European States Boost Defence Spending

Written by Manel Bernadó European states face a complicated winter. The tide seems to have changed in Ukraine, but the conflict is far from over. Energy prices keep rising and…

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Top100 Defence Companies and the European Industrial Base: Leonardo behind the EU wheel

Last August, the American website DefenseNews released its annual ranking featuring the top 100 defence companies for 2022. With $64,458.00 in revenues in 2021, the list is led by Lockheed Martin which, followed closely by four other American companies, ensures the top five in the United States. Raytheon Technologies has in fact earned $41,852.20 in revenues in 2021, followed by Boeing with $35,093.00. The ranking reports Northrop Grumman at the fourth position with $31,429.00 revenues, while General Dynamics is closing this block with $30,800.00 in 2021. China also proves to be a fundamental presence, covering several positions starting off the sixth place thanks to Aviation Industry Corporation ($30,155.22). The English BAE System secures the seventh position with $25,775.20. It opens the ranking for European companies, even if it is the Italian Leonardo (twelfth position) to lead the European Union market in this sector. Leonardo has performed exceptionally well in 2021, increasing its revenues by 24% since 2020 (from $13,878.35 to $11,173.33). The French Airbus has, on the contrary, slipped to the fifteenth position, registering a loss of 10% compared to the previous year.Previously, the Department of Defense (DoD) said it had allocated $1.77 million for the Open6G industrial-university cooperative. This initiative is part of the ambitious Innovate Beyond 5G program, overseen by the Under Secretary of Defense for Research and Engineering.

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BAE System’s CV90 MkIV to be the New IFV of the Czech Republic

On 20 July, the Ministry of Defence of the Czech Republic announced having chosen the CV90 MkIV by BAE Systems Hägglunds as its new Infantry Fighting Vehicle (IFV). The decision comes after the Czech Government cancelled the tender to acquire over 200 new infantry fighting vehicles after two of the three bidders dropped their proposals (Rheinmetall’s Lynx KF41 and GDELS’ ASCOD 42). The Czech Ministry of Defence will thus start negotiations with the Swedish Government to acquire CV90 vehicles. As indicated by Czech Defence Minister Jana Černochová, the participation of the Czech defence industry in their manufacturing will remain a high priority in the negotiation process.

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European Commission grants €1.2 billion to 61 Collaborative Defence Cooperation Projects under the European Defence Fund

On 20 July 2022, the European Commission announced that it would grant €1.2 billion to 61 collaborative defence research and development (R&D) projects under the European Defence Fund (EDF). The selected projects focus on a broad range of high-end defence capability development, from next-generation aircraft, ships and tanks to artificial intelligence and cyber capabilities, semiconductors and new materials, and quantum and other potentially disruptive technologies.

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The Rewriting of the EU’s Military Strategy

EU countries are bundling their defence forces in a new strategy. Negotiations for these plans began as early as 2020, and they have been tightened up considerably in recent months. This is mainly due to the war in Ukraine. The Strategic Compass now contains ‘tougher language’ against Russia (Barigazzi, Gijs & Lau, 2022). The 47-page final result is inevitably heavily influenced by the recent Russian military invasion of Ukraine and its profound impact on the European security architecture.

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