Innovation in the defense sector

The European Commission (EC) and the European Investment Fund (EIF) have announced the establishment of a €175 million ($191.57 million) Defence Equity Fund (DEF) to promote innovation in the defense and security sector.

The Defense Economic Commission (DEF) aims to raise approximately €500 million ($548 million) through private equity and venture capital investments. Over the next four years, the DEF will focus on projects developing technologies applicable to both civilian and defense sectors. The establishment of the DEF is part of the European Union's (EU) efforts to strengthen its role in defense policy decisions and to oversee investment and business activities in this sector.

The Defense Economic Partnership Agreement (DEF) will facilitate the participation of small and medium-sized enterprises in the defense supply chain and expand cross-border industrial cooperation, thereby helping the EU promote competitiveness. Observers consider this a crucial step towards building a stronger Europe. The DEF comes as total defense spending by EU member states is projected to reach €270 billion ($296.08 million) in 2023, an increase of approximately €30 billion ($32.9 million) compared to 2022.

In recent years, Europe has continuously increased its defense spending, but regional manufacturers lack the necessary components, weapons, and advanced technology to meet EU needs and address future threats. Furthermore, the EU wants to ensure the continent doesn't become overly dependent on countries with large defense industries like the US. Statistics show that purchases of defense-related items from non-EU countries accounted for 70% of total purchases in 2022-2023, with 63% of that coming from the US.

Consequently, criticism has emerged within the bloc, arguing that each arms sale weakens the bloc's defense industry base and deprives EU defense businesses of a core market.

THANH HANG

Source: https://www.sggp.org.vn/doi-moi-linh-vuc-quoc-phong-post722874.html