The analysis

Weapons in Europe, the main producers and importers

Arms production in Europe is dominated by some of the continent's largest economies. Leading the way are France, Germany, Italy and the United Kingdom

by Silvia Martelli (Il Sole 24 Ore, Italy), Nikola Lalov (Mediapool.bg, Bulgaria) and Ieva Kniukštienė (Delphi, Lithuania)

4' min read

4' min read

In recent years, arms production and imports in Europe have taken centre stage in the continent's security and defence strategies. Conflicts such as the Russian-Ukrainian conflict and the growing perception of threats to Europe's borders have prompted many states to review their armament policies, favouring both an expansion of domestic production and an increase in imports of advanced military technologies.

According to data from Sipri (Stockholm International Peace Research Institute), a Swedish research institute, France's military budget reached EUR 69 billion in 2023, while Germany allocated around EUR 58 billion in the same year. In parallel, Italy has dedicated EUR 28 billion to defence, with the United Kingdom topping EUR 60 billion. It is estimated that by 2025, total European defence spending will reach EUR 400 billion, also stimulated by the NATO target of allocating 2% of GDP to defence, a target that several countries, such as Poland and Greece, already exceed with around 4% and 3.8% respectively.

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Main Manufacturers

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Arms production in Europe is dominated by some of the continent's largest economies, with France, Germany, Italy and the United Kingdom. These countries, in addition to having an advanced industrial base, have a global presence in export markets and also play a key role within strategic alliances, such as NATO and the EU.

In particular, France has one of the most diversified defence industrial complexes in Europe, with Dassault Aviation (aerospace), Thales (technology and defence) and Naval Group (naval defence) leading the sector. France ranks third in the world for arms exports, with contracts worth €27 billion over the 2018-2022 period, particularly in the Middle East (Saudi Arabia, United Arab Emirates) and Asia. Over the past five years, French exports have increased by 59%, mainly due to demand for Rafale fighters and naval systems. In the naval sphere, the Naval Group has closed contracts for submarines and frigates with customers such as India and Egypt, making naval shipbuilding one of the most profitable sectors of French defence. France is also expanding cooperation with countries in sub-Saharan Africa, aiming to consolidate its geopolitical influence.

The German model has long been characterised by a restrictive approach to arms exports, but tensions in Eastern Europe have prompted Berlin to change some regulations. In spite of previous restrictions, Germany has in fact increased exports, with a 41% increase in the last five years, targeting in particular NATO nations and Ukraine, supplying air defence systems such as IRIS-T. Rheinmetall's production of armoured vehicles and tanks has grown, with contracts worth a total of around EUR 4 billion in 2023. Heckler & Koch, a leader in small arms, is also experiencing growth in exports.

Italy is also a major exporter of defence systems and high-technology components, thanks to Leonardo, which is one of Europe's largest manufacturers in the aerospace, naval, and land sectors with annual sales of around 13 billion euro, of which around 70 per cent go abroad. With 43% growth in armament exports in recent years, Italy is targeting NATO markets, but also countries such as Qatar and Kuwait with orders worth EUR 5 billion. Italian policy is geared towards supporting stability and security in regions such as the Mediterranean and North Africa, justifying the supply of military equipment also as diplomatic leverage.

The UK, although now outside the EU, continues to maintain a central role in the European defence sector. Bae Systems is the UK's largest manufacturer, supplying fighters (Eurofighter Typhoon), submarines and missile systems: in 2023 it closed contracts worth over EUR 15 billion, with sales of Eurofighter Typhoons and nuclear submarines. Exports are oriented towards the United States, NATO members and the Middle East. Cooperation with Washington is particularly relevant, especially in the context of the AUKUS programme aimed at strengthening security in the Pacific, reflecting the expansion of the UK's global defence outlook.

Importers

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Despite a developed defence industry, some European countries are among the largest arms importers in the world. Notable among them are Poland, Greece and the Baltic States, which have specific needs due to their geopolitical position and relations with Russia.

Poland is in a strategic position along NATO's eastern border and has recently embarked on a massive rearmament plan, which includes the import of armaments from the United States, South Korea and Germany.

Warsaw has signed billion-dollar contracts for air defence systems, heavy artillery, and drones, aiming to become one of the most advanced forces in Eastern Europe. The purchases were justified by the growing threat posed by Russia, with a defence budget of up to 4 per cent of GDP (or around EUR 28 billion), one of the highest in NATO. Among the most recent orders are 366 K2 tanks and 212 K9 howitzers from South Korea, with a total value of around EUR 8 billion.

Tensions with historic rival and NATO member Turkey have led Greece to adopt an advanced defence policy. The country is a major importer of French and American armaments, with purchases of Rafale fighters and MIM-104 Patriot missile defence systems. Athens is also investing in a more robust naval fleet to ensure security in the eastern Mediterranean, where territorial disputes with Ankara remain an open issue.

The Baltic States, Russia's neighbours, are among the most vulnerable in terms of security. To counter possible Russian incursions, these states have increased arms imports from the US and other NATO countries. The acquisitions include artillery systems, air defence and high-tech munitions, which are considered vital to ensure deterrence along NATO's eastern border.

The Role of the United States

The United States is the main source of armaments for Europe. Advanced American technology - from F-35 fighter jets to Patriot missile systems - is seen as a key element in strengthening European defence against external threats. South Korea has emerged as a major new partner, especially for Poland, while Israel has long supplied drones and advanced surveillance systems, particularly in demand for border control and monitoring enemy activities.

*This article is part of the Pulse project and was written by Silvia Martelli (Il Sole 24 Ore, Italy), Nikola Lalov (Mediapool.bg, Bulgaria) and Ieva Kniukštienė (Delfi, Lithuania).

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