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Image header Agence Europe
Europe Daily Bulletin No. 10813
Contents Publication in full By article 31 / 38
EXTERNAL ACTION / (ae) eu/defence

Great concern for future of Europe's defence industry

Brussels, 22/03/2013 (Agence Europe) - The prevailing feeling at the annual European Defence Agency conference on Thursday 21 March was one of urgency - urgency to act in order to safeguard Europe's defence technological and industrial base.

“It is very clear that Europe needs to be able to act rapidly, including through military means. To be able to act, we need capabilities. And the development of capabilities is at a critical juncture in Europe. It would be unrealistic of me to expect overall European defence budgets to suddenly increase. We have to do better with our existing resource and capabilities. And we have to invest smartly. I would argue that the only way to do this is through cooperation”, said Catherine Ashton as the conference opened. The EU High Representative for Foreign Affairs and Security Policy also underlined the need to invest in research and technology in order to ensure the European defence industry's future competitiveness.

“Cuts in defence spending are not a new phenomenon (…). But with the crisis, they are accelerating” and the effects of this on military capabilities are exacerbated by the fact that there is no real coordination between member states, the president of the European Council, Herman Van Rompuy, said. He went on to point out: “All in all, if current trends persist, by 2017 we risk having lost 12% of our overall defence spending since the start of the crisis: the equivalent to the entire current defence budgets of Poland, Spain and the Netherlands”. The problem is not only how much is spent but how it is spent, Van Rompuy continued, criticising fragmentation of demand (here, he pointed to the fact that there are 12 different models of military helicopters in Europe). He considers “the crisis should not be seen as an excuse to put things off but instead as an opportunity to launch initiatives, to preserve capabilities that would otherwise be lost to budget cuts”. Also, the European Council in December this year should make real progress in three areas: (1) priorities for future investment and equipment procurement; (2) strengthening the European industrial base, so that it remains competitive and innovative; and finally, (3) the preparation and availability of forces.

EADS CEO Tom Enders said: “We all agree with what Catherine Ashton says but the question is: why is that not happening?” His message to politicians is simple: “Stop issuing endless declarations, take tangible action” and invest money in defence. Enders did not beat about the bush, saying that, unless European states invest in defence, the industry will have no other choice than to close down its defence division to focus on civilian activity. If the current trend continues, by the end of the decade most national defence budgets will be below 1% of GDP. The A 400M transport aircraft is the last major European programme in the field of defence and was launched in 1997. Export markets are not plentiful, as competition is robust and countries call for more and more things in compensation, including in terms of technology transfer. Conclusions must be drawn and, Tom Enders believes, the question of the future of this industrial sector hangs in the balance. He goes on to conclude that, if the European Council this December wants to make a difference, then it must allocate a budget for programmes to the European Defence Agency. (OJ/transl.jl)

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