{"id":67663,"date":"2024-09-10T09:06:46","date_gmt":"2024-09-10T09:06:46","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2024\/09\/10\/eu-told-to-hire-defense-commissioner-to-compete-with-us\/"},"modified":"2026-08-08T01:12:49","modified_gmt":"2026-08-08T01:12:49","slug":"eu-told-to-hire-defense-commissioner-to-compete-with-us","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2024\/09\/10\/eu-told-to-hire-defense-commissioner-to-compete-with-us\/","title":{"rendered":"EU told to hire defense industry commissioner to compete with US"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">If the European Union wants to compete with the United States in the global defense market it must appoint a dedicated defense industry commissioner, push joint procurement by member states and curb anti-trust rulings to promote industry consolidation, a <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2024\/09\/09\/eu-buys-too-much-defense-equipment-abroad-especially-from-us-report\/\">new report<\/a> has claimed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The recommendations were part of a long to-do list included in the report on boosting EU competitiveness issued by former European Central Bank governor Mario Draghi which will be closely read by officials in Brussels.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The section on Europe\u2019s defense sector urges member states to jointly procure weapons, thus encouraging the continent\u2019s firms to team up to build them, creating essential integration on both the supply and demand side.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For years, the opposite has been true, as member states hand orders to their local industries, thus ensuring the continent has 12 main battle tank programs compared to one in the United States.<\/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\/2024\/06\/21\/the-eus-fresh-designs-for-funding-a-defense-resurgence-explained\/\" 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\/GettyImages-2147745235.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\">The EU\u2019s fresh designs for funding a defense resurgence, explained<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The European Investment Bank will underwrite new defense investments, with a huge economic-bailout scheme also waiting in the wings.<\/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\">\u201cInsufficient aggregation and coordination of public spending in Europe compounds industrial fragmentation,\u201d the report states.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Noting that European states have supplied ten different howitzer types to Ukraine, the report claims the land sector is the least integrated, followed by the naval industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Relative integration in the aircraft industry in Europe has produced success stories like the A-330 Multi-Role Tanker Transport aircraft, the report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With a turnover of \u20ac135 billion in 2022 and a workforce of half a million, the defense industry has its strong points, the report adds, claiming it beats the U.S. in sectors including main battle tanks, conventional submarines, naval shipyard technology, helicopters and transport aircraft.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Europe\u2019s defense spending, at $313 billion, is around a third of the $916 billion spent by the U.S. in 2023, it added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf all EU member states who are members of NATO who have not yet reached the 2% target would do so in 2024, this would translate into approximately an additional \u20ac60 billion ($66 billion) in defense spending,\u201d the report stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As nations looked to their own procurement needs, only 18% of total EU spending was on collaborative programs in 2022, well below the bloc\u2019s target of 35%, the report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the same time, insufficient integration was occurring between cross-border firms, compared to the U.S., where the number of \u201cmain players\u201d has shrunk from 51 in 1990 to five.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One reason firms were not merging in Europe was tough anti-trust legislation, the report said, claiming, \u201cEU competition enforcement may prevent or discourage businesses from merging and scaling up, particularly those creating market power.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a list of recommendations to member states, the report urged them to \u201cscale back existing industrial capacities, where needed,\u201d in order to avoid \u201cfull mirroring and duplication of capabilities.\u201d<\/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\/2024\/05\/31\/european-union-weighs-creation-of-air-defense-shield\/\" 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=\"225\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Cover2.jpg_4c0671.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\">European Union weighs creation of air defense shield<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">A Greek-Polish proposal for a bloc-funded program is looking for takers.<\/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\">It also urged a \u201ccommonly agreed specialization strategy among companies from participating member states reallocating capacities and reinforcing respective domains of excellence.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To achieve that, the EU needed a new \u201dDefence Industry Commissioner, with the appropriate structure and funding to define, coordinate and implement an EU defense industrial policy fit for today\u2019s new geopolitical context,\u201d the report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another task for a commissioner would be boosting research-and-development spending in the sector. Europe now spends just \u20ac10.7 billion a year, around 4.5% of total defense spending, compared to the United States, which spends a mammoth $140 billion, around 16% of all spending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe bulk of investment takes place at the member state level,\u201d the report stated. \u201cBut several new or technically complex segments \u2013 such as drones, hypersonic missiles, directed-energy weapons, defense artificial intelligence and seabed and space warfare \u2013 call for pan-European coordination. No member state can effectively finance, develop, produce and sustain all the necessary capabilities and infrastructure that are required to maintain leadership in these technologies.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One consequence of limited European investment in new technology was a continued preference by local buyers for U.S. kit. \u201cOf a total of \u20ac75 billion spent by member states between June 2022 and June 2023, 78% of procurement spending was diverted to purchases from suppliers located outside the EU, out of which 63% based in the U.S.,\u201d the report said, adding that U.S. Foreign Military Sales in Europe increased by 89% between 2021 and 2022.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAt the same time, the U.S. market remains closed for European companies,\u201d it added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">European states liked the \u201cadministrative simplicity and better visibility of what is available,\u201d thanks to the Foreign Military Sales program, and had \u201cpoor knowledge \u2026 of what is the actual offer from the European defense industry.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To rectify this, the report pushes for \u201ca political commitment\u201d or \u201creformed public-procurement legislation, which would indicate that EU solutions would need to be considered as first options,\u201d by European buyers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If U.S. products were purchased by multiple EU states, they should cooperate to \u201cachieve better terms and, where needed, European specifications of U.S. defense products, including local production and support, freedom of action rights, customization\u201d and intellectual property rights, the report said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European Union must find new ways of jolting its collective defense industry, a new report in Brussels urges.<\/p>\n","protected":false},"author":7,"featured_media":118847,"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-67663","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":"JHAKOSOWKVG3RHNVB6O42WHX5A","arc_canonical_url":"\/global\/europe\/2024\/09\/10\/eu-told-to-hire-defense-commissioner-to-compete-with-us\/","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>EU told to hire defense industry commissioner to compete with US - Defense News<\/title>\n<meta name=\"description\" content=\"The European Union must find new ways of jolting its collective defense industry, a new report in Brussels urges.\" \/>\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=\"EU told to hire defense industry commissioner to compete with US\" \/>\n<meta property=\"og:description\" content=\"The European Union must find new ways of jolting its collective defense industry, a new report in Brussels urges.\" \/>\n<meta property=\"og:url\" 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