"Globalization, integration, and Europe's defense industry"

Guay, Terrence and Callum, Robert. (2001) "Globalization, integration, and Europe's defense industry" . In European Union Studies Association (EUSA) > Biennial Conference > 2001 (7th), May 31-June 2, 2001, pages 30, Madison, Wisconsin.

Abstract

This paper explains how Europe's defense industry has evolved from the end of the Cold War by transforming itself from a collection of nationally oriented firms to one domination by two giants. We argue that both globalization and integration are responsible for this development. After describing the evolution of this sector during the 1990s, we present four factors that played key roles. They are: developments within the United States defense industry; the impact of technology and defense economics; general economic restructuring within the European Union (EU) coupled with a nascent defense industrial policy; and progress toward the creation of a European Security and Defense Policy. One of the main implications of this paper is that the EU plays a key and under-appreciated economic and political role in the changes that take place within Europe's defense industry.