As Europe grapples with its most acute security crisis since the Second World War, a coordinated and robust European defence has become a matter of urgency. Europe is no longer an “island of peace” and in order to protect the security, prosperity and stability of the continent, Europeans need to apply the Latin proverb “Si vis pacem, para bellum” (“If you want peace, prepare for war”). This paradigm change came after two years of brutal Russian war on Ukraine and the realisation thata Russian attack on EU territory is no longer unthinkable.

With 77% of European citizens wanting the EU to do more for common security and defence, security has become a cornerstone of the second von der Leyen mandate, with a strong emphasis on the defence pillar. In the mission letters for the nominees to the positions of High Representative/Vice-President and the newly created Commissioner for Defence and Space published on 17 September, President Ursula von der Leyen states her ambition to create a new era for European security and defence and start building the European Defence Union.

As envisioned in the Martens Centre’s publication 7Ds for Sustainability-Defence Extended, several steps are needed in order to build the European Defence Union. First, the European Defence Industrial Strategy and the European Defence Industry Programme should be fully adopted and implemented by Member States to create a coherent European defence industry. Second, the EU should declare a Defence Decade to harmonise all defence plans and capability priorities, increase its defence budget and rebalance economic efficiency and military effectiveness at the European level. Third, the Union should accept NATO priorities as the gold standard for EU defence and capability contributions. It should work with Ukraine to plan and implement the country’s long-term integration into Western defence mechanisms and the defence manufacturing landscape. Fourth, the EU should balance short-term industrial capacity and innovation by mass producing products that work now and need to be available in sufficient quantities in five years’ time. Lastly, it should create an ‘Amazon’ for defence, providing an automated marketplace where national armies can buy defence products, including highly standardised goods (and services) like fuel, ammunition and so on.

The second Von der Leyen Commission is on the right track

According to the new Commission’s structure documents, a European Defence Union will be realised through a coordination of tasks by the High Representative/Vice-President and the Commissioner for Defence and Space. They have already been tasked with drafting a White Paper on the Future of European Defence within the first 100 days of the mandate. Nevertheless, the complicated institutional division of responsibilities between the Council (Member States), the High Representative/EEAS and the European Defence Agency, in addition to the new Commissioner for Defence, will require a lot of creative thinking and strong political bargaining in order to make European defence policy unified and coherent.

The creation of a Commissioner for Defence Cooperation, a first in Europe’s institutional architecture, is a political signal that the EU takes seriously the numerous security threats engulfing our union. The new position will have to build the European Defence Technological and Industrial Base (EDTIB) to adapt to the rapidly changing geopolitical landscape. This position will oversee critical areas such as defence investment, industry, procurement, and research and innovation, further consolidating Europe’s defence framework.

All the work the EU is doing on defence does not come at the expense of NATO. The multitude of security threats requires both organisations to focus on protecting and securing the continent. Integrating European defence spending and building European economies of scale in defence production will strengthen the European pillar of NATO and make Europeans net contributors to their security. The value of the European Union lies in its political, financial and legislative clout, which can help Europeans tackle some of the structural defence challenges. This would also benefit NATO, as 22 of the 32 NATO allies are EU members.

 As such, the European Defence Union will be complementary to NATO, with no plans for a “European army”, just as NATO itself does not have an army of its own. Member states will retain full responsibility for their armed forces, from doctrine to deployment – an important clarification of competencies that will guide further work on European security and defence. Moreover, standardisation and harmonisation in the field of defence will be carried out in close cooperation with NATO. Any proposals for European projects related to common defence interests will be developed jointly with Member States and in consultation with NATO, thus reducing concerns about potential duplication or waste of resources.

The road to European Defence Union is full of hurdles

In the past two years, the European Union has made incredible progress in building up European defence policy, but fragmentation, lack of interoperability and lack of proper investment in the defence market and arms production capabilities over the past three decades are showing their effects.

In order to create a solid Single Market for Defence, the new Commissioner for Defence and Space will have to resolve the fragmentation of the defence market, with each EU Member State prioritising its own national defence industry, leading to competition rather than cooperation on major projects. This lack of a unified approach leads to inefficiencies and duplication of effort, exacerbated by the prioritisation of national interests over a coherent European defence technological and industrial base.

On top of that, the generally lower defence budgets in Europe compared to the US exacerbate the problem, limiting the funds available for research, development and procurement of new equipment. Inefficient and bureaucratic procurement processes add to the difficulties and costs for defence companies trying to win contracts. In addition, unit costs are driven up by small production runs, a consequence of the fragmented nature of the industry. This contrasts sharply with the US defence industry, which remains the main actor in Europe generating economies of scale.

The President of the European Commission, Ursula von der Leyen, has estimated that an investment of around €500 billion will be needed over the next decade. But the question of how to finance defence remains unanswered and the new Commission will need to find the necessary budget in order to succeed in building a viable European Defence Union.