Tensions are emerging between the European Union and NATO over control of Europe’s expanding defence industrial policy, as governments prepare for a rearmament drive estimated at $1tn annually.

“There’s a turf war over defence industrial policy,” said one of the officials. “This is about who manages the production scale-up, and what impact that has on the weapons Europe will be using in the future.”

“Both EU and NATO agree on the need for Europeans to take the lead on conventional defence of the continent. But they differ on the way to get there,” said Giuseppe Spatafora, research analyst at the European Union Institute for Security Studies. 

The EU wanted “to promote intra-European defence industrial collaboration . . . For NATO, defence industrial policy must remain transatlantic”, Spatafora added.

The EU is advancing a “Buy European” approach to strengthen domestic defence industries, alongside proposals for joint procurement, missile defence systems and expanded funding. NATO, by contrast, continues to favour a transatlantic framework, including reliance on US weapons systems.

“It’s becoming increasingly clear that we need this stuff quickly, in large quantities, and cost-effectively,” said one of the EU officials. “And the way to do that is to manufacture it at home.”

“NATO can define what [types of weaponry] we need. But when it comes to regulatory and financial tools to get there, they have very little to offer,” the official added.

Analysts note both sides support increased European defence capacity but differ on execution, as political, industrial and strategic priorities diverge ahead of NATO’s July summit.

European Commission President Ursula von der Leyen is expected to meet NATO Secretary-General Mark Rutte on Thursday (16 April), with industrial strategy and coordination high on the agenda.

ℹ️ Financial Times

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The flags of the European Union and NATO are seen in the building of the European Council, Brussels, Belgium, May 18, 2017. (Shutterstock Photo)
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NATO and EU in a ‘turf war’ over defence industrial policy
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