EU Aims to Reduce Long-Term Dependence on US in Defence Sector

Focus on Reducing Foreign Dependency
The European Union is actively working toward reducing its long-term reliance on foreign defence suppliers, particularly from the United States, despite the ongoing need for a strong transatlantic partnership. Andrius Kubilius, the EU’s first Commissioner for Defence and Space, emphasized the necessity of a significant overhaul in Europe’s defence industry. While non-EU suppliers, particularly the US, play a crucial role in the short term, the EU’s long-term strategy focuses on enhancing the bloc’s capabilities and achieving greater independence from foreign suppliers.

Rising Dependency on Non-EU Suppliers
A key concern for the EU is the growing dependency on non-European suppliers for its defence needs. According to the European Aerospace, Security and Defence Industry (ASD), 75% of new EU defence orders between February 2022 and mid-2023 came from outside Europe. This trend underscores the bloc’s reliance on foreign suppliers for critical defence technologies. EU officials, such as Guillaume de La Brosse, head of the EU’s defence industrial policy unit, acknowledge the importance of maintaining a strong partnership with the US but recognize the need to reduce dependence over time. This shift aims to ensure that the EU can justify heavy defence investments to its taxpayers.

Internal EU Debate on Defence Procurement and Funding
While the EU pushes for greater independence, member states remain divided over how to best implement these changes. The European Defence Industry Programme (EDIP), with a proposed budget of €1.5 billion, aims to promote domestic production by requiring defence projects to source at least 65% of components from within the EU. Some member states, like Poland and the Netherlands, argue for more flexibility in allowing foreign companies to access EU funds, while others, such as France, push for stricter sourcing requirements, with a suggestion that up to 80% of components should be sourced domestically. Despite these differences, the EU is clear that member states still retain the freedom to procure from non-EU suppliers outside of the EU-funded projects, ensuring that the approach remains non-protectionist.

Industry’s Push for Domestic Support
A recent position paper from 28 European defence companies, including major players like Airbus, Leonardo, and Rheinmetall, stresses the need for the EU to focus its financial support on domestic suppliers. These companies argue that EU funds should be directed toward projects that source a significant percentage of components from within the EU, with at least 65% sourced domestically. This move aligns with the broader goal of reducing dependence on external suppliers while ensuring European defence capabilities are strengthened. The proposal suggests that EU funding should not hinder cooperation with trusted non-EU partners like the UK but rather focus on bolstering Europe’s own industrial capacity.