The study highlights how Poland, Romania, the Czech Republic, Slovakia, and Hungary are leveraging their shared EU and NATO membership to develop joint production and innovation capabilities.
"Central and Eastern Europe is no longer the periphery of European defence, but the space where security, industry, and competitiveness converge," explains Tudor Grecu, CEE Head of Defence, Partner, Head of Advisory, KPMG in Romania.
The war in Ukraine has accelerated this transformation, with the region becoming NATO's strategic corridor. The Black Sea is emerging as a central strategic node, with Romania's Constanța positioned as a key maritime security hub. At the same time, investment in dual-use infrastructure, including Danube ports and rail connections, creates opportunities for supporting Ukraine's reconstruction and European industry.
KPMG experts point out that each country brings complementary strengths: Poland offers market scale and cybersecurity expertise, Romania provides strategic geography and Black Sea access, the Czech Republic contributes deep defence industrial tradition, Slovakia focuses on ammunition production, and Hungary emphasises partnership-driven localised production.
"For investors and policymakers alike, CEE is no longer an alternative location, but one of the few regions capable of delivering volume, speed, and industrial scale simultaneously in the defence sector," explains Air Flotilla General (r) Adrian Duță, Senior Advisor, Defence & Security, KPMG in Romania.
