Can the Europe of 2030 be peaceful, prosperous and lead the world in sustainability? How to achieve that goal amid multiple crises?
We strongly believe that Europe can be a flourishing continent that combines democracy, security, sustainability, competitiveness, growth and the opportunities of a digital world. A continent that drives innovation and industrial leadership to serve humanity in Europe and elsewhere in the world.
We owe it to next generations to solve the challenges in front of us: a brutal large-scale war taking place in Europe, an increasingly complex geopolitical and security landscape and the pressing issue of climate change.
To this effect, we must keep Europe together and act together. Europe’s economic prowess and ultimately our future rests on three pillars.
Firstly, security. The war in Ukraine has triggered change in Europe and has made it very clear that the EU must step up its efforts and assume greater responsibility with regards to its defence capabilities and preparedness. EU member states and NATO allies have sent an unprecedented amount of military equipment to Ukraine, which so far has pushed back the aggressor from advancing and avoiding a potential collapse of the European security order.
Many of us had hoped that the devastating impact of Russia’s war against Ukraine would have demonstrated more convincingly the critical need for Europe to be able to protect itself, which in turn requires adequate and long-term support for its defence industry. Europe, however, remains fragmented on defence cooperation and still under-invests in a way that hinders the industrial ecosystem from ramping up production to meet the increasing demand.
Ramping up production capacity and developing defence capabilities requires long-term commitment and certainty. That’s why the EU needs to focus on initiatives that cultivate a common approach that prioritises joint procurement and joint R&D within Europe. It will be too late for Europe to pay the insurance premium when our house is on fire! A capable and resilient defence is the most important investment that we can make together for a secure and sustainable Europe.
Buying non-European may appear to be easier in the short-term, but ultimately means that European industry struggles to get a return on its investments and over time loses its technological know-how and related skills. This, at a time when Europe rightly aims to strengthen its own resilience, security of supply and freedom of action.
Secondly, sustainability. Europe has long been a leader on sustainability and climate change and is now also leading on sustainable aerospace. The European civil aviation sector has been the first to commit on a roadmap to achieve net zero CO2 emissions. But Europe’s leadership aspirations are threatened by a lack of competitiveness and a heavy regulatory burden.
Many European companies now want to expand their operations in the US because of the Inflation Reduction Act, which provides enormous subsidies to businesses producing clean energy. This has thrown down the gauntlet to Europe’s policymakers. We believe that less regulation, more and well targeted incentives are the answer. As European Commission President von der Leyen rightly said: “We Europeans need to get better at nurturing our own clean-tech industry. We need to speed up, we need to simplify procedures, we need to grant better access to public and private finance.”
Achieving these net zero targets will require a joint effort of the civil aviation sector and regulators. There is in particular a need for more EU public support for R&D funding to rapidly ramp up the production of sustainable aviation fuels and clean hydrogen while avoiding unnecessary taxes and regulatory burden on the airlines who need access to finance to replace older aircraft.
Thirdly, innovation. Europe’s success in aerospace shows what can be achieved together with a clear goal, a plan, and political commitment. It’s an incredibly exciting era of innovation: sustainable aviation fuels, digitalisation, cloud computing, and artificial intelligence are also binding to transform what we do and how we work.
Europe is leading the way with some ambitious projects. The first low-emission, hydrogen-powered airliner is being developed in Europe and is scheduled to enter into service in 2035. Many of the cooperative projects, innovations and next generation technologies and capabilities underway in the European industrial ecosystem will help drive scientific and technological progress and secure a continued and stronger leadership for Europe as a whole. This has been achieved in the past, notably in Space, where the EU has successfully delivered programmes like Copernicus and Galileo.
To help realise these ambitions and lead the world in sustainability and innovation while securing our democracy and freedom of action, a competitive, resource efficient and sustainable European business environment is key. We need policy frameworks that accelerate the pace of innovation and investments.
There’s a clear need for Europe to strengthen its freedom of action and capacity for collective action. This is true in so many areas: in renewable energy, rare earth metals and more. And it is especially true for aeronautics. Civil and defence aerospace projects are, by definition, large, complex and capital intensive. No single European country can manage them alone.
The challenges in front of us may be enormous, but you can also argue that Europe and the European aerospace and defence sectors have never been better equipped to address them. We have the expertise. We also have the vision and the ambition. Now is the time for action. The EU and its member states need to turn this ambition into concrete policies that support this strategic sector in a collaborative way and hand in hand with industry.
We need to adapt to a changing world to preserve what we value most – our democracy, freedom and prosperity.
Guillaume Faury
ASD President and CEO of Airbus
Micael Johansson
Vice Chair of the Board of ASD and President and CEO of Saab
Jan Pie
ASD Secretary General
*The preceding text has been lightly revised from an op-ed originally published in Euractiv on 5 October 2023
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