The European Union should mirror American approaches by advocating increased local procurement of military equipment to strengthen regional defence capabilities, according to a prominent German defence contractor.
Oliver Dörre, chief executive of radar and sensor manufacturer Hensoldt, has observed that foreign defence contractors in the US have experienced mounting pressure to source locally since Donald Trump’s presidency, compelling them to establish partnerships with American competitors.
The call for enhanced European procurement comes as data reveals less than 25% of approximately €100 billion in defence contracts announced by European governments in the 15 months following Russia’s invasion of Ukraine were awarded to local companies. The majority of non-EU procurement, roughly 80%, was directed towards US suppliers.
Hensoldt, specialising in air defence radars, has thrived under Germany’s “Zeitenwende” initiative – a €100 billion military modernisation programme launched by Chancellor Olaf Scholz in response to Russian aggression. The Berlin-backed company’s share value has nearly tripled since early 2022, with a record order backlog of €6.5 billion in the first nine months of 2024.
The company’s optimistic outlook extends beyond the current conflict, with Dörre projecting at least a decade of sustained defence spending, regardless of potential peace in Ukraine. He emphasised that even if the conflict concludes, Europe and NATO would need to continue strengthening their defence capabilities.
Dörre, who previously served in the German military and defence ministry, advocates for European governments to utilise existing EU regulations more effectively to support European suppliers. He maintains that EU law already permits member states to circumvent the bloc’s free trade rules in specific defence and security scenarios.
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