Media reports highlight Europe’s defence procurement dilemma

The debate over prioritising European defence procurement has intensified as industry leaders and policymakers call for a stronger commitment to boosting Europe's defence industrial base. Recent coverage in Euronews, the Financial Times, and Bloomberg highlights the challenges and urgency of establishing a European preference in defence procurement amid geopolitical uncertainty and shifting transatlantic relations.

Bloomberg

A Bloomberg report by William Wilkes, Andrea Palasciano, and Laura Alviz highlights structural weaknesses that continue to hinder Europe's defence sector, even as governments commit to increased spending. The authors point out that nearly 80% of European procurement spending between mid-2022 and mid-2023 went to non-European suppliers, primarily in the US, a trend that industry leaders say must change.

Oliver Dörre, CEO of German defence firm Hensoldt AG, commented on the continent’s struggles, stating, "I think we missed an opportunity in peacetime to build a credible European defence and security policy." 

The article also highlights fears of supply shortages, particularly in key materials like heavy plate steel and explosives, which could hinder Europe's ability to ramp up production. With geopolitical tensions rising, the report warns that failure to consolidate and invest in Europe’s defence industry could leave the continent vulnerable in the years ahead.

Euronews

In an article published by Euronews, journalist Alice Tidey explores the ongoing discussions among EU member states on adopting a European preference in defence procurement. European industry leaders argue that favouring domestic manufacturers is a "strategic imperative," especially as Europe navigates security challenges with a more transactional US administration.

An ASD spokesperson is quoted in the article: "A strong European defence industrial base is essential to European defence preparedness – it is a defence capability in itself ... European preference is a strategic imperative: To strengthen its resilience, security of supply, and freedom of action, Europe must bolster its own production capacity."

Financial Times

In a Financial Times piece, journalists Sylvia Pfeifer, Clara Murray, Silvia Sciorilli Borrelli, Leila Abboud, and Patricia Nilsson examine Europe's efforts to scale up its defence industry in response to increasing security threats. The article underscores how European companies have expanded their production of military equipment but still face structural challenges due to decades of underinvestment and dependence on American hardware.

Defence industry leaders stress the importance of long-term government orders, increased collaboration, and focused investment in research and development. Armin Papperger, CEO of Rheinmetall, argued that "Europe needs large champions with a turnover of around €40bn," adding that "only in this way [is] defence production on an industrial scale possible, and only in this way can large investments be made."

Guillaume Faury, CEO of Airbus and President of ASD, echoed the need for a strategic shift, stating, "What Europe needs to do is first come together and create programmes at scale, second spend more money, and third buy from Europe." 

Across all three reports, a clear consensus emerges: Europe must act decisively to strengthen its defence industrial base. ASD and leading industry voices advocate for a coordinated approach, ensuring resilience and strategic autonomy. As EU leaders prepare for upcoming policy discussions, the challenge remains in balancing national interests, industrial growth, and collective security imperatives.