One of the consequences of the war on Ukraine has been a greater realisation that the defence industry matters to the European Union (EU). This may seem like an odd statement given that the Union started to stimulate its defence industry after the EU Global Strategy with frame- works and tools such as the EuropeanDefence Fund (EDF) and Permanent Structured Cooperation (PESCO). Since 2016, the vast majority of EU Member States have been involved in 60 PESCO projects and a host of defence research and capability development projects under the EDF. Before the war, the EU also sought to create greater linkages between its €115 billion (up to 2027) investments in defence, space and civilian research. So, the EU did not need a war to realise its defence industry was worth supporting.
However, what was always missing in the EU’s defence industrial policy was a compelling political reason for investing in the sector. To be sure, EU governments understood that investing in the defence sector was a matter of boosting the Union’s industrial competitiveness. What they did not have, however, was a reason to link the need to enhance the defence industry with any response to military aggression in Europe. Thus, what has been brought about by the war is a link between politics, military strategy and the defence industry. Recall, that some leaders have even referred to the need for a “war economy” characterised by greater defence spending and military production.
EU Military Forum, 2023, No. 2.
Daniel Fiott 