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Europe's Ailing Defense Industry Faces a Reckoning as Russia Threat Looms

Europe's Ailing Defense Industry Faces a Reckoning as Russia Threat Looms

Bloomberg14-02-2025

A remotely controlled aircraft armed with the latest tactical missiles hovers near Europe's borders with Russia, scanning the landscape for potential targets. Its stealth and artificial intelligence embody a vision of self-reliant European defense — one that doesn't lean on US firepower.
At least, that's the idea. In reality, the Future Combat Air System — including the Eurodrone and a next-generation fighter jet — have become symbols of European defense dysfunction. While Russia has fully transitioned to a war economy, Europe's projects remain bogged down by infighting. France wants a lightweight Eurodrone for African missions; Germany insists on a second engine for safer patrols over Berlin and Munich. The disputes have caused delays, and the system may not be operational until well into the 2040s.

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Europe frets about US retreating from region ahead of NATO
Europe frets about US retreating from region ahead of NATO

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Europe frets about US retreating from region ahead of NATO

With some 80,000 US troops in Europe, governments in the region have factored in at least a reversal of the military surge under former president Joe Biden of about 20,000 troops. The stakes got significantly higher overnight after the U.S. struck nuclear sites in Iran with the risk that Trump will get sucked into a spiraling conflict in the Middle East after being a vocal critic of US military involvement overseas. His foreign policy U-turn will be a topic that will be hard to avoid at the gathering, especially with NATO ally Turkey present and a key stakeholder in the region. Europeans have been kept in the dark about the Trump administration's plans. But officials in the region are bracing potentially for a far bigger withdrawal that could present a dangerous security risk, according to officials familiar with the discussions who declined to be identified as closed-door talks take place before the review. Advertisement Up until early June, no official from the United States had come to NATO to talk about the US force posture review, spurring concern among allies that this could be done at very short notice, according to a person familiar with the matter. Advertisement It's unclear whether European nations have started planning to fill any potential gaps left by US forces. Withdrawing the aforementioned 20,000 troops could also have an even greater impact if other NATO allies follow the US lead and remove their troops from the east. The worry with even deeper cuts impacting US bases in Germany and Italy is they could encourage Russia to test NATO's Article 5 of collective defense with hybrid attacks across the alliance, the person familiar also said. Since returning to the White House, Trump and his allies have warned European capitals that – despite the mounting threat from Russia – they need to take charge of their security as the United States turns its military and diplomatic focus to the Indo-Pacific region. Contacted by Bloomberg, NATO declined to respond to questions but referred to a statement by NATO Secretary General Mark Rutte in early June. When asked about a US drawdown from Europe, he said it was normal they would pivot to Asia. 'I'm not worried about that, but I'm absolutely convinced we will do that in a step-by-step approach,' Rutte said then. 'There will be no capability gaps in Europe because of this.' The White House referred questions to the Pentagon. 