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The future of the defence firm in small and medium countries

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  • Wally Struys

Abstract

The Western European defence industry used to be characterized by numerous constraints, especially in the small countries, subject to uneconomic defence production policies. It faces, since the end of the Cold War, a succession of new challenges such as budget restrictions, armament reductions and geopolitical upheavals. The EU is pushing in the direction of a cohesive foreign policy, including security and defence. Today, the emergence of a more consolidated European defence industry and the presence of oligopolistic European companies imply the definition of new roles for the EU and for its European Security and Defence Policy (ESDP). The solution is not protectionism, but more co-operation to ensure effective defence production at a socially acceptable cost. In the framework of this co-operation, defence companies in small and medium countries have a role to play as part of the supply chain to major weapon system integrators.

Suggested Citation

  • Wally Struys, 2004. "The future of the defence firm in small and medium countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(6), pages 551-564.
    • Handle: RePEc:taf:defpea:v:15:y:2004:i:6:p:551-564
    DOI: 10.1080/1024269042000246648
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    Cited by:

    1. Adel Ben Youssef & Gueorgui Ianakiev, 2009. "Intégration du marché européen de la Défense et politiques d’offsets : une analyse en termes de coûts de changement et d’externalités technologiques," Post-Print hal-01082243, HAL.

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