March 22, 2025
Buy European
Why 'Buy European' Might Transform Our Defense Industry
The European Union's new "Buy European" defense procurement policy mandates 65% of defense components come from EU countries, Norway, or Ukraine. This policy aims to address longstanding inefficiencies in Europe's fragmented defense market while promoting industrial integration, interoperability, and cost reduction through joint procurement strategies.
The EU has taken a bold step that could fundamentally reshape our defense landscape with its new "Buy European" procurement policy. This initiative requires 65% of defense components to come from EU countries, Norway, or Ukraine, marking a significant shift in how Europe approaches defense acquisition.
After decades of fragmentation and duplication, Europe is finally addressing the critical inefficiencies in its defense market. By prioritizing European suppliers, this policy does more than simply strengthen our industrial base—it creates a more cohesive and interoperable defense ecosystem across the continent.
What makes this approach particularly effective is its emphasis on joint procurement. By pooling resources and coordinating purchases, member states can achieve substantial cost reductions while ensuring compatibility across national forces. This coordination represents a major departure from the historically siloed approaches to defense procurement that have plagued European security cooperation.
The implications extend throughout the supply chain. Large defense contractors will benefit from more predictable demand and clearer market signals, while innovative SMEs across Europe will gain improved access to previously fragmented national markets. This could catalyze a more dynamic and competitive European defense industrial base.
For too long, Europe's defense capabilities have been hampered by redundant systems, compatibility issues, and inefficient spending. The "Buy European" policy addresses these challenges directly by creating stronger incentives for standardization and integration across national boundaries.
Countries with established defense industries like France, Germany, and Italy will certainly benefit, but the policy also creates significant opportunities for emerging defense sectors in Central and Eastern Europe. By broadening the industrial base across the continent, Europe gains both economic and strategic advantages.
Critics may argue this approach risks protectionism, but the policy should be understood as a necessary step toward creating the scale and integration required for Europe to maintain technological competitiveness in an increasingly challenging security environment.
The road to implementation will not be without challenges. National preferences, established procurement practices, and existing international agreements will all need to be navigated carefully. However, the potential benefits—greater strategic autonomy, improved cost-effectiveness, and a more innovative defense sector—make this policy transformation well worth pursuing.