Charles Esther
Saab CEO Micael Johansson has sounded the alarm over Europe’s sluggish defense procurement process, warning that the continent may not be ready in time to confront a growing Russian threat.
In a recent interview at the Shangri-La Dialogue, Johansson expressed concern that while European leaders have pledged massive increases in military spending, bureaucratic inefficiencies are causing critical delays.
“Now, we want to spend like 3.5% to 5% of GDP on defense.
But then, when you start getting into the normal processes in terms of, okay, defense forces have to decide what to spend the money on, and then it has to be acquired by someone,” Johansson said.
“The process is much too long still.
It takes a long time before it gets into industry,” he added.
Sweden’s Spending Example Shows a Troubling Pattern
Johansson highlighted Sweden as a key example.
Despite plans to increase its defense spending from 2.4% of GDP in 2024 to 3.5% by 2030, he explained that any new defense funding takes months before it even begins to translate into real-world production.
“It takes military authorities six months roughly just to decide how to allocate the funds,” he said.
“And that’s before acquisition and matériel planning even begins.
So we’re still looking at a couple of years before you actually get going, which is not good enough, I think, in times of war.
Which is tragic,” he added.
Johansson’s remarks come as he takes on a new role as president of the Aerospace, Security and Defence Industries Association of Europe.
Russia’s Military Manufacturing Outpaces Europe
One of Johansson’s biggest concerns is Russia’s growing industrial war machine.
According to him, Moscow is producing nearly five times the number of artillery shells as all European countries combined each year.
This alarming disparity underscores how Europe’s slow procurement process leaves it dangerously behind.
“Europe has to take its own responsibility.
We need to integrate missile defense systems, develop collaborative combat aircraft, invest in space technologies, and establish ammunition manufacturing hubs,” he said.
Germany Faces Similar Process Challenges
Germany’s defense chief, General Carsten Breuer, echoed these concerns during a panel at the event.
He criticized his country’s deeply embedded culture of bureaucracy.
“I think in Germany we are facing a situation, or at least we faced a situation, where we had processes over processes and processes, and all those processes were developed not to spend any money,” Breuer stated.
“Because we had enough time, but we did not have the money.
And when things moved too fast, we created more processes to slow them down.”
European Nations Urged to Prepare for Potential Conflict by 2029
Military officials across Europe have cautioned that the continent must be ready for a potential conflict with Russia by 2029.
By then, they estimate Moscow could rebuild its strength enough to launch a serious offensive, particularly targeting the Baltic states.
These fears are being intensified by signals from the second Trump administration, which has suggested reduced U.S. support in regions where European defense contributions are lacking.
Trump has also pushed for NATO’s European members to raise defense spending to 5% of GDP.
Countries like Germany have indicated they may be open to such goals in the future.
Saab Sees Rising Demand Amid Growing Tensions
Saab, the Nordic region’s largest defense manufacturer and the maker of the Gripen E fighter jet, has seen soaring demand since the war in Ukraine began in 2022.
The company reported annual sales of 63.75 billion Swedish krona (around $6.6 billion) in 2024, compared to just 39.15 billion krona in 2021.
As the pressure mounts, Johansson emphasized the need for swift, unified action.
Delays and red tape, he warns, are luxuries Europe can no longer afford.
