European defence procurement
Encyclopedia
European defence procurement refers to the collective armaments purchasing policies of European nations.
Traditionally European countries have either developed their own weapon systems or bought 'off the shelf' systems usually NATO-sponsored from the United States
or from the Soviet Union
, now from Russia
. In the modern era, reduced defence budgets and increasing complexity make it difficult for most countries to develop their own weapon systems. Furthermore, identical projects in differing countries were recognised as a waste of resources. However the same countries often do not wish to purchase American systems because of the perception of a loss of sovereignty and the profits (and jobs) going to American companies.
Therefore some European nations are attempting to pool their resources to create multinational programmes to create a more independent and competitive capability. The European Defence Agency
was established in 2004 to create such a stronger European market for defence equipment. The practice remains controversial, however, with several projects, such as the Horizon class frigate
and common anglo-french aircraft carrier, resulting in setbacks or failure. Eurofighter and A400M have also been criticised as over-priced and under-performing, while it has been stated that the primary purpose of some of these projects is to further the political agenda of EU integration rather than to meet military requirements.
is the latest in a line of joint aircraft projects between the Western European powers. Previously the United Kingdom
, Germany
and Italy
had cooperated in producing the Panavia Tornado
in the 1970s, and the UK and France
had cooperated in producing the SEPECAT Jaguar
. The Eurocopter Tiger
is developed by France and Germany and was also bought by Spain. Franco-Italian naval projects include the Horizon class frigate
s and FREMM multipurpose frigate
s.
European countries also purchase a great deal of hardware from the US, and many former Eastern bloc countries have a great deal of legacy equipment produced by the USSR and other Warsaw Pact regimes.
was widely expected to merge with Germany
’s DASA
to form the first major European defence giant. Instead in 1999 BAe merged with another British company, GEC's defence businesses (GEC-Marconi), to form BAE Systems
which has tended to focus on the Anglo-American market. As a result, in 2000, DASA merged with Aerospatiale-Matra
to form EADS
. Further consolidation of the smaller defence firms cannot be ruled out.
In 2002 the formation of MBDA
brought together the product portfolios of Aerospatiale Matra Missiles (of EADS), Alenia Marconi Systems
missiles, and Matra BAe Dynamics
to form Europe's No. 1 missile manufacturer and No. 2 globally after Raytheon
.
Other major players include
This implies "one or more of the following":
This may also be attributable to the shorter production runs purely European projects are able to sustain.
There are several examples where one country continues to pursue purely national programmes because collaboration would be unacceptable or undesirable. For example both the UK and France continue to develop and operate independent nuclear deterrent. Likewise France's desire for military and industrial independence has motivated its continued pursuit of high-technology projects, e.g. Dassault Rafale
.
Multinational programmes can fail because of disagreements about price or capability. For example while the UK terminated its collaboration with France and Italy on the next generation frigate (Horizon CNGF) and started a national Type 45
programme. However the warships will share some systems, primarily the MBDA Aster
missile.
Former British Prime Minister Tony Blair
came under pressure from President Bill Clinton
to select Raytheon's future missile to arm the Eurofighter, however the UK government selected the European Meteor air to air missile. The Meteor could be deemed riskier, however the Meteor armed Typhoon will not be subject to U.S. export controls and MBDA now has a missile product with no real competition from American manufacturers.
Likewise European governments were actively dissuaded by the US Department of Defence
from continuing the A400M project, the Pentagon argued that the Lockheed C-130J and Boeing C-17 provided all the capability European governments needed and were already flying. The DOD also argued that to spend limited budgetary resources on such duplication was foolish. The previous generation American fighter plane (F-16) was widely sold throughout Europe.
into the defence procurement
. It is administered by the EDA and under its scope are contracts under Article 346 of TFEU, of at least €1 million and with the exclusions of weapons of mass destruction
, cryptographic equipment and other procurements.
As of 2009 the code is adopted by Norway
and all EDA members except Romania, who may join later.
Traditionally European countries have either developed their own weapon systems or bought 'off the shelf' systems usually NATO-sponsored from the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
or from the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
, now from Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
. In the modern era, reduced defence budgets and increasing complexity make it difficult for most countries to develop their own weapon systems. Furthermore, identical projects in differing countries were recognised as a waste of resources. However the same countries often do not wish to purchase American systems because of the perception of a loss of sovereignty and the profits (and jobs) going to American companies.
