With 23 EU member states signing the agreement to increase investment in the EU defense market, the time for US defense manufacturers to expand into the European market is now. By establishing this Permanent Structured Cooperation (PESCO), the volume of investments in military technologies can be increased over the next couple of years.
EU Defense spending
The commitment was signed by the EU member states in Brussels about half a year ago, meaning the time pressure is on: the budget needs to be used. On an international scale this means the European decision making units are pressed to spend their budget, which creates a great opportunity for US organizations in this industry. In the past, the 2% GDP spending on defense that was set as a target by the NATO was often not maintained by the EU member states. This new commitment however pushes the states to invest more in the European defense market, finally getting closer to the targets that the US would like to see reached.
European Commission statement
As European Commission President Jean-Claude Juncker indicated, "For European defense to be strong, the European defense industry needs to innovate" The European Defense Fund helps to "turbo boost research and innovation". This will create space for the latest technologies, devices and industrial components to enter the market.
The eagerness to invest was further made clear when Juncker posed the following: "To guarantee our collective security, we must invest in the common development of technologies and equipment of strategic importance – from land, air, sea and space capabilities to cyber security. It requires more cooperation between Member States and greater pooling of national resources. If Europe does not take care of its own security, nobody else will do it for us. A strong, competitive and innovative defense industrial base is what will give us strategic autonomy."
Reach out to discuss your European expansion strategy
In short, there is a 1.5 billion euro pie to be divided and if you are a US organization looking to take the plunge, EuroDev can help you to hit the ground running. The immediate physical presence, market knowledge and network all assist in creating a successful business development environment. If you would like more information about the role EuroDev could play in your organization's success in the EU defense market, please feel free to contact Tim Vaesen, our VP Industrial.