13 août 2018 | International, Aérospatial, Naval, Terrestre, C4ISR

EU defense ambitions trickle down to industry, but is it good for business?


BRUSSELS — After two decades in which spending was often cut or stagnant, Europe is gearing up to spend big on defense.

European Union nations, now unfettered by Britain's decision to leave the organization, have achieved a 70-year-old ambition to integrate their defenses, launching a pact among 25 EU governments to jointly fund, develop and deploy armed forces. The pact, called Permanent Structured Cooperation, or PESCO, is meant as a show of unity and a tangible step in EU integration, particularly after Brexit.

Earlier this year, Brussels also launched a major incentive for EU member states to cooperate on military procurement with a European Defence Fund, or EDF, worth €5 billion (U.S. $5.8 billion) per year, the first time the EU has put serious money on the table for this purpose.

The EU has already approved one aspect of the fund, the European Defence Industrial Development Programme, or EDIDP, intended to foster cross-border cooperation between companies.

But this huge upsurge in EU defense efforts begs the question: Are these various initiatives doing anything to bolster Europe's defense industry?

Full Article: https://www.defensenews.com/top-100/2018/08/09/eu-defense-ambitions-trickle-down-to-industry-but-is-it-good-for-business/

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