Therefore some European nations are attempting to pool their resources to create multinational programmes to create a more independent and competitive capability. The European Defence Agency
European Defence Agency
The European Defence Agency is an agency of the European Union based in Brussels. It is a Common Foreign and Security Policy body set up on 12 July 2004, reporting to the Council of the European Union. All EU member states, except Denmark which has an opt-out of the CFSP, take part in the agency...
was established in 2004 to create such a stronger European market for defence equipment. The practice remains controversial, however, with several projects, such as the Horizon class frigate
Horizon class frigate
The Horizon Common New Generation Frigate is a multi-national collaboration to produce a new generation of anti-air warfare frigates. Originally an alliance of Britain, France and Italy, the project is now a French/Italian effort following the withdrawal of Britain due to differing requirements...
and common anglo-french aircraft carrier, resulting in setbacks or failure. Eurofighter and A400M have also been criticised as over-priced and under-performing, while it has been stated that the primary purpose of some of these projects is to further the political agenda of EU integration rather than to meet military requirements.
History
The Eurofighter TyphoonEurofighter Typhoon
The Eurofighter Typhoon is a twin-engine, canard-delta wing, multirole combat aircraft, designed and built by a consortium of three companies: EADS, Alenia Aeronautica and BAE Systems; working through a holding company, Eurofighter GmbH, which was formed in 1986...
is the latest in a line of joint aircraft projects between the Western European powers. Previously the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
had cooperated in producing the Panavia Tornado
Panavia Tornado
The Panavia Tornado is a family of twin-engine, variable-sweep wing combat aircraft, which was jointly developed and manufactured by the United Kingdom, West Germany and Italy...
in the 1970s, and the UK and France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
had cooperated in producing the SEPECAT Jaguar
SEPECAT Jaguar
The SEPECAT Jaguar is an Anglo-French jet ground attack aircraft, originally used by the British Royal Air Force and the French Armée de l'Air in the close air support and nuclear strike role, and still in service with several export customers, notably the Indian Air Force and the Royal Air Force...
. The Eurocopter Tiger
Eurocopter Tiger
The Eurocopter Tiger is an attack helicopter manufactured by Eurocopter. In Germany it is known as the Tiger; in France and Spain it is called the Tigre.-Origins:...
is developed by France and Germany and was also bought by Spain. Franco-Italian naval projects include the Horizon class frigate
Horizon class frigate
The Horizon Common New Generation Frigate is a multi-national collaboration to produce a new generation of anti-air warfare frigates. Originally an alliance of Britain, France and Italy, the project is now a French/Italian effort following the withdrawal of Britain due to differing requirements...
s and FREMM multipurpose frigate
FREMM multipurpose frigate
The FREMM Multipurpose Frigate is a ship designed by DCNS/Armaris and Fincantieri to operate in anti-air, anti-submarine and anti-ship warfare, and be capable of carrying out deep strikes against land targets.The French Navy plans to operate eleven FREMM frigates, and the Marina...
s.
European countries also purchase a great deal of hardware from the US, and many former Eastern bloc countries have a great deal of legacy equipment produced by the USSR and other Warsaw Pact regimes.
Industry
While European defence budgets remain fragmented and massive duplication in research and development exists, the European defence industry has made some moves towards consolidation. British AerospaceBritish Aerospace
British Aerospace plc was a UK aircraft, munitions and defence-systems manufacturer. Its head office was in the Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire...
was widely expected to merge with Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
’s DASA
DASA
DaimlerChrysler Aerospace AG, or DASA, was the former aerospace subsidiary of Daimler-Benz AG from 1989...
to form the first major European defence giant. Instead in 1999 BAe merged with another British company, GEC's defence businesses (GEC-Marconi), to form BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
which has tended to focus on the Anglo-American market. As a result, in 2000, DASA merged with Aerospatiale-Matra
Aérospatiale-Matra
Aérospatiale-Matra was a French missile and aircraft manufacturer. It was formed in 1999 by the merger of French companies Aérospatiale and Matra Haute Technologie....
to form EADS
EADS
The European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
. Further consolidation of the smaller defence firms cannot be ruled out.
