Bloomberg Talks Europe Defence Lobbyist Talks Military Spending, Political Roadblocks
Feb 18, 2025
Jan Pie, Secretary General of the ASD and key advocate for defense lobbies across 21 European countries, sheds light on Europe’s drive to boost military spending amidst rising geopolitical threats. He discusses the balance of relying on U.S. weaponry versus building local defense capabilities. Pie also confronts the political hurdles that stymie collaborative financing and manufacturing, and emphasizes the need for consolidation in defense procurement to enhance efficiency and competitiveness as Europe navigates a more insecure global landscape.
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Increased European Defense Spending
- European defense spending is expected to rise significantly due to underinvestment and the U.S. potentially pulling out.
- This creates a tough situation, demanding a ramp-up from the European industry to support themselves and Ukraine.
Examples of Industry Ramp-Up
- Rheinmetall's ammunition production is increasing from 70,000 to 1.1 million rounds in 5 years.
- Saab is recruiting 6,300 employees in two years, and MBDA is making significant investments, showing industry responsiveness.
Invest in European Defense
- European leaders should prioritize investing in their own defense industry.
- Avoid the potential mistake of succumbing to political pressure to buy American-made weapons.