Regional Security Decline and its Adverse Consequences
Western Europe’s security challenges stem from a combination of ineffective security policy decisions that have prioritized reduced defense spending and hindered the development and commercialization of defense equipment, technology, and manufacturing. As a result, the region’s defense sector “faces structural weaknesses in terms of overall public spending, industrial footprint, coordination and product standardisation, international dependency, innovation, and governance” (Draghi 159). From the 1960s to the early 2020s, Western Europe has underinvested in its defense sector, creating a situation in which it lags behind its global competitors. As a result, it struggles to keep up with regions that have increased aggregate defense spending and integrated defense policies with industrial policies, such as the United States and China. Another problem has to do with the insufficient EU spending on technological innovation in the defense industry, especially in research and development. According to Draghi, “In Europe, total funding for defence R&D was EUR 10.7 billion in 2022, amounting to just 4.5% of total spending”. This reduced focus on defense research and development proved to be ineffective at countering Russian aggression at the beginning of the Russia-Ukraine war and shadow war against the West. Therefore, enhancing spending on innovation is critical for ensuring that Western Europe can protect its citizens and capital from future attacks by Russia and other potential actors.
On the business side, the European Union has created policies that stifle technological development within the defense sector. This has enhanced bureaucracy within Western Europe and made it increasingly difficult for Western European defense firms to provide their governments with the necessary capital to address external security threats. As a result, there are several innovative defense firms that have been unable to expand and innovate as a result of the European Union prolonging the defense product development and commercialization stages. Even though Western Europe has produced several defense firms, including several influential multinational conglomerates such as BAE Systems and the Thales Group, its defense sector still struggles from the complexity and unpredictability of the current EU regulations placed on defense firms.
The European Union has also significantly decreased total procurement for EU suppliers within the defense industry. According to Draghi, “Between mid-2022 and mid-2023, 78% of total procurement went to non-EU suppliers, out of which 63% went to the US”. Therefore, reduced defense spending and procurement to EU suppliers hinders Western Europe’s ability to enhance its security while reshaping its long-term defense strategy.
Another factor that has contributed to Western Europe’s decreased security is its decreased reliance on EU suppliers for external dependencies, such as critical raw materials (CRMs). Since Western Europe relies on a handful of non-EU suppliers to get external dependencies, especially China, its countries are particularly susceptible to coercion and geoeconomic fragmentation. According to Draghi, “Many of these dependencies could become vulnerabilities in a situation where trade fragments along geopolitical lines. Around 40% of Europe’s imports are sourced from a small number of suppliers and difficult to substitute, and around half of these imports originate from countries with which it is not strategically aligned. As a result, Europe’s notional exposure to any “sudden stops” in trade caused by geopolitical conflagration is high”.
Therefore, it is vital that Western Europe enhances the security of its critical raw materials both within and outside of Western Europe, including in its mining sector. Doing this can ensure that Western Europe’s critical resources are protected both inside and outside of the region.
From Struggling to Innovating: How Western Europe Can Enhance its Defense Sector and Long-Term Defense Strategy
Politicians, policymakers, and other stakeholders have proposed a diverse range of solutions that could strengthen its defense sector and strategy. Many have emphasized the importance of increasing defense spending. In his report, The Future of European Competitiveness, Mario Draghi emphasized that Europe, including Western Europe, has reduced its defense spending, hindering its ability to address its current geopolitical security threats. Even though Western Europe has greatly increased its defense spending over the past few years, not all of its leaders are strategic in how they allocate their defense resources. Therefore, if Western Europe wants to enhance its defense efforts, it is paramount that all of its politicians not only increase defense spending, but apply a more strategic approach to national and regional security.
Several others have argued that greatly increasing spending in R&D and prioritizing technological development of defense equipment, technology, and manufacturing is paramount for ensuring the region can protect its citizens and assets. Reduced regulatory barriers on defense firms at the EU level is critical for ensuring that Western Europe’s defense companies can develop and commercialize their products in a way that enables the region to strengthen its security. Such reforms can help Western Europe’s talented workforce in the defense industry realize their potential and help their politicians protect their citizens, infrastructure, and electronic information from the Russian government and other malintentioned global actors.
Additionally, increasing total procurement to EU suppliers is essential for strengthening security in Western Europe. Since total procurement to EU suppliers has reduced over time, it is essential that Western Europe relies on suppliers from its region. This will strengthen regional commerce and reduce reliance on global actors, such as China, for critical resources. Finally, enhancing the security and protection of Western Europe’s critical raw materials, advanced technologies, and semiconductors is vital for strengthening the region’s long-term security. When they are well protected, it is harder for global actors to access and use them to achieve malintentioned geopolitical objectives.
The Time for an Exceptional Western European Defense Strategy Has Arrived
Western Europe’s regional security is improving, but it still stagnates due to a combination of complex political, economic, and cultural factors that formed over decades. Addressing its current security issues will require a variety of strategic policies that prioritize investment and technological reform in its defense sector, encourage the innovation of defense firms, increase R&D at the national and EU levels, and protect the assets of its citizens everywhere. Without these changes, Western Europe will lose the shadow war and may cease to become an essential regional power on the world stage.