In recent years, the US pivot of global policies toward the Asia-Pacific region and tensions within NATO have pushed European countries to seek “strategic autonomy” in defense and technology. This shift is paving the way for the rise of European companies in both the defense industry and critical technology sectors.
Domestic Defense Production Boom
Limited US responsiveness to the war in Ukraine and delays in weapons supplies have forced Europe to reassess its defense capabilities. Spearheaded by Germany, France, and Italy, the European Defence Fund has allocated €8 billion to military R&D projects. Programs such as Airbus’s next-gen fighter jet FCAS and Sweden’s Saab Gripen-E have gained momentum. Meanwhile, investments in domestic arms production by Poland and Baltic states have boosted orders for companies like Rheinmetall and Leonardo.
Battle for “Digital Sovereignty” in Tech
Uncertainty from the US-China tech rivalry has driven Europe to strengthen its own infrastructure in AI, quantum computing, and cloud systems. France-based OVHcloud and Germany’s SAP are expanding market share against US competitors by emphasizing “data security.” The EU’s €43 billion Chips Act is also reinforcing the role of semiconductor giants like ASML and STMicroelectronics in global supply chains.
Experts Warn: “Innovation and Collaboration Are Key”
According to Brussels-based think tank BRUEGEL, Europe’s defense spending surpassed €300 billion for the first time in 2023, but R&D investments still lag behind the US and China. Defense analyst Clara Martinez notes, “While the US retreat creates opportunities, breaking Europe’s dependency on critical technologies could take decades.”
🪐The transformation in US-EU relations is testing Europe’s industrial capacity while opening doors to new markets for its companies. However, coordinating resources and long-term strategies will be crucial to sustaining this momentum.
