{"id":9293,"date":"2025-06-20T17:04:54","date_gmt":"2025-06-20T15:04:54","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=9293"},"modified":"2025-06-20T17:04:54","modified_gmt":"2025-06-20T15:04:54","slug":"the-defense-washington-sells-us","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2025\/06\/20\/the-defense-washington-sells-us\/","title":{"rendered":"The Defense Washington Sells Us"},"content":{"rendered":"

Europe dreams of a rearmament made in the EU and claims it is ready to spend \u20ac800 billion over four years to realize the program. But reality tells a very different story: weak integration among weapons systems and commands of various states, technological dependence on the United States, and national interests that sometimes conflict with one another. The European Sky Shield project\u2014the future missile defense shield intended to protect the continent\u2019s skies\u2014makes all the contradictions of the EU\u2019s military industry abundantly clear. The obstacles to European defense are not just technological\u2014those could be overcome\u2014but above all political: national self-interest. A journey through numbers, political choices, and economic paradoxes to understand why Europe, even if it wanted to, still cannot truly defend itself on its own.<\/em><\/p>\n

 <\/p>\n

The nascent common European defense struggles to materialize for three reasons. First, states have little incentive to share or purchase military technology from other EU countries. Second, the lack of a true single defense market and the fragmentation into a multitude of national markets in which states act simultaneously as suppliers and clients. Third, dependence on the United States for certain key technologies.<\/p>\n

Air Defense Doesn\u2019t Unite Everyone<\/strong><\/h3>\n

If there is one project that embodies all these paradoxes of European defense, it is the European Sky Shield. This is a European missile defense shield in development to counter airborne threats, promoted by Germany and now involving twenty-one member states\u2014including the entire eastern NATO axis, the Netherlands, Turkey, and the United Kingdom. But some conspicuous absences stand out: France and Italy. These two countries never joined the alliance, criticizing the shield\u2019s excessive reliance on non-European weapon systems. Indeed, the European Sky Shield includes Israeli (Arrow 3), American (Patriot), and German (Iris-T) missile systems. Left out, however, is the only pan-European system theoretically capable of countering all aerial threats: the Samp-T, produced by an Italian-French consortium.<\/p>\n

There is no doubt that Europe suffers from a serious shortfall in air defense\u2014one of its most fragile sectors, as noted in the EU Defense White Paper. According to leaks from NATO officials, the alliance\u2019s eastern front possesses only 5% of the necessary air defense capacity. That is why the missile shield\u2019s proponents insist on quickly adopting the most advanced available technology, even if it comes from non-European countries. The Samp-T system has proven effective in Ukraine (where it was donated), but it cannot match the supply chain reliability of its Israeli and American counterparts. Since its market release in 2010, Samp-T has only been purchased by its producing countries’ armed forces and Singapore. Patriot systems, on the other hand, are used by 18 armies\u2014including much of the Atlantic Alliance\u2014making it unlikely that these anti-aircraft batteries will run out of missiles, as happened with the Samp-T in Ukraine.<\/p>\n

Only one company can supply the Samp-T\u2019s missiles: MBDA, a pan-European consortium owned by France, Germany, the UK, and Italy. It has reduced delivery times from three years to two, yet the situation remains critical. MBDA suffers from the rigidities of a company bound by delicate shareholder balances. As The Financial Times<\/em> reported, a missile crosses the border between France and Italy multiple times before delivery\u2014whereas more efficient production would involve completing all work in a single facility.<\/p>\n

By contrast, Lockheed Martin\u2014the American company that develops the Patriot system\u2014can guarantee a completely different production scale. In 2024, it produced 500 missiles in the U.S., with a goal of reaching 650 by 2027. Additional factories are already operating in Japan and will soon open in Germany, where the American firm will manufacture 1,000 missiles ordered to support the European Sky Shield. It now seems certain that the European shield will be largely equipped with non-European technology.<\/p>\n

The Sectors Where Dependence on the U.S. Is Strongest<\/strong><\/h3>\n

The contradictions and limitations of missile systems are not an isolated case. Europe\u2019s defense industry suffers from technological dependence on the U.S. in several key areas: anti-submarine warfare aircraft, in-flight refueling tankers, high-altitude long-endurance drones, long-range air defense systems, low-orbit satellites, and multiple rocket launcher systems.<\/p>\n

According to the International Institute for Strategic Studies, over half of the 2,000 fighter jets in the European NATO arsenal are American-made. This dependency is only expected to grow in the near future, due to Europe\u2019s inability to develop stealth technology\u2014that is, the ability to make aircraft nearly invisible to enemy radar. This is precisely the advantage of the American F-35, which is expected to be deployed in over 500 units across European fleets by 2030.<\/p>\n

Looking ahead, hopes rest on two competing European sixth-generation fighter jet programs: GCAP (involving Italy, the UK, and Japan) and FCAS (Germany, France, and Spain). But these won\u2019t be ready before 2030\u20132035.<\/p>\n

