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March 11, 2020 | International, Land

Here’s what’s behind France’s 72% jump in weapons exports

By: Christina Mackenzie

PARIS – France's spectacular 72 percent jump in weapons' exports in the 2015-2019 period from five years prior is largely thanks to two companies: Dassault Aviation and Naval Group.

The first of those companies sold Rafale fighters to Egypt, India and Qatar, while the second has become the most successful exporter of warships in the world — if one includes orders — selling submarines to Brazil and India, frigates to Malaysia and the United Arab Emirates, and mine-sweepers to Belgium and the Netherlands.

A report released on March 9 by the Stockholm International Peace Research Institute notes that “French arms exports reached their highest level for any five-year period since 1990 and accounted for 7.9 percent of total global arms exports in 2015-19.”

Diego Lopes Da Silva, a SIPRI researcher adds: “The French arms industry has benefited from the demand for arms in Egypt [which accounted for 26 percent of France's defense exports], Qatar and India [14 percent each].”

Both politicians and defense industry leaders in France have understood that without exports they cannot afford to provide France's own armed forces with the most innovative and high-performing weapons. Furthermore, buying weapons from the United States brings red tape, including requirement for congressional authorization on all foreign military sales, which can delay the process and some argue shackle France's sovereignty.

In the words of Hervé Guillou, the out-going CEO of Naval Group, “no European country can maintain the competitivity of its defense industry based on just its own domestic market.”

https://www.defensenews.com/global/europe/2020/03/10/heres-whats-behind-frances-72-jump-in-weapons-exports/

On the same subject

  • Fincantieri, Naval Group dub their joint venture ‘Naviris’

    November 1, 2019 | International, Naval

    Fincantieri, Naval Group dub their joint venture ‘Naviris’

    By: Tom Kington ROME – Italy's Fincantieri and France's Naval Group announced the name of their new naval joint venture will be ‘Naviris' on Wednesday, the day after Fincantieri lashed out at reports that its takeover of French ship yard Chantiers de l'Atlantique faces EU anti-trust opposition. The new name for the JV was announced after a quarterly steering committee meeting of the 50-50 alliance, which was launched in June and is set to be incorporated by year's end. The two state-controlled shipbuilding firms aim to use the joint venture to build and market naval vessels, as well share supply chains, research and testing. As part of the deal, France is using an Italian design for its new logistics vessel, while the two yards will work together on upgrading the Horizon frigates jointly built by Italy and France and operated by both countries. There are also plans for the JV to work on a new European Patrol Corvette. The two yards have promoted the JV as a way to create synergies in Europe's fractured naval industry to allow it to compete globally, and it came on the heels of Fincantieri's takeover of France's Chantiers de l'Atlantique shipyard — a deal which will allow the two yards to share work on cruise ships. This month the drive for more synergy appeared be bearing fruit when Fincantieri said that it would be building forward sections for the new French logistics ships. The four vessels, part of the FLOTLOG (Flotte logistique) program, which are based on the Italian Vulcano design, are being built by a temporary consortium between Chantiers de l'Atlantique and Naval Group. Fincantieri said it would build the sections at its Castellammare di Stabia shipyard in southern Italy, with deliveries to Chantiers de l'Atlantique, which it controls, scheduled between 2021 and 2027. The only potential hitch to the cross-border cooperation is the European Union, which is studying the Fincantieri takeover of Chantiers de l'Atlantique for anti-trust violations, and has yet to give a green light. On Tuesday Fincantieri attacked press reports suggesting the anti-trust probe had been extended, claiming it “strongly disapproves of such rumors, which have also negatively affected its share price today.” In a statement, Fincantieri said that if the rumors were true, it would “firmly” disapprove of such a decision by the EU. The company challenged reports that the deal would cut the number of cruise ship builders in Europe to two, claiming the real number would be three. Correction: This story was updated on Nov. 1 to correct the name of the new joint venture. https://www.defensenews.com/global/europe/2019/10/31/fincantieri-naval-group-dub-their-joint-venture-navaris

  • Democrats face internal ‘fight’ on defense spending, says Smith

    October 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    Democrats face internal ‘fight’ on defense spending, says Smith

