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Is Europe Ready To Defend Itself? Five Signals From A Defining Defence Summit

Europe’s security debate is no longer theoretical. With Russia’s war in Ukraine grinding on, hybrid attacks intensifying and defence budgets under pressure, the question now confronting policymakers is blunt: is the continent prepared to defend itself?

That was the central issue at the Euronews Defence and Space Summit, where lawmakers, officials and industry leaders gathered to confront a strategic reality that has shifted sharply since Russia’s full-scale invasion of Ukraine. The war has exposed structural gaps in Europe’s military readiness, industrial capacity and long-term deterrence posture.

What emerged from the summit was not consensus, but urgency. From warnings over nuclear escalation to renewed arguments about procurement and industrial sovereignty, the message was clear: Europe can no longer afford to move slowly.

Radev Raises The Alarm

Bulgarian Prime Minister Rumen Radev was one of the summit’s most closely watched speakers, and he used the platform to challenge the EU’s approach to backing Ukraine. He argued that the strategy amounted to a failed attempt at “peace by force.”

“The war in Ukraine challenged our critical thinking and realistic approach,” he said. “It challenged our ability to assess the strategic centre of gravity of the opponent. It challenged most of all our ability to design feasible political objectives and to translate them into a sound military strategy and to define a desired end state.”

Radev called for deeper diplomatic engagement with Moscow, warning of what he described as the worst-case scenario: a nuclear attack on Europe. Russia, which holds the world’s largest nuclear arsenal, continues to cast that shadow over every discussion of escalation.

His remarks came just hours after Reuters reported that Moscow had sent a document threatening to use “the entire arsenal of forces and capabilities at its disposal, including nuclear weapons” to defend its territory.

Rutte Reassures Allies

NATO Secretary General Mark Rutte responded with a markedly different tone. His message to Moscow was direct: stop the nuclear threats.

Rutte declined to comment on the reported Russian document, but he dismissed the broader intimidation campaign as bluster rather than a credible NATO threat. “Putin knows he can never win against NATO, so I don’t take this seriously,” he said. “Of course, we had to reply and make clear to him that NATO is a defensive alliance.”

He also addressed the surge in hybrid attacks against allied states, including an arson attack at a robotics defence company in Estonia and a reported attempted drone attack at Leipzig airport in Germany. In Rutte’s view, these incidents are designed to distract from battlefield setbacks, fracture Western unity and weaken support for Kyiv.

“There is no immediate threat to NATO territory,” he said, while stressing that the alliance would defend “every inch” of its territory. Rutte also praised Ukraine’s battlefield gains and deep strikes into Russia, but underscored a persistent vulnerability: air defence. Continued deliveries of Patriot interceptors, he said, remain essential.

Francken Warns Of A Dark Winter

While some leaders sought to project calm, Belgian Defence Minister Theo Francken struck a more alarmed note. He warned that Europe was entering a “dark winter” marked by escalating interference and pressure from Moscow.

“Russia, air attack, air attack, air attack. This is the biggest threat. So we need air defence, air defence, air defence,” Francken said. “We need to have more stocks, more production, scale up production, and a large industrial base. Everything has to go faster.”

His remarks reflected a growing recognition across Europe that modern warfare is evolving quickly, particularly in drones, electronic warfare and air defence. Francken argued that Europe must learn faster from Ukraine’s frontline experience to avoid building stockpiles that become obsolete before they can be deployed.

He also acknowledged Belgium’s own history of underinvestment. “We were like the worst pupil of the NATO class,” he said, noting that defence spending had doubled but warning that years of neglect cannot be repaired overnight.

The Fight Over Made In Europe

The summit also exposed an increasingly political argument over defence procurement and industrial policy. Europe’s security remains closely tied to the United States, NATO’s dominant military power, but transatlantic tensions have deepened as Washington pushes European allies to take on more responsibility.

Matthew Whitaker, the US ambassador to NATO, sought to reassure European governments that the United States remains committed to the alliance. “We’re not stepping back. We’re just asking our allies to step forward and join us,” he said.

