European Commission proposes transition to ‘war economy mode’

The European Commission will propose ways for the European Union to stimulate the defense industry’s transition to a “war economy mode,” according to Reuters. Thierry Breton, the European industry commissioner, will present recommendations to EU members to increase defense procurement from European companies.

“We need to change the paradigm and move into war economy mode. This also means that the European defence industry must take more risks, with our support,” said Breton, who also proposes assisting European defense companies in increasing production capacities.

Currently, Breton is convinced that Europe must do more for its own defense. “In the current geopolitical context, Europe must take greater responsibility for its own security, regardless of the outcome of our allies’ elections every four years,” he stated.

Breton’s proposals include creating a European version of the American scheme for foreign military sales, in which the U.S. assists other governments in buying weapons from American companies. Additionally, among other measures, a proposal would allow the European Union to compel European arms manufacturing companies to prioritize European orders during a crisis.

Approval from the 27 national governments of the European Union is required to implement these proposals. NATO will thoroughly examine the list of changes.

Analysts suggest that the war has revealed the inadequate preparedness of the European industry for certain serious challenges, including a sudden surge in demand for large quantities of artillery ammunition, as reported by Reuters. European officials argue that purely national efforts are less effective and want EU bodies to play a more significant role in defense industrial policy.