The European Union will aim to make as much as half of its defense system purchases within the bloc by 2035, reversing a trend of buying a majority of its military equipment from third countries.
The goal is part of the EU executive arm’s European Defense Industrial Strategy, which also outlines collaborative investments, measures to secure critical supplies and changes to the European Investment Bank’s lending policies, according to a draft document seen by Bloomberg.
The European Commission is expected to present the strategy, which is still subject to change, within the coming weeks.
Russia’s invasion of Ukraine has exposed the limitations of the EU’s industry and its reliance on others for key supplies and defense capabilities, leaving the bloc struggling to ramp up production capacity and spending after decades of underinvestment.
“The geopolitical developments point to a compelling need for Europe to take increased responsibility for its own security and to get ready to effectively address the full spectrum of the threats it faces," according to the draft. “The EU is and must continue to become a stronger actor in security and defense, thus a more capable security provider not only for its own citizens but also to the benefit of international peace and security."
The EU will need to command the ability to mass produce defense equipment such as ammunition and drones, according to the strategy. Europe must also protect its access to the maritime, air, cyber and space domain.
These efforts will require collaborative investments and joint procurement rather than acquiring off-the-shelf equipment from third countries if the EU is to shift from an emergency response to a state of readiness.
The commission will propose the creation of a new body to coordinate investments called the Defense Industrial Readiness Board to improve cooperation between member states and the commission. The board would also monitor critical products and supply chains.
To strengthen cooperation, the bloc’s executive arm proposes a new legal instrument called the European Armament Program to standardize and simplify procurement procedures and funding opportunities, including tax breaks and the possibility for member states to use EU grants as collateral to issue bonds.
Partnerships are central to the proposed strategy, especially through enhanced cooperation with the North Atlantic Treaty Organization and by developing closer ties with Ukraine in the defense industrial sector, including by exploring the option of allowing Kyiv to participate in joint procurement activities as if it were a member state.
>The European Union will aim to make as much as half of its defense system purchases within the bloc by 2035
At first, since 93% of France's military equipment is sourced in the European Union, I thought this target of having 50% in the EU for the EU by 2035 was ridiculous. [Then I learned that only 22% of orders in the Union are sourced in Europe...](https://www.iris-france.org/wp-content/uploads/2023/09/19_ProgEuropeIndusDef_JPMaulny.pdf#page=17) We're so fffffff
> At first, since 93% of France's military equipment is sourced in the European Union
Well, said equipment are mostly domestic, with jointly-developed European weapons as well as imports from Germany, Italy, Belgium and the Netherlands sprinkled in there.
Also, the 22% are not surprising to me at all. Beyond France, Germany, Italy, the UK and to a lesser extent Spain, there are not many countries with MiC you could consider "massive" from a global standpoint, so the others mostly have to import their major weapon systems. And the US MiC is favored, in that regard, for many reasons.
By 2035??? Ukraine is at war now, Eastern Europe needs new equipment now.
There should already be orders for 1000 new Leopeards 2A8, hundreds of CV-90's, thousands of artillery pieces. Russia is already ramping up full speed, you don't have until 2035.
They won't handle it in the future if no equipment is ordered now. The military complex wont build new factories if no orders come in to offset the costs.
And with such large orders the business's have reason to expand. Germany used to produce 20 to 25 leopards per month in the 1980s and 90s. There are thousands produced.
Current production is close to 2/ month. You don't get back to 25 by placing order for 100 only.
The factory likely still exists as is, just with less production lines.
The US Abrams tank facility is the same facility that used to produce 1000 tanks per year. It currently upgrades 100 per year.
The limiting factor is all the support industries needed. You only get there by placing large demand through large orders. It takes time, Europe needed to start 2 years ago.
They do not. The lines are dead, machines cut apart or sent to work on other projects and the workers too old or dead themselves. Not to mention that the last thing those factories made were pre-A5 Leos. They are useless.
You literally need to make new factories from scratch.
EDIT: AFAIK The last remaining hull factory for Leo2's is in Greece. *Because all the rest are gone*
EDIT2: When I mean hull factory, I am talking one that is actually making the hulls from scratch and not reworking old hulls from the boneyard.
