Entries for the 'Defence Economy' Category

U.S. aerospace and defence companies’ financial performances in 2011 reflect the ongoing Department of Defense budget cuts. According to Deloitte’s recent report "2011 Top 20 U.S. Aerospace and Defense Company Financial Performance Analysis", the general performance of the aerospace and defence industry is to remain sluggish in the near future.

On Tuesday April 10th, UK Prime Minister David Cameron and his Japanese counterpart Yoshihiko Noda are expected to sign a memorandum of understanding giving way to future defence partnership.

India faces embarrassment prior to a summit of BRIC countries due to a leaked letter stating India’s defence capabilities are outdated despite budget increases.

An international arms transfers report by the Stockholm International Peace Research Institute (SIPRI) shows that India is the world’s largest recipient of arms, followed by South Korea, China and Pakistan.

The UK government might make a U-turn on the ongoing procurement project of the new Joint Strike Fighter (JSF) aircraft, which includes the equipment of aircraft carriers with appropriate catapults.

The German-French aircraft maker and defence contractor EADS is object of a strategy debate.

According to the Japanese newspaper Sankei Shimbun, Japan is going to ease its decades-old ban on weapons exports to boost its defence economy.

China yesterday announced an increase of its defence spending this year by 11.2 per cent, triggering international concerns about the country’s military intentions.

According to a report on international arms production by the Stockholm Peace Research Institute (SIPRI), the world’s 100 largest arms dealers excluding China have sold weapons and military services for $411bn in 2010.

The need for fresh thinking both from the military and from the wide range of relevant civilian stakeholders is clear to all. And that’s the purpose of the online Security Jam being organised by the Security & Defence Agenda (SDA) and its partners from March 19-23.

Turkey will buy 100 F-35 Joint Strike Fighters, Turkish Defence Minister Ismet Yilmaz officially confirmed to reporters of the Turkish daily Milliyet.

According to a French defence official, France may sell Mirage F-1 fighter jets to Libya. France is currently replacing its Mirage fleet by Dassault’s Rafale aircraft.

The delays to US defence procurement projects intended to save money within overall spending cuts commitments could raise costs in the long-run, defence experts in Washington D.C. highlighted.

Two weeks before the presidential elections in Russia, Prime Minister and presidential candidate Vladimir Putin announced an increase in defence spending.

India and Saudi Arabia have decided to set up a joint committee on defence cooperation, as announced on the sidelines of the visit of a high-level delegation of Indian defence policy-makers, led by Defence Minister A.K. Antony, to Riyadh on Tuesday.

Defence Minister Giampaolo Di Paola announced today to a joint defence committee of both houses of Parliament that Italy will reduce its order of F-35 by one-third as part of defence spending cuts.

Following the recent Indian award of a $20bn contract for fighter jets to the French company Dassault, UK-based defence contractor BAE Systems is considering reducing the price of its Eurofighter Typhoon.

Pentagon officials announced yesterday that the U.S. defense budget for 2013 will cut military spending by five percent to $525 million, marking the first decrease in the Pentagon’s base budget since Sept. 11.

Rosoboronexport, Russia’s state defense corporation signed a deal in December, selling Syria 36 Yak-130 advanced training fighter planes for $550 million. The Jets intended for Syria will be manufactured separately from those commissioned in Russia.

According to the latest annual report from J. Michael Gilmore, Pentagon Director of Operational Test and Evaluation, the DoD abilities are "not sufficient to prevent an advanced adversary from adversely affecting the missions that were being exercised."

Former Deputy of Defence William Lynn may soon to be the new chairman and CEO of DRS technology subsidiary for Finmeccanica.

Fabrice Bregier, Chief Operating Officer of Airbus announced at a press conference yesterday that the company expects to finalise the agreement for an interim service contract for the A400M air-lifter in the coming weeks.

EADS Chief Executive Louis Gallois has urged the British and French governments to open up plans for a proposed MALE Unmanned Arial Vehicle (UAV) to include EADS and other European partners.

Israel’s national airline, El Al, and the Tel Aviv stock exchange saw their websites hacked yesterday just hours after they were reportedly threatened by a Saudi computer hacker, OxOmar.

The US Navy's shipbuilding programme has been given budget priority and will not be cut to meet the Pentagon’s $263 billion reduction in defence spending by 2013.

India sent a military delegation to Beijing on Monday, to visit the General Staff Headquarters of the People's Liberation Army (PLA) as part of a 4 day defence exchange programme.

Chinese state media have scrutinised Washington’s new Asia-intensive defence policy since its release last Thursday, although Beijing is yet to give an official reaction.”

British Defence Minister Philip Hammond voiced concern at Capitol Hill on January 5th, at the potential effects of the new US military strategy and budget plan proposing $487 billion in cuts over the next decade.

One of the major innovations of the new US Defense Strategic Review is the emphasis on challenges in the Asia-Pacific region and the goal to foster progress in the Middle East, Central Asia and North Africa.

The US Air Force (USAF) has temporarily stopped the production of 20 A-29 Super Tucano light turboprop training and attack aircraft for the Afghan Air Force.

Only 10 EU member states have so far implemented the EU’s defence procurement directive, as confirmed by the European Commission Directorate General for Internal Market and Services (DG MARKT) yesterday.

NATO is currently collecting bids from international defence contractors to strengthen its cyber-defence capabilities.

Japan decided to replace its aging F-4 fighter aircraft fleet with the US-built F-35 Joint Strike Fighter stealth jet, as announced by the Japanese government yesterday.

US four star general and former commander of NATO’s ISAF mission Gen. Stanley McChrystal will become chairman of the board of Siemens Government Technologies (SGT).

The European Parliament adopted a resolution concerning a stronger harmonisation of European defence policies last week.

