The defense sector in Europe is quite splintered, with key players primarily hailing from countries like France, Germany, Italy, Spain, and Sweden dominating the landscape. Additionally, over 2,500 small and medium-sized enterprises frequently contribute to this field, which commonly leads to overlapping efforts and redundancies.

We are manufacturing numerous high-cost items in limited quantities," said MEP Riho Terras from Estonia (EPP) during an interview with Euronews. "The key requirement is for the market to supply adequate amounts of ammunition, missiles, and different types of defense equipment.

"Countries should join forces and purchase collectively, thereby providing small- and medium-sized businesses with an equal chance to compete in the marketplace," stated Terras, who serves as the vice-chair of the European Parliament's Committee on Security and Defence.

Since the beginning of Russia’s military actions against Ukraine, the EU has increased production fourfold. However, not a single member state possesses the capability to significantly expand the European defense sector or rival major international contenders like the U.S. and China.

President Ursula von der Leyen aims to create an authentic unified marketplace for defense goods and services before the conclusion of her term. This initiative seeks to boost Europe’s manufacturing capabilities, encourage collaborative production efforts, and lessen reliance on external nations.

Nevertheless, some contend that realizing this vision by 2029 will be challenging.

" Defence "basically has only one major client, which is the state, and even when it’s not a complete monopoly, usually just two or three companies dominate. This means there isn’t much room for a truly competitive marketplace with numerous consumers making individual purchasing decisions and multiple suppliers vying for their business," explained Paul Taylor, a senior visiting fellow at the European Policy Centre, to Euronews.

Taylor additionally contended that national security concerns might be cited by member states as a reason to bypass competitive bidding processes in collaborative public procurement initiatives.

Over the past several months, the EU has consistently urged its member states to increase defence spending And tackle crucial deficiencies in sectors like ammunition manufacturing, unmanned aerial vehicles, airborne missile defense systems, and artificial intelligence.

Based on Mario Draghi’s influential report on competitiveness, the most efficient approach to revitalizing European defense capabilities involves consolidating demand and engaging in shared purchasing initiatives.

So far, the EU relies significantly on United States weapons imports, with these accounting for 64% of the total between 2020 and 2024, an increase from 52% during 2015 to 2019. Promoting greater joint purchasing could aid in reducing Europe’s reliance on international suppliers, such as China, among others.

"We must motivate nations to purchase equipment collectively in greater volumes, thereby strengthening the market," Terras stated, further noting that tenders should include businesses from other aligned nations such as the UK, Norway, or Turkey.

Cooperative purchasing strategies will play a crucial role in advancing large-scale European initiatives such as an envisioned missile defense system. This approach will enhance NATO's security along its eastern frontier with Russia and Belarus—emphasizing the importance of bolstering Europe’s capacity for self-defense against possible future threats.

In a white paper addressing the future of European defense, the European Commission cautioned on Wednesday (March 19) that “Europe can no longer assume the United States' security pledge is guaranteed and should significantly increase its efforts to maintain NATO’s effectiveness,” as Washington shifts its focus towards the Indo-Pacific area.

"Given that the international geopolitical climate has clearly alarmed member states, will they genuinely commit the funds for an ongoing initiative? That's the core question," Taylor posed.

"We require European defense capabilities, which necessitates a decade of dedication and expenditure to achieve," he contended.