Defense & Strategy · Part II of II

Europe's Defense Buildup Is Reproducing the Problem It's Trying to Solve

Why Spending Without Industrial Architecture Deepens Dependency

Sinéad O'Sullivan
2025 · BTD Foundations Download PDF

Idea in Brief

The Problem

European defense spending is rising rapidly, but increased expenditure without the industrial and institutional architectures to absorb it does not produce autonomy — it produces dependency. The money flows to whoever already has the production architecture, which is predominantly the United States. This dynamic has two compounding failure modes: external dependency on American contractors, and internal fragmentation across 27 separate European procurement systems.

The Argument

This is structurally identical to a premature market failure: capital and political demand exist, but the surrounding system has not co-evolved to convert them into the intended output. European defense is experiencing a premature rearmament — a politically-driven spending surge into an industrial architecture that cannot yet absorb it productively. Increasing the budget does not resolve this; it amplifies it.

The Implication

Genuine European defense autonomy requires an architecture-first approach: building European industrial capacity, harmonizing procurement, and developing interoperability standards before or alongside spending increases. Without the right sequencing, increased spending accelerates dependency rather than resolving it.

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