The UK is to seek new military alliances and will no longer invest in large-scale military missions, declares Chief of Staff Gen. Sir David Richards in his annual “state of the union” address on December 14th.

Lockheed Martin, Boeing and Raytheon have submitted their bids for getting a follow-up contract for the ‘Aegis’ combat system.

The 2012 US defense authorisation bill contains provisions for stricter cost controls for the purchase of the F-35 Joint Strike Fighter (JSF).

New UK Defence Secretary Phillip Hammond announced yesterday that the agreed increase in spending for military equipment as of 2015 will not be affected by further budget cuts.

The White House has announced that it will close possible loopholes for the Pentagon to shift different parts of its budget and circumvent cuts to its base budget as of 2013.

UK defence contractor Raytheon announced the purchase of the cyber-security company Pikewerks Corporation.

The Netherlands are aiming to strengthen cooperation with other European countries and play a pioneering role in multinational defence projects.

German Airbus Chief Executive Tom Enders may be the next new Chief Executive of EADS, as reported by Financial Times.

European defence ministers agreed on a range of projects for pooling defence capabilities at their Brussels meeting on November 30th.

An amendment to the 2012 defence authorisation bill, approved by the Senate on November 30th, allows for an exchange of different types of F-35 Joint Strike Fighter (JSF) aircraft between the US and the UK.

In an interview with the Financial Times, Gen. Martin Dempsey, new US Chairman of the Joint Chiefs of Staff, warned of the consequences of the foreseen spending cuts ($450bn over the next 10 years) on US Army operability.

Switzerland awarded the contract for the replacement of its fleet of Northrop Gruman F-5 fighter aircraft to Swedish defence group Saab, ordering 22 Gripen fighters.

According to Stéphane Beemelmans, Secretary of State in the German Ministry of Defence, Germany and France should cooperate on unmanned armed vehicles (UAV) projects.

The Franco-British summit will be dedicated to different aspects of the countries’ defence cooperation at the end of this week.

The Austrian army will considerably reduce the number of its armed vehicles by the end of 2013, as announced by Defence Minister Norbert Darabos yesterday.

Ahead of NATO’s Chicago Summit in May 2012, the Alliance has launched an initiative for concrete pooling of defence resources.

In the framework of the East Asia Summit on Bali, the US and Indonesia announced the planned purchase of 24 F-16 fighter aircraft by the Indonesian government.

The announced failure of the so-called US congressional supercommittee will generate a new debate on US defence spending cuts.

President Barack Obama announced on today during a speech to the Australian Parliament that budget cuts would not thwart plans for a broader US military role in Asia.

Russian Prime Minister Vladimir Putin chaired a meeting last week in Severodvinsk on state defence-industry contracts and safterward told reporters: "We will be fully re-equipping our Army and Navy."

The German government is scheduled to buy a 7.5% stake of the EADS in 2012 in order to allow carmaker Daimler to make 15% cuts in the airbus. The deal worth €1.2 bn is a step closer to Daimler’s goal of selling out EADS to focus on the car industry.

At the launch of the SDA’s cyber-security initiative yesterday, a high-ranking panel assembled discussants to tackle the core question of “Defining cyber-security”.

On 9 November 2011, the Security & Defence Agenda launched its cyber-security initiative with a high-level debate on "Defining cyber-security".

Claude-France Arnould, Head of the European Defence Agency, told reporters yesterday that Europe must have its own space-based Intelligence, Surveillance and Reconnaissance (ISR) capabilities in order to minimise collateral damage and civilian lives during interventions.

China’s conference, "PLA in the Next Decade," held on Monday revealed plans to modernise and change the top leadership reshaping the Peoples Liberation Army (PLA) in 2012.  

China successfully launched an unmanned spacecraft Tuesday morning to carry out the country’s first space docking mission as part of ambitious plans for a manned space programme.

The Swedish parliamentary opposition Social Democrats (SDP) heavily criticised the administration of Prime Minister Frederik Reinfeld for its cuts in defence spending, and announced the drafting of their own defence strategy.

Defence contractor Lockheed Martin UK will be awarded the contract for a ₤1bn (1.15bn Euro) upgrade of the British army’s Warrior armoured vehicle, as announced by Prime Minister David Cameron and Defence Secretary Philip Hammond.

Despite recent defence budget cuts, the aerospace company Boeing is expecting high growth in the sector of cyber-security, and opened its new ‘Cyber Engagement Centre’ yesterday.

The German government is planning to reduce its fighter jet and helicopter orders from the European aerospace company EADS.

Key US defence contractor RSA Security admitted yesterday that cyber-attacks on the company’s SecurID authentication tokens earlier this year can be traced to two nation state hacker groups.

A news analysis by the Financial Times revealed today that recent job cuts in Western defence companies such as BAE Systems are not primarily due to budget cuts in defence spending, but rather due to be defence hardware being increasingly built in the country of the client government.

The UK defence contractor Raytheon has been target of a recent cyber-attack.

A recent report by Eurocontrol, a European organisation for the safety of air navigation, demonstrates considerable gaps between the US and European countries in terms of the total number of fighter aircraft and density in military traffic in 2010.

European companies have been criticised by the European Parliament and NGOs for selling online surveillance technology to authoritarian regimes in the Arab world.

NATO Secretary General Anders Fogh Rasmussen yesterday called for enhanced collaboration between NATO and the European Defence Agency (EDA) amid current economic austerity to avoid duplication of efforts.

The US Department of Defense will extend its pilot programme for protecting its private defence contractors against cyber-attacks.

Worldwide arms sales decreased in 2010 due to national governments’ struggle with the economic crisis.

Japan may choose a European defence fighter for its renewal of the country’s fighter aircraft fleet.

China’s military leadership has massively criticised the latest US-Taiwan $5.9bn arms deal, and threatened that the deal could become a “serious obstacle” to US-China military relations.

