{"id":14379,"date":"2017-11-21T18:58:39","date_gmt":"2017-11-21T18:58:39","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/11\/21\/mbda-official-defense-industrial-cooperation-must-survive-brexit\/"},"modified":"2026-08-07T21:23:56","modified_gmt":"2026-08-07T21:23:56","slug":"mbda-official-defense-industrial-cooperation-must-survive-brexit","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2017\/11\/21\/mbda-official-defense-industrial-cooperation-must-survive-brexit\/","title":{"rendered":"MBDA official: Defense industrial cooperation must survive Brexit"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">PARIS \u2014 The European Union should ensure Britain\u2019s withdrawal from the group will not weaken defense cooperation at a time when \u201ccritical mass\u201d in the arms industry relies on close cross-border work, said the secretary general of missile-maker MBDA.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt is absolutely fundamental \u2014 whatever the conditions for Britain leaving the European Union \u2014 that the European Union in its negotiations with Britain in the coming months find an intelligent means to ensure, at least for defense, that Brexit \u2026 does not have any impact and that we can work as we did before,\u201d Olivier Martin said Nov. 16 at the conference \u201cFinancing Defense: What solutions for what requirements.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">BAE Systems, which holds 37.5 percent of MBDA, will be a \u201cnon-European\u201d company in a few years when Brexit \u2014 or the British exit from the EU \u2014 goes into effect, he said. Airbus also holds 37.5 percent stake in MBDA, with Leonardo owning 25 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">MBDA and other companies, including Thales, <a href=\"https:\/\/www.defensenews.com\/top-100\/2017\/07\/24\/can-uks-defense-firms-brave-brexit\/\" title=\"\">stood to be hit<\/a> if the EU took a strict view of what constituted a European company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Concern over the terms of Brexit have risen, with British media reporting London was ready to pay double its leaving bill to \u00a340 billion (U.S. $53 billion) in a bid to win favorable terms of trade with the other 27 EU member states.<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A little-known but significant Anglo-French partnership lies with the Materials and Components for Missiles, Innovation and Technology Partnership, a research and technology program set up 10 years ago, Martin noted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cToday, missiles we are preparing for the present generation benefit from results of studies launched some 10 years ago,\u201d he said. \u201cSo in reality, it works.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is an annual \u20ac13 million (U.S. $15 million) for research and technology, with funding split 50-50 among government and industry, he said. Firms in the supply chain, research centers, small and medium enterprises and startups can apply for funds.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2017\/11\/16\/france-invests-in-ventures-focused-on-advanced-defense-tech\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"181\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-607521248.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">France invests in ventures focused on advanced defense tech<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">France has launched a $59 million equity fund investing in small and medium enterprises specializing in advanced defense technology.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">France and Britain cooperated on the Storm Shadow\/SCALP program, which allowed Paris to buy 500 <a href=\"https:\/\/www.defensenews.com\/global\/2017\/03\/28\/britain-france-tap-mbda-for-study-toward-future-cruise-anti-ship-missiles\/\" title=\"\" data-original-title=\"\">cruise missiles<\/a> on a smaller budget than the amount previously planned for 100 units, he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThat can be measured in tangible terms,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Meteor air-to-air missile was a second example of European cooperation, he said, with funding from six countries and arming three fighters \u2014 the Gripen, Eurofighter and Rafale. The weapon is a \u201cbest seller\u201d that has attracted attention of several countries including the U.S., he added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The EU is now pushing for defense industrial cooperation, but the detailed terms remain to be adopted.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/naval\/2017\/09\/22\/french-italian-naval-industrial-cooperation-has-hurdles-to-overcome\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"203\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/stx-kran.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">French-Italian naval industrial cooperation has hurdles to overcome<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">France and Italy may eventually follow through on consolidation of their naval industries, but major hurdles, including a legal dispute over French shipyard STX, remains to be conquered.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">For instance, Ratier Figeac, a propeller maker and one of the oldest names in French aviation history, is a subsidiary of United Technologies Corporation, conference attendees were told. Could such a foreign-owned company apply for EU funding for research and development?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Issues such as ownership of intellectual property, independent governance and a head office in Europe are key elements in a European company status, Martin said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWell-executed European defense cooperation will not be easy but is a significant factor to reaching critical mass,\u201d he said, essentially saying that national champions are too small to compete in the world market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Anglo-French cooperation \u201cthrough Lancaster House generally works well from our point of view,\u201d he said. Cooperation with Germany is also being pursued, following an agreement signed in July. And 23 EU countries have signed a defense cooperation agreement, known as <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2017\/11\/13\/eu-launches-defense-cooperation-program-5-members-refuse\/\" title=\"\" class=\"\" data-original-title=\"\">permanent structured cooperation, or PESCO<\/a>, he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Defense cooperation calls for certain key conditions, including sharing the same policy, operational requirement, timetable and export rules, he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The conference at which Martin spoke is an annual event held by Defense Economy, an academic research office, backed by the French Armed Forces Ministry and industry, namely MBDA, Naval Group, Renault Trucks Defense, Safran and Thales.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The EU is now pushing for defense industrial cooperation, but the detailed terms remain to be adopted.<\/p>\n","protected":false},"author":7,"featured_media":26371,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":12,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,46,11,12,36],"tags":[],"coauthors":[464],"class_list":["post-14379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-europe","category-global","category-industry","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"D2PNNGLD2BCAJIJDPT5R44S76Q","arc_canonical_url":"\/industry\/2017\/11\/21\/mbda-official-defense-industrial-cooperation-must-survive-brexit\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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