From Financing to Fielding: Industrial Effectiveness in Europe’s Defence Rearmament

Over the past decade, European defence policy has undergone a structural transformation. The central debate is no longer limited to the level of defence spending or the political commitment of governments to increase military budgets. The decisive issue has increasingly become the effectiveness with which financial resources are translated into operational capability.

European institutions and national governments have launched a growing number of financing instruments intended to stimulate defence innovation, support industrial development, and strengthen the European Defence Technological and Industrial Base.

This analysis answers: How effectively do Europe's financing instruments (EDF, EUDIS, EDIRPA, EDIP, SAFE) translate resources into operational capability? How does the 'Valley of Death' three-transition framework explain the gap between financing and fielding? Which SMEs and start-ups face barriers between EU funding and classified procurement, and how does SAFE aggregate demand under its eligibility rules? What governance reforms across ammunition, air defence and UAS are needed to strengthen the European Defence Technological and Industrial Base?