The EDA and the US

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The EDA and the US

• RUSI, London
• June 26, 2006

Scott A. Harris President, Continental
Europe Lockheed Martin Global, Inc.
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2005 Global Defense Expenditures
Procurement
Constant 2005 U.S. B
U.S.
NATO Europe
RD
Constant 2005 U.S. B
1,200 B
U.S.
NATO Europe
Sources IISS The Military Balance and Other
Estimates
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Transatlantic Defense Gap

• US Total Defense Spending 490 Billion
• EU Member Countries Total 160 Billion
• US RD Spending 70 Billion
• EU RT Spending 11 Billion
• France (3)
• UK (3)
• Germany (2)
• Others (2)
• EU Security Research (550 million)

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Challenges of Todays International Defense
Markets

• Lack of Resources
• Defense Budgets Do Not Match Military
  Requirements and Commitments
• Military Reforms are Slow, Produce Insufficient
  Savings
• Transformation Costs Money
• Inefficiency
• Lack of Harmonized Requirements
• Barriers to Open Competition
• Politics
• European Integration Buy European
• Transatlantic Tensions Buy American
• Technology Shared Alliance Resource or National
  Asset?

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Marketplace Realities

• Requirements of U.S. Market Will Dominate
  Industrial Strategies
• European Budgets Alone Will Not Sustain European
  Industry Access to U.S. is Vital As is
  Further Consolidation
• Globalization of Defense Industry Continues, but
  Political Obstacles Remain Strong on both Sides
  of the Atlantic
• U.S. and Europe Need an Integrated Marketplace

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Can EDA Address These Challenges?

• EDA Could Make Significant Contributions
• Technology Sharing/Export Policies
• Cooperative Programs
• Harmonized Requirements
• Industrial Cooperation
• Access to US R D
• EDA Faces Obstacles in Playing Leading Role
• EDAs Focus on European Priorities will Make
  Forging US Links Difficult
• EDA Relationship with Industry has not been
  Clearly Defined Focus is European, not
  Transatlantic
• EDA Lacks Resources (and Mandate) to Shape
  Europe-wide Acquisition Priorities

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