In 2002 the formation of MBDA
MBDA
MBDA is a missile developer and manufacturer with operations in France, Britain, Germany, Italy, and the United States. It was formed by a merger of Aérospatiale-Matra Missiles , Finmeccanica and Matra BAe Dynamics in December 2001. In 2003 the company had 10,000 employees...
brought together the product portfolios of Aerospatiale Matra Missiles (of EADS), Alenia Marconi Systems
Alenia Marconi Systems
Alenia Marconi Systems was a major European integrated defence electronics company and an equal shares joint venture between BAE Systems and Finmeccanica until its dissolution on May 3, 2005....
missiles, and Matra BAe Dynamics
Matra BAe Dynamics
Matra BAe Dynamics was formed in August 1996 by merger of half the missile business of Matra Defense of France and BAe Dynamics of the UK and was Europe's largest manufacturer of missiles and UAVs....
to form Europe's No. 1 missile manufacturer and No. 2 globally after Raytheon
Raytheon
Raytheon Company is a major American defense contractor and industrial corporation with core manufacturing concentrations in weapons and military and commercial electronics. It was previously involved in corporate and special-mission aircraft until early 2007...
.
Other major players include
- AgustaWestlandAgustaWestlandAgustaWestland is an Anglo-Italian helicopter design and manufacturing company. It was formed in July 2000 when Finmeccanica S.p.A. and GKN plc agreed to merge their respective helicopter subsidiaries to form AgustaWestland with Finmeccanica and GKN each holding a 50% share.AgustaWestland is now a...
- BAE SystemsBAE SystemsBAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
- Dassault AviationDassault AviationDassault Aviation is a French aircraft manufacturer of military, regional and business jets, a subsidiary of Dassault Group.It was founded in 1930 by Marcel Bloch as Société des Avions Marcel Bloch or "MB". After World War II, Marcel Bloch changed his name to Marcel Dassault, and the name of the...
- DCNS
- Diehl BGT DefenceDiehl BGT DefenceDiehl BGT Defence GmbH & Ko KG is a German arms manufacturer and a subsidiary of the Diehl Stiftung GmbH with headquarters in Überlingen. Diehl BGT Defence produces mainly missiles and ammunition....
- Eurocopter
- Eurofighter International
- Finmeccanica
- Kongsberg Defence & AerospaceKongsberg Defence & AerospaceKongsberg Defence & Aerospace , one of two operating companies of Kongsberg Gruppen of Norway, is a supplier of defence and space related systems and products, mainly anti-ship missiles, military communications, and command and weapons control systems for naval vessels and air-defence applications...
- Krauss-MaffeiKrauss-MaffeiThe Krauss-Maffei Wegmann GmbH & Co KG or simply Krauss-Maffei is an injection molding machine manufacturer and defence company based in Munich, Germany...
- MBDAMBDAMBDA is a missile developer and manufacturer with operations in France, Britain, Germany, Italy, and the United States. It was formed by a merger of Aérospatiale-Matra Missiles , Finmeccanica and Matra BAe Dynamics in December 2001. In 2003 the company had 10,000 employees...
- NexterNexterNexter is a French government-owned weapons manufacturer.-Products:...
- Patria (company)Patria (company)Patria is a Finnish company which produces a wide range of defence, aviation and aerospace technology. It carries on the firearms tradition of Valtion Kivääritehdas and the aerospace tradition of Valtion lentokonetehdas.-Patria Aviation:* NH90* Mini-UAVs...
- RheinmetallRheinmetallRheinmetall AG is a German automotive and defence company with factories in Düsseldorf, Kassel and Unterlüß. The company has a long tradition of making guns and artillery pieces...
- Rolls-RoyceRolls-Royce plcRolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...
- Saab Bofors DynamicsSaab Bofors DynamicsSaab Bofors Dynamics, located in Karlskoga and Linköping, Sweden, is a subsidiary of Saab AB that specializes in military materiel such as missile systems and anti-tank systems....
- Thales GroupThales GroupThe Thales Group is a French electronics company delivering information systems and services for the aerospace, defense, transportation and security markets...
- ThyssenKrupp Marine SystemsThyssenKrupp Marine SystemsThyssenKrupp Marine Systems of Germany is a group and holding company of providers of naval vessels, surface ships and submarines...
