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Fire Erupts at Bulgarian Weapons Facility; Sabotage Probe Underway

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A fire has broken out at a weapons storage facility operated by Bulgarian defence company EMCO near the village of Tsareva Livada, prompting an investigation into its cause. Bulgaria’s Interior Minister said the blaze was brought under control and no injuries were reported, while authorities are examining whether the incident could be linked to a previous explosion at another EMCO facility in August.

Officials have not ruled out sabotage and said investigators would compare the latest incident with previous fires at EMCO and other defence facilities. EMCO, however, has stated that the fire was the result of sabotage, pointing to more than 10 similar incidents involving Bulgarian defence companies since 2011. The facility reportedly stored ammunition, including a small quantity of medium-calibre rounds.

The incident comes amid previous allegations surrounding attacks on EMCO facilities and its owner, arms trader Emilian Gebrev. Bulgarian prosecutors have previously accused Russian nationals of involvement in earlier weapons depot explosions, allegations rejected by Moscow. Authorities are also facing renewed questions over security measures and the storage and protection of explosives at defence facilities.

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Germany Probes Suspected Arson at Defence Firm

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German authorities are investigating a suspected arson attack at a construction site outside the Munich headquarters of defence technology company Rohde & Schwarz. Police arrested a 28-year-old woman and a 38-year-old man, both Bulgarian, who are suspected of throwing incendiary devices. The fire caused no significant damage and no injuries were reported.

The incident comes amid growing concerns across Europe over possible sabotage targeting critical infrastructure. Germany has faced two suspected attempts to disrupt its electricity grid in recent days, while authorities are also investigating a drone incident at Leipzig/Halle airport that Germany and its allies have linked to Russia. Moscow has denied involvement.

Security concerns are spreading beyond Germany, with Denmark’s intelligence service saying Russia has attempted to recruit Danish citizens online to gather information on defence companies and infrastructure. German investigators are also examining possible international links to the Leipzig drone incident as European governments increase vigilance over potential foreign-backed sabotage.

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Poland Boosts Domestic Defence Production as It Builds Europe’s Largest Army

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Poland is increasingly turning to domestic and Central European defence companies as it builds what officials describe as Europe’s largest army. Defence procurement from Polish and regional firms has nearly quadrupled since 2022, reaching 30.4 billion zlotys ($8.15 billion) last year. The shift is aimed at reducing reliance on distant suppliers and strengthening supply-chain security.

Poland is expected to spend about €53 billion on core defence this year, equivalent to around 4.7% of GDP. While major U.S.-made systems such as Patriot missile batteries, Abrams tanks and F-35 fighter jets remain important, Warsaw is prioritising greater local production of drones, ammunition and other frequently used equipment. The strategy reflects a wider European effort to rebuild defence manufacturing capacity following the war in Ukraine.

Companies from across Central Europe are responding to the opportunity. Czech defence group CSG has agreed to expand production in Poland, including projects involving drones, missiles, ammunition and armoured vehicles, while other firms are developing ammunition and air-defence manufacturing facilities. Poland’s armed forces have surpassed 220,000 personnel, and officials say foreign companies seeking access to the Polish market will increasingly be expected to invest locally, transfer technology and participate in joint projects.

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Germany Arrests Moldovan Man Over Suspected Drone Surveillance of Defence Facility

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German authorities have arrested a 37-year-old Moldovan man on suspicion of flying a drone over the premises of a major defence manufacturer in what investigators believe may have been an act of surveillance. The suspect was detained on July 15 after members of the public alerted police about the drone activity.

According to Munich prosecutors, the man is suspected of recording sensitive defence facilities on behalf of a foreign entity or a banned organisation. An arrest warrant has since been issued as investigators continue to examine the purpose of the drone flight and any possible links to foreign intelligence or prohibited groups.

A security source identified the targeted company as KNDS, the Franco-German defence manufacturer known for producing the Leopard 2 main battle tank and the Caesar self-propelled howitzer. The incident comes amid heightened security concerns across Europe over the use of drones near military and critical infrastructure.

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Defence Takes Centre Stage at Farnborough Airshow

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The 2026 Farnborough Airshow is expected to focus more on defence technology than commercial aviation as global security concerns continue to rise. Ongoing conflicts in Ukraine and the Middle East have increased demand for advanced weapons, drones, and AI-powered military systems, making defence companies a major presence at this year’s event. Organisers say defence exhibitors now account for nearly half of the record 1,600 participants.

Industry leaders believe emerging defence startups are reshaping the sector with faster innovation in autonomous and AI-driven technologies. While traditional military platforms such as the F-35 and Eurofighter remain important, experts say future investments are increasingly shifting toward unmanned systems and advanced defence technologies.

On the commercial aviation side, Airbus and Boeing are still expected to announce aircraft orders, but supply chain challenges and production constraints are likely to limit major deals. Manufacturers remain focused on increasing aircraft deliveries and overcoming ongoing shortages of critical components and jet engines to meet growing global demand.

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Germany and France Abandon Joint Next-Generation Fighter Jet Project

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Germany and France have agreed to end their ambitious joint project to develop a next-generation fighter jet after years of disagreements between key industry partners. German Chancellor Friedrich Merz and French President Emmanuel Macron concluded that there was little chance of resolving the deadlock between Airbus and Dassault Aviation, leading to the decision to scrap the fighter aircraft component of the programme.

The project, launched in 2017 as part of the Future Combat Air System (FCAS), was intended to be Europe’s flagship defence initiative, combining advanced fighter jets, drones and secure combat networks. However, disputes over design requirements, intellectual property rights, project control and development responsibilities repeatedly stalled progress. The collapse comes as Europe faces growing security concerns and increasing pressure to strengthen its defence capabilities.

Despite ending the fighter jet programme, officials are reportedly exploring a compromise that would allow other FCAS elements, such as advanced combat communication systems, to continue under the same framework. While both countries reaffirmed their commitment to defence cooperation, the project’s failure highlights the challenges Europe faces in developing major joint military programmes.

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China Restricts Dual-Use Exports to 7 European Firms Over Taiwan Arms Links

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China has announced a ban on exports of dual-use items to seven European entities, accusing them of involvement in arms sales to Taiwan. The affected companies include Germany’s Hensoldt AG, Belgium’s FN Browning, and several Czech defence firms, with Beijing placing them on its export control list. China said the move targets organisations that “colluded with Taiwan,” which it considers part of its territory.

The restrictions apply to goods, software, and technologies with both civilian and military uses, such as components used in drones and semiconductors. Beijing stated that all related transfers must stop immediately, though it may grant case-by-case approvals in exceptional situations. China also said it had informed the European Union through its export control dialogue mechanism before announcing the measures.

European and Czech officials have sought clarification, with some companies saying they do not expect major business impacts. The Czech government has instructed its embassy in Beijing to seek explanations, while firms like Excalibur Army said they do not directly rely on Chinese dual-use imports. The move comes amid growing geopolitical tensions over Taiwan, which China claims as its own but which Taiwan’s government rejects.

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