A farewell to (American) arms: Europe is pushing the U.S. out of its military-industrial complex

Key Points:

• Europe’s strategic autonomy in defense is heavily constrained by dependence on U.S. technologies and political approval, primarily due to the International Traffic in Arms Regulations (ITAR), which give the U.S. control over export and upgrades of systems containing American components.
• The EU is pursuing initiatives like the European Defence Industrial Strategy (EDIS) and the European Defence Industry Programme (EDIP) to increase internal defense procurement to at least 50% by 2030, reduce reliance on U.S. technology, and foster the development of ITAR-free weapons systems.
• Fragmentation of defense procurement across 27 EU member states, each with its own national priorities and manufacturers, severely undermines economies of scale and strategic capability, leading experts to call for consolidation into pan-European industrial champions.
• Europe faces critical capability gaps in areas such as command and control, long-range strike, space systems, and artificial intelligence, requiring an estimated €500 billion investment over the next decade alongside reforms in procurement and stronger EU-NATO coordination.
• The EU is investing heavily in sovereign space infrastructure and defense, including satellite constellations, secure communications, and active space defense systems, aiming to reduce dependence on U.S. GPS and Starlink, while defense reindustrialization is expected to drive broader economic and technological independence.