Ukraine’s Bell Rings across Europe: Cooperation to Build a Defense Industrial Base

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The war in Ukraine has sounded the alarm about the need to reassess Europe’s current approach to collective security, shedding light on vulnerabilities in its defense mechanisms.

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Amid rising global tensions and U.S. demands for European allies to shoulder more defense responsibilities, Germany and Italy are collaborating to establish a defense industrial base, according to National Interest.

This partnership is not just a significant industrial effort but also a strategic necessity for the European Union. The goal is to enhance the bloc’s military capabilities, strengthen its credibility in the evolving transatlantic relationship, and boost NATO‘s overall effectiveness.

Recently, the creation of “Leonardo Rheinmetall Military Vehicles,” a 50-50 joint venture between Italy’s Leonardo and Germany’s Rheinmetall, marked a pivotal step in this direction.

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This initiative highlights the need for closer European cooperation in defense manufacturing and procurement policies.

By pooling expertise to develop next-generation main battle tanks – including upgrading 125 Ariete tanks – and infantry fighting vehicles, Germany and Italy are addressing operational needs revealed by the war in Ukraine and the ongoing fragmentation of European defense capabilities.

Germany’s leadership in armored vehicle exports, coupled with Italy’s innovative approach, presents an opportunity to build a unified and robust European defense system.

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This collaboration is expected not only to bolster Italy’s defense capabilities but also to help the German firm secure contracts worth €20 billion by 2027.

Collaboration in the Naval Domain

German-Italian cooperation extends to the naval domain as well. Germany’s ThyssenKrupp Marine Systems, a leader in conventional submarine technology, and Italy’s Fincantieri, a prominent shipbuilder, are laying the groundwork for strengthening Europe’s underwater defense capabilities.

This initiative could position Europe strategically in a market valued at over €400 billion, critical to modern warfare.

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These developments come as the EU braces for a potential return of Donald Trump to the White House. During his first term, his demands for increased European defense spending exposed deep divisions within the bloc.

In response, European NATO members increased defense spending by 19% (€78 billion). In 2023, Italy spent nearly €32 billion, while Germany allocated €68 billion, accounting for 27% of NATO Europe’s €375 billion defense budget.

Both countries have committed to raising defense spending to meet NATO‘s 2% GDP guideline – regarded as a minimum, not a ceiling.

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A Broader Goal

German-Italian projects aim not only to strengthen their defense capabilities but also to contribute to the EU’s broader goal of reducing fragmentation, increasing efficiency, and facilitating NATO cooperation, particularly in Eastern Europe.

These efforts align with calls for greater financial integration, including using Eurobonds to fund joint defense initiatives in the absence of an EU-wide debt financing mechanism.

As Europe advances, its defense strategy cannot be separated from the transatlantic relationship, where Germany and Italy play key roles in the F-35 fighter jet program.

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The recent French decision to drop the “Buy European” requirement for the European Defense Fund marks a pivotal shift, opening new opportunities for U.S. companies to participate in proposed European defense investment projects.

Strengthening a unified European defense industrial base, led by Italy and Germany, will narrow the gap between European and U.S. defense industrial capabilities.

The ultimate goal is to invest more strategically in new technologies while avoiding redundancies and leveraging the unification of interconnected weapon systems – a practical approach to bolster Europe’s industrial base while maintaining vital ties with Washington.

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