Ursula von der Leyen conducts strategic dialogue with the arms industry

EU Commission President Ursula von der Leyen will host talks with leaders of the European defense industry in Brussels on May 12. Sources familiar with the plans told Euractiv that they hope to boost defense production.

As outlined in the White Paper published last month, the European Commission will hold a dialogue on defence strategy with sector stakeholders and other EU bodies to “discuss possible actions” and “identify regulatory hurdles and address challenges for the defence industry”.

The meeting is now scheduled for May 12. The aim is to discuss the Commission's proposal to reduce the bureaucracy of the defense sector (Defence Omnibus Simplification) , which will be presented in June, and to free European defense manufacturers from administrative burdens.

The proposal is a further step in a series of Commission initiatives to boost arms production on the continent following Russia's attack on Ukraine.

Not the first attempt

EU Member States have already attempted to plan a comprehensive dialogue with high-level representatives of the arms industry, but these plans were ultimately abandoned.

Two years ago, NATO organized an event with 25 industry leaders, but the guest list compiled by the Alliance's leadership led to internal tensions among the Allies and within the industry. In protest against the exclusion of Spanish defense companies, the country's defense minister refused to pursue a NATO-led plan to increase production capacity. Spain is home to two major defense companies, Indra and Expal.

While strategic dialogues are nothing new for the European Commission – they are usually launched when a sector is hit by a crisis, such as the nine-month dialogue with agricultural stakeholders or the ongoing discussions with the automotive industry – it remains unclear whether the dialogue on defence will similarly lead to a concrete list of recommendations published before the omnibus bill is presented on 17 June.

In the case of defense, the industry's problems are well known: while governments are trying to replenish their stocks, arms manufacturers say they are still waiting for orders that justify the necessary investments in expanding their production capacities.

The Commission's Omnibus proposal, as set out in the White Paper, aims to address the problems perceived by arms manufacturers as regulatory obstacles to increased production.

These include facilitating construction permits for new factories, enabling a smooth flow of components through the supply chain, removing barriers to access to finance such as ESG criteria, and facilitating the mobility of troops and equipment.

(de, kn)