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Towards a European Defence Market: Integration or Fragmentation?

What is the central argument of “Towards a European Defence Market”, and why does it matter for European defence and dual-use markets?

Towards a European Defence Market: Integration or Fragmentation?: The call for greater European defence. Defence-finance analysis; 5-page sourced DFM PDF repor…

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Original DFM publication · DFM Analysis report · 2025-07-22

The call for greater European defence spending has long been a point of tension within NATO, often voiced most bluntly by the United States. Recently, that pressure has materialised into a formal commitment: NATO’s 32 members, including 30 European nations, have pledged to reach 5 per cent of GDP in defence expenditure, accompanied by annual plans showing a credible path towards that objective.

While countries along NATO’s eastern flank — such as Poland, Estonia, and Latvia — are relatively close to that threshold, most Western European economies remain far below.

This analysis answers: What is the central argument of “Towards a European Defence Market”, and why does it matter for European defence and dual-use markets? What does this mean for European defence funding, procurement and investment decisions? How mature and defensible is the position described in “Towards a European Defence Market”? Which European actors, programmes and funding instruments are most exposed?

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Original DFM analysis

Towards a European Defence Market: Integration or Fragmentation?

Type DFM Analysis report
Published 2025-07-22
Access free_public

The publication details above identify the source used for this public thread.

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What is Towards a European Defence Market: Integration or Fragmentation??

While countries along NATO’s eastern flank — such as Poland, Estonia, and Latvia — are relatively close to that threshold, most Western European economies remain far below.

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