Europe strengthens sovereign defence capabilities as geopolitical pressures mount

The European defence sector experienced a 13.8% increase in 2024 compared to the previous year, generating a turnover of €183.4 billion ($213 billion), a report by the Aerospace, Security and Defense Industries Association of Europe (ASD), revealed.

This marks the fourth consecutive year of growth, driven by years of underfunding followed by expanded defence budgets in the wake of Russia’s full-scale invasion of Ukraine. Employment in the sector also rose by 8.6%, reaching 633,000 jobs, Caliber.Az reports, citing foreign media.

However, ASD highlighted several persistent challenges for the industry, including supply chain bottlenecks, shortages of critical raw materials and electronic components, high energy costs, a tight labor market, and trade restrictions imposed due to sanctions on Russia.

“We must ensure that defence industries can continue to support the build-up of European sovereign capabilities, creating deterrence and defence. And this cannot stop just because some ceasefire emerges or negotiations are ongoing,” said Mikael Johansson, ASD President and CEO of Saab, during a press briefing in Brussels.

The association also noted that a significant portion of European defence procurement continues to rely on foreign suppliers, particularly in the United States, which exposes supply chains to potential vulnerabilities during periods of high demand or crisis.

After years of decline, Europe has recently been compelled to strengthen its defence industry amid rising geopolitical tensions from Russia, the US, and China. NATO allies have pledged to spend 5% of GDP on defence by 2035, while the European Union is allocating €150 billion in defence grants for joint procurement, with strict requirements that favor European manufacturers and reduce reliance on third countries.

“When comparing Europe with its competitors, it should be remembered that 98% of technologies are available in Europe,” said ASD Secretary General Camille Grand. “The European defence sector is fully capable of meeting its own needs in the medium and long term.”

By Vafa Guliyeva