Germany often describes its security policy shift as “Zeitenwende”. From a foreign industry perspective, is this change visible?

The German market has become very important for us as we scale the company and won together with Hensoldt the largest single procurement tender of Night Vision Goggles in the history of an European NATO member, for over 100.000 night vision goggles through OCCAR in 2025. We have started our cooperation with Hensoldt in 2021 and invested recently in four German companies. These actions were not something anyone asked us to do. They are simply part of what we call responsible business development. When a country shows confidence in our products and becomes an important customer, it makes sense to invest locally and strengthen our industrial presence. So in short, yes, we see that Zeitenwende.

The Germans complain about the requirement of the “Goldrandlösung.” How difficult is business with the Germans in reality?

The German armed forces are extremely rigorous and demanding in their requirements. But from an industrial perspective, that can actually be very positive. Germany possesses a profound industrial DNA that sets a global benchmark for excellence. The Germans are known for that, and I think that’s a good thing. A strong technological concept is a good starting point. However, the true achievement lies in maturing that innovation into reliable, large-scale production and engaging with the exacting standards of industrial processes. The German end user pushed us to improve products.

So, the German market is not as hard as many say? Germany is also known for very demanding procurement standards.

Most important is market access and level-playing field. Theon International was given a real opportunity to compete. In a major multinational procurement programme, we were able to participate on equal terms and ultimately win the competition. For a company that was still growing at the time, that experience was transformative. When companies know that competitions are fair and that they truly have a chance to win, they invest more in technology, production and long-term innovation.

Europe’s defence industry is often described as fragmented. From an industrial perspective, what is the core challenge for a sovereign European defence industry?

The key challenge is scale. Europe has many capable defence companies, but procurement is still largely organised at national level. This means that many programmes remain relatively small and fragmented. For the defence industry, volume is essential. Without large procurement programmes, companies cannot industrialise production or build efficient supply chains. For Europe to meet its goal to strengthen its resilience and defence industry autonomy, it needs larger programmes and more cooperation between countries and needed. This is where joint procurement becomes particularly important. When several countries buy the same system together, procurement volumes increase and companies can achieve economies of scale. That scale is what allows manufacturers to expand production and invest in innovation.

You emphasise the importance of joint procurement. Are there any good practices in Europe?

Indeed, joint procurement has the potential to fundamentally reshape the European defence industry because it creates the volumes that companies need to industrialise production. When several countries procure the same system together, programmes become larger and more predictable for industry, which allows companies to scale manufacturing and invest more confidently in new technologies. In Europe, structures already exist to make this possible, such as the Organisation for Joint Armament Cooperation (OCCAR) and the NATO Support and Procurement Agency (NSPA). Both allow several governments to pool their demand and launch joint procurement programmes instead of buying equipment separately. In that sense, joint procurement is not only about cooperation between governments – it is one of the most effective ways to integrate Europe’s defence industrial base.

Where do you still see structural weaknesses in the European system?

In some parts of Europe, procurement decisions are still very much influenced by the desire to protect domestic industries. Governments sometimes structure tenders in ways that favour local companies. From an industry perspective, this approach can limit competition and slow down integration. For Europe’s defence industry to advance its global competitiveness, market fragmentation should be eliminated along national lines, otherwise companies will struggle to reach the scale necessary for a cutting-edge and impactful defence production.

How could one counter this weakness?

Open and competitive European procurement would create stronger incentives for companies to innovate and invest. At the same time, joint procurement could be accelerated by addressing the initial development phase of defence programmes. Every major system involves significant upfront investment in engineering and industrialisation, often referred to as non-recurring engineering costs. A European mechanism that covers a part of these costs for multinational programmes would go beyond existing instruments like SAFE (Security Action for Europe) and directly reward countries that join forces in procurement. The result could be larger programmes, stronger industrial scaling and faster integration of Europe’s defence industry.

If you had one minute with the President of the European Commission, Ursula von der Leyen, what proposal would you make?

My idea is to push things further. If several European countries decide to procure the same system together, the European Union could help cover a small share of those early development costs. Even a contribution of around ten percent of the programme value could create a strong incentive for governments to coordinate their procurement. In the long term, this kind of approach would strengthen cooperation between member states, as well as Europe’s defence resilience and autonomy while also make the European defence industry more competitive globally.

Mr. Hadjiminas, thank you very much for sharing your thoughts with us.

Das Interview führte für Lagebild Sicherheit Dr. Christian Hübenthal

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