The EU, NATO and the European defence market: do institutional responses to defence globalisation matter?

ABSTRACT

The European Union (EU) and North Atlantic Treaty Organisation (NATO) are both institutions through which European states can engage in European defence–industrial cooperation. Each organisation embodies a unique set of institutional tools through which to manage issues such as the high and rising costs of defence procurement, technological innovation, defence R&D, standardisation, multinational capability programmes and interoperability. In short, the EU and NATO are institutional tools through which European states can manage the positive effects and negative consequences of defence globalisation. By drawing on an innovative conceptual framework derived from the institutional interaction literature, this article analyses how the EU and NATO interact with one another for defence–industrial issues. In doing so, the article principally aims to provide a conceptually informed analysis of the appeal of each body as a mechanism for defence–industrial cooperation and how each institution affects the other.

KEYWORDS:

• European Union
• NATO
• defence industry
• institutional interaction

Disclosure statement

No potential conflict of interest was reported by the author.

Notes on contributor

Daniel Fiott is an Associate Researcher at the Institute for European Studies, Free University of Brussels. His research focuses on European defence-industrial cooperation with a specific focus on EU defence industrial policy. He is widely published in leading journals.

Notes

1 CNAD is the alliance's highest committee responsible for AD cooperation between NATO members. It brings together the National Armaments Directors of alliance members and it is responsible for identifying areas of alliance collaboration on procurement, research and development of military capabilities.

2 The CDP was adopted in 2008 to help EU member states identify future strategic scenarios and to prioritise capability development on this basis. The CDP was reviewed in 2014 and a revision is planned for 2018.

3 Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community.

4 Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC.

5 “Horizon 2020” is the EU's financial instrument dedicated to research and innovation.

6  “COSME” is the EU's financial programme dedicated to making it easier for SMEs to access finance for the full life-cycle of their business.

7 For a robust discussion on decision-making in the context of EU–NATO relations, please see Smith et al. (2017) in this issue.

8 ACT-FFCI is designed to enhance NATO collaboration with industry and academia at the non-procurement phase and ACT has the ability to purchase and contract studies, support and services for identified NATO capability shortfalls.

9 Article 346 TFEU states: 1(a) “no Member State shall be obliged to supply information the disclosure of which it considers contrary to the essential interests of its security”; and 1(b)

“any Member State may take such measures as it considers necessary for the protection of the essential interests of its security which are connected with the production of or trade in arms, munitions and war materiel; such measures shall not adversely affect the conditions of competition in the internal market regarding products which are not intended for specifically military purposes”.

10 “Horizon 2020” is the EU's financial instrument dedicated to research and innovation.

11 “COSME” is the EU's financial programme dedicated to making it easier for SMEs to access finance for the full life-cycle of their business.