Facing up to $1 trillion defence cuts over ten years if Congress fails to pass a budgetary plan, US Defense Secretary Leon Panetta urged Congress to find other ways to lower the US debt.

The European Defence Agency (EDA) and the European Commission will cooperate in the field of research.

On June 29 the Security & Defence Agenda organised an international conference entitled “Shaping NATO’s reform agenda” with the support of the Konrad Adenauer Stiftung, NATO, Lockheed Martin, IBM, the Atlantic Council and the Euro-Atlantic association of Belgium.

EADS will supply its Ectocryp cryptographic product for the United Arab Emirates (UAE) armed forces command-and-control system, said Hervé Guillou, head of cyber-security at the Cassidian defence and security division.

The former UK security adviser Admiral Lord West has warned of shrinking British influence in global affairs due to cuts in the national defence budget.

Following the sale of two French-built Mistral class amphibious assault ships to Russia in June 2011, Russian Minister of Defence Anatoly Serdyukov yesterday announced the signing of a contract with France for two more vessels of this type.

Ranking members of India’s armed forces have lamented the condition of the country’s military hardware and warned against a widening gap between India’s and China’s defence capabilities.

US arms makers are trying to compensate possible losses due to the Pentagon’s considerable budget cuts by stepping up their exports, especially to East Asia.

After failing to find buyers for a Daimler-held 7.5 per cent share of the European aerospace company EADS, the German government is now preparing to take over this stake.

An Op-Ed by Shada Islam

It’s no surprise: China’s rise has meant intensified scrutiny of its military budget. Alarm bells have gone off in Asia, America and, to a lesser extent, in Europe at Beijing’s decision to raise the national defence budget by almost 13 per cent.

The reshaping of the British armed forces will start on September 1st with a series of meetings at military bases in the UK and elsewhere. Army commanders will convoke those who have been selected for the first round of cuts which will continue for 9 years.

General David Petraeus, father of the counterinsurgency strategy and in Iraq and Afghanistan, yesterday retired from the Army to become the director of the CIA. Admiral Mike Mullen, hosting the ceremony said Petraeus had set the “gold standard for command in wartime”.

Commander of the US Marine Corps Gen. Jim Amos announced a deep restructuring of the force, contributing to the country’s ongoing defence cuts.

Top US Army generals addressed the Army’s network strategic vision 2020 at a conference in Tampa on August 24.

An independent study claims that over $30bn have been wasted on contracts in Afghanistan and Iraq due to the Pentagon’s bad management and a lack of competition. In a final report the Commission on Wartime Contracting alerted the US Congress that “waste and fraud have undermined American diplomacy, fomented corruption in host countries and tarnished the US image abroad.”

Following a study from the Defense Business Board in April pointing out some malfunctioning in the management of estimated $400bn annual contracts due to the lack of business background of military officers, Pentagon acquisition Chief Ashton Carter plans to professionalise the US Defense Department’s acquisition corps.

A report written by Howard Mathers, the chairman of the British MoD’s defence nuclear environment and safety board has been released, unveiling the MoD’s struggle to maintain the safety of the UK’s nuclear bombs and submarines due to defence cuts.

Finnish Prime Minister Jyrki Katainen has denied Finland’s intentions to join NATO due to expected defence cuts.

Following a revision of Turkey’s industrial participation and offset programme regulating the defence market since 2007, the government has compelled major Turkish defence companies to sub-contract their work under “domestic military contracts” to small and medium enterprises, and to assist their exports.

During a visit to the Royal Air Force Chinook base at Odiham, British Secretary of Defence Liam Fox announced a £1bn deal with Boeing for the delivery of 14 Chinook transport helicopters including development and support for 5 years.

The House of Commons Public Accounts Committee released a report warning that British forces in Afghanistan and Libya will likely face shortages of vital equipment within a month due to a supply chain at “critical risk of failure”.

Stefan Wallin, Finland’s newly appointed Defence Minister, announced that further defence cuts justify Finland joining NATO. However, Wallin's position has been rejected by military chiefs, who argue that Finland would require a larger defence budget to conform to NATO’s operational and equipment standards.

Due to substantial US defence spending cuts, leading defence contractors and investors have revised down their market outlook. During a conference in New York, Jim Albaugh, Chief Executive of Boeing Commercial Airplanes, backed up by Charles Mathis, Chief Financial Officer of Force Protection, told investors that “the Department of Defense is going to have to take out between $800bn and $1,000bn over the next 10 years

According to a report released on August 10 from Moody’s Investor Service, a credit rating agency which performs international financial research and analysis on commercial and government entities, the US debt ceiling act signed beginning of August puts significant pressure on defence companies.

On August 4, US Defense Secretary Leon E. Panetta shared his concerns on “the sequestration mechanism in the nation’s new debt-reduction law, given the multitude of threats facing America”.

EADS, the Franco-German aerospace and defence company, has boosted its Astrium space division with the 960million dollar acquisition of Vizada, a satellite communications provider. This move is the latest in a recent series of deals aimed at reducing the impact of government budget cuts and reliance on the manufacturing of Airbus passenger jets.

As part of the Effective Procurement Methods initiative, launched on July 7th; the European Defense Agency is considering to resorting to off-the-shelf procurement. "Through the EPM initiative, we are trying to develop together with the member states and other relevant stake-holders ways to identify and shape existing common demand".

Turkey’s Prime Minister Tayyip Erdogan has nominated Ismet Yilmaz as the new Defence Minister. Erdogan’s announcement came after his AKP party won national elections on June 12.

Russian navy chief Vladimir Vysotsky announced on Friday that Russia will supply a submarine to India under a deal that has been repeatedly postponed by Moscow.

