The chief executive of Fincantieri, Europe's largest shipbuilder, has urged European countries to enhance their underwater defense capabilities due to increasing threats and the retreat of the United States. “The Mediterranean has always been populated by Russian and US submarines, it's up to us Europeans now to take responsibility for our underwater defence,” Pierroberto Folgiero stated in an interview with the Financial Times. Folgiero emphasized the importance of efficient defense spending in Europe, highlighted by Fincantieri’s plans to significantly expand its underwater division. The company forecasts that this division, specializing in submarines, communication systems, and autonomous vehicles, will double its size over the next two years, projecting to reach €820 million in revenue by 2027, approximately 8% of the group’s current revenue. The global underwater economy is expected to increase by €50 billion annually as countries invest more in defense and security. The 2022 attack on the Nord Stream pipeline prompted an escalation in underwater defense capabilities, including unmanned drones and anti-submarine technology. Folgiero noted that the potential for such attacks on subsea cables and crucial marine infrastructure is likely to grow, driving demand for preventive technologies. Despite recent focus on the Baltic Sea, Folgiero pointed out the geopolitical significance of the Mediterranean, which is twice the size of the Baltic. This perspective underlines Fincantieri's strategy to invest in underwater defense and technology while enhancing its industrial capabilities. Fincantieri's stock surged by approximately 20% to €15 per share after announcing its expansion plans. The company also disclosed a partnership with Graal Tech to develop autonomous underwater vehicles. Furthermore, Fincantieri made recent strategic acquisitions, including a €415 million deal to acquire Leonardo's WASS submarine division and purchasing Remazel to expand its offshore manufacturing capabilities. Since its unsuccessful 2020 merger attempt with France's Chantiers de L’Atlantique, Fincantieri has seen robust growth, driven by a post-pandemic surge in global orders. Last week, the company reported a 35% increase in first-quarter 2025 earnings, reaching €2.37 billion, with an order backlog valued at €57.6 billion, equating to seven times its 2024 annual revenues. Source: [Financial Times](https://www.ft.com/content/463511ae-f604-465f-900e-e94dde9ef4a0)