach from solely supporting Ukraine to seeking reciprocal integration, marking a more assertive push for defence industrial consolidation. Kubilius did not provide a timeline for the Defence Union but emphasised that 'there can be no delay.'
EU defence startups and SMEs stand to gain from reduced national protectionism and access to a larger market, potentially lowering costs and spurring innovation. Traditional defence primes may face increased competition and pressure to adapt to scalable, cost-effective production. National defence ministries would need to cede procurement autonomy, risking resistance. Ukraine's defence industry would gain integration into EU supply chains, but may face adjustment to EU standards. The proposal balances innovation and scale against the loss of national control and potential disruption to established contractors.