A report by the International Institute for Strategic Studies warns that all but two countries in Europe, the UK and France, are outspent by BAE, Lockheed Martin and Boeing when it comes to military research and development.
IISS is a a leading authority on global security, political risk and military conflict. The Military Balance 2018, the annual assessment of global military capabilities and defence economics from the IISS suggests that European states are ‘increasingly conscious that the world is a dangerous place.
Military capabilities on the continent have, however, become hollowed out as states first reaped a post-Cold War peace dividend and then made defence a discretionary activity in the wake of post-2008 austerity’ say IISS.
The report states:
“Our figures show that Europe’s growing defence investments are still not fully geared towards preparing European armed forces for future challenges. For most, defence R&D remains limited.
Indeed, in 2016 three global defence firms – BAE, Boeing and Lockheed Martin – each spent more on defence R&D than all but two European states. Only France and the UK outranked them. And allocations for other costs, like military pensions, remain high in some states.
In 2017 for instance, military pensions absorbed over 33% of the Belgian and Portuguese defence budgets.”
The report discusses moves to recover and rebuild capability have been given impetus by stronger US pressure on European states to do more for their own defence, but claims they will take time to bear fruit.