Commission unveils European Defence Industrial Strategy
Due to emerging threats and geopolitical shifts the European Commission has unveiled its plans for the first-ever European Defence Industrial Strategy at EU level.
This strategy holds the aim of achieving a stronger and more responsive European defence industry which will benefit the Member States, EU key partners and ultimately EU citizens. The Russian aggression against Ukraine has marked the return of high-intensity conflict on our continent, in turn highlighting the need to bolster security, foster innovation and enhance strategic autonomy.
As a first means to deliver, the European Commission has tabled a legislative proposal for a European Defence Industry Programme (EDIP). The first measure of this strategy highlights the need for strategic autonomy. French think tank, IRIS, has revealed the majority of European defence spending is going to contractors outside the bloc. Brussels is now looking for 50% of national defence procurement budgets to go to local companies by 2030, to eventually reach 60% by 2035. Reducing its reliance on external defence capabilities and technologies would enable the EU to act independently in ensuring its security and safeguarding its interests.
Another important cornerstone of the strategy is the promotion of innovation and competitiveness within the EU sector. These cooperative R&D actions will be supported by the European defence fund. EDIP will mobilise €1.5 billion over the period 2025-2027, an amount that is highlighted by some as very little cash. Breton urges that a €100 billion defence fund will be eventually needed to achieve the goals of this strategy. Embracing emerging technologies such as artificial intelligence, cyber defence, and space capabilities, will allow the EU to maintain technological superiority and stay ahead of adversaries.
During a time of technological advancements and evolving security threats, cooperation and resilience are paramount. Pooling resources, sharing expertise and harmonising defence procurement procedures are essential for safeguarding the future of the EU. Furthermore, the strategy emphasises the importance of partnerships with like-minded countries and organisations. One of the key points is that Ukraine will be treated almost like a member of the bloc, participating in EU joint procurement with Ukrainian companies also eligible for EDIP cash. Breton also made sure to highlight that “all this is done in close collaboration with NATO”.
The unveiling of the new EU Defence Industrial strategy represents a significant milestone in the EU’s efforts to strengthen security and sovereignty in an increasingly complex security environment. While the EU Commission can talk a good game, it is essential to maintain momentum and commitment to ensuring the security and well-being of its citizens.