EU Unveils Defense Industrial Strategy for 2030
The European Commission (EC) has presented its first comprehensive defense industrial strategy, aiming to strengthen Europe's defense capabilities and enhance cooperation among member states. Key aspects include mapping critical supply chains, stockpiling essential products, and fostering collaborative procurement. However, the strategy faces divisions among EU countries regarding the EC's role and funding.
The EC's strategy, unveiled by President Ursula von der Leyen, seeks to increase European defense industrial readiness through collaborative investment, research, development, production, procurement, and ownership. It proposes a new European military sales mechanism, inspired by the U.S. model, to support the buildup of critical defense equipment reserves.
The strategy aims to identify European defense projects of common interest, focusing on areas like air and missile defense, space domain awareness, cyber defense, and maritime protection. By 2030, at least 50% of member states' procurement budgets (60% by 2035) should go to EU-based suppliers, with at least 40% of defense equipment procured collaboratively.
The EC wants to map key suppliers and supply chains of defense production in the EU and use EU funds to prevent supply shortages. Germany and Sweden are actively collaborating on armament projects such as the European Long-Range Strike Approach (ELSA) and the European Sky Shield Initiative (ESSI) to strengthen interoperability and joint procurement. Other EU member states receive funds through the EU’s Security Action for Europe (SAFE) program to enhance defense capabilities, although Germany has not committed to participating in this funding distribution.
The EC's defense industrial strategy is a significant step towards bolstering Europe's defense capabilities and fostering cooperation. However, its success depends on overcoming long-standing issues of national sovereignty, funding, and balancing strategic priorities. The strategy's initial funding of 1.5 billion euros, redeployed from the European Defence Fund, is a starting point, but further financing and political will be crucial for its implementation. Despite divisions among EU countries, the strategy offers a roadmap for increased defense industrial readiness and collaborative procurement by 2030.