- EADSEADSThe European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
R&D
European defence companies do not efficiently capitalise on R&D compared with the rest of the world. For every €1 spent on R&D, European firms made about €16 on sales. US companies made €30 on sales per €1 spent on R&D and companies elsewhere made about €44 on sales per €1 on R&D.This implies "one or more of the following":
- European companies believe that more R&D spending will result in greater long-run returns
- Face tax codes that favour spending on R&D rather than maximising profit
- Less pressure to earn a return
- Believe higher R&D will allow them to catch up to other companies
- Don't develop commercially viable products from R&D spending
This may also be attributable to the shorter production runs purely European projects are able to sustain.
Products
Below are some examples of European products and the previously used weapons they may replace.- A400M – replacing C-130 and Franco/German Transall
- MeteorMBDA MeteorMeteor is an active radar guided beyond-visual-range air-to-air missile being developed by MBDA. It is to equip the Eurofighter Typhoons of the UK's Royal Air Force , Germany's Luftwaffe, Spain's Ejército del Aire and Italy's Aeronautica Militare Italiana, the British and Italian F-35s , the...
– replacing AMRAAM as long-range AAMAir-to-air missileAn air-to-air missile is a missile fired from an aircraft for the purpose of destroying another aircraft. AAMs are typically powered by one or more rocket motors, usually solid fuelled but sometimes liquid fuelled... - ASRAAM and IRIS-TIRIS-TThe IRIS-T is a German-led program to develop a short-range air-to-air missile to replace the venerable AIM-9 Sidewinder found in some of the NATO member countries...
– replacing AIM-9 SidewinderAIM-9 SidewinderThe AIM-9 Sidewinder is a heat-seeking, short-range, air-to-air missile carried mostly by fighter aircraft and recently, certain gunship helicopters. The missile entered service with United States Air Force in the early 1950s, and variants and upgrades remain in active service with many air forces...
as short-range AAM - Eurofighter TyphoonEurofighter TyphoonThe Eurofighter Typhoon is a twin-engine, canard-delta wing, multirole combat aircraft, designed and built by a consortium of three companies: EADS, Alenia Aeronautica and BAE Systems; working through a holding company, Eurofighter GmbH, which was formed in 1986...
– replacing F-4 Phantom II, F-16s, Mirage F-1, Tornado F.3 - Eurocopter TigerEurocopter TigerThe Eurocopter Tiger is an attack helicopter manufactured by Eurocopter. In Germany it is known as the Tiger; in France and Spain it is called the Tigre.-Origins:...
– for France, Germany and Spain - EH101AgustaWestland EH101The AgustaWestland AW101 is a medium-lift helicopter for military applications but also marketed for civil use. The helicopter was developed as a joint venture between Westland Helicopters in the UK and Agusta in Italy...
& NH90 – largely replacing European helicopters - PzH 2000PzH 2000The Panzerhaubitze 2000 , abbreviated PzH 2000, is a German 155 mm self-propelled howitzer developed by Krauss-Maffei Wegmann and Rheinmetall for the German Army. The PzH 2000 is one of the most powerful conventional artillery systems currently deployed...
– replacing M109 PaladinM109 howitzerThe M109 is an American-made self-propelled 155 mm howitzer, first introduced in the early 1960s. It was upgraded a number of times to today's M109A6 Paladin... - ATF DingoATF DingoThe ATF Dingo is a German heavily armored military infantry mobility vehicle based on a Unimog chassis with a V-hull design, produced by the company Krauss-Maffei Wegmann . It is designed to withstand land mines, rifle fire, artillery fragments and NBC-threats. ATF stands for...
- FennekFennekThe Fennek, named after the fennec , or LGS Fennek, with LGS being short for Leichter Gepanzerter Spähwagen in German , is a four wheeled armed reconnaissance vehicle produced by the German company Krauss-Maffei Wegmann and Dutch Defence Vehicle Systems...
- GTK BoxerBoxer MRAVThe Boxer is a German-Dutch multirole armoured fighting vehicle designed to accomplish a number of operations through the use of installable mission modules. It is produced by the ARTEC GmbH industrial group, and the programme is being managed by OCCAR...
