Fragmented EU Defence Industry Needs Urgent Coordination
The EU's fragmented defence industry could face a supply crisis without better alignment of member states' spending and procurement plans, according to a report by former Italian Prime Minister Mario Draghi. The report highlights significant issues in innovation, governance, international dependency, and public spending. Despite increased national budgets, Europe's defence spending remains insufficient amidst current geopolitical tensions.
The EU's fragmented defence industry could face a supply crisis without better alignment of member states' spending and procurement plans, according to a report by former Italian Prime Minister Mario Draghi.
The report, focusing on competitiveness, reveals significant issues in innovation, governance, international dependency, and public spending.
Despite recent increases in national budgets, Europe's defence spending remains insufficient amidst current geopolitical tensions.
The European Commission estimates an additional €500 billion is needed over the next decade.
The market is dominated by five major players and over 2500 SMEs, leading to overlap and inefficiency.
Joint procurement stands at just 18% of total spending, far below the 35% benchmark.
Notable figures like Guntram Wolff and MEP Hannah Neumann emphasize the importance of a unified, integrated market to overcome these challenges.
The EU lags in defence R&D spending with just €9.5 billion in 2022 compared to the US's one hundred forty billion dollars in 2023.
Proposals include increased public and private funding and greater coordination to reduce international dependencies.