Governing defense procurement: Strengthening the EU’s defense technological & industrial base

Laurens Vandercruysse (), Cind Du Bois () and Caroline Buts ()
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Laurens Vandercruysse: Vrije Universiteit Brussel,Brussels,Belgium
Cind Du Bois: Royal Military Academy, Brussels, Belgium
Caroline Buts: Vrije Universiteit Brussel,Brussels,Belgium

Economics of Peace and Security Journal, 2023, vol. 18, issue 1, 35-52

Abstract: The regulatory framework concerning defense procurement has evolved considerably since the start of the millennium. In addition to the general Public Procurement Directive and the Defense Procurement Directive, the European Commission recently formulated a proposal for a Foreign Subsidies Regulation (FSR). Nonetheless, defense sector particularities continue to produce tensions in public procurement, and significant blind spots remain.In view of policy objectives to strengthen the European Defense Technological & Industrial Base (EDTIB), it is necessary to first study the current state of EU defense procurement. To that end, we perform an analysis of 14,207 EU27-tenders spanning the period 2009-2020. In addition, a case study approach investigates six tender procedures by the Belgian military, establishing material points of note. Key insights include: (1) the number of defense procurement procedures won by third country bidders is limited, (2) tenders won by non-EU27-tenderers are larger and less competitive on average, and (3) an overly strong focus on price efficiency in public procurement award procedures inhibits attaining EDTIB goals. In short, the data shows a chasm between stated policy aims of strengthening the EDTIB through positive action in public procurement on the one hand, and public procurement practices on the other.

Keywords: Defense procurement; Europe; EDTIB; Foreign Subsidies Regulation; Third country suppliers; armaments; military (search for similar items in EconPapers)
JEL-codes: F52 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:1:p:35-52

DOI: 10.15355/epsj.18.1.35

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