Reputation Rising: The European Defense Sector’s Remarkable Renaissance 

In March 2025, the European Union unveiled an ambitious €800 billion defense spending plan, dubbed the ReArm Europe Plan, in response to growing geopolitical uncertainties. 

Emphasizing Europe’s commitment to taking greater responsibility for its security, European Commission President Ursula von der Leyen announced an initiative that includes €150 billion in loans to help member states modernize their military capabilities. 

The strategic move comes amid increasing concerns about potential limitations in US military support, particularly following recent political tensions such as the war in Ukraine,  long-standing pressure for European members of NATO to increase defense spending, and growing conversations within EU policy circles about “European strategic autonomy”. 

Given those concerns — and the potential industry-wide implications of any rearmament plan — we wanted to understand its impact on the reputation of European defense companies. 

Our research sought to capture the real-time sentiment shift by examining how key stakeholders — including investors, potential employees, industry analysts, and the broader public — are responding to this transformative moment. 

We conducted a perception study focused on tracking changes in trust, brand awareness, leadership credibility, innovative capacity, and overall organizational relevance in light of the recent talk of the EU’s defense spending initiative.