Europe must increase its financial backing for the defence industry massively if it wants to spur collaboration and improve the competitiveness of the continent’s companies, according to the boss of Saab.
Micael Johansson, chief executive of the Swedish defence group, told the Financial Times that the European defence industrial strategy needed to be backed by a figure in the region of €100bn rather than the €1.5bn currently envisaged by the European Commission.
“What defines [consolidation] going forward is if the EU will be successful in negotiating a substantial European defence industrial strategy. If there is substantial money in that, that will drive collaborations such as joint ventures. It needs to be incentivised somehow,” he said.
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