The European Union's reliance on foreign defense equipment, particularly from the United States, is alarmingly high, with nearly two-thirds of their military purchases being imported, a recent report on EU competitiveness reveals.
This dependence is indicative of a broader issue within the 27-member bloc, which is failing to adequately invest in joint military projects and develop its own defense industry.
According to Newsweek, the report, penned by former Italian Prime Minister and European Central Bank President Mario Draghi, underscores the EU's inadequate expenditure on research and development for defense. The report states, "Europe is squandering its collective resources. We have significant spending power, but we dilute it across multiple national and EU initiatives." It urges a significant revamp of the bloc's industrial strategy to fortify the European defense sector.
This report's release coincides with the EU's struggle to supply sufficient weapons and ammunition to Ukraine, which is embroiled in a conflict with Russia now in its third year. The report adds, "We are not joining forces in the defense industry to help our companies integrate and scale," pointing out the lack of support for competitive European defense companies.
Between mid-2022 and mid-2023, U.S. companies were awarded 63% of all EU defense contracts, with an additional 15% going to non-EU suppliers. The recent purchase of U.S.-made F-35 fighter jets by the Netherlands, an EU member, further underscores the bloc's ongoing reliance on American suppliers.
In 2022, the collective defense R & D expenditure of EU nations was a paltry 10.7 billion ($11.8 billion), accounting for just 4.5% of total defense spending. This pales in comparison to the U.S., which invested $140 billion, approximately 16% of its total defense budget, highlighting Europe's lag in defense modernization.
The annexation of Crimea by Russia in 2014 spurred NATO allies, most of whom are EU members, to increase their defense spending, aiming to reach a target of 2% of GDP. U.S. leaders, including former President Donald Trump, have urged Europe to boost its defense spending. NATO now projects that 23 of its 32 members will meet the 2% target by the end of 2024, a significant increase from just three in 2014.
The report also emphasizes that NATO allies should allocate at least 20% of their defense budgets to new equipment and R & D. While joint defense projects like the A-330 Multi-Role Tanker Transport are hailed as successes, the logistical chaos resulting from supplying Ukraine with 10 different types of howitzers underscores the inefficiencies of fragmented procurement.
The Draghi report's findings are anticipated to ignite reforms in the EU's defense strategy. As global threats escalate, the bloc is compelled to strengthen its defense autonomy, a move that aligns with conservative values of self-reliance and limited dependence on foreign entities.
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