Make Europe competitive again
Kristoffer Saetre Reading time 4 min
“We need to spend more, spend better, spend together” (Ursula Von der Leyen POLITICAL GUIDELINES 2024−2029). For the first time ever, the EU will publish a White Paper on European Defence. Tailored to European investment needs, this Paper promises a response to the EU’s challenges at its borders and in Ukraine. Not surprisingly, the defence industry and Academia have already issued their viewpoints. This begs the question: what can we expect from this Paper and how do national defence policies fit within an integrated defence of Europe?
What to improve?
Diving right into the specifics, this upcoming Paper builds on the European defence industrial strategy (EDIS), which has already highlighted the need to reinforce the EU’s defence readiness and competitiveness. To this end, three goals were proposed to be included in the White Paper.
First, Member States (MS) must rebuild and replenish their national armed forces. Years of underfunding and neglect have left Europe’s military capabilities in a sub-optimal state. Now, it is time to act and respond to the Russian aggression on the Eastern borders of the EU.
Second, Europe must invest in its defence industry. This will not only boost armaments production but also strengthen industrial competitiveness and, in turn, the internal market. If Europe intends to keep up with the industrial superpowers in the East and in the West, states must invest more than double the funds granted through the Marshall plan in the 1950s according to the Draghi Report.
Thirdly, the Council must launch defence projects of common European interest, in cooperation with NATO. In other words, the European Defence Union must come alive through Common Security and Defence Policy (CSDP) measures. Cooperation with NATO will strengthen ties to the US and counteract criticisms on the lack of Europe's willingness to defend itself.
In sum, the White Paper should capture this ‘window of opportunity’ to enhance European defence. Europe’s strategic vision combined with action on spending could advance its goal to fend off external pressure while also retaining its competitiveness.
External Opinions
Industrial considerations, such as ASD, have followed the same line, suggesting to ‘identify investment needs’ to strengthen any weak points within European defence capabilities based on joint investments. Europe should prepare itself for the most extreme military contingencies and therefore invest in its defence industry to fall back on a strong, competitive economy. Defence companies went as far as to propose a central European Authority to enforce industrial standards and criteria, in other words, integrate the defence industrial sector within a European-level framework. Lastly, the White Paper should improve existing defence-specific instruments like the European Defence Fund and remove trade obstacles to promote the Europeanisation of defence supply chains.
In comparison, opinions such as that from the Foundation Robert Schuman were more reserved. According to the Foundation, the White Paper must take into account Member State’s reservations that an integrated European defence might lead to a reduction in their freedom of action and initiative. Furthermore, the foundation underlined NATO’s exclusivity on defence. According to its experts, the Paper should not undermine this exclusivity but rather focus on the economic part of defence policy. Most notably, the perspective of Citizens must also be addressed to afford a sense of security and to create a European identity for defence.
The vital link between Brussels and the Member States
From all these opinions and suggestions, we can see what role the White Paper on European Defence must fill and we can sense the pressure officials feel when drafting. Economic and security goals must be combined but limited so as not to encroach on the competencies of NATO. So let’s see what two national White Papers on defence have to say.
The Netherlands has committed to consistently spend 2% of the GDP on national defence. Considering the criticism from US President Donald Trump, this investment should demonstrate their undoubted trust in NATO and its partners. Moreover, their policy White Paper outlines three goals through three key words:
Strength in military personnel and weapons
Smart in investment and innovation (such as the F-35 program)
Together in their treaty obligations in NATO and the EU
To link these goals to the upcoming European White Paper, the Dutch example underlines that the European Union must work seamlessly together and thereby show resilience. NATO and the EU must collaborate to respond to the Russian military pressure and Chinese economic hegemony.
Now let’s turn to Austria, a member state in the heart of Europe. Its neutral position within the EU and outside of NATO has shifted since the Russian Invasion of Ukraine. The participation in Initiatives such as European Sky Shield, a defence pack to establish a ground-based integrated European air defence system, has proven that the constitutional commitment (Article 9a) to remain neutral in any conflict is at the very least broadened. This change of perspective is likewise visible in their Security Strategy. Austrian defence policy aligns itself closely with EU objectives. As Austria is not a member of NATO, the EU constitutes its primary security framework. That is why its government has called on the EU to take more responsibility for its security and defence and to utilize its CSDP measures. Moreover, Austria advocates the use of existing EU instruments, such as the European Peace Facility.
To bring all these suggestions together, the White Paper on European defence must fill numerous roles. From outlining the proper investment strategies to supporting Member States in their task to rearm and work together with NATO, one can see how recent developments in international security have had an impact on the minds of government officials. While industrial opinions call for a focus on a strengthened economy, academics want a clear view of the role of Member States’ defence. Here, Member States, especially the Netherlands and Austria, support the roles of the EU in defence. In total, Europe must take charge and take responsibility by investing in the defence sector and by opposing all external and internal threats. It will be intriguing to see how the White Paper incorporates all these interests. Once it is published, another blog post will keep you up to date. So stay tuned to hear all about European Defence!