A panel of senior sector executives has come up with 53 proposals on how to improve the functioning of the UK Ministry of Defence. Defence Secretary Liam Fox said he agrees with most of the proposed changes, calling them “transformative”.

The United States and Japan will continue to work together on missile defense, cyber and space initiatives, as well as expand information-sharing and intelligence, surveillance and reconnaissance activities.

US defence contractor, Northrop Grumman’s senior executives said the US risks loosing out the market for unmanned aerial vehicles unless it reforms its export controls.

New York City authorities have filed criminal charges against an Iranian shipping company they accuse of trafficking weapons, along with several other companies and persons using multiple corporate aliases to sidestep US economic sanctions.

British Labour politician and shadow secretary for defence, Jim Murphy said that greater European defence co-operation is "critical", especially in the procurement of new weapons and in training. In a speech to industrialists at the Paris air show on Monday, Murphy said: "Europe must decide if it is serious. European governments have to be more honest with each other and about their capacity within NATO.

In a joint presentation at the Paris air show, BAE Systems and Dassault will present their new unmanned aerial vehicle (UAV) named Telemos, which is reported to cost €1 billion. Following the November 2010 Franco-British defence agreement, BAE Systems and Dassault announced last March the development of a new UAV.

Hakan Buskhe, Saab’s new chief executive, revealed his new strategy identifying further cost savings and new market orientations. The most visible international move for Saab has been through its Gripen fighter.

Speaking at the Paris air show, EADS chief executive Louis Gallois, outlined an exit strategy for the group’s French and German stakeholders that would bring an end to their role in Europe’s biggest aircraft maker.

Following his warning to NATO members on finances in his SDA speech on 10 June, US Secretary of Defence Gates reiterated his critique on Wednesday to members of the US Senate Appropriation Committee, adding that this could eventually force the United States to move away from the alliance.

A recent UK Ministry of Defence publication warns that austerity measures could jeopardize the safety of its military installations. The Defence Environment and Safety Board has concluded that "the need to reduce costs and the severe reduction in personnel numbers will undoubtedly place a severe strain on safety systems".

Safran and Thales have come close to an agreement on asset swaps. Luc Vigneron, Thales chief executive, says that this year’s discussions between the two have been more productive.

The British Ministry of Defence is to double the redundancies of civilian staff this year to 8,000. Unions claimed they had received assurances that the number of staff taking advantage of "early release schemes" would not be increased from the planned 4,000.

UK Armed Forces Minister Nick Harvey told the Guardian that the capability to conduct cyber-attacks is "an integral part of the country's armoury" and that "action in cyberspace will form part of the future battlefield".

Shortly before the start of the G8 summit in Deauville, French president Nicolas Sarkozy and his Russian counterpart Dmitry Medvedev have reached agreement on a major arms deal between the two countries.

The U.S. House of Representatives has passed the 2012 National Defense Authorization Act. With a clear majority of 322 in favour to 96 against, congressmen and women gave their blessing to a $ 690bn defence budget for next year.

In a row over the financing of different jet fighter engine programmes, the White House has threatened to veto the 2012 defence authorisation bill.

Speaking last week during a visit in Beijing, Pakistan’s Prime Minister Yusuf Raza Gilani announced closer military cooperation between China and Pakistan. Islamabad offered a deal to China to build a naval base at the south western city of Gwadar and to maintain a regular military presence there.

The British government has given the go-ahead for the early design phase of a new submarine type, which will deliver the UK's nuclear deterrent for the next 50 years.

US Defense Secretary Robert Gates said US strategy changes are likely to reduce defence procurement in the next decade.

German defence minister Thomas de Maizière presented the first concrete details of his plan to restructure the German armed forces.

Russian President Dmitry Medvedev fired a number of domestic weapons plants chiefs, as well as several defence ministry officials on 17 May, due to an industry failure to meet the Kremlin’s deadline in delivering new weapon systems.

Greek Defence Minister Evangelos Venizelos confirmed the pull-out of German shipbuilding group HDW from a deal to build two submarines at a shipyard in Greece.

European aerospace and defence group EADS announced a net loss of € 12m in the first quarter of 2011. The slight loss, due to foreign exchange factors, stands in sharp contrast to last year’s profit of more than € 100m.

Defence contractors Safran and Thales are currently negotiating an exchange of business assets, the French Les Echos newspaper reports in an interview with the head of the Direction Générale de l'Armement procurement office, Laurent Collet-Billon.

The Chairman of the US Congress’ House Armed Services Committee has warned the Obama administration to no repeat past mistakes when finalising the 2012 defence budget.

In an interview with the newspaper Haaretz, Israeli defence ministry director-general Major General Udi Shani announced that Israel is planning to invest around €700 bn ($1 bn) in the further development of its mobile rocket defence unit Iron Dome.

The Taiwanese navy has equipped its warships with a new missile type able to reach supersonic speed, authorities announced.

The European Aviation Safety Agency (EASA) has certified the Airbus A400M’s turboprop engine. In an announcement on 6 May, the engine producer consortium Europrop International stated that the turboprop engine marks the first of its kind which has gained certification from the EASA.

Debate between US democrats and republicans about the Pentagon’s budget erupted this week, as both parties outlined their strategies to ensure the global US power.

The US military has submitted lists of unfunded programmes essential to their requirements in 2012 to Congress. According to US authorities, the Navy has asked for an additional € 460m ($ 684m) for aviation equipment and ship depot maintenance.

Oboronprom, the Russian state-owned aerospace holding will appeal to investors from London and Moscow for investments in the helicopter sector.

The UK government has given green light for the appointment of a foreign chairman to lead the British aerospace and defence group Rolls Royce. In a vote this week, shareholders could pave the way for a US or continental European chief by allowing a change in the company’s articles of association.

The UK Ministry of Defence has announced the first redundancies large scale defence cuts. Some 1000 soldiers and 1600 sailors will lose their jobs.

