Executive Summary 1

Introduction – Strategic Autonomy in the European Defence Industry 5

1 Structure and Capacity of the European Defence Industry 10

1.1 Military Systems 11

2 Strategic Enabling Capabilities 24

2.1 Integrated Missile Defence and Long-range Strike Capabilities 24

2.2 Cyber and Information warfare 25

2.3 Command & Control Infrastructure (C2) 29

2.4 Electronic warfare 30

2.5 Space support 32

3 Dual use goods and components 35

3.1 Semiconductors and electronic circuits 35

3.2 Various optical components like sensors and lenses 36

3.3 Various electronical devices and components 37

3.4 Machines and tools necessary for additive manufacturing 38

3.5 Chemicals, alloys and metals 38

3.6 Importance for the land domain 39

3.7 Importance for the maritime domain 40

3.8 Importance for the air domain 41

3.9 Dual-use missile components 44

Conclusion: dual use capability shortfalls 45

4 Critical Raw Materials 46

4.1 Importance for the land domain 47

4.2 Air 49

4.3 Maritime 50

4.4 Missiles 51

5 Requirements for a stronger European Defence Industry 53

5.1 A new momentum for European Defence Investment 53

5.2 Pillars and challenges for a stronger European defence industry 54

6 Consolidation – Dilemmas and Implications 62

6.1 Consolidation of Supply 62

6.2 Governance considerations 65

6.3 Demand Consolidation 67

7 EU Governance and Institutional Coordination 73

7.1 Mapping the Institutional Landscape 73

7.2 NATO and Non-EU Demand-Setting: Where Requirements Are Defined 77

7.3 EU Defence Instruments: Enabling Participation, Not Prioritisation 79

8 External Partnerships and Strategic Balance 82

8.1 Overview of EU external partnership frameworks 82

8.2 Typology of EU external defence-industrial partnerships 85

8.3 Institutional access and governance asymmetry 86

8.4 What external partnerships deliver in practice 89

8.5 Governing external partnerships 92

9 Conclusions and Recommendations 95

9.1 The Structure and Capacity of the EU’s Defence Technological and Industrial Base 95

9.2 The Governance of Strategic Autonomy 99

Recommendations 102