    Joe Gould WASHINGTON ― The Democratic split over the size of future defense budgets will come to a head in the new Congress, the chairman of the House Armed Services Committee, Rep. Adam Smith, D-Wash., predicted Tuesday. The outcome of the long-simmering dispute would take on higher stakes if some pre-election polling becomes a reality and Democrats retake Congress and the White House. Though President Donald Trump and his supporters claim the Democratic Party has been hijacked by the far left, Smith's remarks suggest the party's future direction, at least on defense spending, is not yet settled. Instead of slashing next year's $740 billion defense budget, as some progressives want, Smith is pushing, “a rational Democratic, progressive national security strategy,” as he called it. That stance seems to align Smith with his party's pragmatic standard-bearer, Joe Biden, who's said he doesn't foresee major defense cuts, if elected. “I don't think that rational policy involves 20 percent defense cut, but that fight is going to be had,” Smith said at an event hosted by George Mason University. “There are extremists on the right and extremists on the left, and what I'm trying to do is say, ‘Let's go for pragmatic problem solving.' I don't see extremism solving problems.” If Democrats are swept into power Nov. 3, it will be by voters opposed to President Donald Trump from across the political spectrum, Smith said. To hold on that mandate, Democrats would need to govern with a broad coalition and not overreach from the left on issues like defense. “Okay, we can win an election because people are appalled by Donald Trump,” Smith said, “but that doesn't mean that they're endorsing us in any sort of huge, dramatic way.” After the House passed an early version of last year's defense policy bill without Republicans aboard, negotiations to reconcile it with theWhite House and GOP-held Senate dragged for months before a compromise bill passed Congress with progressive priorities stripped from it, leaving them dissatisfied. This year, many of the progressives' priorities were deflected from the House's version of the bill, and it passed the chamber with support from more than half of Republicans and more than two-thirds of Democrats. Military spending remains popular with most Republicans, and they largely opposed progressive amendments in the House and Senate this summer to slash the authorization bill by 10 percent. HASC member Rep. Liz Cheney, R-Wyo., called the House amendment, “a deeply irresponsible stunt.” Biden and congressional Democrats are already under pressure from progressives like Sen. Bernie Sanders, I-Vt., who have been part of a campaign to direct spending away from the military in favor of healthcare, education and jobs. Massive spending on national security, they say, didn't protect the country from COVID-19. “You have a progressive movement in the party now that is really motivated and mobilized around foreign policy and national security issues, and that's not going away,” Matt Duss, a Sanders foreign policy aide, told Defense News last month. “That is something a President Biden will have to work with, and I think his team understands that.” As both Biden, Trump and lawmakers of both parties have called for the U.S. to extricate itself from the Mideast and end the “endless wars” in Iraq and Afghanistan, Smith said it's important to educate a war-weary American people about why it's unwise to retreat from the world stage ― marked by hotspots in Libya, Syria and West Africa. “We've got to make the case to them: ‘Here's why the defense budget is what it is, here's why we're trying to accomplish what we're trying to accomplish, and here's why it's in your best interest,'” Smith said. “And we're going to be very aggressive about having public hearings and public discussions to listen to people, to listen to those concerns and try to address them.” The Pentagon's five-year defense plan indicates it will request flat defense spending after 2021, and ― amid pandemic-related expenses and historic deficits ― the budget is widely expected to stay flat regardless of who is president. Smith pretty much echoed that view Tuesday. “I think the reasonable assumption is yeah, the defense budget is going to be flat for a while ― and there is no reason on Earth in my view that we cannot defend the United States of America for $700 to $740 billion,” Smith said. “So I think the better question, the question to focus on, is how do we get more out of it?” On that one, Smith echoed some ideas from his committee's bipartisan Future of Defense Task Force. Its report emphasized the need, in order to compete with a surging China, to divest from some legacy programs and heavily invest in artificial intelligence, among other potentially game-changing technologies. Citing a spate of acquisition failures, Smith said Washington has to work with its defense contractors “about how we spend our money and the results we get for that money.” He also acknowledged the need to protect key contractors stressed by the pandemic's economic impacts and strengthen the industrial base overall. Smith defended the Pentagon's allocation of hundreds of millions of dollars in pandemic relief funding for items like jet and submarine parts instead of increasing the country's supply of medical equipment. The remarks seemed to set him at odds with liberals like Sen. Elizabeth Warren, D-Mass., and Rep. Ro Khanna, D-Calif., who have asked the Defense inspector general to look into the department's “reported misuse” of funds. The Democrat-led House Oversight and Reform Committee, Financial Services Committee, and select subcommittee on the coronavirus crisis are conducting a joint investigation. “Three committees in Congress are now investigating this, and I'm not one of them because there's nothing to investigate here, in my view,” Smith said. “This was part of the CARES Act: We gave a billion dollars to DoD to deal with COVID-related expenses. Very specifically, it said one of the COVID related expenses you could deal with was the defense industrial base, which they did. And now we're chewing on them for doing that.” Smith said the Pentagon did “nothing illegal,” but he suggested it's reasonable to explore whether DoD balanced the money it received appropriately and whether its payments to large contractors are flowing to smaller, more vulnerable firms, as they should. “I think it is important to make sure we keep the industrial base going,” Smith said, “but there's going to be pressure on that [decision].” https://www.defensenews.com/congress/2020/10/07/democrats-face-internal-fight-on-defense-spending-says-smith/

  • Pentagon is rethinking its multibillion-dollar relationship with U.S. defense contractors to boost supply chain security

