{"id":44525,"date":"2018-07-06T16:59:14","date_gmt":"2018-07-06T16:59:14","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/07\/06\/leonardo-warns-uk-eu-of-pitfalls-of-a-hard-brexit\/"},"modified":"2026-08-07T23:42:04","modified_gmt":"2026-08-07T23:42:04","slug":"leonardo-warns-uk-eu-of-pitfalls-of-a-hard-brexit","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2018\/07\/06\/leonardo-warns-uk-eu-of-pitfalls-of-a-hard-brexit\/","title":{"rendered":"Leonardo warns UK, EU of pitfalls of a \u2018hard\u2019 Brexit"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">ROME \u2015 The head of Italian defense giant Leonardo has urged the U.K. and the European Union to stick together on defense projects after Britain leaves the EU. Otherwise, the company warned, Italy risks being sidelined in a Europe dominated by France and Germany.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alessandro Profumo said he was \u201cextremely worried\u201d that a so-called hard Brexit might see the U.K. leave the EU with no trade deal in place, but said securing continued c<a href=\"https:\/\/www.defensenews.com\/space\/2018\/05\/08\/uk-and-eu-spar-over-access-to-satellite-program\/\" title=\"\" class=\"\" target=\"_blank\">ooperation on the Galileo satellite program<\/a> between Britain and the bloc might be the \u201ccatalyst\u201d for getting a deal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cEverything needs to be done so that the U.K. remains a partner in European defense,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Leonardo CEO made his comments this week at a presentation at the company\u2019s Rome headquarters. The event unveiled a research paper by Rome think tank IAI on what Brexit means for joint defense programs in Europe.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The paper outlines three scenarios for the break, starting with a deal allowing the U.K. to remain in a customs union with the EU, or forging an agreement granting similar ties, in which case European defense programs would not suffer.<\/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\/space\/2018\/05\/24\/unresolved-brexit-negotiations-threaten-continentwide-security-eu-lawmaker-warns\/\" 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=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP_17272320559174.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\">Unresolved Brexit negotiations threaten continentwide security, EU lawmaker warns<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Britain\u2019s security and defense relationship with the European Union faces \u201ca cliff edge\u201d because of the country\u2019s stalled exit from the organization, according to a senior British member of the European Parliament.<\/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\">A second option would see the U.K. leaving the customs union and signing a lower-profile trade deal relying on existing arrangements such as the World Trade Organization. Defense deals will be possible, \u201cbut the partnership will be more tailored and complicated,\u201d the paper stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The third, no-deal scenario involves the U.K. breaking from the EU, probably acrimoniously after talks breaks down for a post-Brexit settlement, leading to tariffs on trade, restrictions on technology transfer, higher costs and longer times for doing business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is about defense economics, not politics. If you break the customs union you have a direct, negative impact on industrial cooperation and joint procurement,\u201d Alessandro Marrone, one of the authors of the paper, said at the presentation.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"4096\" height=\"2734\" src=\"\/wp-content\/uploads\/2026\/08\/636058243351014234-galileo-antenna-at-europe-s-spaceportjpg.jpg\" alt=\"\" class=\"wp-image-36241\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/636058243351014234-galileo-antenna-at-europe-s-spaceportjpg.jpg 4096w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/636058243351014234-galileo-antenna-at-europe-s-spaceportjpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/636058243351014234-galileo-antenna-at-europe-s-spaceportjpg.jpg?resize=768,513 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/636058243351014234-galileo-antenna-at-europe-s-spaceportjpg.jpg?resize=1024,684 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/636058243351014234-galileo-antenna-at-europe-s-spaceportjpg.jpg?resize=1536,1025 1536w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/636058243351014234-galileo-antenna-at-europe-s-spaceportjpg.jpg?resize=2048,1367 2048w\" sizes=\"auto, (max-width: 4096px) 100vw, 4096px\" \/><figcaption class=\"wp-element-caption\">The antenna of the Galileo station in Kourou, French Guiana. (Manuel P\u00e9doussaut\/European Space Agency)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The paper stated that a \u201cmajor impact will be felt by European companies with a large footprint in the U.K.,\u201d meaning Airbus, Thales and Leonardo, which has key electronics facilities in the U.K. and divides its helicopter operation between the U.K. and Italy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the presentation, Profumo said: \u201cWe have developed numerous programs with the U.K. like the Eurofighter, and we have 7,000 staff in the U.K. It\u2019s an extremely complex organization, with, for example, helicopter parts going back and forth.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One Leonardo official warned that while aircraft in the U.K. and Italy were now certified by the European Aviation Safety Agency, after Brexit the involvement of the U.K.\u2019s Civil Aviation Authority would complicate matters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Profumo said he was concerned that if the U.K. left the negotiating table at which future defense industry cooperation in Europe was negotiated, Italy would find itself on the sidelines of an ever-stronger collaboration between France and Germany.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf the British disappear, we risk finishing underwater,\u201d he said, adding Italy faced the possibility of picking up work on European programs only via offset packages, rather than being a top-level partner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Added Marrone: \u201cUntil now there was choice of cooperating with France and Germany or the U.K. If there is no longer that choice, you lack leverage if you are the Netherlands, Spain or Italy.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Profumo singled out the Galileo satellite program, which will give the EU <a href=\"https:\/\/www.c4isrnet.com\/unmanned\/2018\/05\/11\/new-eurodrone-will-rely-on-galileo-satellite-navigation-but-have-gps-just-in-case\/\" title=\"\" class=\"\" target=\"_blank\">an alternative to GPS<\/a>, as a \u201ccatalyst\u201d to keeping U.K.-EU cooperation on track. Britain has demanded to stay on board the EU program after Brexit, and Profumo backed the idea.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe must decide how to give the U.K. a special status on the program and not treat it like a third party,\u201d he said. \u201cWe need to work really hard on this.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The company CEO singled out the Galileo satellite program as a \u201ccatalyst\u201d to keeping U.K.-EU cooperation on track.<\/p>\n","protected":false},"author":7,"featured_media":84256,"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":46,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,46,11,12,36],"tags":[],"coauthors":[3345],"class_list":["post-44525","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":"UD6GRYQBEZD5DPMS2PB6FSZXX4","arc_canonical_url":"\/global\/europe\/2018\/07\/06\/leonardo-warns-uk-eu-of-pitfalls-of-a-hard-brexit\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Leonardo warns UK, EU of pitfalls of a \u2018hard\u2019 Brexit - Defense News<\/title>\n<meta name=\"description\" content=\"The company CEO singled out the Galileo satellite program as a \u201ccatalyst\u201d to keeping U.K.-EU cooperation on track.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Leonardo warns UK, EU of pitfalls of a \u2018hard\u2019 Brexit\" \/>\n<meta property=\"og:description\" content=\"The company CEO singled out the Galileo satellite program as a \u201ccatalyst\u201d to keeping U.K.-EU cooperation on track.\" \/>\n<meta property=\"og:url\" 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