DIIG Current Issues No. 15: Implications of European Defense Acquisition Reform

The European defense market is undergoing profound changes. Four distinct trends are altering the landscape of European defense acquisition, with some of them underscoring the shift of defense matters from national capitals towards the European Union (EU). First, participation in international operations is substantially affecting acquisition priorities. Second, change on the demand side expands the defense market to a broader range of companies, which are not traditional defense firms. Third, the EU is displaying a rejuvenated commitment to consolidate its fragmented defense market. Fourth, US efforts to reform export control regulations will considerably impact the supply decisions for European defense acquisition. A key question is how the combination of these trends will influence the transatlantic defense market and industry