Europe Needs to Keep Buying American

Europe and the Challenge of Defense Procurement

At a recent informal meeting of European Union (EU) leaders focused on defense, France found itself in a position of isolation. The center of the debate? EU financing for defense investment and procurement, and whether American companies should be eligible for these funds.

France has long advocated for EU and European money to remain within the continent. This stance might be reinforced by the recent Munich Security Conference, where transatlantic unity seemed noticeably strained. While there is a broad consensus that Europe’s defense industrial base needs strengthening, Paris’s position faces several meaningful hurdles.

A primary obstacle is the EU’s lack of a permanent agreement on joint defense procurement. This is a glaring weakness for the bloc nearly three years after Russia’s full-scale invasion of Ukraine. While there has been progress in scaling up artillery ammunition production, Europe’s defense industry still struggles to produce strike missiles at a sufficient level.

The continent also lacks production capacity for numerous othre military equipment categories, forcing European governments to rely on the US. Data from the Draghi Report shows that between mid-2022 and mid-2023, nearly two-thirds of EU defense orders went to American companies.

The return of President Trump to the White House has intensified concerns about Europe’s dependence on American arms. Trump has repeatedly expressed skepticism about the US commitment to European security,and his governance has seen an influx of officials who share this view.

“Russia’s aggression against Ukraine has boosted US arms sales by $180.5 billion, which is more than Congress has appropriated to respond to the invasion,”

Though, some countries see Trump’s transactional approach to relationships, particularly in trade, as an possibility.They argue that Europe can successfully persuade the new administration that it is a valuable customer for the US defense industry.

This strategy focuses on highlighting the economic benefits for american businesses. Rather than appealing to international norms and solidarity, as they might have with President Biden, these countries aim to resonate with Trump’s focus on practical gains.

Europe will likely continue to procure substantial amounts of arms from the US, given its reliance on american equipment. While domestic investment can reduce this dependency, it’s unlikely to vanish entirely. Given the expected increase in defense budgets across Europe, the US is likely to maintain a significant share of the market in absolute terms.

Lithuania, for exmaple, plans to increase its defense spending to 5.5% of GDP between 2026 and 2030. While the country aims to support its national and European defense industries, Lithuanian Defense Minister Dovilė Šakalienė recognizes the need to maintain transatlantic ties, stating, “We need to support our national and European defense industries, while also keeping and nourishing transatlantic bonds, which means buying American weapons.”

Poland and Italy share this viewpoint, advocating for continued purchases of American weapons and expanded business cooperation with the US beyond defense. A high-ranking french officer acknowledged the isolation of France’s position, stating that “France is a bit isolated and doesn’t get much support; other countries are more realistic.”

The debate over defense procurement reflects the complex geopolitical landscape and the enduring importance of transatlantic partnerships.

What steps is the EU taking to reduce dependence on US arms and boost domestic production?

Europe’s Defense Procurement: A Tightrope Walk

Archyde News Editor: Welcome to today’s interview. We’re here with EU Defense Commissioner,Vanilla Janussen,to discuss the challenges and complexities of Europe’s defense procurement. Commissioner Janussen, thank you for joining us.

Strengthening Europe’s Defense Industrial Base

Archyde: Commissioner, recent meetings of EU leaders have highlighted the need to shore up Europe’s defense industrial base. Yet, nearly three years after the start of the war in Ukraine, there’s still no permanent agreement on joint defense procurement. Why is this progress so elusive?

Janussen: Progress on joint defense procurement has indeed been slower then we’d like. The challenge lies in finding a balance between competitive and cooperative approaches. We’re working to harmonize national requirements and establish common standards, but reaching consensus among 27 member states is complex.

Reliance on American Arms

Archyde: Data shows that nearly two-thirds of EU defense orders went to American companies between mid-2022 and mid-2023. given this reliance, what steps is the EU taking to reduce dependence on US arms and boost domestic production?

Janussen: We’re investing heavily in research and development, encouraging cooperation among European companies, and supporting the creation of strategic supply chains. The European Defense fund is crucial here; it’s set to provide €7.1 billion for collaborative defense projects by 2027. Moreover, the recent Inflation Reduction Act proporciona additional impetus for European nations to invest in their own defense industries.

The Trump Factor

Archyde: With the return of President Trump, some EU countries advocate engaging with the new administration by emphasizing the economic benefits for US businesses. How do you view this strategy?

Janussen: It’s true that some countries favor a more transactional approach. While economic arguments are compelling, I believe it’s essential not to overlook the strategic and geopolitical dimensions. Europe’s security is not merely a marketplace; it’s a zone of peace and stability that serves both European and transatlantic interests. Thus, while economic considerations are crucial, we must also invoke shared values and strategic goals.

A Balanced Approach

Archyde: commissioner, you’ve touched on the need to balance cooperation and competition, economic concerns, and strategic goals.Looking ahead, how can the EU strike this balance in its defense procurement policy?

Janussen: It’s a tightrope walk, indeed. We must push forward with cooperation on key projects while maintaining a competitive spirit to drive innovation. we should also earmark investments for critical capabilities,engage with allies like the US where it makes sense,and foster a synchronized approach among EU member states. most importantly, we must engage in open dialog with our allies to ensure our strategies are aligned and complementary.

Reader Engagement

archyde: Commissioner Janussen, your final thoughts? How can our readers contribute to or engage with this debate?

janussen: I’d encourage our readers to engage in this critical discussion. Share your thoughts on the balance between cooperation and competition, economic and strategic considerations, and the role of transatlantic partnerships.The future of Europe’s defense capability depends on these thoughtful debates and collective action.

Archyde News Editor: Thank you, Commissioner Janussen, for your insightful perspectives. And to our readers, we invite you to share your thoughts in the comments section below.