At Arm’s Length: The European Union and Europe’s Defence by Terrence Guay

By Terrence Guay

The writer examines the level to which the eu Union and its guidelines impact Europe's defence undefined. He means that the top of the chilly battle and financial globalization are significant components pushing defence commercial concerns to the local point. The booklet describes institutional struggles among the ecu fee, Council and Parliament during this coverage region. The interdisciplinary method addresses political financial system, establishment development, ecu safety and defence, transatlantic family, business restructuring, and the effect of defence area curiosity groups.

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Additional resources for At Arm’s Length: The European Union and Europe’s Defence Industry

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The strains on defense budgets are so great that some governments are even considering buying from foreign companies. In most cases this involves purchases from American firms that can often provide more technologically advanced products at competitive (in some cases lower) prices. The UK has been much more willing to buy from American producers than has France or Germany. In December 1994, the British government decided to buy 25 Hercules military transport aircraft from Lockheed and tentatively committed itself to buy up to 50 similar types of plane (currently under development) from the Future Large Aircraft (FLA) consortium of European manufacturers.

We now turn to the actual and potential role of the EU to aid the restructuring of Europe's defense industry. 3 The European Union and Defense Industry Policy INTRODUCTION Defense industrial policy is not an area that normally comes to mind when one thinks of European Union (EU) policies. As will be evident from the following discussion, the EU's involvement in defense industry matters remains limited. Yet some EU policies do have an effect on European defense firms, and significantly more of an effect today than in 1958 or even 1978.

Policies include external trade (particularly of dual-use goods), competition (mergers and acquisitions and state aid to industry), research and development, public procurement, and regional development (defense conversion) policies. The discussion then turns to the roles played by the Council of Ministers and European Parliament. Particular attention is given to the contrast in objectives of these three groups, with the Commission and Parliament seeking a greater EU role in defense industry matters and the Council largely opposed to such initiatives.

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