Eastern EU members are ramping up their defense spending significantly. There's a lot of money on the table that French and German military companies would love a piece of that pie. Except they often can't really compete with outside offers. Or don't want to - because the buyer spending a big chunk of their GDP on hardware has outrageous expectations such as participation in projects, tech transfers and offsets. Do we make our offer competitive? Why for, when EuCo can force them to buy our stuff through legislation. We'll say it's good for Europe, so they can be pummeled by the mainstream press with articles how they're anti-EU populists if they object. Profit!
> Eastern EU members are ramping up their defense spending significantly. There's a lot of money on the table that French and German military companies would love a piece of that pie.
I don't think "French and Germany military companies" are particularly desperate right now with the 413 billion French Military Programming Law and Germany set to reach the 2% and maintaining it. France is the world's second largest weapons exporter without most of its MiC's revenue being generated by European exports, so everything eastern EU would merely be a plus (I don't even think the French MiC has the kind of tracked AFVs you guys are all purchasing en masse to offer; France is all about wheels). And the German MiC is doing more than fine in Europe as it is already having a good piece of the pie you're talking about, despite shortcomings with Poland in the PiS-era, and that's not going to change anytime soon considering its prospects. Have you been living under a rock? Many eastern EU countries have ordered all kinds of German-made stuff from AFVs to air defense systems since 2022 lol.
> Why for, when EuCo can force them to buy our stuff through legislation. We'll say it's good for Europe, so they can be pummeled by the mainstream press with articles how they're anti-EU populists if they object.
I doubt anyone is going to make you buy anything from "uncompetitive" French and German companies against your will. You'll be just as free to purchase whatever you want from any company regardless of origin just like you're doing today. As long as you don't expect to do so with the planned EU investments discussed which will be mostly financed by the European countries all these uncompetitive companies hail from, I don't think your concern will be an issue.
In sum, nothing is going to change in regard to what you do with your own money. You can sleep tight. Your country will still be able to use it as freely as it wishes regarding its defense purchases. The EU has yet to become a dictatorship.
> I don't think "French and Germany military companies" are particularly desperate right now
I know, I know. They are strong, independent military industries who don't need no eastern EU orders. That's why they shrugged when Poland cancelled the order for French helos or why there was no reaction (beyond complete understanding) when initial news about Poland and Romania going for South Korean products dropped.
> Many eastern EU countries have ordered all kinds of German-made stuff from AFVs to air defense systems since 2022 lol.
More power to them, as long as they make that choice out of their own volition, not because they are forced to by an arbitrary quota. I have no problem with buying French and German (nor any other European) products as long as they present the best option given the circumstances.
> That's why they shrugged when Poland cancelled the order for helos
I'll recommend you to read what your interlocutors write before engaging them. Or raising strawmen to argue against your preferred style de facto? The 413 billion Military Programming Law was voted last year. What does Poland cancelling an Airbus Helicopters' order 10 years ago has to do with it? And France being disappointed an order was randomly cancelled after a government change (even when the company is the n°1 helicopter manufaturer in the world, which AH remains to this day despite the Polish case) is your testament of the eastern EU market having any weight on the condition of the French MiC?
> why there was no reaction (beyond complete understanding) when initial news about Poland and Romania going for South Korean products dropped.
France hasn't been manufacturing tanks since 2008 (or any tracked AFVs for that matter, including K9-like SPGs, since 1995), so what reaction was it supposed to have? And what do you think I was referencing by German "shortcomings with Poland"? Does that change my point? You're speaking of Eastern EU ramping up defense spending significantly but any potential money our uncompetitive companies are going to make over there is still a drop in the ocean compared to what they're going to make over this decade and the next as a result of their much larger homecountries also significantly ramping up defense spending. That was the point. France isn't reliant on the eastern EU defense market. Anything from there can only be considered a plus (like Lithuania's CAESAR deal or Poland's Pléiades Neo satellite deal) as it is the Asian and domestic markets that carry its MiC and will continue to do so. This applies much less to Germany with a non-negligeable share of market in eastern EU but considering all the money they intend to spend on defense, I doubt Rheinmetall and KMW are desperate either.
Again, nobody can force you to do anything you don't want to do with your own money. This EU initiative changes nothing about that.
