EU Defence Industry Faces Coordination Challenges Amid Ukraine War
Brussels: Tensions between European Union governments and the continent’s defence industry were on full display during a week of defence-focused conferences in Brussels, Euractiv reported on the ground.
As Russia’s war in Ukraine enters its fifth year, European capitals, EU institutions, and arms manufacturers continue to struggle to align on rearmament plans despite widespread acknowledgment that boosting European defence is urgent. Industry insiders say communication is often stalled, with discussions plagued by mixed messages and national interests slowing implementation.
The EU has pledged significant funds to strengthen security, including €1.5 billion for the European Defence Investment Programme (EDIP) and €150 billion for the Security Action for Europe (SAFE) loans facility. Both initiatives aim to support joint procurement of European weapons and increase industrial production capacity. However, sources familiar with the process say execution remains slow.
EU countries submitted plans last year on how they would spend the new funds, but the SAFE loan guidelines require capitals to provide detailed descriptions of defence products they intend to buy. Industry sources told Euractiv that many defence ministries have yet to clarify their requirements, leaving manufacturers uncertain about future orders.
A non-binding methodology from the European Commission outlines how companies should calculate the European and non-European components of products to access SAFE funding. Yet the lack of detailed guidance from governments underscores the disconnect between EU institutions, national authorities, and defence contractors.
European arms makers, including Rheinmetall, Nexter, Thales, PGZ, and Dassault, have been expanding production and opening new factories across the continent. While there is a unified call for reform to boost stockpiles, companies are seeking long-term investment assurances to justify the accelerated production. Many firms have increased capacity without confirmed orders, creating sector-wide uncertainty.
Earlier this month, French President Emmanuel Macron criticized the national defence industry for lagging in output while warning that French companies face intense competition. “No one is waiting for us,” he told leading manufacturers, highlighting the pressure on Europe’s defence sector to rapidly scale up.
EUDefence #ArmsIndustry #MilitaryProcurement #UkraineWar #EDIP #SAFE #diplomatsWorld