Andrew Puzder, the US ambassador to the EU, took a more combative line, criticising the bloc’s push for “Made in Europe” preferences in public procurement, including defence contracts. The idea, rooted in French policy thinking and increasingly supported in other capitals, aims to strengthen European industry and reduce dependence on external suppliers.

Puzder argued that capability should outweigh geography. “When lives are on the line, capability and availability should determine the solution, not geography,” he said. He instead promoted a “Made in NATO” approach that would give US defence firms broader access to European procurement.

Europe’s Defence Test Is Here

The summit made one point impossible to ignore: Europe’s security challenge is no longer abstract. It is financial, industrial, technological and strategic all at once. Governments must decide whether to accelerate investment, deepen coordination and accept the political cost of rearmament, or risk remaining dependent on others in a more dangerous world.

As the war in Ukraine drags on and the threat environment grows more complex, Europe’s ability to defend itself will be measured not by declarations, but by speed, scale and sustained political will.

LVMH Revenue Rises, But China Weakness Continues To Weigh On Luxury Giant

A Softer Quarter Exposes The Limits Of Luxury’s Recovery

LVMH, the world’s largest luxury group and parent of Louis Vuitton, Dior, Celine and Hennessy, reported revenue of €18.5 billion in the three months to the end of September, underscoring both the scale of its business and the pressure building across parts of the luxury market.

The company’s revenue rose 1.2% year on year in the third quarter, following a 0.1% increase in the second quarter and a 5.9% decline in the first. The trajectory points to stabilization, but not yet to a convincing rebound.

Organic Growth Misses Expectations

Organic sales growth, which strips out currency effects and portfolio changes, slowed to 1% in the third quarter from 3% in the previous quarter. That result fell short of market expectations and reinforced concerns that the luxury cycle remains uneven.

For the first nine months of the year, LVMH generated sales of €57.1 billion, with organic growth of 2%.

In its statement, the company highlighted the breadth of its portfolio, saying that diversification continues to provide resilience in an uncertain geopolitical and economic environment. That remains one of LVMH’s defining strengths: when one category weakens, another can help offset the downturn.

China Remains The Key Pressure Point

LVMH said sales performed well in the United States, Europe and Japan, but conditions in China remained less favorable. That matters because the country has long been one of the most important growth engines for global luxury brands.

The fashion and leather goods division, LVMH’s most closely watched unit, saw organic sales fall 5% as weaker demand in China weighed on performance. Deutsche Bank said the decline was steeper than the roughly 2% drop expected by analysts.

The segment had delivered its first organic sales gain in two years in the previous quarter, making the latest retreat a notable setback.

Brand Equity Faces A Test In China

The quarter also highlighted the reputational risks facing global brands in China. Louis Vuitton drew criticism after suing local tea company Molly Tea over logo copying. Although the company won the case, the dispute sparked social media backlash and boycott calls, adding another layer of pressure to an already fragile environment.

For a company built on scarcity, aspiration and brand discipline, perception is an asset as valuable as inventory. In a market as digitally connected as China, that asset can shift quickly.

Mixed Performance Across The Portfolio

Not every division weakened. LVMH’s selective retailing business, which includes Sephora, posted an 8% organic sales increase. Watches and jewellery, along with wines and spirits, both recorded 6% organic gains.

That broad mix is precisely what has historically given LVMH an advantage over rivals: it can absorb softness in one category without relying on a single growth driver.

Analysts See A Longer Recovery Ahead

Deutsche Bank analysts said the results could lead to further cuts in earnings forecasts for the second half of 2026 and 2027. They added that it is difficult to see what could improve investor sentiment in the near term.

Still, the bank framed the weakness as cyclical rather than structural. In its view, recovery is taking longer because Chinese demand remains subdued, but the problem does not appear to reflect a permanent deterioration in the brand franchise. Analysts said ongoing brand initiatives are beginning to show results, though improvements are likely to remain gradual.

Investor Pressure Continues To Mount

LVMH’s share price has fallen nearly 40% since the start of the year. In September, L’Oréal overtook the group as France’s most valuable listed company, a symbolic shift that captures how sharply sentiment has changed.

Shares in LVMH were down more than 1.6% in Paris around 10 a.m. CEST following the release.

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