- Horizon class frigateHorizon class frigateThe Horizon Common New Generation Frigate is a multi-national collaboration to produce a new generation of anti-air warfare frigates. Originally an alliance of Britain, France and Italy, the project is now a French/Italian effort following the withdrawal of Britain due to differing requirements...
and FREMM multipurpose frigateFREMM multipurpose frigateThe FREMM Multipurpose Frigate is a ship designed by DCNS/Armaris and Fincantieri to operate in anti-air, anti-submarine and anti-ship warfare, and be capable of carrying out deep strikes against land targets.The French Navy plans to operate eleven FREMM frigates, and the Marina...
both for the French and Italian navies - Type 212Type 212 submarineThe German Type 212 class, also Italian Todaro class, is a highly advanced design of non-nuclear submarine developed by Howaldtswerke-Deutsche Werft AG and Fincantieri S.p.a. for the German and Italian Navy. It features diesel propulsion and an additional air-independent propulsion system using...
submarine, equipping the German and Italian navies.
There are several examples where one country continues to pursue purely national programmes because collaboration would be unacceptable or undesirable. For example both the UK and France continue to develop and operate independent nuclear deterrent. Likewise France's desire for military and industrial independence has motivated its continued pursuit of high-technology projects, e.g. Dassault Rafale
Dassault Rafale
The Dassault Rafale is a French twin-engine delta-wing multi-role jet fighter aircraft designed and built by Dassault Aviation. Introduced in 2000, the Rafale is being produced both for land-based use with the French Air Force and for carrier-based operations with the French Navy...
.
Multinational programmes can fail because of disagreements about price or capability. For example while the UK terminated its collaboration with France and Italy on the next generation frigate (Horizon CNGF) and started a national Type 45
Type 45 destroyer
The United Kingdom's Type 45 destroyer is an air defence destroyer programme of the Royal Navy which will replace its Type 42 destroyers. The first ship in the class, HMS Daring, was launched on 1 February 2006 and commissioned on 23 July 2009. The ships are now built by BAE Systems Surface Ships...
programme. However the warships will share some systems, primarily the MBDA Aster
MBDA Aster
Aster is a family of surface-to-air missiles manufactured by Eurosam, a European consortium consisting of MBDA France, MBDA Italy and the Thales Group .-Overview:The Aster family was developed to perform three distinct missions:...
missile.
Former British Prime Minister Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...
came under pressure from President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
to select Raytheon's future missile to arm the Eurofighter, however the UK government selected the European Meteor air to air missile. The Meteor could be deemed riskier, however the Meteor armed Typhoon will not be subject to U.S. export controls and MBDA now has a missile product with no real competition from American manufacturers.
Likewise European governments were actively dissuaded by the US Department of Defence
United States Department of Defense
The United States Department of Defense is the U.S...
from continuing the A400M project, the Pentagon argued that the Lockheed C-130J and Boeing C-17 provided all the capability European governments needed and were already flying. The DOD also argued that to spend limited budgetary resources on such duplication was foolish. The previous generation American fighter plane (F-16) was widely sold throughout Europe.
Code of Conduct on Defence Procurement
The European Union has adopted a code of conduct with the objective to inject transparency and competitionCompetition (economics)
Competition in economics is a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy goods and services...
into the defence procurement
Government procurement
Government procurement, also called public tendering or public procurement, is the procurement of goods and services on behalf of a public authority, such as a government agency...
. It is administered by the EDA and under its scope are contracts under Article 346 of TFEU, of at least €1 million and with the exclusions of weapons of mass destruction
Weapons of mass destruction
A weapon of mass destruction is a weapon that can kill and bring significant harm to a large number of humans and/or cause great damage to man-made structures , natural structures , or the biosphere in general...
, cryptographic equipment and other procurements.
As of 2009 the code is adopted by Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
and all EDA members except Romania, who may join later.
External links
- European Defence (UK NGO)
- The British Library - finding information on the defence industry (PDF file)
- Towards a European Defence Market, Edited by Daniel Keohane, Chaillot Paper No. 113, November 2008, European Union Institute for Security StudiesEuropean Union Institute for Security StudiesThe European Union Institute for Security Studies is a Paris-based EU agency of the Common Foreign and Security Policy . Its goals are to find a common security culture for the EU, to help develop and project the CFSP, and to enrich Europe’s strategic debate.The EUISS is an autonomous agency with...