Europe's industrial base needs to 'out-manufacture' Nato's enemies to act as a deterrent, the alliance's deputy military chief has said. Getty Images
Europe's industrial base needs to 'out-manufacture' Nato's enemies to act as a deterrent, the alliance's deputy military chief has said. Getty Images
Europe's industrial base needs to 'out-manufacture' Nato's enemies to act as a deterrent, the alliance's deputy military chief has said. Getty Images
Europe's industrial base needs to 'out-manufacture' Nato's enemies to act as a deterrent, the alliance's deputy military chief has said. Getty Images

Europe needs to 'out-manufacture' enemies to win


Thomas Harding
  • English
  • Arabic

Europe’s defence companies need to “out-manufacture” their enemies if they are to win future wars, Nato’s deputy military chief has said.

Admiral Sir Keith Blount, Deputy Supreme Allied Commander Europe, told an audience of industry executives at the DSEI defence exhibition that building sufficient arms would have a “huge deterrent value”.

His words come after recent criticism from Estonia’s Defence Minister, who told The National on Tuesday that Europe’s inability to produce ammunition, in particular 155mm artillery ammunition, was harming Ukraine’s counter-offensive.

The UK Royal Navy officer also disclosed that following Russia’s invasion of Ukraine last year, Nato had formulated secret plans to combat aggression that were more comprehensive than any created since the end of the Cold War.

Given its level of classification, he could not disclose details but he assured the audience that they were “more granular, sophisticated, detailed and ultimately credible than anything the alliance has had since the end of the Cold War”.

They would also replace all other plans and were “far, far better”.

Part of that planning is to have a “tier one” force of 100,000 troops at 10 days’ notice to move in case of any emergency.

The admiral said Nato now has a military strategy, agreed on by all 31 member nations, that regarded Russia and terror groups as the key threats and “maps out the concepts with which we will deal with them”.

Admiral Sir Keith Blount, Nato's DSACEUR. Photo: UK Government
Admiral Sir Keith Blount, Nato's DSACEUR. Photo: UK Government

But it is the defence industrial base in Western Europe and the US that was key to winning, he said.

“If the strapline is, we can make them faster than we can shoot them and we can shoot them faster than you can shoot them, then we win,” he said.

“The defence industrial capacity, the ability to out-manufacture, stay ahead of the technology curve is a huge deterrent value.

“And the industry partners here own that alongside those of us wearing military uniform.”

He also warned that states such as Russia and China were conducting “mischief in the grey zone” that fell short of triggering a Nato Article Five direct military response.

“These are now happening more frequently and are more different and diverse,” he said.

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The specs: Rolls-Royce Cullinan

Price, base: Dh1 million (estimate)

Engine: 6.75-litre twin-turbo V12

Transmission: Eight-speed automatic

Power: 563hp @ 5,000rpm

Torque: 850Nm @ 1,600rpm

Fuel economy, combined: 15L / 100km

The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T

Price, base: Dh840,000; Dh120,000

Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo

Transmission: Eight-speed automatic; seven-speed automatic

Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm

Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm

Fuel economy, combined: 9.9L / 100km; 11.6L / 100km

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

MATCH INFO

Champions League quarter-final, first leg

Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes

How England have scored their set-piece goals in Russia

Three Penalties

v Panama, Group Stage (Harry Kane)

v Panama, Group Stage (Kane)

v Colombia, Last 16 (Kane)

Four Corners

v Tunisia, Group Stage (Kane, via John Stones header, from Ashley Young corner)

v Tunisia, Group Stage (Kane, via Harry Maguire header, from Kieran Trippier corner)

v Panama, Group Stage (Stones, header, from Trippier corner)

v Sweden, Quarter-Final (Maguire, header, from Young corner)

One Free-Kick

v Panama, Group Stage (Stones, via Jordan Henderson, Kane header, and Raheem Sterling, from Tripper free-kick)

Captain Marvel

Director: Anna Boden, Ryan Fleck

Starring: Brie Larson, Samuel L Jackson, Jude Law,  Ben Mendelsohn

4/5 stars

Gulf Under 19s final

Dubai College A 50-12 Dubai College B

HOW TO WATCH

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if you go

The flights 

Etihad and Emirates fly direct to Kolkata from Dh1,504 and Dh1,450 return including taxes, respectively. The flight takes four hours 30 minutes outbound and 5 hours 30 minute returning. 

The trains

Numerous trains link Kolkata and Murshidabad but the daily early morning Hazarduari Express (3’ 52”) is the fastest and most convenient; this service also stops in Plassey. The return train departs Murshidabad late afternoon. Though just about feasible as a day trip, staying overnight is recommended.

The hotels

Mursidabad’s hotels are less than modest but Berhampore, 11km south, offers more accommodation and facilities (and the Hazarduari Express also pauses here). Try Hotel The Fame, with an array of rooms from doubles at Rs1,596/Dh90 to a ‘grand presidential suite’ at Rs7,854/Dh443.

Updated: September 13, 2023, 6:18 PM