'The U.S. constantly evaluates force posture to ensure it aligns with America's strategic interests,' a defense official responded. The geopolitical shift is likely to have enormous consequences for the 32-member alliance, which is weathering its greatest challenge since it became the bulwark against Soviet power in the decades after World War II. European militaries, long reliant on American hard power, will have to fill the gap as Washington scales back. Advertisement If a troop reduction focuses on efficiency, it would be far less problematic for Europeans than one that hits critical assets and personnel that Europe couldn't replace immediately, according to one European diplomat. The nature of a withdrawal would be more important than the troop numbers, the person said. A dramatic pullout announcement is likely to trigger an instant reaction from eastern member states, with those closer to Russia immediately requesting deployments from Western European allies. The holistic review of the US military, which Defense Secretary Pete Hegseth says should focus on threats facing the U.S., is meant to reflect the tilt in the global power dynamic, bringing potentially large-scale redeployment of weapons and troops. But European diplomats have bristled at the timing of the review, taking place only after NATO signs off on its most ambitious new weapons targets since the Cold War — with member states agreeing to foot the bill. A withdrawal that is more dramatic than anticipated will mean that, after acceding to Trump's ramp-up in defense spending, they still may be left with a heavy burden to respond to a rapidly growing Russian military. 'We would be remiss in not reviewing force posture everywhere, but it would be the wrong planning assumption to say, 'America is abandoning'' or leaving Europe, Hegseth said in Stuttgart in February. 'No, America is smart to observe, plan, prioritize and project power to deter conflict.' After the Trump administration balked at providing a backstop to European security guarantees to Ukraine, a pullout of more US troops could embolden Russia's Vladimir Putin, according to people familiar with the matter. Advertisement 'The question is when pressure is on for a greater focus on the Indo-Pacific, what capabilities do they need to think about moving,' said Matthew Savill, director of military sciences at RUSI, a defense think tank. 'I don't get an impression that they have yet decided what that means for force levels in specific terms.' Germany, Europe's richest and most populous nation, is positioning itself to take on the largest share of the redistribution. Defense Minister Boris Pistorius is taking the lead in building out the military after the country scrapped constitutional debt restrictions when it comes to security. Berlin will do the 'heavy lifting,' he's said. Pistorius recently unveiled a new battle tank brigade in Lithuania and has said the country is committed to boosting its armed forces by as many as 60,000 soldiers. The military currently has about 182,000 active-duty troops. European governments are pushing Washington to communicate its plans clearly and space out any troop draw-downs to give them time to step up with their own forces. 'There are some capabilities, like deep precision strikes, where we Europeans need some time to catch up,' said Stefan Schulz, a senior official in the German Defense Ministry. He called for any US reduction to be done in an orderly fashion, 'so that this process of US reduction is matched with the uplift of European capabilities.' The ideal scenario would be an orderly shift within NATO toward a stronger Europe that would take about a decade, said Camille Grand, distinguished policy fellow at the European Council on Foreign Relations and a former NATO assistant secretary general. A more dire scenario would involve a US administration acting out of frustration with European progress and drastically reducing troop presence. Grand said a 'plausible' scenario would be a cut to about 65,000 US troops, matching a low-point figure before Russia's annexation of Crimea in 2014 — a level that NATO could manage. Advertisement 'But if we go below that, we are entering uncharted waters, a different world,' Grand said.

