Europe’s Defence Industry Expansion Pressures Outdated Arms-Export Regime
As European governments accelerate defence production and integration amid shifting security dynamics, national arms-export licensing systems are coming under scrutiny for allowing military equipment to reach risky markets despite strict EU criteria.
European efforts to scale up defence production and deepen industrial cooperation are exposing limitations in the current arms-export control framework, according to reporting by Euronews.
Brussels has been promoting new initiatives to strengthen the bloc’s defence industrial base, reduce reliance on non-European suppliers and streamline procurement across member states. Programs such as the European Defence Industry Scheme (EDIS) and the 2025 Defence Readiness Omnibus aim to cut red tape, shorten delivery timelines for ammunition and vehicles, and increase the share of defence spending directed to European manufacturers. By 2030, the EU wants at least half of its defence outlays to support regional suppliers and raise intra-EU defence trade to around one-third of the total.
However, Europe’s arms-export control system remains fragmented. Under Article 346 of the Treaty on the Functioning of the European Union, individual capitals retain the authority to issue export licences for military equipment. While the EU Common Position on Arms Exports (2008/944/CFSP) sets eight criteria — including assessments of human rights and conflict risk — these guidelines are not binding and leave room for divergent decisions.
Member states exchange information on licensing decisions through the EU’s COARM group, which disseminates denial notices and briefings. But COARM cannot override national authorisations or compel harmonised outcomes. Critics say that an uneven application of criteria and loopholes in national procedures have resulted in sensitive military goods reaching regions with high-risk profiles, undermining broader strategic objectives.
The implications are twofold. First, disparities in export controls could undercut trust among European allies at a moment of intensified cooperation on defence procurement and joint capability development. Second, suppliers operating across borders face legal uncertainty when divergent licensing regimes affect supply chains and contract fulfilment. The spotlight on these tensions has grown as leaders convene at security forums such as the Munich Security Conference, where European defence integration remains a core agenda item.
