Self Defense: Protectionism Rules in EU Arms Industry

[unhappycamper]

http://www.spiegel.de/international/europe/inefficiency-and-protectionism-rule-european-union-defense-industry-a-938326.html



German Chancellor Angela Merkel loves to preach economic prudence to her European Union partners. But she looks the other way when it comes to the bloc's wasteful defense policy, and Europe's citizens are footing the bill -- to the tune of at least €26 billion a year.

Self Defense: Protectionism Rules in EU Arms Industry
By Gordon Repinski, Christoph Schult and Gerald Traufetter
December 11, 2013 – 05:00 PM

In February 2010, a group of German Air Force Eurofighter jets took off from Germany on a trip to the East. They were accompanied by a refueling aircraft, along with a cargo plane and a transport plane filled with engineers. The Germans' target was India, where their objective was to hammer out a deal on behalf of the European Aeronautic Defence and Space Company (EADS), which manufactures the Eurofighter. The government in New Delhi planned to buy 126 fighter jets, in a deal valued at up to €14 billion ($19.3 billion). An Indian newspaper described it as the "mother of all defense deals."

The counterattack didn't come from the United States, but from Germany's partners within the European Union. The French launched their own promotional campaign for their national prestige jet, the "Rafale," while the Swedes advertised their jet, the "Gripen," made by Saab.

The German Air Force pilots spent days thundering across the Indian subcontinent. The campaign cost about €20 million, but it was unsuccessful. The Indians chose the French jet instead.

This is what happens in the European defense industry: Whenever a major contract is in the offing somewhere in the world, the European nations compete against one another. But when they are the ones procuring military equipment, they isolate themselves and ignore all rules of reason and the market in the interest of protecting the domestic defense industry.