Europe is finally ready to spend more on defense. The hard part is how.
Europe is finally ready to spend more on defense. The hard part is how.

Boston Globe

timean hour ago

  • Boston Globe

Europe is finally ready to spend more on defense. The hard part is how.

Advertisement This is a 'global reset,' Lieutenant General Sean Clancy, the new chief of the European Union's military committee, said at a security conference in Brussels this month. But 'we haven't even defined what the transition looks like.' Money, though, is far from the only issue Europe confronts now that it has reluctantly accepted the reality that it must be able to protect itself without help from the United States. Formidable political, strategic, and regulatory hurdles remain. EU leaders must maintain public support for common military spending and joint weapons procurement, even as right-wing nationalist sentiments oppose giving the bloc more power. And the farther from the Russian border, the less urgent the threat feels. Poland, for instance, is already spending nearly 5 percent of its gross domestic product on defense while Spain dedicated just 1.3 percent last year. 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'Today 80 percent of targets in Ukraine are destroyed by drones,' said Andrius Kubilius, European Commissioner for defense and space. 'Every two months, there is a need for radical innovation of the drones in operation.' In recognition, the British Defense Ministry announced this month a startling overhaul of its warfighting approach, moving away from the Cold War-era focus on heavy armor and mechanized infantry. Under the plan, 80 percent of combat capability will rely on remote-controlled, reusable ground vehicles and drones as well as missiles, shells, and self-destructing drones. The EU has also taken steps to revise its strategy. In March, the 27 member nations issued a blueprint for combat readiness by 2030. Last month, the EU created a 150 billion euro (about $173 billion) program allowing joint investments in security. (Twenty-three countries are members of both the EU and NATO.) Advertisement But higgledy-piggledy rules and practices still hamper efforts to rapidly turn Europe's fragmented defenses into a unified and efficient fighting force. Joint financing is more the exception than the rule. Red tape, lack of coordination, and slow decision-making across the continent are causing delays, supply shortages, waste, and duplication, according to political and industry leaders. Overall strategy and standards are set by NATO commanders, but military budgets, specifications, quality control, export licenses, purchasing, and planning are handled by individual nations. The result is that a German-made component going into a French-made plane needs a separate export certification that can delay delivery by months. And though 12 European countries use NH90 helicopters, there are 17 versions, said Camille Grand, a former senior NATO official who leads defense studies at the European Council on Foreign Relations. Europe is also looking to decrease its dependence on American weaponry. The share of military equipment supplied to the European members of NATO by the United States has grown to nearly two-thirds, from about half less than a decade ago, according to a report by the Stockholm International Peace Research Institute. Europe has put a priority on investment in its own defense industry and is looking to make its supply chains for key materials, like gunpowder, more resilient. 'There is an adjustment in terms of the business model for the European defense industry,' Grand said, as it shifts to standardized mass production. That, he said, will require more consolidation to create economies of scale and joint procurement. Industry leaders, meanwhile, complain that they cannot invest in expanded production and research without more direction from government officials. Advertisement 'The political machinery is slow,' said Jan Pie, secretary-general of ASD, a trade group that represents 4,000 companies across Europe. 'So it's difficult to scale up.' Environmental approvals needed before a new weapons factory may be built can take up to five years, Pie said. He said that despite the talk about the need for urgency, the defense industry was not given priority in times of shortages. Nammo, a Norwegian ammunitions manufacturer that supplies Ukraine, for instance, was unable to ramp up production in 2023 because a nearby TikTok data center had already bought up the region's surplus electricity. As economies slow across Europe, budget battles are expected to continue to soak up the spotlight. It's doubtful that some countries will ever reach the 5 percent target. Still, as far as funding goes, Europe has turned a corner, several European leaders and military experts said. 'There's a lot of discussion about numbers, percentages, financing,' Nadia Calviño, president of the European Investment Bank, the EU's lending arm, said in Brussels recently. 'But I want to be very clear: Europe is a rich continent, and we can mobilize the necessary financing.' This article originally appeared in

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Remember, there are many targets left.' He promised that if Iran did not relent, he would go after them 'with precision, speed and skill.' Advertisement In essence, Trump was threatening to broaden his military partnership with Israel, which has spent the last eight days systematically targeting Iran's top military and nuclear leadership, killing them in their beds, their laboratories and their bunkers. The United States initially separated itself from that operation. In the Trump administration's first public statement about those strikes, Rubio emphasized that Israel took 'unilateral action against Iran,' adding that the United States was 'not involved.' But then, a few days ago, Trump mused on his social media platform about the ability of the United States to kill Iran's 86-year-old supreme leader, Ayatollah Ali Khamenei, anytime he wanted. And Saturday night, he made clear that the United States was all in, and that contrary to Rubio's statement, the country was now deeply involved. Now, having set back Iran's enrichment capability, Trump is clearly hoping that he can seize on a remarkable moment of weakness -- the weakness that allowed the American B-2 bombers to fly in and out of Iranian territory with little resistance. After Israel's fierce retaliation for the Oct. 7, 2023, terror attacks that killed over 1,000 Israeli civilians, Iran is suddenly bereft of its proxies, Hamas and Hezbollah. Its closest ally, Syria's Bashar Assad, had to flee the country. And Russia and China, which formed a partnership of convenience with Iran, were nowhere to be seen after Israel attacked the country. That left only the nuclear program as Iran's ultimate defense. It was always more than just a scientific project -- it was the symbol of Iranian resistance to the West, and the core of the leadership's plan to hold on to power. Advertisement Along with the repression of dissent, the program had become the ultimate means of defense for the inheritors of the Iranian revolution that began in 1979. If the taking of 52 American hostages was Iran's way of standing up to a far larger, far more powerful adversary in 1979, the nuclear program has been the symbol of resistance for the last two decades. One day historians may well draw a line from those images of blindfolded Americans, who were held for 444 days, to the dropping of GBU-57 bunker-busting bombs on the mountainous redoubt called Fordo. They will likely ask whether the United States, its allies or the Iranians themselves could have played this differently. And they will almost certainly ask whether Trump's gamble paid off. His critics in Congress were already questioning his approach. Sen. 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