{"id":36430,"date":"2017-09-01T16:43:01","date_gmt":"2017-09-01T16:43:01","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/09\/01\/brexit-consequences-raise-doubts-over-future-defense-industrial-collaboration\/"},"modified":"2026-08-07T23:00:30","modified_gmt":"2026-08-07T23:00:30","slug":"brexit-consequences-raise-doubts-over-future-defense-industrial-collaboration","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2017\/09\/01\/brexit-consequences-raise-doubts-over-future-defense-industrial-collaboration\/","title":{"rendered":"Brexit consequences raise doubts over future defense industrial collaboration"},"content":{"rendered":"\n

PARIS \u2015 Britain\u2019s planned departure from the European Union could put pressure on missile-maker MBDA and will bar London from EU funds for weapons research and development, raising doubts over defense industrial cooperation with the U.K., according to a report from Ares, a network of European think tanks.<\/p>\n\n\n\n

Ares published the report on Britain\u2019s exit, titled \u201cThe Impact of Brexit on the European Armament Industry,\u201d in the same week that Britain and the European Commission held a third round of high-level talks to negotiate London\u2019s exodus.<\/p>\n\n\n\n

The European Commission is due to fund arms research with a launch of the European Defence Research Programme and the demonstration stage of weapons with the European Defence Industrial Development Programme.<\/p>\n\n\n\n

These two funds \u201ccould be more problematic for MBDA,\u201d the report said. \u201cBritish companies will in principle no longer benefit from Community credits outside the EU.\u201d<\/p>\n\n\n\n

MBDA in France and Italy could apply for EU funds, but the British unit would be excluded. \u201cThis would have a negative effect on the company\u2019s integration process and could also cause strain within it,\u201d the report said.<\/p>\n\n\n\n

\u201cThis issue is particularly acute with regards to MBDA,\u201d the report said, adding that exclusion would be extended to any future British cooperation in weapons, both at research and development stages.<\/p>\n\n\n\n

That could lead potential industrial partners to \u201cthink twice\u201d before working with Britain if that led to being rejected from EU funding, the report said.<\/p>\n\n\n\n

The report highlighted the strong cross-English Channel ties in MBDA, with London and Paris ratifying the One Complex Weapons strategy in 2016 even after the U.K. referendum returned a vote in favor of leaving the EU.<\/p>\n\n\n\n

The missile maker is \u201cparadoxically \u2026 a convincing model of industrial consolidation in the field of European armament, designed to develop European industrial and defense capabilities \u2015 but is primarily moved forward by France and the U.K.,\u201d the report said.<\/p>\n\n\n\n

\u201cThe U.K. is a major partner in several cooperative defense programs in Europe,\u201d an MBDA spokesperson told Defense News. \u201cIt is in no one\u2019s interest to rule out future cooperation.<\/p>\n\n\n\n

\u201cThe aim is to maintain critical mass for the European defense industry, and Britain is a major contributor.<\/p>\n\n\n\t