    August 14, 2018 | International, Aerospace, Naval, Land, C4ISR

    Pentagon is rethinking its multibillion-dollar relationship with U.S. defense contractors to boost supply chain security

    By Ellen Nakashima The Pentagon has a new goal aimed at protecting its $100 billion supply chain from foreign theft and sabotage: to base its weapons contract awards on security assessments — not just cost and performance — a move that would mark a fundamental shift in department culture. The goal, based on a strategy called Deliver Uncompromised, comes as U.S. defense firms are increasingly vulnerable to data breaches, a risk highlighted earlier this year by China's alleged theft of sensitive information related to undersea warfare, and the Pentagon's decision last year to ban software made by the Russian firm Kaspersky Lab. On Monday, President Trump signed into a law a provision that would bar the federal government from buying equipment from Chinese telecommunications firms Huawei and ZTE Corp., a measure spurred by lawmakers' concerns about Chinese espionage. “The department is examining ways to designate security as a metric within the acquisition process,” Maj. Audricia Harris, a Pentagon spokeswoman, said in a statement. “Determinations [currently] are based on cost, schedule and performance. The department's goal is to elevate security to be on par with cost, schedule and performance.” The strategy was written by Mitre Corp., a nonprofit company that runs federally funded research centers, and the firm released a copy of its reportMonday. “The major goal is to move our suppliers, the defense industrial base and the rest of the private sector who contribute to the supply chain, beyond a posture of compliance — to owning the problem with us,” said Chris Nissen, director of asymmetric-threat response at Mitre. Harris said the Pentagon will review Mitre's recommendations before proceeding. She added that the Department of Defense, working with Congress and industry, “is already advancing to elevate security within the supply chain.” Testifying to Congress in June, Kari Bingen, the Pentagon's deputy undersecretary for intelligence, said: “We must have confidence that industry is delivering capabilities, technologies and weapon systems that are uncompromised by our adversaries, secure from cradle to grave.” Security should be seen not as a “cost burden,” she told the House Armed Services Committee, “but as a major factor in their competitiveness for U.S. government business.” The new strategy is necessary, officials say, because U.S. adversaries can degrade the military's battlefield and technological advantage by using “blended operations” — hacking and stealing valuable data, manipulating software to sabotage command and control systems or cause weapons to fail, and potentially inducing a defense firm employee to insert a faulty component or chip into a system. “A modern aircraft may have more than 10 million lines of code,” Mitre's report said. “Combat systems of all types increasingly employ sensors, actuators and software-activated control devices.” The term “Deliver Uncompromised” grew out of a 2010 meeting of senior counterintelligence policy officials, some of whom lamented that the Defense Department was tolerating contractors repeatedly delivering compromised capabilities to the Pentagon and the intelligence community. Addressing the security issue requires greater participation by counterintelligence agencies, which can detect threats against defense firms, the report said, and ideally, the government should establish a National Supply Chain Intelligence Center to monitor threats and issue warnings to all government agencies. Ultimately, the military's senior leaders bear responsibility for securing the supply chain and must be held accountable for it, the report said. The Defense Department, although one of the world's largest equipment purchasers, cannot control all parts of the supplier base. Nonetheless, it has influence over the companies it contracts with as it is the principal source of business for thousands of companies. It can shape behavior through its contracts to enhance supply-chain security, the report said. Legislation will be needed to provide incentives to defense and other private-sector companies to boost security, Mitre said. Congress should pass laws that shield firms from being sued if they share information about their vulnerabilities that could help protect other firms against cyberattacks; or if they are hacked by a foreign adversary despite using advanced cybersecurity technologies, the report said. Contractors should be given incentives such as tax breaks to embrace supply chain security, the report suggested. The Department of Homeland Security is addressing the security of the information technology supply chain through its newly established National Risk Management Center. “What we're saying is you should be looking at what vendors are doing to shore up their cybersecurity practices to protect the supply chain,” said Christopher Krebs, DHS undersecretary for the National Protection and Programs Directorate. The National Counterintelligence and Security Center, an agency of the Office of the Director of National Intelligence that coordinates the government's counterintelligence strategy, said in a report last month that software-supply-chain infiltration has already threatened critical infrastructure and is poised to endanger other sectors. According to the NCSC, last year “represented a watershed in the reporting of software supply chain” attacks. There were “numerous events involving hackers targeting software supply chains with back doors for cyber espionage, organizational disruption or demonstrable financial impact,” the agency found. https://www.washingtonpost.com/world/national-security/the-pentagon-is-rethinking-its-multibillion-dollar-relationship-with-us-defense-contractors-to-stress-supply-chain-security/2018/08/12/31d63a06-9a79-11e8-b60b-1c897f17e185_story.html?noredirect=on&utm_term=.265ce85b6eb1

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