On 12 May, the European Commission President Ursula von der Leyen hosted the launch of the Strategic Dialogue with the European defence industry. IndustriAll Europe and ETUC participated at the meeting, highlighting the importance of a comprehensive collective security concept that goes beyond military preparedness, and includes a strong democracy, social progress, better living and working conditions.
The primary objective of the Strategic Dialogue with the European Defence Industry was to discuss the challenges and bottlenecks that hinder the European defence industry’s ability to scale up and ramp up development, production and delivery of defence systems and equipment at the required pace and scale. The outcomes of the discussion will inform the effective implementation of the Defence White Paper.
At the meeting, industriAll Europe relayed an important message: we can only be strong externally if we are strong internally and our internal strength depends on our economic security underpinned by social stability. There can be no peace without social justice. We have seen these under attack by threats of austerity with the revised fiscal rules squeezing investments and the cost-of-living crisis affecting workers.
The EU’s goals for the defence ramp-up are jeopardized by the ongoing de-industrialisation crisis, with plant closures and restructurings constantly announced in sectors upon which The European Defense Industrial and Technological Base (EDTIB) relies heavily, like steel, chemicals, electronics or semiconductors. The EU needs to invest in the entire holistic value chain and keep industrial production on the continent with quality jobs.
Europe’s defence sector is suffering from decades of under-investment, with difficulties in attracting skilled workers and, especially, young workers. Almost all companies report big shortages. Overcoming these difficulties cannot happen overnight. The recent massive investment announcements need to translate in long-term company orders to improve the image of the sector in terms of job security and sustainability. Furthermore, increases in production cannot come at the expense of workers’ rights, with health and safety obligations and working time limitations being particularly important to prevent accidents.
Simplification is no silver bullet to help the EU reach its new defence objectives. While industriAll Europe is not against the simplification of ‘overregulation’ or of duplications, we strongly oppose the deregulation of labour and sustainability obligations.
“Exempting defence from the EU’s Green Deal would be a step in the wrong direction and a missed opportunity, as the defence and clean agendas do not need to collide. Furthermore, exempting defence from the EU’s AI Act obligations could jeopardise our overall security, as the regulation aims to ban AI applications that pose an unacceptable risk” said Judith Kirton-Darling, indsutriAll Europe’s general secretary
“Funding for Europe’s social objectives, decarbonisation and digital objectives must be safeguarded and not relocated to defence.
We are extremely concerned that Cohesion Funds initially aimed to foster upward convergence in Europe, will now be used for defence. Our members in Romania report that their remaining RRF funds and parts of the Cohesion funds will be relocated. We are talking about a country in which the economic and social lagging has spoken for itself in the recent election and matters might get worse if funds for social objectives are redirected” added Judith Kirton-Darling.
IndustriAll Europe will also participate at the next Strategic Dialogue on defence, which will be hosted by Commissioner for Defence and Space, Andrius Kubilius, on 19 May.