The moment that Europe is experiencing in terms of Security and Defense, although very difficult, is, therefore, demanding and challenging. Europe has to organize its Defense dimension, which necessarily includes a rearmament objective. In this context, Defense Economics assumes great relevance.
This reflection aims to list a set of essential conditions and principles for better structuring a Defense Economy on a European scale.
First of all, it is necessary to note that the main guides of the Defense Economy are, on the one hand, the military requirements in terms of capabilities understood as necessary and, on the other hand, the possibilities of the Defense Industries, added by those who can equally contribute to it. In other words, the possibilities found in the Defense Technological and Industrial Base (BTID).
The good identification of military requirements must result from adequate strategic planning, which includes competent Defense planning.
In the context of the European Union (EU) and for the purposes of European Defense, a European BTID corresponds to the sum, but, above all, to the good articulation of the BTIDs of the 27 Member States.
If a possible European Defense organization includes States that are not members of the EU, the respective BTIDs must also be considered.
The main challenge for the Defense Economy is to be able to result from the combined and compatible integration of the intentions and capabilities of three types of actors. Firstly the Administration and, within it, the Armed Forces; then the Academy and the bodies that make up the Scientific and Technological System; finally Industry, in particular the Defense sector. Surprisingly, interested actors are not always aware of the need and advantage of this triple articulation.
Among others, it is worth highlighting two criteria. The permanent search for a high technological standard and the desire to take the search for solutions that materialize dual use (military and civil) as far as possible. This search should not only focus on complete equipment, but also include technology.
Today, a multitude of financial instruments and support mechanisms are available in Europe, and in particular in the EU. Naturally, it would be good if these many instruments and mechanisms were more unified. Whatever the situation, it is essential that the rules of these instruments and mechanisms are well known and practiced.
The good structuring of the European Defense Economy recommends a harmonious combination of the large business groups that exist in Europe (the so-called “European champions”) with the universe of Small and Medium Enterprises (SMEs) and startups. The first, typical of the most robust States, correspond to greater industrial and financial capabilities. The latter, typical of less robust States, correspond, as a rule, to more pronounced innovation and, often, more advanced technology.
The harmonious combination mentioned above, which is justified by criteria specific to the Defense Economy, can contribute to strengthening the unity and cohesion of the EU.
One conclusion that can be drawn is that positive technological interaction is much more relevant than geography for the identification and formation of possible clusters. To be more explicit, clusters so-called regional solutions are not the only solution, nor, by definition, the best solution.
With everything going very well, even so and for a long time (a decade?), European rearmament will not dispense with acquisitions in foreign markets. For obvious reasons, the Chinese and Russian markets are excluded from this demand. The Brazilian, Indian, South Korean and Japanese markets, if possible, will not be able to meet many of European needs. The conclusion is that during this time, which is still insufficiency, Europe will be “forced” to look for the North American market. In addition to its intrinsic importance, this circumstance has significant political implications.
The European rearmament process must be oriented with priority towards overcoming the capabilities in which Europe currently has a particular limitation and a consequent dependence, namely on NATO and, in particular, on the USA.
Another fundamental aspect has to do with correcting the fragmentation that currently exists in Europe in terms of military equipment and weapons. This arises from the eminently national character that has prevailed in European Defense.
What exists are 27 States with their own, non-standardized organizations and structures regarding Defense. States whose weapons systems and military equipment are distinct from each other. In some cases of national manufacture.
The problem of interoperability and logistics that this raises is evident, but in addition, it is also clear that this does not correspond to the best management of existing resources, especially if considered for the whole of Europe.
Recent analyzes show that in terms of major conventional weapons systems, the US has 33 systems and EU Europe has 179.
This partially explains why, for the same volume of resources invested, the European operational product is clearly smaller than the North American one. This statement is unquestionable. Slightly abstract studies, insofar as they try to compare very different realities in their structure and organization, suggest that the European operational product is 15% to 40% smaller than the North American one.
In terms of the future and if there is political will, this situation could be resolved. But in the present and, at least, in the medium term, it will be advisable to draw up a plan that can enable a good and as fast as possible transition from the fragmented situation that exists today, to a future situation conceived from an overall perspective. The fact that, at present, European states that manufacture weapons and equipment compete with each other on the international market will make this exercise difficult.
The most basic conclusion is that, in an area marked by national interests of various types, a strong, broad and determined political will will be necessary to overcome the difficulties that exist today for the full development of a European Defense Economy, a condition sine qua non of a European Defense.
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