Analysis-US defence firms chase European military spending wave
By Joe Brock, Giulia Segreti, Paul Sandle and Tim Hepher
PARIS (Reuters) -U.S. defence giants, backed by a strong Congressional delegation from Washington, used the Paris Airshow to showcase cutting-edge technologies and court European partners as they seek to tap into rising regional military spending.
Many European nations have pledged to significantly increase defence budgets in response to Russia's invasion of Ukraine and as U.S. President Donald Trump's administration has threatened to scale back military support for the region.
That tension has been notably absent at this week's Paris Airshow, where U.S. lawmakers and arms manufacturers pledged greater transatlantic partnership as Europe ramps up spending on everything from artillery shells and fighter jets to missile defence systems.
"We understand that our allies and partners are a force multiplier, so we are stronger when we are working together," U.S. Senator Jerry Moran, a member of Trump's Republican party, told reporters at the show, the world's largest aerospace and defence gathering.
Moran, whose delegation was supporting U.S. weapons makers, said it was in Paris to send a message that the U.S. "is a dependable and reliable partner".
The conciliatory tone stands in stark contrast to the Trump administration's recent string of disparaging remarks about Europe and its defence industry.
"I think antagonising our allies does not make us stronger," Democrat Senator Jeanne Shaheen told reporters in Paris, expressing her desire to cement defence relations with Europe.
RELIANCE ON U.S.
Despite pledges by many European nations to boost military self-sufficiency, the continent remains heavily reliant on U.S. defence manufacturers.
For instance, Europe buys American-made fighter jets and missiles from Lockheed Martin, Patriot missile defence systems from Raytheon Technologies and military jets and helicopters built by Boeing.
In emerging military areas, like artificial intelligence, drones and satellite constellations, U.S. tech firms like Anduril, Palantir and Elon Musk's SpaceX are far ahead.
U.S. firms are hoping to press home their advantage as European military spending surges, including through partnerships which are a way to soften any potential diplomatic tensions, delegates said.
U.S. drone-maker Anduril and German defence giant Rheinmetall said on Wednesday they will link up to build military drones for European markets, in a sign of Europe leveraging American technology to boost military capabilities.
Thomas Laliberty, president of Land & Air Defense Systems at Raytheon, said there were no easy replacements for its weapons in Europe and he expected the firm to maintain a long-term footprint on the continent, including through new partnerships.
Laliberty said Raytheon was close to announcing a plan to manufacture Stingers - a lightweight air defence missile used by Ukrainian forces against Russia - in Europe.
"For immediate needs, Raytheon is well positioned to support the European demand," Laliberty told reporters in Paris.
"We have a very bright future here."
Boeing, which won a contract from Trump's administration to develop the next-generation F-47 fighter jet this year, said Europe and the U.S. would remain long-term partners despite political wobbles, partly to hold off the Chinese threat.
"Nobody can do it themselves - maybe the Chinese can try, but certainly the rest of us, we are going to have to work together," said Turbo Sjogren, Boeing's general manager for government services.
"To do otherwise takes too long and will be unaffordable."
The chairman of Italian aerospace and defence group Leonardo, Stefano Pontecorvo, added that U.S. participation in some European programmes would be "unavoidable" in coming years due to the defence technologies available to them.
EUROPE TOO SLOW
European rivals were bullish about their future growth prospects but said budget constraints and a lack of regional alliances were holding back progress, conceding that they would continue to need significant U.S. support.
"National sovereignty matters but fragmentation is detrimental. We need to find a way to hit a balance," Leonardo CEO Roberto Cingolani told reporters on Tuesday.
Jean-Brice Dumont, head of air power, defence and space at Airbus, said Europe's dependence on the U.S. was "very high".
"Zero dependency on the U.S. I believe is a dream. We have a need for interoperability that drives some U.S. needs," said Dumont, whose firm makes the Eurofighter Typhoon fighter jet with Britain's BAE Systems and Italy's Leonardo, as well as Earth observation satellites and drones.
Italian Defence Minister Guido Crosetto said Europe had "too much bureaucracy" compared to the U.S. and needed to adapt to a new military era of faster, cheaper and more nimble technology.
"Either Europe adapts its industry to these new parameters - different from those with which it has lived until four years ago - or it will have huge competitors, and not only the American ones," he said.
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