The European arms industry is struggling to align with global dynamics. Between dependence on imports and long production times, it is struggling to convert the increase in military budgets into significant growth. As geopolitical tensions intensify, whether in Ukraine, Gaza or the China Sea, this structural slowness threatens the strategic autonomy of the European Union.
Europe: worrying stagnation despite increasing budgets
European military budgets have seen an impressive increase of 31% since 2021, reaching 326 billion euros in 2024. However, the 27 European manufacturers in the world's top 100 military producers are recording almost non-existent growth, with only 0.2% increase in 2023. At issue: the complexity of the weapons systems produced on the continent. This sophisticated equipment, such as fighter planes and advanced defense systems, requires long manufacturing times and limits responsiveness to significant demand.
Despite efforts like those of the French group Nexter, which drastically reduced its production times for the Caesar cannon, the industry is struggling to catch up with its much more agile international competitors.
Although Europe invests massively in its defense, it remains dependent on foreign arms. In 2023, 78% of the European Union's military acquisitions were made outside its borders, including 63% from the United States..
Diego De Ojeda Garcia Pardo, head of the unit in charge of coordinating defense and security policy in Brussels, sums up this weakness: “ We have neither the money, nor the stocks, nor the production capacitiesn. » This dependence exposes Europe to risks, particularly in the event of a supply disruption.
Competitors, drivers of global growth
While Europe stagnates, other regions are making strides. In the United States, of course, the 41 manufacturers in the top 100 recorded growth of 2.5%, with revenues peaking at $317 billion in 2023. In Asia, the performances are even more impressive and particularly… in South Korea! South Korean companies, supported by major contracts with Poland in particular, saw their revenues jump 39%, reaching $11 billion.
Faced with this alarming situation, the European Union is planning measures. Ursula von der Leyen, President of the European Commission, announced the drafting of a white paper on defense, with a budget estimated at 500 billion euros. This plan aims to strengthen production capacities and reduce dependence on imports.
However, will these initiatives be enough to revive an industry that seems trapped by its own inertia? In an increasingly unstable world, Europe has no choice but to transform its promises into concrete actions.
