EU defense firms seek access to funds amid rising threats from Putin

A draft report prepared by former Italian Prime Minister Mario Draghi emphasizes the urgent need for a comprehensive reevaluation of European defense policy in light of ongoing threats from Russia, particularly following its invasion of Ukraine. The report highlights that European defense firms face significant challenges, including limited public spending and a reliance on international suppliers, primarily from the U.S. This situation has hindered the EU's ability to compete globally in defense capabilities. To address these issues, the report advocates for full access to EU funding for defense companies and suggests that mergers should not be obstructed by competition concerns. It proposes the introduction of a 'European preference principle' to prioritize local defense solutions and calls for a centralized 'Defence Industry Authority' to streamline procurement processes across EU member states. The draft also points out that the EU spends only about one-third of what the U.S. allocates for defense, which is a significant disadvantage. It stresses the importance of coordinated procurement among EU countries to enhance the defense industrial base's capacity and technological edge. The report aims to provide a roadmap for European industry to regain its competitive advantage on the global stage. Draghi is set to present this report in a high-level meeting at the European Parliament, with plans for publication in mid-September. The recommendations aim to bolster the EU's defense capabilities and ensure that European firms can effectively respond to the evolving security landscape.