Europe’s Strategic Autonomy: Which Industries Will Soar?

The EU’s sovereignty means the ability to act independently on the world stage—in energy, defence, technology, critical minerals and supply chains. Learn about the main pillars of the EU's strategic autonomy and the investment opportunities that emerge from them:

Re‑Arming Europe: The EU’s Sprint to 5 %‑GDP Defence Spend

The Russian invasion of Ukraine has turned Europe’s defence capabilities into a top priority. The EU now aims to lift defence spending to 5 % of GDP by 2035, backed by the €800 bn “ReArm Europe/Readiness 2030” plan.

With NATO’s ambitious spending goals and the “ReArm Europe” push, the EU defence industry is set for a rapid expansion, creating a fertile market for home‑grown, cutting‑edge military technologies.

Below is an illustration of the expectation of soaring military spending in Europe. 

*NATO agreements, from 25th June 2025 Summit, are of 3.5% of GDP spent on “hard defence” such as tanks, bombs, and other military hardware, with an additional 1.5% allocated to “defence-related” investments such as cybersecurity and military mobility.

Energy Independence: A Key Component of Sovereignty

Why it matters: The Russian invasion of Ukraine exposed the EU’s reliance on external energy, making diversification a security priority.

Policy response: REPowerEU – €300 bn programme to cut import dependence and fast‑track the clean‑energy transition. It should turn energy security into a catalyst for a greener, more resilient European economy.

Key pillars:

·         Supply diversification (new gas routes, strategic reserves).

·         Renewables scaling: solar, wind, and green‑hydrogen projects dominate the drive.

·         2030 target: EU‑27 renewable‑energy share to hit ≈ 45 % (E‑EA, May 2025).

·         Economic upside: Massive growth prospects for firms in energy‑efficiency, grid‑modernisation, and storage solutions.

EU-27 shares of renewable energy, and the EU 2030 target

Source: European Environment Agency, May 2025.

The EU's energy independence plans should benefit companies involved in energy efficiency, grid infrastructure, and energy storage.

Europe’s Tech Boom: Chips to AI

·         Funding surge: Horizon Europe has €95.5 bn, with a proposed €175 bn for the next cycle. The EU plans a €409 bn European Competitiveness Fund (2028‑34) to streamline digital‑transition financing.

·         Chips Act boost: €43 bn earmarked for semiconductor R&D and production to lift EU resilience and competitiveness.

·         Strategic focus: AI, quantum computing, cybersecurity, cloud infrastructure, data centres, and advanced digital skills.

These investments aim to cement Europe’s long‑term standing in the global tech arena.

Germany’s €100 bn Drive to Super‑Charge Europe’s Supply Chains

Germany is earmarking €100 bn for strategic assets—defence, energy and, most critically, the mining, processing and recycling of lithium, copper, nickel and rare earths—to break the grip of a handful of global suppliers. By turbo‑charging domestic raw‑material production, the fund will reinforce EU supply‑chain resilience, slashing reliance on third‑countries and paving the way for a stronger, greener logistics network across Europe. This massive investment aims to turn Europe into a self‑sufficient hub mineral that power clean tech, security and digital innovation.

Conclusion

EU sovereignty hinges on a robust economy, integrated security‑defence, and independent supply chains. These pillars generate sizable investment opportunities in green energy, high‑tech manufacturing, cyber‑defence, and critical‑material logistics. Partnering with specialists helps pinpoint the firms best positioned to benefit. With clear insights, investors can confidently navigate sovereignty‑driven deals. 

This article is brought to you by the Advisory Solutions Team.