Executive Chairman Antoine Bouvier of European missile maker MBDA said yesterday that the US pull-out from the Medium Extended Air Defence System (MEADS) programme “surprised and disappointed” him. The US administration seems not to have consulted with its European allies before making its decision to pull out of the programme.

Northrop Grumman’s board of directors, yesterday approved the spin-off of its subsidiary, Huntington Ingalls Industries (HII), to the company’s stakeholders. The spin-off will be final once cleared by the US Securities and Exchange Commission (ESC). When the spin-off takes effect HII will be the only US Navy supplier of nuclear-powered aircraft carriers and along with General Dynamics the sole US submarine makers.

The European Commission yesterday opened up public consultation on the role of the security industry in preparation of a new Communication on an Industrial Policy in this field in 2012. European Commission Vice-President Antonio Tajani, in charge of Industry and Entrepreneurship, said that “the security industry is an integral part of the proper functioning of our society. Therefore, the current fragmented market should be overcome. It weakens the competitiveness of Europe’s security industry and endangers its ability to provide technologies necessary to ensure the security of the European citizens.

India fired two missiles off its eastern coast on Friday, March 11. The two missiles, Dhanush and Prithvi II, were domestically manufactured. The Prithvi II has 250 km range and can carry nuclear warheads. The Dhanush is a naval variant of the Prithvi missile and it can fire 250 km range missiles. The tests aimed at training the Indian armed forces and develop the country’s nuclear weapons.

After a long running race between the European Aeronautic Defense and Space Company (EADS) and the Boeing Company, the latter received a $35 billion contract from the US Air Force to build the next generation aerial refuelling tanker aircraft. The Pentagon decided that Boeing’s bid was more than 1% below that of its rival that builds Airbus planes.

The German government has been offered half of Daimler’s holding in European Aeronautic Defence and Space Company (EADS). Daimler Chief Financial Officer Bodo Uebber, while reluctant to comment on the exact plans, confirmed on Wednesday that though the structure of shareholders at the EADS might be subject to changes on a long term basis the German automaker wants to maintain the ‘industrial leadership’.

NATO has announced a succession of development and implementation contracts for command and control equipment, which will allow for increased interoperability in European air commands. The deals, signed with Siemens, STM and ThalesRaytheonSystems, will also provide the initial operational capacity onto which the future missile defence architecture will be integrated.

A recent report by the RAND Corporation into the development of alternative energy sources for US military tactical weapon systems has concluded that problems of cost and efficiency make them “unlikely” to replace conventional fuel sources in the short term. Not only does the industrial outlook for the “production of alternative fuels that have military applications remain highly uncertain, especially over the next decade”, but there is no discernable military benefit from switching to alternative energy, despite US targets in this area.

The US Department of Defense is expected to announce the winner of its contract to renew their ageing aerial refuelling tankers in the coming month, despite calls from numerous Senators for an investigation into the accidental sharing of bidding data between the companies. The competition, between Boeing and EADS’ subsidiary and primary sector rival Airbus,

A group of former British Chiefs of the Defence Staff, in a letter to the UK’s Daily Telegraph, have called the cancellation of the Nimrod MRA4 surveillance aircraft programme “perverse”, amidst claims it will endanger Britain’s nuclear deterrent. The project, which has already cost the UK €4.6 billion, was cancelled as part of the Strategic Defence and Security Review (SDSR), both to save costs and open up competition for a potential un-manned capability.

The German government has ratified their portion of the A400M budget, confirming the order of 53 of the military transport aircraft at an estimated cost of €3.5 billion. However, financial constraints and a radical decrease in troop numbers after the recent military reform package has lowered demand, meaning that up to 13 of the aircraft may be sold on to third party buyers.

The financial crisis means international security organisations have to constantly rethink their roles. NATO’s Lisbon summit outlined ‘restructuring’ and ‘modernisation’ as priorities, but implementing them remains under-defined. General Stéphane Abrial, NATO’s Supreme Allied Commander for Transformation, will debate his perspective of NATO’s force transformation and reform agenda in Brussels tomorrow evening.

France and Russia have signed a deal for the construction of upto four Mistral-class transport ships, despite strong concerns from NATO allies in the Baltic. The warships, which have been sold for an undisclosed amount, are capable of carrying upto 450 soldiers and a full compliment of support helicopters and armour, which will give Russia a level of amphibious capability unseen since the end of the Cold War.

US aviation giant and key defence prime Boeing have announced 1,100 lay-offs, primarily from its C-17 military cargo plane programme. The news comes after the budget cuts announced by the Pentagon earlier this month, which has reduced the demand for the military logistics aircraft. In related news, US avionics firm General Electronics have announced a joint aviation project with Aviation Industry Corp of China (Avic), despite the ongoing French scandal about industrial espionage in the Chinese sector.

The European Defence Agency (EDA) will host a multinational working group on the 8th of February, to assess the viability of forming a shared helicopter resource pool for European expeditionary and disaster response roles. The proposals build upon European ambitions to increase the deployability of existing helicopter platforms, which is chronically low. According to Andy Grey, the Helicopter Project Officer at the EDA, out of 1,500 military support helicopters in Europe, only 50 are deployed in-theatre.

General Vincenzo Camporini has ended his tenure as the Italian Chief of Defence Staff, after three years of service. His replacement, General Biagio Abrate, will assume the role, having previously held positions as Head of the Defence Minister’s cabinet, Secretary General for Defence and Director General for Armaments. General Abrate has vowed to continue the force modernization initiatives of his predecessor.

DCNS, Frances premier naval defence company and one of Europe’s leading shipbuilders, have announced plans to enter the civilian energy market with “Flexblue”, a submerged “small power” nuclear reactor. Founded on the companies expertise in nuclear submarines, Flexblue will compete with Ariva’s third generation EPR reactor. This competition is likely to shape the future of European nuclear power, as the EU seeks to diversify its energy supplies in the face of fossil fuel depletion.

Europe’s flagship space programme and answer to the US dominated Global Positioning System (GPS) network, the Galileo project, has run into difficulties, with the announcement that it will need an additional €1.9 billion. The money, which will be used to raise the total number of satellites to 30, brings the bill to €5 billion. The news comes just days after the German satellite CEO Berry Smutny was fired, after Wikileaks reported he had called the project “doomed to failure”.

French Defence Ministry spokesman Laurent Teisseire has confirmed that British and French defence ministers Liam Fox and Alain Juppé met on the 13th of January, to assess the progress of cooperative measures agreed between the two nations in November. The meeting was the first ministerial level collaboration since the treaty was signed, and centred on the practical operational questions that underpin the agreement, which includes a combined rapid reaction task force and the sharing of carrier resources.

Louis Gallois, head of EADS, has issued a stark warning about the dangers of industrial espionage in China, as Renault prepares to clarify its allegation that intellectual property pertaining to state-of-the-art electric car systems has been leaked from its Chinese headquarters. Describing the threat as a "reality", Gallois was quick to point out that China was not the only industrial player conducting such espionage. Rather, the defence executive was using the Renault case to illustrate the need for "prudence" by all defence actors in the handling of sensitive data abroad.

As budget cuts begin to bite in Washington, Europe may feel the effects of the financial crisis on the transatlantic relationship in unexpected ways, warns European Voice analyst, Bruce Stokes. Pointing to the flurry of consolidation plans published in the US by the National Commission on Fiscal Responsibility and Reform earlier this week, Stokes anticpates severe implications for Europe, in both it's military and economic relations with the US.

The French Direction Générale de l'Armement (DGA) has placed an order for 200 Meteor radar-guided, beyond-visual-range air-to-air missiles, in an assertive move likely to defy gloomy defence market predications for 2011. In a statement issued on the 3rd, "Defense Minister Alain Juppé welcomes the order for 200 Meteor long-range air-to-air missiles to equip the Rafales of the Air Force and Navy", that will support the next generation of French air-to-air capabilities.

Claude-France Arnould has been appointed as Chief Executive of the European Defence Agency (EDA). She is currently Deputy Director-General for the Crisis Management and Planning Directorate (CMPD) in the External Action Service, and has extensive experience operating as part of EU external relations missions, the Common Foreign and Security Policy and Common Security and Defence Policy.

US Defence Secretary Robert Gates has announced a $78bn (£50.3bn) military budget cut for 2011, designed to end what he describes as a "culture of endless money where cost was rarely a consideration" in the Pentagon. The move comes just 6 months after the US announced $100bn in savings for the coming 5 years, making the Pantagon's current policy of fiscal retrenchment the harshest since the end of the Cold War.

Despite the position of both Catherine Ashton and various national governments, such as France and Spain, consensus from the majority of members has firmly pushed a potential lifting of the EU arms embargo of China off the agenda. The embargo, a legacy of the 1989 Tiananmen Square massacres and subsequent political isolation of China, has recently been criticised as being “out-dated” given China’s changing geo-political and economic stature. Continued US backing of the embargo, as well as the protestations of numerous members, has supported a continuation of the stance.

Speaking to NewEurope, SDA Co-President and long serving European diplomat Javier Solana has outlined his perspective of the recent Anglo-French treaty, and the opportunities it may create for a further drive towards pan-European defence cooperation in the wake of the financial crisis. Describing the agreement, that formalises the shared use of carrier and nuclear resources, Solana described how such treaties constitute “a step along the arduous but necessary path toward greater European security”.

The Foreign Ministers of France, Germany and Poland have taken the un-usual step of sending a trilateral letter to Catherine Ashton, the High Representative for Foreign Affairs and Security Policy, urging her to strengthen the EU’s military capabilities. In the letter, dated the 6th of December, the Troika calls for Ashton to personally oversee a re-focus on Europe’s military ambitions, "with you, Madam High Representative, in the lead."

The EDA’s annual report on defence expenditure, providing figures for the fiscal year 2009, has revealed a declining level of spending by all European states on defence. The figures, which include statistics from across the European Union (except Denmark) have indicated an average fall in defence investment from 1.78% of GDP in 2006 to 1.67% in 2009. These figures do not include the extensive emergency cuts announced by some of Europe’s largest military investors in 2010, such as Germany and the UK, meaning that the worst may be yet to come.

Germany has formally announced an end to conscription into the Bundeswehr (German Army), as part of ongoing measures to increase power projection capabilities abroad whilst slashing budgets at home.

Turkish President Abdullah Gul has continued to object to the specific wording and construction of NATO’s missile defence statement in the upcoming New Strategic Concept, due to be unveiled at the Lisbon Summit later this week.

The future of the troubled Airbus A400M program was secured today, with Ministers from seven European Departments of Defence finalising a 3.5 billion euro bail-out. The agreement will see the production of 170 of the heavy transport aircraft.

NATO Secretary General, Anders Fogh Rasmussen, has outlined his expectations for the forthcoming summit in Lisbon following meetings of Foreign and Defence Ministers. Claiming that all parties now have a clear mandate for reform as well as a clear idea of what reform will look like, he predicted that the summit will bring about “a substantially leaner Alliance Command Structure”, which is likely to mean streamlining the command to below 9000 personnel and reducing the number of NATO agencies from fourteen to only three.

Britain’s first Strategic Defence Review in over a decade, designed to dictate the form and function of the UK armed forces, has been over-shadowed by the need to deal with the constraints of the current financial situation and controversy over capability gaps in the new aircraft carrier program.

A panel of high-ranking UK officials discuss the upcoming Strategic Defence and Security Review. Against a backdrop of the financial crisis, panellists and participants discussed what to expect from this exercise after 9/11, two wars, and an ever changing European defence project.

NATO Secretary General Anders Fogh Rasmussen headed a high-level panel discussed the future of the Alliance, the implications of the financial crisis on the defence sector and the way ahead in Afghanistan.
"NATO's European Dimension" was organised with Konrad-Adenauer-Stiftung, and was attended by 500 particpants. .

During this innovative online experiment, leading think-tanks got together with the SDA to organise a 5-day brainstorm that was supported by NATO and the EU. The recommendations that emerged from this brainstorming event have been sent around the world.

In December 2009 the Security & Defence Agenda organised an international conference “NATO, the credit crunch and the new security environment” with the support of the Konrad Adenauer Stiftung, Hewlett Packard, Lockheed Martin and NATO. The discussions focused on the challenges facing NATO with the current economic crisis and the ever-changing global security paradigm. The SDA is pleased to present the principal conclusions of the conference in this report.

In November 2009, high-level representatives from EU institutions, member state governments, NGOs, think-tanks, industry, and the media, gathered to discuss how the combination of civilian and military power is the key to the European Union’s “smart power”. The Security & Defence Agenda and the CEIS (European Strategic Intelligence Company) are pleased to present the main findings of the conference.

Ballistic missile threats have continued to grow during 2009. North Korea and Iran have both demonstrated short as well as intermediate range missiles, highlighting a potential threat to the United States and Europe.

Following the US Administration’s change of policy, what is the political outlook for the new US anti-missile system, in terms of both public opinion in the US and Europe and also in light of NATO's new Strategic Concept? Is there potential for a linked missile defence system for the US and Europe, and if so, what practical steps now need to be taken?

The summit addressed many issues in EU-China relations. Participants argued that the EU-China relationship is not always straightforward as a result of different political cultures but it was agreed that, considering their interdependence, Europe should not feel threatened by China's future economic growth.

Headline-grabbing reports of piracy off the coast of Somalia may have prompted calls for more EU action but the interests of individual member states take precedence while the presence of national industrial champions means defence procurement remains fragmented in Europe. There have been piecemeal attempts to co-ordinate European efforts but none have so far added up to a comprehensive naval strategy.

On Monday 19th January 2009, the SDA kicked off the European political year with a stimulating discussion co-organised with sister think-tank Friends of Europe on Turkey’s European Future. Turkish Prime Minister Recep Tayyip Erdoğan put a powerful case for Turkey as future member of the European Union to a distinguished gathering of senior politicians, policy makers, managerial executives and journalists.

On November 13th, the SDA hosted a meeting of health and security experts to discuss how attention is being given to the disparity in risk analysis from both public and private sector actors engaged in pandemic preparedness throughout Europe.

The Security & Defence Agenda (SDA), the European Company for Strategic Intelligence (CEIS) and the Robert Schuman Foundation are proud to present this Security & Defence Days 2008 conference report “The Outlook for European Security”. It reflects the contributions of the 27 speakers and 280 participants at this two-day conference on EU security policy issues held on November 3 & 4 November 2008.

Some 120 experts gathered in Brussels to discuss the chief ESDP weaknesses to be tackled and debate what the impact will be of France's return to NATO. Though the debate almost got sidetracked by discussions of the skirmishes in Georgia, participants discussed whether the French Presidency's agenda was too ambitious, and many voices agreed that the Presidency's call for informal high-level meetings between NATO and EU leaders was a way forward.

The event focused on current developments in the field of security and defence technology including transatlantic interoperability, funding and civ-mil cooperation.

On 14 April, the Security & Defence Agenda together with the Atlantic Council of the United States organised a transatlantic roundtable on the question of EU-US defence cooperation. With two panels and 14 high-level speakers both in Brussels and in Washington, the debate proved to be highly fruitful and a start for more transatlantic dialogue on this subject.

The Security & Defence Agenda is pleased to present you the report of its 2008 International Conference "NATO in the Next Decade - The Outlook for European Security and Defence". The event was co-organised with the Konrad Adenauer Stiftung, Hewlett Packard, Lockheed Martin and NATO.

This Discussion Paper in two parts brings together the views of high level experts from both sides of the Atlantic on NATO and ESDP relations. Contributors include David Leakey, Daniel Korski, Ambassador Stewart Eldon, and Alyson Bailes.

Romania will be hosting the next NATO Summit in Bucharest on 2-4 April this year. On 12 March the Security & Defence Agenda hosted Romania’s Ambassador to NATO Sorin Dumitru Ducaru, US Ambassador to NATO Victoria Nuland and Belgium’s Ambassador to NATO Baron Frans van Daele.

Javier Solana, Head of the European Defence Agency, announced today that the EDA Steering Board has appointed Alexander Weis of Germany as the Agency’s Chief Executive from 1 October, succeeding Nick Witney, who has led the Agency since its creation in July 2004.

In mid-January 2007, US officials formally proposed establishing a ballistic missile defence (BMD) radar system, operated by US personnel, in the Czech Republic.

The European Union should move toward forming a common army, German Chancellor Angela Merkel said in a newspaper interview published on Friday.

Although the latest SDA roundtable looked at two issues – Theatre Missile Defence (TMD) and Territorial Missile Defence – the debate that flowed around them soon became one and the same. Several speakers argued they could not be separated, while others said that a focus on the defence of populations (Territorial Missile Defence) would dilute the current TMD programme.

Japan’s defence ministry is considering adopting the Eurofighter as its next-generation fighter jet, a potentially momentous move for a country that has until now only purchased fighters from the US, its closest military ally.

The EU has no plans to participate in a US anti-missile system but its member states are free to join, the bloc's foreign and security affairs chief said on Thursday (2 march) in an attempt to ease Russian concerns over the project.

There was hardly any room for optimism at the end of the latest SDA roundtable on export controls. One firm conclusion was that there had been a lack of progress – in industry’s eyes - on both sides of the Atlantic. In Europe in particular, the chances for a unified export control rulebook seemed as far away as ever. Within the EU, there was no agreement on whether a community solution was required or whether it should be left to the six arms manufacturing Member States to drive reform of exports controls in the defence market. Over in the United States, there was said to be widespread industry agreement that ITAR was broken, but the internal political scene meant that no action was likely in the immediate or medium-term future.

Speaking at the latest SDA Dinner, EU Commissioner for Enterprise and Industry Günter Verheugen placed cooperation at the top of his priority list. All of the major players had to work together if Europe was to develop a defence and security culture, and thereby guarantee the protection of the EU’s borders and critical infrastructure. At the same event, Dr. Thomas Diehl, CEO of the Diehl Stiftung, said industry was ready to meet the challenges of the 21st century. To do this, however, he wanted a level-playing field for the EU’s defence and security companies, internally and externally. Regarding the internal level playing field, intra-EU export regulations and offsets were addressed.

The event launched the debate on the European Defence Technological and Industrial Base (EDTIB). Speakers discussed why the EDTIB is needed for ESDP to be effective, what industrial capacities will be needed in the future, the particular characteristics of the defence sector, and the importance of security of supply and industrial sustainability.

On June 13, 2006, European Defence Agency Chief Executive Nick Witney and Security & Defence Agenda Director Giles Merritt co-chaired an expert level seminar focussing on the nature and the drivers shaping the future military environment. The meeting came at a time as the EDA is undertaking detailed analysis, using a range of conceptual approaches, aimed at developing an initial long-term vision for European capability and capacity needs. Experts examined questions arising from consideration of European internal and global security in the coming decades. Major factors influencing future capability needs identified include continued EU geographical proximity to sources of instability, new military and technological challenges, greater EU Member State cooperation, global economic, demographic and political change, civil-military co-operation and a further shift towards crisis prevention and management.

At the latest SDA roundtable, there was general agreement that network centric capabilities would define the future of the defence industries on both sides of the Atlantic. However, the key word there was “future”. With such capabilities still in their infancy, it became apparent that – despite repeated requests from industry – a coordinated European approach did not exist. As SDA Director Giles Merritt noted, network centric capabilities seemed to be still in the Middle Ages and the route towards an Age of Enlightenment was not clearly lit

After a wide-ranging debate on European space policies, it was clear that overall requirements need to be defined and that space was receiving inadequate funding. It was anyone’s guess as to which came first. Almost all the panellists called for a clearer requirements definition to be produced on European level and by the member states. The ESA’s Gerhard Brauer wanted these to be harmonised, or even better, common.

Returning to address the NDA after 12 months, European Defence Agency Chief Executive Nick Witney concluded that something had to be done and done quickly. After admitting that time was not on his side, Witney was strongly supported by industry. Witney also shared the platform with representatives from the Commission, the member states and think tanks. No one doubted that the Agency and the Commission were taking positive steps but many speakers saw the need for greater political backing if a genuinely transparent and competitive European defence equipment market was to be created.

The questions of the day related to the new EU member states to the east: were NATO standards driving the transformation of their armed forces and how could their defence industrial base be revitalised? While there was general agreement that the need to be interoperable with NATO was acting as a catalyst, there was relatively little conformity when it came to the subject of the newcomers' industrial base.

“THE TIMES THEY-ARE-A-CHANGING”
That’s what Bob Dylan sang back in the sixties, and moderator Brooks Tigner had a similar message when he opened the latest New Defence Agenda roundtable on the status of the transatlantic defence marketplace. He wanted panellists to focus on today’s situation and he did not want to hear about the history of transatlantic co-operation. And Tigner got exactly that. All the panellists said exactly what they thought and it was not all good. If one word could sum up the mood of the morning, it was frustration. But in the afternoon, after a light lunch, a new panel under Giles Merritt’s careful guidance saw things in a different light. Several panellists reminded the meeting that defence and security requirements were international and not limited to a particular geographic sector.

If maritime security was indeed the EU security policy’s Achilles heel, there was complete agreement on how to respond – it was through more effective cooperation between all parties. Not all questions were answered but there was complete harmony in several areas – this was a policy where only global solutions would be effective, all actors had to be involved and the political will to succeed was paramount.

Speaking at the latest New Defence Agenda (NDA) hosted press dinner, Nick Witney, Head of the European Defence Agency Establishment Team, provided a wide-ranging overview of the role the agency might be playing in the coming years. Looking at the reason why an agency was required, Witney said that Europe needed to raise its game on defence. The root problem was fragmentation - insufficient coordination of defence requirements across the EU and hence no unity of supply.

At its latest roundtable, the New Defence Agenda discussed how defence costs could be shared across the EU. However, as the day progressed, there was a gradual change of topic with the focus moving firmly to security. Moderator Michel Berendt opened the morning session by noting that it was difficult to separate defence and security and later, Thales’ Martin Hill observed that industry was mainly talking security, as it was “chasing the money”. Several speakers emphasised the gap in expenditure between Europe and the US and there was universal acceptance that defence budgets were being squeezed.

The New Defence Agenda’s first roundtable of 2004 saw a packed house and three hours of intense debate surrounding the future of the European Defence Agency. Perhaps those who came expecting to hear revolutionary talk were disappointed, as although speakers reinforced the Agency’s importance, they emphasised that it is just one step along the way to a common European defence policy.

The fifth session of the Defence-led R&D and Industrial Innovation working group looked at two strategic issues: the working of the proposed European Defence Agency and the future of warfare itself.