Procurement exemptions are used for 80% of defence contracts in the EU, he said
European Defence Commissioner Andrius Kubilius called on member states to curb the market dominance of Europe’s largest defence contractors, warning that national procurement preferences are slowing the growth of smaller, innovative companies.
Speaking at the Eurosatory defence exhibition in Paris on Wednesday, Commissioner Kubilius said Europe’s defence market remains heavily concentrated, with the biggest contractors capturing a much larger share of government procurement than in the United States.
“In the United States, only 40% of procurement goes to the top ten defence companies,” he said. “Here in Europe, it’s between 67% and 90% for Germany, Poland and the UK.”
Kubilius said that up to 80% of defence procurement is awarded directly under Article 346 of the Treaty on the Functioning of the European Union, which allows governments to bypass competitive tenders on national security grounds.
