Six Decades of Consolidation in the European Defense Industry (1960-2022)

Mitja Kleczka (), Caroline Buts () and Marc Jegers ()
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Mitja Kleczka: Social Sciences and Solvay Business School, Vrije Universiteit Brussel (VUB), Belgium
Caroline Buts: Brussels School of Governance and Faculty of Social Sciences and Solvay Business School, Vrije Universiteit Brussel (VUB), Belgium
Marc Jegers: Solvay Business School, Vrije Universiteit Brussel (VUB), Belgium

Economics of Peace and Security Journal, 2023, vol. 18, issue 2, 5-28

Abstract: In the present security environment, the capabilities of the European defense industry and the impact of restructuring over the years have become issues of concern. Researchers have found considerable consolidation when looking at the overall industry, but have failed to consider that this might understate the loss of national capabilities in subsectors. This article investigates the effect that restructuring has had on twenty subsectors of the defense industry in thirty one European countries from 1960 to 2022. It finds that since the 1960s, the number of major European defense firms has contracted by between 29% and 80% across subsectors, implying the loss of a range of capabilities. It suggests that while Europeanization is inevitable, it is likely be accompanied by further diminishing capabilities at the national level.

Keywords: Defence industry; consolidation; industry study; European integration; mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: D22 D24 G34 H56 H57 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:epc:journl:v:18:y:2023:i:2:p:5-28

DOI: 10.15355/epsj.18.2.5

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