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The European Defence Industrial Strategy (EDIS) and the European Defence Industry Programme presentation by the European Commission and the High Representative of the European Union for Foreign Affairs and Security Policy. Source: European Commission.
Defence has become a key issue for the European Union Member States. After Russia invaded Ukraine, old needs have resurged in the geopolitical chessboard. European citizens manifested their support for a stronger defence in the latest Eurobarometer (Spring 2023). 77% of the respondents consider that Member States should coordinate better their purchase of military equipment, 69% would like the EU to reinforce its capacity to produce military equipment, and 66% declare that the EU should make more investments in defence.
In the meantime, the European Union’s leaders are divided on how to deal with military support for Ukraine. While the President of France, Emmanuel Macron, voiced support for sending soldiers to Ukraine, the German chancellor, Olaf Scholz, rejected this approach and reaffirmed his position of only providing military equipment to Ukraine. War rhetoric has taken hold in many European politicians. In this context, the issue arose in the European Union institutions, leading to the adoption of the first European Defence Industrial Strategy (EDIS) at the beginning of March 2024. This sets the vision for the European defence industrial policy until 2035.
Being “Defence ready”
The EDIS is structured on the EU Defence readiness concept defined as a steady state of preparedness of the Union and its Member States to protect its citizens’ security, the territory integrity and critical assets or infrastructures, and its core democratic values and processes. The provision of military assistance to its allies is included in this new conception. This EDIS proposes ambitious measures to encourage and support the transformation of the European defence technological and industrial base (EDTIB). These include arranged and more cooperative planning of investments, support for joint procurement, encouraging more effective incorporation of innovation, greater continuity in efforts to develop high-end capabilities and strategic enablers, and other ambitious measures.
Investing more, better, together, European
The investment is important to achieve EU Defence readiness. The mantra underlying the strategy is to leverage the defence investment more, better, together, and European.
The EDIS strengthens the competitiveness and readiness of the European Defence Technological and Industrial Base (EDTIB). Source: POLITICO
Regarding the axis “investing together“, the EDIS proposes the joint procurement of at least 40% of defence equipment by 2030 to show a sustained and long-term EDTIB demand. However, Member States have still not met the target they agreed on in the 2007 EDA Ministerial Steering Board to allocate 35% of their total budget to the acquisition of equipment in European collaboration. Furthermore, the Commission will design a new legal framework, the Structure for European Armament Programme (SEAP). Member States will benefit from standardised procedures for initiating and managing cooperative defence programmes. Governments will benefit from VAT exemptions when the Member States agree on joint procurements. Moreover, this new approach wants to ensure that by 2030, the value of intra-EU defence trade represents at least 35% of the value of the EU defence market.
Related to the “investing European” axis, before the war, approximately 60% of Member States’ defence investments were made with non-EU suppliers. From 2022 the percentage will rise to 80%, possibly for reasons of urgency. For this reason, member states are encouraged to make constant progress towards procuring at least 50% of their defence investments within the EU by 2030 and 60% by 2035.
Useful partnerships
Collaboration with the EU’s strategic partners is another cornerstone of EDIS, especially NATO. The EU encouraged both organisations to continue to exchange views and explore synergies and complementarity of efforts in the realm of supply chain security essential to capability development and delivery. This statement of intent has to be read from a strategic autonomy perspective, there are a lot of European voices defending for shaking off the military dependence of the United States and NATO.
In order to implement these proposals, this draft includes a budget of EUR 1.5 billion for investment. It could be increased with the windfall profits of frozen Russian assets. However, this way is under examination because it will have legal and international implications due potential forceful opposition of Russia. Moreover, the next Multi-Annual Financial Framework for the period from 2028 onwards should include strongest budgets for defence.
Closer ties with NATO and strategic partners and closer cooperation with Ukraine are also part of EDIS. Source: European Commission.
Conclusion
The EU intends to transform the EU defence industry because it is essential to ensure the effectiveness of the military forces and preserve peace. According to the EDIS, the European defence industry is a crucial contributor to resilience, security, and social sustainability. The state-of-the-art technology and the ability to ensure the steady availability of any defence equipment are necessary for the EU’s new approach. As Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy, stated: “In the current geopolitical context, we have no other choice: we need to become “defence ready”. I am confident that our Member States will show the political will and provide the necessary resources to make the bold leap forward that is needed to take control of our own destiny”.
This EDIS is not just another EU tool that regulates the common market, because of its subject matter and the multiple implications it has, it is a long-term geopolitical asset. It is a message of autonomy and self-assertion in today’s world. The EU is ready for new global threats and maintains its own forceful speech.
For further thought:
- Do you think that funding the defence industry is funding the conflict?
- Do you find that EDIS is just a band-aid and that it would be better to go for a European army?
- How will EDIS contribute to the European Defence Agency (EDA) development?
Suggested readings:
- Grand, Camille (2024). “Opening shots: What to make of the European Defence Industrial Strategy”, European Council on Foreign Relations.
- Levantovscaia, Kathryn (2024). “Pax Americana vs. autonomy: How the US and EU defense industrial strategies diverge”, Atlantic Council.
- Maulny, Jean-Pierre (2023). “The impact of the War of Ukraine on the European Defence Market”, Institute for International and Strategic Affairs (IRIS).
