I. Introduction 1

II. Drone threat comes to Europe 2

III. Security governance ramifications 5

  Drone innovations and lagging arms control reports 5

  Cost asymmetry and airspace ambiguity 7

  Opaque supply chains and sanctions evasion 9

IV. Policy recommendations 10

  Update dormant arms trade regulations 10

  Improve underdeveloped airspace governance to reduce escalation risks 11

  Close loopholes in the EU dual-use export control regime to combat illicit drone proliferation 12

V. Conclusions 13