ASD calls for European-first defence procurement on BBC World Business Report

In an interview on 18 February on BBC World Business Report, Jan Pie, Secretary General of ASD, addressed critical issues facing Europe’s defence industry amid escalating geopolitical tensions. He underscored the importance of long-term commitments, European preference in procurement, and better coordination to strengthen Europe’s defence industrial base.

Ramping up

Jan Pie emphasised that while European defence companies have significantly expanded their production capacities in recent years, the lack of long-term visibility on future demand remains a major challenge. He highlighted that the industry has taken on substantial business risks to meet growing demand, but without firm contracts and long-term commitments from governments, further investments in production capacities will be difficult to sustain. 

He provided concrete examples of the industry’s ability to scale up, such as Rheinmetall’s increase in artillery ammunition production from 70,000 rounds in 2022 to 1.1 million by 2027, and Saab’s workforce expansion by 6,300 employees over two years. However, he stressed that these efforts require timely and decisive political action. “If Europe needs an additional 1,000 tanks in five or six years, the orders should have been placed yesterday,” he said. 

European preference

Jan Pie also addressed the growing dependency on non-European defence suppliers, particularly the United States. He argued that this trend undermines Europe’s strategic autonomy and resilience. “If you want to grow dependency on non-European players, just continue to buy from the US,” he warned. 

He advocated instead for a European-first approach in defence procurement, emphasising that investing in Europe’s industrial base would strengthen security of supply, resilience, and freedom of action. "It's very evident: you grow the industrial base where you invest your money. As soon as European Member States start to invest their money in Europe, the industrial base in Europe will grow significantly. It will grow alongside the investments you make.”

Coordination and strategic planning

Jan Pie called for better coordination among European nations to align capability needs and priorities. He argued that aggregating demand and channelling it towards Europe’s defence industry would not only enhance efficiency but also bolster the continent’s defence preparedness. “Europe needs to better coordinate its capability needs and priorities,” he said, adding that such coordination would support the industry in meeting demand and reducing fragmentation.

Jan Pie’s interview highlighted the critical juncture at which Europe’s defence industry finds itself. While the industry has demonstrated its ability to scale up production, it requires long-term commitments, a European-first procurement strategy, and improved coordination among member states to fully realize its potential. His remarks underscored the importance of viewing a strong European defence industrial base not just as an economic asset, but as a vital component of Europe’s security and strategic autonomy. As European leaders grapple with the challenges of geopolitical uncertainty, Jan Pie’s comments serve as a timely reminder of the need for decisive action and strategic investment in Europe’s defence capabilities.