Defence and security: legal risk in a geopolitically driven market

Defence and security have moved to the centre of political, industrial and commercial decision-making in Europe. Accelerated procurement programmes, increased defence spending and a renewed focus on strategic autonomy are having direct and far-reaching consequences for companies operating in and around the defence sector.

 

Legal advisors have immediately noticed this shift in the nature of their work, reflected in a surge in activity across procurement processes, licensing requirements and transactions, as well as among a broader range of companies seeking to enter the market. Carolina Dackö, Partner in Mannheimer Swartling’s Corporate Compliance and Risk group and a specialist in international trade, has worked with defence-related matters for many years. From her perspective, what stands out today is the intensity of activity.

This demand comes from both established defence companies and new entrants. Companies that previously operated outside the defence sector are increasingly participating as suppliers of defence equipment, advanced surveillance and software-based capabilities, as well as other security-critical or dual-use solutions.

From investment to legal risk

Increased defence activity leads to a higher volume of regulated transactions, export-controlled products and security-sensitive collaborations. Companies are also facing greater scrutiny of ownership structures. This complexity spans multiple legal disciplines and often occurs within the same matter.

In response, law firms have brought together expertise from various practice areas to form dedicated defence and security groups. At Mannheimer Swartling, this has meant formalising long-standing defence experience into a focused industry group that combines regulatory, transactional and strategic capability.

Business, security and responsibility

Defence activity takes place within a national security framework that shapes procurement and investment. Public responsibility and long-term security considerations are integral to this framework. Defence and security is therefore not only a response to market demand, but also an area where legal advice can support broader public objectives.

“Many people at the firm feel that this is work we simply must do”, says Carolina. “Not only for the business case, but because society depends on it”.

She also notes that clients are increasingly looking for advice that goes beyond individual regulatory questions.

Regulatory frameworks have developed unevenly over time, creating practical challenges for companies and authorities. Some areas have been amended repeatedly over a relatively short period, resulting in an accumulation of overlapping rules and requirements that can be challenging to manage.

Decision-making under pressure

Alongside market growth, international developments have become a direct driver of legal work. To support clients in this environment, Mannheimer Swartling has integrated strategic expertise into its Defence and Security group by hiring Joakim Paasikivi as Senior Geopolitical Advisor. Joakim provides perspective beyond the immediate news cycle, complementing the firm’s legal expertise. He describes his role as helping clients to distinguish between short-term developments and issues that will influence decision-making over a longer horizon.

As activity accelerates, clients are increasingly required to make decisions under time pressure and with limited margin for error. Issues that might previously have been handled sequentially now need to be addressed in parallel.

“The situation can change in the blink of an eye”, says Joakim. “And many systems and working methods are not built for speed”.

These systems typically reflect approval and governance structures designed for predictability and control rather than rapid change. Decisions increasingly need to be taken before all variables are fully known. In such an environment, perspective and preparation matter more than reacting to individual events.

Implications for clients

Clients should seek legal advice earlier, taking into account regulatory requirements, security considerations and geopolitical risk. Decisions that were once primarily commercial now require a broader perspective.

Mannheimer Swartling’s Defence and Security industry group is a deliberate response to these developments. The firm’s long-standing work with defence companies, combined with our engagement with the Swedish Security and Defence Industry Association (SOFF) and our embedded geopolitical capability, enables us to support clients operating in a sector that is undergoing sustained structural change.

This context is now part of the operating environment for many organisations, as defence and security continue to influence business activity across Sweden and Europe for the foreseeable future.

Read Mannheimer Swartling Annual Publication 2026.