The defense sector has emerged as one of the most significant investment themes of the decade, driven by the multiplication of armed conflicts worldwide and unprecedented global rearmament. European military budgets have reached historic levels, with Germany lifting its constitutional constraints and NATO members committing to spending at least 2% of their GDP on defense. Artificial intelligence, autonomous drones, cybersecurity, and hypersonic technologies are profoundly transforming the sector, creating a dual growth engine for the industrial players involved. The main French stocks eligible for the PEA are Thales, Dassault Aviation, and Safran, while Europeans Rheinmetall, Leonardo, and BAE Systems rank among the continent’s leading champions. Investors can also gain exposure to the sector through thematic ETFs such as BNP Paribas Easy Europe Defense or VanEck Defense UCITS ETF.
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