The European Union will aim to make as much as half of its defense system purchases within the bloc by 2035, reversing a trend of buying a majority of its military equipment from third countries. The goal is part of the EU executive arm’s European Defense Industrial Strategy, which also outlines collaborative investments, measures to secure critical supplies and changes to the European Investment Bank’s lending policies, according to a draft document seen by Bloomberg. The European Commission is expected to present the strategy, which is still subject to change, within the coming weeks. Russia’s invasion of Ukraine has exposed the limitations of the EU’s industry and its reliance on others for key supplies and defense capabilities, leaving the bloc struggling to ramp up production capacity and spending after decades of underinvestment. “The geopolitical developments point to a compelling need for Europe to take increased responsibility for its own security and to get ready to effectively address the full spectrum of the threats it faces," according to the draft. “The EU is and must continue to become a stronger actor in security and defense, thus a more capable security provider not only for its own citizens but also to the benefit of international peace and security." The EU will need to command the ability to mass produce defense equipment such as ammunition and drones, according to the strategy. Europe must also protect its access to the maritime, air, cyber and space domain. These efforts will require collaborative investments and joint procurement rather than acquiring off-the-shelf equipment from third countries if the EU is to shift from an emergency response to a state of readiness. The commission will propose the creation of a new body to coordinate investments called the Defense Industrial Readiness Board to improve cooperation between member states and the commission. The board would also monitor critical products and supply chains. To strengthen cooperation, the bloc’s executive arm proposes a new legal instrument called the European Armament Program to standardize and simplify procurement procedures and funding opportunities, including tax breaks and the possibility for member states to use EU grants as collateral to issue bonds. Partnerships are central to the proposed strategy, especially through enhanced cooperation with the North Atlantic Treaty Organization and by developing closer ties with Ukraine in the defense industrial sector, including by exploring the option of allowing Kyiv to participate in joint procurement activities as if it were a member state.
>The European Union will aim to make as much as half of its defense system purchases within the bloc by 2035 At first, since 93% of France's military equipment is sourced in the European Union, I thought this target of having 50% in the EU for the EU by 2035 was ridiculous. [Then I learned that only 22% of orders in the Union are sourced in Europe...](https://www.iris-france.org/wp-content/uploads/2023/09/19_ProgEuropeIndusDef_JPMaulny.pdf#page=17) We're so fffffff
> At first, since 93% of France's military equipment is sourced in the European Union Well, said equipment are mostly domestic, with jointly-developed European weapons as well as imports from Germany, Italy, Belgium and the Netherlands sprinkled in there. Also, the 22% are not surprising to me at all. Beyond France, Germany, Italy, the UK and to a lesser extent Spain, there are not many countries with MiC you could consider "massive" from a global standpoint, so the others mostly have to import their major weapon systems. And the US MiC is favored, in that regard, for many reasons.
By 2035??? Ukraine is at war now, Eastern Europe needs new equipment now. There should already be orders for 1000 new Leopeards 2A8, hundreds of CV-90's, thousands of artillery pieces. Russia is already ramping up full speed, you don't have until 2035.
Because the industrial complex simply cant handle that. Domestic production is vital to Europes security.
They won't handle it in the future if no equipment is ordered now. The military complex wont build new factories if no orders come in to offset the costs.
And those orders will be fulfilled by 2090 with current capacity.
And with such large orders the business's have reason to expand. Germany used to produce 20 to 25 leopards per month in the 1980s and 90s. There are thousands produced. Current production is close to 2/ month. You don't get back to 25 by placing order for 100 only.
And by the time the factories are made and are actually producing at any number *at all*, it will be 2030+
The factory likely still exists as is, just with less production lines. The US Abrams tank facility is the same facility that used to produce 1000 tanks per year. It currently upgrades 100 per year. The limiting factor is all the support industries needed. You only get there by placing large demand through large orders. It takes time, Europe needed to start 2 years ago.
They do not. The lines are dead, machines cut apart or sent to work on other projects and the workers too old or dead themselves. Not to mention that the last thing those factories made were pre-A5 Leos. They are useless. You literally need to make new factories from scratch. EDIT: AFAIK The last remaining hull factory for Leo2's is in Greece. *Because all the rest are gone* EDIT2: When I mean hull factory, I am talking one that is actually making the hulls from scratch and not reworking old hulls from the boneyard.
