1. Fostering a Defense-Industrial Base for Europe: The Impact of Brexit
- Author:
- Torben Schütz and Christian Mölling
- Publication Date:
- 06-2018
- Content Type:
- Working Paper
- Institution:
- International Institute for Strategic Studies
- Abstract:
- The European defence technological industrial base (DTIB) represents a core element of European defence and deterrence – it is a strategic asset. Strong defence industries multiply the deterrent effect of the armed forces. However, national industries in most countries cannot offer the full range of supplies needed by national armed forces. Despite the fragmentary nature of its industries, Europe collectively has most of the range of defence-industrial capabilities, enabling, at least notionally, security of supply for EU and NATO partners. The UK’s share of defence-related turnover among European companies is almost 40%. The UK also makes defence-industrial contributions to many multi- national projects. While Brexit does not remove the UK’s defence-industrial base from the wider European environment, it will complicate its involvement. The EU’s growing role in defence-industrial matters, through regulation and financial resources, is shaping the wider European DTIB. At the same time, the Union’s ambition as a security actor creates an obligation to ensure that European partners outside the EU can contribute as effectively as possible to European defence and deterrence. In order to do this: The UK, EU institutions and EU governments should work toward as close a common understanding as possible that safeguarding a sustainable, innovative and competitive European defence industry is in the strategic interests of all political partners in Europe. The UK and its EU partners should establish politically and structurally significant flagship armament projects. Such projects would support a shared objective, namely to consolidate the still fragmented European DTIB, and in the process make it more competitive. A European Defence Industrial Review should be launched to help identify key industrial branches and companies that are of structural relevance to the European DTIB, and therefore to European defence and deterrence. For future regulations related to the defence industry, the EU should take a ‘systemic view’, i.e. also take into account how a regulation affects European partners and contributors outside the EU.
- Topic:
- Defense Policy, Regional Cooperation, Military Strategy, European Union, and Brexit
- Political Geography:
- United Kingdom, Europe, and London