The Global Context and US Defense Industry

Abstract

Part of the argument presented in the introductory chapter was that the current transformation of Europe’s defense industry and the role of the European Union (EU) in this process are not taking place within a vacuum. There are international forces that are influencing decisions being made by industry executives and politicians inside and outside the EU. These global factors are primarily of a political and economic nature, although technological change is also important. The foreign and domestic policies made by ‘great power’ countries, the activities undertaken by multinational corporations, and the decisions made by other international actors shape the context within which Europe’s defense industry and European politicians operate. As discussed below, the United States (US) plays a particularly influential role, economically and politically, in world affairs. The member states of the EU are forced to react individually and collectively. The actions taken by the European Commission and Parliament (discussed in the previous chapter), member states (Chapter 5), and by defense industry interest groups (Chapter 6), only make sense when the international environment is considered as well.