“European companies active in the defense sector need full access to EU money, as the threat of Russia “haunts” the Old Continent”, argued the former Prime Minister of Italy, Mario Draghi, as reported by a publication Politico.
According to Draghi’s draft competitiveness report, as Russia’s invasion of Ukraine continues to impact on European security, the continent’s defense companies should have full access to EU money, while mergers should not be prevented regardless of competition concerns.
According to the report, the former prime minister of Italy in his report emphasizes, among other things, that the looming threats should trigger an important review of the European defense policy.
The draft also makes reference to challenges facing the EU’s defense sector, including insufficient public spending – the EU as a whole it spends about a third as much as the US on defence, it is reported.
“The EU’s defense industrial base faces structural challenges in terms of capability, know-how and technological advantage. As a result, the EU is not keeping pace with its global competitors,” Draghi argued.
“European arms companies also operate in small domestic markets, while EU countries they are not coordinated in procurement and are 80% dependent on international suppliers mainly from the US,” Draghi also noted.
In fact, he is completing his long-awaited report for European Commission President Ursula von der Leyen, looking at how European industry can regain advantages on the world stage.
The recommendations include introducing a “European Preference Principle” to incentivize European defense solutions against competitors, defining a governance model between the Commission, the European External Action Service and the European Defense Agency, and finally creating a central “Defence Industry Authority” to provide centralized procurement on behalf of EU countries.
“The authority will be managed by the European Commission and co-chaired by the EEAS/head of the European Defense Agency and the Commission,” the document states. “It will be consulted by special groups made up of representatives of industry and EU member states,” he adds.
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