Europe’s poor output in defence

“No matter of how much of the GDP a Member State of the European Union or a NATO ally spends on defence, invests on defence, there is one number – actually two numbers – that tell us a lot. Europeans invest 50% compared to the Americans on defence. The output of this investment in Europe is 15% of the output in the United States. This means that, yes, we have to have reflection on how much Europeans spend on defence, but we can have an immediate work on bridging the gap on the output. This can be done immediately – and what is the difference? Why is our output on defence so poor, compared to the one in the United States?”

“Simply because of the economy of scale. The Europeans do not invest together on defence, while the economy of scale in the United States is definitely more convenient for better output of investments.” – from the speech by the EU top diplomat Federica Mogherini at the AmCham EU Transatlantic Conference “Room for three? The implications of Brexit on the EU-US relationship.

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