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Why Trump means good times for Europe’s arms-makers
Politico ^ | January 20, 2025 | Joshua Posaner, Jacopo Barigazzi, Lucia Mackenzie and Johanna Sahlberg

Posted on 03/05/2025 7:57:15 AM PST by Dr. Franklin

Much of Europe is anxious about Donald Trump’s return to the White House, but there’s little to suggest the continent’s arms manufacturers expect a crisis.

Europe is seeing a dramatic boost in defense budgets, driven by both long-standing pressure from Washington and the continent’s own reaction to Russia’s full-scale invasion of Ukraine. That promises a glut of military contracts for weapons-makers in Europe as well as in the U.S., South Korea and elsewhere.

That also explains why the industry is relatively relaxed about Trump.

If he pulls the U.S. out of NATO and leaves Europe to go it alone, the continent will have to rely on its own arms companies, netting them a surge of contracts.

,,,

“Deterrence is a mind game, it’s not a weapons game,” said Christian Mölling, who tracks defense procurement for the Bertelsmann Foundation. “I’m questioning the underlining assumption that you can buy yourself American leadership through weapons deals.”

For now, American companies are doing well, selling Lockheed Martin F-35A Lightning II fighters, AH-64 Apache helicopters, Patriot air defense system, Abrams tanks and more to countries across the continent.

But EU nations that are modernizing their militaries, such as Poland and Romania, also procure from European arms-makers, and that’s unlikely to end soon, no matter what Trump does.

...

Despite the scale of some U.S. companies, Europe still has heavyweights. From two rival programs to develop sixth-generation fighter planes, to a Franco-German project to research a new tank, a program to develop new naval corvettes, the Franco-Italian SAMP/T air defense system, and billions pouring into drone development, European companies expect to continue scoring big contracts as the continent rearms.

“There’s so much money going around,” Rutte said in the European Parliament. “Be good businessmen ... Don’t lose out to the South Koreans.”

(Excerpt) Read more at politico.eu ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
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So Politico, (yes I know) published this on Inauguration Day. It referred to Trump pushing Europe to increase its defense spending, which the writers note would be good both for American and European military industries. From a few interviews I've watched, Trump's pivot away from Ukraine, and toward neutrality to Russian aggression will hurt American weapons sales in Europe, and not just because of what aid he has stopped to Ukraine, which was largely obsolete or near obsolete weapons systems. One commentator asked why a European nation would want to buy F-35s or similar high-tech systems only to get denied necessary software updates or spare parts requiring U.S. government approval.

The E.U. functions like the U.S. did under the Articles of Confederation. There has been much talk form E.U. elites about Europe, meaning the E.U., creating its own army. That always bogs down under talk of who would control it, how to compel member states to pay their share, etc. They are slowly understanding that they will need to standardize military production for compatibility and interchangeability and become independent of U.S. manufacturers. Trump has now pushed them hard to solve these problems, and its a good time to invest in European defense stocks.

1 posted on 03/05/2025 7:57:15 AM PST by Dr. Franklin
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To: Dr. Franklin

The US should return to its role of being a backstop, not the primary guarantor of European security. WWII ended 80 years ago, the Cold War ended 30 years ago. Time for Europe to put on their big boy pants.


2 posted on 03/05/2025 8:00:10 AM PST by dfwgator (Endut! Hoch Hech!)
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To: Dr. Franklin

The arms makers better make the Euroweenies pay in cash up front.

This is their first and final warning.

:-)


3 posted on 03/05/2025 8:02:08 AM PST by cgbg (The Democrat Party is a criminal enterprise.)
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To: cgbg
The arms makers better make the Euroweenies pay in cash up front.

Europe doesn't have problems with business contracts. The issue is the E.U. getting the reluctant member states to pay their share of the defense budget.
4 posted on 03/05/2025 8:07:57 AM PST by Dr. Franklin ("A republic, if you can keep it." )
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To: dfwgator
The US should return to its role of being a backstop,

That would require us to retain an excess inventory of weapons and staffing. IOW, it doesn't save much money.

5 posted on 03/05/2025 8:09:11 AM PST by Carry_Okie (The tree of liberty needs a rope.)
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To: cgbg

The European arms makers, (or even those from ANYWHERE in the world) may not have the industrial capacity at the moment to ramp up their production to the degree sought by the collective members of the EU.

Too bad about that. They may have to be buying the arms from the Afghanistan Taliban, who seem to have a vast supply.


6 posted on 03/05/2025 8:14:26 AM PST by alloysteel ( Divergence is not at all the same thing as diversity.)
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To: Dr. Franklin

Their contracts may be solid today—but I am predicting a near future where they sign contracts they will be unable to pay for....

Credit risk is about predicting the future, not the present.


7 posted on 03/05/2025 8:14:53 AM PST by cgbg (The Democrat Party is a criminal enterprise.)
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To: Carry_Okie

“The US should return to its role of being a backstop”


The war footing, the domestic capability to produce an ‘excess’ of both high-tech and heavy industry is what we need. When we attain an ‘adequate’ stockpile we can beat excess swords into ploughshares.


8 posted on 03/05/2025 8:17:21 AM PST by The Spirit Of Allegiance (Public Employees: Honor Your Oaths! Defend the Constitution from Enemies--Foreign and Domestic!)
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To: Dr. Franklin

““There’s so much money going around,” Rutte said in the European Parliament. “Be good businessmen ... Don’t lose out to the South Koreans.””

