Edition: International | Greek
MENU

Home » Europe

EU to increase competition in defence industry

By: EBR - Posted: Thursday, March 31, 2005

EU to increase competition in defence industry
EU to increase competition in defence industry

EU defence ministers are expected to agree on a voluntary code to boost cross-border competition in military equipment in November.

The decision to open up Europe's 30 billion euro defence market is likely to emerge as part of member state co-operation within the European Defence Agency, its chief executive Nick Witney suggested in an interview with the Financial Times.

Mr Witney said the project would be kicked off with one pilot area, which might cover various "land systems", such as armoured fighting vehicles.

He pointed out that up to 10,000 such vehicles will be ordered during the next ten years and as the industry is so highly fragmented, their costs could be very high, if nothing in the current situation is changed.

The defence industry is currently exempted from normal competition rules applied for the European internal market, as it is considered a national security issue.

Commentators argue that a lack of competition means that member states pay too much for the equipment by their national producers, which leaves them with fewer resources for research into new technologies.

The European Defence Agency was set up in July 2004 and it aims to support the EU member states in improving their military capabilities.

Defence ministers of 24 participating countries (excluding Denmark) are represented in its Steering Board, chaired by EU High representative for foreign affairs Javier Solana.

Aside from the member states' initiative to open up military markets, the European Commission is currently studying the results of the public consultation about drawing up common European rules for public procurement within the defence industry.

READ ALSO

EU Actually

Volkswagen is going to lay off 100.000 employees: EU’s automotive industry is in serious trouble

N. Peter KramerBy: N. Peter Kramer

In his weekly column, N. Peter Kramer, writes about the alarming decline of the largest industrial employer in the EU, Volkswagen. EU leaders and the entire automotive sector did not seem to know how to handle China.

Europe

Majority think EU is a "place of stability in a troubled world"

Majority think EU is a "place of stability in a troubled world"

While economic concerns grow, EU citizens value the peaceful, protective and cooperative nature of the EU.

Business

How Much Pressure Can European CEOs Take?

How Much Pressure Can European CEOs Take?

There was a time when the job of the CEO was difficult but relatively clear: grow the business, beat the competition, manage costs, satisfy shareholders, inspire employees and avoid major reputational mistakes. That world has disappeared.

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2026. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron