The European Parliament (EP) has appointed Andrius Kubilius as the first ever EU Defence and Space Commissioner on 27 November in Strasbourg to implement long-needed reforms for the defence markets and industry and enable Europe to deal with current European security challenges.

"We need a [European] single market for Defence - said Ursula Von Der Leyen, speaking to the MEPs in Strasbourg - We need to strengthen the defence industrial base. We need to improve our military mobility. And we need common European projects on Defence. And this is why Andrius Kubilius will be the first European Commissioner for Defence."

Kubilius, a former Lithuanian Prime minister, was greenlighted by the Eurochamber along with the entire College of Commissioners chosen by the EU executive's President Ursula Von der Leyen, which will start its works on 1 December. The EU Commission is currently aiming to reform European Defence and security amid concerns about the present and future threat posed by Russia and the rising geopolitical and economic tensions worldwide. Despite the several initiatives taken so far by the EU to replenish stocks, enhance cooperation, and strengthen industries, such as ASAP, EDIRPA, and EDIP, a strategically autonomous and resilient Europe is still on paper.

According to current data, among the most urgent needs, the defence sector is facing, there are a low budget – Europe spends on average 1,9% of its budget on Defence, compared to 9% of Russia – a fragmented and inefficient defence equipment and market, EU dependencies for raw materials and assets on external countries.

Kublious' position

During his confirmation hearing before the European Parliament, Kubilius, then commissioner-designate, outlined his vision for a robust European Defence Union. He promised a white paper within 100 days to deliver "full spectrum European defence capabilities based on joint investments [and build] a new approach to defence." This would help the EU meet extreme military contingencies while continuing existing defence programmes. Acknowledging underinvestment in Defence, Kubilius pledged to increase funding.

He aims to "spend more, spend better, spend together, and spend European," prioritising scaling up equipment production and European procurement. He proposed establishing a single market for Defence to reduce fragmentation, streamline procurement, and boost interoperability. This would include adopting common standards, improving SMEs' market access, and encouraging cross-border collaboration for economies of scale.

For long-term planning, Kubilius highlighted the next Multiannual Financial Framework, emphasising the need to "leverage the EU budget to deliver on key urgent EU priorities." Citing Draghi's report, he noted the defence industry requires an additional €500 billion over the next decade to remain competitive, emphasising financial optimisation and increased national investment. Kubilius called for enhanced public and private investment in defence R&D, stressing, "We need to significantly increase both public and private investment in defence R&D." He advocated reinforcing the European Defence Fund and exploring EU support for high-risk, high-reward projects akin to the US DARPA model.

Regarding financing, he suggested that the European Investment Bank adjust policies to support defence and space initiatives and proposed larger defence allocations in future budgets. Regarding space, Kubilius emphasised its strategic role, pledging to advance programs like Galileo and Copernicus while boosting Europe's autonomy and competitiveness in global aerospace markets.

Industry Approves

The European defence industry has well-received the appointment of the new EU commissioner, which will finally clarify future initiatives.

Jan Pie, Secretary-General of the Aerospace, Security, and Defence Industries Association of Europe (ASD), emphasised the industry's support for measures "bolstering Europe's defence capabilities and strengthening industrial competitiveness." He explained that crucial demands from the sector include a "clear regulatory burden reduction target to simplify and remove overlap and inconsistencies of existing and new regulations."

He also spoke about the EU budget, highlighting: "It is high time that the EU's financial priorities reflect the critical importance of the European defence industry for our security," urging alignment with the forthcoming White Paper on the Future of European Defence. Industry leaders had already highlighted these needs during a conference held by the European Aerospace and Defence Association (ASD), in Brussels.

While positively commenting on the same data published by ASD, which indicated a 17% growth of the sector in the last year, Airbus CEO Guillaume Faury and SAAB CEO Micael Johansson stressed the urgency of further action to create deterrence and resilience and be able to compete with the US or China. Key challenges, they said, include ramping up production, enhancing supply security, and fostering sovereign capabilities. Representatives called for "more long-term planning" and cross-European collaboration, stating that "the only way to become relevant and resilient" is through creating scale. They criticised the state of the current defence market structure as fragmented.

Johanson spoke about the need for more European collaborations, explaining, however, that "eligibility criteria" and a decision on what capabilities are more required. According to both, funding remains another critical issue. Industry stakeholders urged the European Investment Bank to permit investments in defence-related capabilities, which the SAAB CEO said would "send signals to big funds across Europe to take another step forward."

Lastly, the space sector was flagged as requiring urgent attention, with Europe facing challenges from giants like the US and China. "We are fragmented,” said Fury, “in a world where giants emerged. […] Space is very important from a sovereign perspective [and therefore] we need to synergise, restructure and consolidate” to create more scale in Europe.

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