What Happened
New Initiatives Aim To Reduce Fragmented Procurement
European defence spending is on the rise, but fragmented national orders are limiting production scale and driving up unit costs. To address this, new initiatives like the Multilateral Defence Mechanism (MDM) and the Defence, Security and Resilience Bank (DSRB) are being developed to increase joint procurement and market access. The MDM aims to aggregate demand and support joint procurement, while the DSRB focuses on mobilizing public and private capital for governments and firms. According to Bruegel, these initiatives may be the first steps towards a broader European defence market, where larger orders create scale and reciprocal access sustains competition.