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Finance

Europe still divided on buying locally for defence, MBDA CEO says

Published by Global Banking & Finance Review

Posted on October 12, 2026

3 min read

· Last updated: October 12, 2026

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European Defence Spending Divided: Local Procurement and Security Challenges

European Defence Spending and Strategic Autonomy

By Florence Loeve

Oct 12 (Reuters) - The head of European missile maker MBDA said on Monday that efforts to steer more defence spending towards European suppliers faced political hurdles, with EU governments still divided over how much to rely on US security guarantees.

Washington has been pressing European NATO allies to increase defence spending, while France has led calls to buy more European-made weapons amid questions over the US commitment to Europe's security.

Debate Over European Defence Procurement

"Do we want as Europeans to really take our own fate in our hands and then bring our European capabilities to the NATO alliance, or are we simply increasing our capabilities by buying outside?" MBDA CEO Eric Beranger asked the Warsaw Security Forum.

"There are some different attitudes between the various governments. I think the jury is still out," Beranger said, adding: "There is still some way to go".

Deterrence and Security Partnerships

DETERRENCE

Beranger, who steps down next month, was among several speakers debating European strategic autonomy at the forum, which is taking place amid heightened tensions over the war in Ukraine.

Several European countries, including conference host Poland, Germany and the Netherlands, have turned to US suppliers for equipment such as F-35 fighter jets.

US-European Defence Industry Relations

"Limiting American defense industry in European procurement programs threatens that partnership and weakens our mutual security", the US mission to the European Union said in February.

Nuclear deterrence was also a focus of the discussion, with Russia recently renewing warnings that it could use nuclear weapons to defend itself.

"Of all the events at this conference that the Russians will be most interested in hearing ... it will be this one", former British defence minister Ben Wallace said, referring to Europe's ability to strengthen its nuclear and conventional deterrence.

Perceptions of Deterrence and Allied Commitments

"Deterrence is not only capabilities; deterrence is also perceptions. Do we believe our American allies will come? Does Russia believe our American allies will come?" said Claudia Major, senior vice president for transatlantic security at the German Marshall Fund.

"I don't say give up on the US. I just say don't blind ourselves", Major added, citing recent friction with the US over Greenland, Russia and Ukraine.

NATO Commitments and European Industrial Base

NATO members, including the US, reaffirmed their commitment to collective defence in the Ankara Summit Declaration in July, repeating that "an attack on one is an attack on all".

Stressing that credibility is central to deterrence, Beranger said Europe already had the industrial base it needed to strengthen its defences.

(Reporting by Florence Loeve. Writing by Inti Landauro. Editing by Kirsten Donovan and Mark Potter)

Key Takeaways

  • Europe’s push to boost defence spending domestically faces political resistance, with EU governments still split over dependence on US security guarantees and transatlantic procurement.
  • US defence suppliers are responding by localizing production and technology across Europe to meet demand while navigating sovereignty concerns.
  • EU initiatives like the European Defence Industrial Programme and ReArm Europe Plan aim to bolster strategic autonomy, but fragmentation and institutional hurdles remain significant obstacles.

Frequently Asked Questions

Why are European governments divided on defence procurement?
EU countries differ over whether to prioritize local suppliers or rely on US security guarantees, creating political hurdles for European defence procurement.
What is MBDA CEO Eric Beranger's view on European defence?
Eric Beranger believes that Europe must decide whether to bring its own capabilities to NATO or continue buying from outside suppliers, stating that attitudes still vary among governments.
How has the war in Ukraine influenced European defence discussions?
Heightened tensions over the war in Ukraine have intensified debates on strategic autonomy and increased pressure on countries to assess their reliance on US military equipment.
What concerns were raised about limiting American defence industry in Europe?
The US warned that restricting American defence suppliers in European procurement could weaken mutual security and threaten transatlantic partnerships.
What role does nuclear deterrence play in European security?
Nuclear deterrence remains central, with concerns about Russia's stance and discussions on whether Europe can strengthen its own deterrence independently of the US.

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