Rutte just summed up the entire reason for the NATO war against Russia in one sorry simple statement. Good job.
The entire grift of NATO, Ukraine, etc is just a big money grab... nothing else.


9 posted on 03/05/2025 8:29:00 AM PST by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI...)
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To: The Spirit Of Allegiance

Exactly a return to being the “Arsenal of Democracy”, even though I question to “Democracy” part. It’s all about OUR National Security, not some political concept that isn’t applicable to most of the world.


10 posted on 03/05/2025 8:33:38 AM PST by dfwgator (Endut! Hoch Hech!)
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To: The Spirit Of Allegiance
When we attain an ‘adequate’ stockpile we can beat excess swords into ploughshares.

In a real war, munitions MUST be compatible, including service technicians. So, how much is "adequate" if we are to be this "backstop"? Can Europe really afford to go its own way in termos of that logistical supply chain?

11 posted on 03/05/2025 8:50:23 AM PST by Carry_Okie (The tree of liberty needs a rope.)
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To: Carry_Okie

Massive overkill would be a rule of thumb. Peace through superior, 100% domestically sourced, firepower. But have DOGE be sure that the ‘warhawks’ don’t covertly profiteer.

Our recent history of MAD and offshoring was a deliberate attempt at national suicide. Bring back Kaiser Steel!


12 posted on 03/05/2025 9:07:19 AM PST by The Spirit Of Allegiance (Public Employees: Honor Your Oaths! Defend the Constitution from Enemies--Foreign and Domestic!)
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To: dfwgator

“The US should return to its role of being a backstop, not the primary guarantor of European security. “

I feel no obligation to guarantee Euro security. Not while you can be arrested and sentenced for praying, or for mere words on social media. Quite literally, if I were in Germany, England, Austria etc... I would be arrested and locked up for a prison term for thongs I say right here in FR.
They flood their country deliberately with moslems and africans who have never seen a toilet and aren’t sure rape and stabbing are crimes.
The only “threat” they face is newfound strife with Russia which they created.

In the meantime, they revel in insulting and abusing America.

They can backstop themselves. And it would be best for them if they would just stop being atheist perverse greedy A-holes with their neighbors.

I see them as a surly 19 year old, still living at home, picking fights with the neighbor, constantly arguing with dad and knowing better about everything. Europe needs to be kicked out of the house.


13 posted on 03/05/2025 9:11:31 AM PST by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI...)
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To: The Spirit Of Allegiance
But have DOGE be sure that the ‘warhawks’ don’t covertly profiteer.

Fortunately for Europe (a land war theater), small arms, artillary shelss, fuel, etc. are easily compatible and relatively easy to track in terms of dollars. Maintaining and supplying combat aircraft is another matter, not to mention naval munitions. This is wher hardcore up front bargaining and licensing for manufacture become a big deal.

14 posted on 03/05/2025 9:14:03 AM PST by Carry_Okie (The tree of liberty needs a rope.)
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To: Carry_Okie

I think a sound argument can be made for European countries having no militaries beyond a coast guard, a national guard and an air force of transport planes and unarmed helicopters.

Europe is a menace to world peace and has no external threat. All they need is lessons on not being an A-hole.


15 posted on 03/05/2025 9:20:07 AM PST by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI...)
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To: DesertRhino
I think a sound argument can be made for European countries having no militaries beyond a coast guard, a national guard and an air force of transport planes and unarmed helicopters.

To survive, Europeans need to maintain raw material supply chains. If no one else, the Houthis have demonstrated the criticality of that capability, nor should the US be doing that job. Similarly, sea routes from China around India must remain open. Yes, that's been our job, but in the grand scheme of things, maintaining open sea lanes eastward from Asia, westward from Africa and Europe, and within the Western Hemisphere are more of our direct strategic interest.

16 posted on 03/05/2025 9:31:43 AM PST by Carry_Okie (The tree of liberty needs a rope.)
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To: Carry_Okie

Yet, all of their military is focused on Russia, China, and idiotic wars like Serbia and Libya.
They are a menace to world peace, not the cure.


17 posted on 03/05/2025 9:36:49 AM PST by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2025... RETURN OF THE JEDI...)
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To: DesertRhino
Rutte just summed up the entire reason for the NATO war against Russia in one sorry simple statement. Good job. The entire grift of NATO, Ukraine, etc is just a big money grab... nothing else.

Military deterrence is a necessary evil. Spend too much on a military and its like an expensive toy that a child wants to play with somewhere. Putin in Ukraine is a prime example. NATO was created to stop Russian designs on former Soviet nations, like the Baltic states, and the former Warsaw Pact nations. Ukraine got attacked because they disarmed and gave Russia their nukes. Putin thought them weak. In short, Ukraine didn't spend enough on its own defense, and now Europe and the U.S. had to come to their aid. Only the Russian troll farm here really disagree with that here.
18 posted on 03/05/2025 9:50:44 AM PST by Dr. Franklin ("A republic, if you can keep it." )
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To: Dr. Franklin

NATO was created to stop Russian designs on former Soviet nations, like the Baltic states, and the former Warsaw Pact nations.


Huh?!?!?! It was created to stop the Soviet Union from invading the Western European nations. We couldn’t do a damn thing when the Soviets invaded Hungary and Czechoslovakia.


19 posted on 03/05/2025 9:53:31 AM PST by dfwgator (Endut! Hoch Hech!)
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To: dfwgator

recreated


20 posted on 03/05/2025 10:15:10 AM PST by Dr. Franklin ("A republic, if you can keep it." )
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