US defence giants double down on Europe amid spending surge

Amid a dramatic surge in European defence spending driven by the war in Ukraine and shifting geopolitical dynamics, major US defence contractors are strengthening ties with European partners to secure their place in the region’s evolving security landscape. 

At the recent Paris Air Show, American firms emphasised long-standing transatlantic relationships while unveiling new joint ventures aimed at boosting Europe’s sovereign defense capabilities and ensuring continued market access despite rising calls for strategic autonomy, Caliber.Az reports via Financial Times.

“We are an American company but we are also a global company,” said Bernd Peters, vice-president of business development at Boeing’s defense unit. He added, “We are right there with [European partners] to help them develop” sovereign defense capabilities.

Anduril, a US defense tech firm, announced a drone development alliance with Germany’s Rheinmetall, promoting a “built with, not built for” approach that supports “local control, transparency and adaptability.”

Lockheed Martin and RTX (formerly Raytheon Technologies) already generate around 11 per cent of their revenue from Europe and are expanding operations. Lockheed is working with Rheinmetall to produce missiles locally, while RTX has partnered with MBDA to manufacture Patriot systems for NATO.

US firms face skepticism over Washington’s long-term reliability. European governments are increasingly wary of over-reliance on US systems, particularly due to America’s strict ITAR export regulations. “Do they want to be under the Damoclean sword of being ITAR or not?” asked MBDA CEO Éric Béranger.

Leonardo CEO Roberto Cingolani stressed the importance of clarity and interoperability within NATO: “Whatever we will do with our colleagues and with the Americans... it has to be established in a very clear way.”

Despite concerns, both sides see value in closer cooperation. “We have the brains, we do have industrial tools... we have the capabilities to be as sovereign as we want,” Béranger concluded.

By Naila Huseynova