A New Defense Paradigm: Toward the Creation of a Common European Defense

Three years into the war in Ukraine and 75 years since the creation of NATO, Europe is adapting to a new reality when it comes to defense and security, where new and disruptive threats (e.g., cyber-attacks) can severely impact critical infrastructures, to the point of putting at risk the stability of an entire economy. 

Given the gravity of these threats, bold decisions are required from European governments to establish a common and cohesive defense strategy to address future potential threats. Since 1992, Europe has enjoyed what is known as a “peace dividend”, where Member States have primarily focused on domestic economic development and education over defense and security. 

At the public level, there is recognized necessity for a Common European Defense, with the majority of EU citizens in favour of a strong and cohesive strategy that sees Member States collaborating, setting aside political and economic conflicts for a greater collective goal. At political level, however, many uncertainties remain about how to organize such a common entity, particularly regarding which institutional figure should take command. 

Despite the many challenges, the idea of a Common European Defense is no longer merely a distant aspiration, but increasingly a tangible possibility. On one hand, in recent years there has been a significant increase in the number of joint defense programmes among Member States, with substantial expected impacts on the economy of involved countries (e.g., GDP contribution and job opportunities creation). On the other hand, EU itself has taken major steps to establish rules and regulations aimed at creating a harmonized defense framework in the region. 

In this report, we will shed light on the highly discussed topic of a Common European Defense, describing the current macro-economic situation and identifying the main factors that drive the need for a common defense, with a specific focus on the recent phenomenon of cyber-attacks. We will also explore potential opportunities and benefits deriving from a commonality of weapons systems and platforms and will expand on the implications for the value chain.