Photo. Catherine Vautrin / X
The European Commission plans to allocate 134 billion euros to the defence and space sectors between 2028 and 2034. France is keen to ensure that these funds are directed exclusively to the European industry. However, not everyone in Europe shares this approach.
The European Union budget is not intended to finance purchases such as American Patriot air defence systems or 5th-generation F-35 multi-role aircraft – this is the view of the French, specifically a group comprising French entities and foreign companies cooperating with the local sector. This refers to companies such as MBDA, Dassault Aviation, Naval Group, and KNDS. According to information provided by “La Lettre”, these companies have successfully persuaded the ASD Europe organisation to officially advocate for a mechanism allowing the European Commission to grant funds exclusively to entities originating from the Old Continent.
French resistance
However, the indicated agreement does not mean that the European Commission will actually adopt such a strategy for the years 2028-2034. Ten other countries, including Germany, are opting against the exclusion of non-European industry (primarily American) in the European Council. A final resolution on this matter is expected in November.
French resistance is understandable for several reasons. One of these is the Rafale fighter jet, which competes with the American F-35. Preventing the use of EU funds to purchase 5th-generation aircraft from the USA would pave the way for better sales of the French design, eliminating a formidable competitor from EU funding. Other arguments also support allocating European Commission money solely to the European industry. Paris points to United States policy, delays in deliveries of American equipment (including precision ammunition and missiles for the Patriot system), and Washington’s pivot towards the Indo-Pacific and the Western Hemisphere. There are also practical considerations: larger orders in Europe could strengthen the regional arms industry and increase equipment standardisation.
Europe is rebuilding its industry
The French concept is not without its flaws. It does not take into account the state in which the European industry has been for years (and largely remains). For a long time, the Old Continent collected a “peace dividend” and reduced production capacities, believing in the “end of history”. Vladimir Putin’s aggressive policy has proven that war is once again a realistic scenario. In the wake of the full-scale invasion of Ukraine, Europe realised it must rebuild its arms industry. This is already happening, but it will be years before supply catches up with demand. For this reason, some European countries, most notably Poland, have begun to focus on markets previously overlooked in Europe – mainly deliveries from the Republic of Korea.
The article also highlights the lower capabilities of some European systems. The Aster 30 missile for the SAMP/T system is cited as an example and compared with the American Patriot, which demonstrates higher effectiveness in intercepting enemy targets.
“Proponents of funding European production respond that without orders and money, the local industry will not increase the supply of equipment and ammunition. The problem is that waiting for this effect may slow down the pace of rearming the military and raise fears that states will be left without the necessary weapons at the worst possible moment”, reads “La Lettre”.