European Defence Strategic Autonomy: Industrial and Technological Implications

Europe’s defence sector has long depended on external suppliers for critical technologies and components, creating vulnerabilities in times of crisis. Recent data show that 78% of EU military equipment acquisitions from mid-2022 to mid-2023 were sourced from abroad – 63% from the United States alone . This reliance spans high-end systems and basic inputs alike.

For example, Europe produces only about 9% of the world’s semiconductors (with just 4 of the top 35 chip manufacturers based in Europe), underscoring a heavy dependency on foreign microelectronics vital for modern defence. Similarly, many critical raw materials essential for defence technologies are overwhelmingly imported – over 80% of Europe’s cobalt (used in jet engines) is sourced externally . Such dependencies expose European defence to supply disruptions and strategic pressure, whether from geopolitical export restrictions or supply chain shocks.

EU policymakers now regard strengthening domestic supply chains and reducing these dependencies as a top priority to ensure Europe can maintain and deploy military capabilities without undue external constraints. Indeed, as the European Commission notes, without the ability to rapidly produce and procure critical defence assets, Europe “ cannot credibly deter threats or reduce dependency ” – highlighting the link between industrial resilience and strategic autonomy. European Defence Fund (EDF): Established in 2017, the EDF provides EU-level funding for collaborative defence research and development.

Its strategic intent is to spur joint innovation and lessen Europe’s reliance on non-EU technologies. By financing next-generation defence projects across land, air, sea, cyber and space domains , the EDF strengthens Europe’s resilience and strategic autonomy, notably by reducing EU technological dependencies on third countries . With a €8 billion budget (2021–2027), the EDF incentivizes cross-border industrial cooperation – including extra co-funding for projects undertaken within PESCO – to integrate the European Defence Technological and Industrial Base (EDTIB).