In heavy transport aircraft\u2014crucial for moving vehicles, troops, and supplies\u2014Europe also lags behind. The Airbus A400 carries only half the payload of the Boeing C-17. Europe is also behind in surveillance aircraft, essential for detecting threats on land, sea, and air: the only non-American alternative is the Swedish Saab radar plane, which offers only half the range of the Boeing model.<\/p>\n

Another area where Europe struggles to match American capabilities is rocket artillery, which proved vital in the Ukraine war. The only European producer is Turkish, and it currently supplies no NATO allies. As a result, new purchases driven by the EU\u2019s Readiness 2030 plan will inevitably benefit non-European producers: Latvia, Lithuania, Estonia, Italy, and Germany have all ordered rocket launchers from Lockheed Martin\u2014which will build a factory in Germany with defense giant Rheinmetall\u2014while Poland bought nearly 300 units from South Korea.<\/p>\n

And then there are ballistic missiles\u2014a technology Europe has largely ceased to develop, with the exception of France, which uses them for its nuclear deterrent. The UK even relies on the U.S. for the intercontinental missiles on its nuclear submarines. Generally speaking, Europe lacks the capacity to produce missiles with a range greater than 500 kilometers, making the continent intrinsically dependent on the U.S. for deterrence against Russia. To address this vulnerability, France, Germany, Italy, and Poland have launched the European Long-Range Strike Approach, aimed at developing a long-range cruise missile by 2030\u2014one that flies close to the ground and can change trajectory, rather than following the ballistic arc. Advancing European missile capability could also benefit space technology, helping Europe catch up to SpaceX for both civilian and military applications.<\/p>\n

There are, however, sectors in which Europe\u2019s defense industry remains autonomous\u2014and even world-leading. This includes shipbuilding and armored vehicles. Regarding the latter, after years of hesitation, a Franco-German alliance to develop a next-generation tank was recently formalized.<\/p>\n

Why Europe Didn\u2019t Develop Its Own Defense<\/strong><\/h3>\n

Why has an industrial powerhouse like Europe failed to achieve autonomy in such sensitive military technologies?<\/p>\n

Thanks to the strength of the transatlantic alliance, some capabilities were long delegated to the U.S. without much concern. Moreover, the U.S. military is constantly engaged in global operations and thus demands more defense technology, whereas European allies mainly focus on deterrence and territorial defense. U.S. defense spending has long been more than twice that of Europe. More importantly, U.S. public investment in research and development dwarfs that of Europe: in 2023, EU countries spent just \u20ac15 billion on defense R&D, compared to nearly \u20ac130 billion by the Pentagon.<\/p>\n

\"\"<\/p>\n

Equally, if not more significant, are the structural features of the defense industry. Although higher than in Europe, U.S. military spending fell sharply after the Cold War\u2014from 5.3% of GDP in the early 1980s to 3.2% fifteen years later. Less money meant fewer contracts, opening the door to major consolidation: within 20 years, the number of main Pentagon contractors dropped from 51 to 5. This wave of mergers and acquisitions created large, stable firms better positioned to invest in R&D.<\/p>\n

In 2023, the top ten defense companies in the EU combined did not match the revenue of Lockheed Martin, the world\u2019s largest military firm. The only European company in the top ten is the UK\u2019s BAE Systems; the first EU-based firm, Airbus, ranks 13th. Airbus is one of the few truly pan-European companies, along with the aforementioned MBDA and the Franco-German KNDS, which have cross-national ownership. Most other defense firms are national and thus small by global standards. They are often state-owned or heavily state-dependent, meaning their goals go beyond efficiency and effectiveness\u2014they must also maintain domestic employment and protect national technological capabilities.<\/p>\n

The result is a tangle of sometimes conflicting interests and, above all, extraordinary fragmentation of European weapons systems. This drives up development, production, and maintenance costs\u2014and undermines Europe\u2019s overall military capability (see also the interview with Roberto Cingolani in the April issue of eco<\/em>).<\/p>\n

\"\"<\/p>\n

What National Self-Interest Costs Us<\/strong><\/h3>\n

Research by the Kiel Institute found that half of all weapons orders by the Bundeswehr\u2014the German armed forces\u2014between 2020 and 2024 went to German companies, a third to German firms partnering with foreign ones, and the remainder to non-European companies, mainly U.S.-based. Orders to other European firms made up less than 1%.<\/p>\n

What does this mean? According to the Bruegel think tank, a German Leopard 2 tank costs 66% more than an American Abrams. Producing a howitzer in Germany costs \u20ac11\u201317 million per unit, while equivalent U.S. and Russian models cost under \u20ac2 million. This is the price of Europe\u2019s poor economies of scale and lack of a true single defense market.<\/p>\n

This is the reality European rearmament plans must face. Of the \u20ac800 billion set to be mobilized over four years, only \u20ac150 billion would be spent on joint European projects via the \u201cSAFE\u201d community loans. The rest? Forecasts suggest that over half will go toward imports\u2014buying weapons Europe still cannot produce.<\/p>\n

 <\/p>\n

Lorenzo Borga is an economic journalist for Sky TG24 and a contributor to Il Foglio and ISPI.<\/em><\/p>\n

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