By Lacity
As Russia’s full-scale invasion of Ukraine continues and has implications for European security, European defense companies should have full access to EU funds, and mergers should not be blocked despite competition concerns, according to a draft report to be discussed at a closed session of the European Parliament.
The EU’s defense industrial base is facing structural problems in terms of capacity, know-how, and technological advantages. As a result, the EU is falling behind its global competitors. The paper looks at how European industry can regain its edge on the global stage.
The challenge for the EU military-industrial complex is insufficient public spending – the bloc as a whole spends about 33% of US spending on defense. Recommendations include the introduction of a “European Advantage Principle” to promote European defense solutions over competitors; defining a governance model within the Commission, the European External Action Service, and the European Defense Agency; and creating a centralized “Defense Industry Authority” to carry out procurement on behalf of EU countries.
