EU Common Security and Defence Policy and Ukraine

The European defence industry, encompassing a range of large multinational companies, mid-sized firms, and over 2,000 small and medium-sized enterprises (SMEs), has faced substantial financial constraints over the past few decades. This situation has been exacerbated by national budget decisions and policies that were shaped in a different geopolitical climate, particularly following the end of the Cold War. The resulting underinvestment has significantly limited the European Defence Technological and Industrial Base (EDTIB), making it difficult for the industry to secure essential funding. The purpose of this publication is to provide an overview of the current financial challenges faced by the European defence industry, examine key initiatives and policy responses aimed at addressing these challenges, and outline strategic steps needed to enhance the EDTIB. Special emphasis is placed on the implications of the ongoing conflict in Ukraine and the necessity for a robust, well-funded Eu...