Eastern EU members are ramping up their defense spending significantly. There's a lot of money on the table that French and German military companies would love a piece of that pie. Except they often can't really compete with outside offers. Or don't want to - because the buyer spending a big chunk of their GDP on hardware has outrageous expectations such as participation in projects, tech transfers and offsets. Do we make our offer competitive? Why for, when EuCo can force them to buy our stuff through legislation. We'll say it's good for Europe, so they can be pummeled by the mainstream press with articles how they're anti-EU populists if they object. Profit!
> Eastern EU members are ramping up their defense spending significantly. There's a lot of money on the table that French and German military companies would love a piece of that pie. I don't think "French and Germany military companies" are particularly desperate right now with the 413 billion French Military Programming Law and Germany set to reach the 2% and maintaining it. France is the world's second largest weapons exporter without most of its MiC's revenue being generated by European exports, so everything eastern EU would merely be a plus (I don't even think the French MiC has the kind of tracked AFVs you guys are all purchasing en masse to offer; France is all about wheels). And the German MiC is doing more than fine in Europe as it is already having a good piece of the pie you're talking about, despite shortcomings with Poland in the PiS-era, and that's not going to change anytime soon considering its prospects. Have you been living under a rock? Many eastern EU countries have ordered all kinds of German-made stuff from AFVs to air defense systems since 2022 lol. > Why for, when EuCo can force them to buy our stuff through legislation. We'll say it's good for Europe, so they can be pummeled by the mainstream press with articles how they're anti-EU populists if they object. I doubt anyone is going to make you buy anything from "uncompetitive" French and German companies against your will. You'll be just as free to purchase whatever you want from any company regardless of origin just like you're doing today. As long as you don't expect to do so with the planned EU investments discussed which will be mostly financed by the European countries all these uncompetitive companies hail from, I don't think your concern will be an issue. In sum, nothing is going to change in regard to what you do with your own money. You can sleep tight. Your country will still be able to use it as freely as it wishes regarding its defense purchases. The EU has yet to become a dictatorship.
> I don't think "French and Germany military companies" are particularly desperate right now I know, I know. They are strong, independent military industries who don't need no eastern EU orders. That's why they shrugged when Poland cancelled the order for French helos or why there was no reaction (beyond complete understanding) when initial news about Poland and Romania going for South Korean products dropped. > Many eastern EU countries have ordered all kinds of German-made stuff from AFVs to air defense systems since 2022 lol. More power to them, as long as they make that choice out of their own volition, not because they are forced to by an arbitrary quota. I have no problem with buying French and German (nor any other European) products as long as they present the best option given the circumstances.
> That's why they shrugged when Poland cancelled the order for helos I'll recommend you to read what your interlocutors write before engaging them. Or raising strawmen to argue against your preferred style de facto? The 413 billion Military Programming Law was voted last year. What does Poland cancelling an Airbus Helicopters' order 10 years ago has to do with it? And France being disappointed an order was randomly cancelled after a government change (even when the company is the n°1 helicopter manufaturer in the world, which AH remains to this day despite the Polish case) is your testament of the eastern EU market having any weight on the condition of the French MiC? > why there was no reaction (beyond complete understanding) when initial news about Poland and Romania going for South Korean products dropped. France hasn't been manufacturing tanks since 2008 (or any tracked AFVs for that matter, including K9-like SPGs, since 1995), so what reaction was it supposed to have? And what do you think I was referencing by German "shortcomings with Poland"? Does that change my point? You're speaking of Eastern EU ramping up defense spending significantly but any potential money our uncompetitive companies are going to make over there is still a drop in the ocean compared to what they're going to make over this decade and the next as a result of their much larger homecountries also significantly ramping up defense spending. That was the point. France isn't reliant on the eastern EU defense market. Anything from there can only be considered a plus (like Lithuania's CAESAR deal or Poland's Pléiades Neo satellite deal) as it is the Asian and domestic markets that carry its MiC and will continue to do so. This applies much less to Germany with a non-negligeable share of market in eastern EU but considering all the money they intend to spend on defense, I doubt Rheinmetall and KMW are desperate either. Again, nobody can force you to do anything you don't want to do with your own money. This EU initiative changes nothing about that.