Page 11 - Five Forces of Americanisation Richard Hooke 04072025 final post SDR1

The UK Defence Industry in the 21 Century
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The Five Forces of Americanisation

It offers solutions to strengthen the defence industry by closing important gaps and ensuring long-term
readiness. It also suggests ways for Member States to invest heavily in defence, buy necessary equipment,
and support the industry’s growth over time.
The white paper outlines 3 key areas of action:
• Closing capability gaps and supporting the European defence industry, including simplifying
regulations and streamlining industrial programmes.
• Deepening the single defence market and accelerating the transformation of defence through
disruptive innovations such as AI and quantum technology.
• Enhancing European readiness for worst-case scenarios, by improving military mobility, stockpiling,
and fostering operational cooperation across the EU.
Investing in European defence means investing in lasting peace and long-term stability for both current and
future generations. But not only. It also means boosting technological innovation, supporting European
competitiveness, promoting regional development and powering economic growth. The ReArm Europe
Plan/ Readiness 2030 will boost defence funding by giving EU countries more financial flexibility.
It will achieve this by:
• activating the national escape clause of the Stability and Growth Pact, allowing Member States to
increase defence spending. A 1.5% GDP increase in defence budgets could create nearly EUR 650
billion in fiscal space over four years.
• launching a EUR 150 billion loan instrument - Security Action for Europe (SAFE) - that will help
countries invest in key defence areas like missile defence, drones, and cyber security. The funds will
be raised on capital markets and disbursed to interested Member States upon demand, based on
national plans. SAFE will encourage Member States to spend better, together and European.
• supporting the European Investment Bank Group in widening the scope of its lending to defence and
security projects and accelerating the Savings and Investment Union to mobilise private capital so
that the European defence industry is not reliant on public investment alone
Fully leveraging these financial tools will have positive effects for our economy and competitiveness. This
includes building new factories and production lines essential for generating good jobs in Europe.
(Introducing the White Paper for European Defence and the ReArm Europe Plan- Readiness 2030: European
Commission, 12 March 2025)
5. “The biggest reform of the Ministry of Defence in over 50 years to fix what the Public Accounts Committee
calls the ‘broken’ defence procurement system and to strengthen UK Defence, has been launched by the
Defence Secretary”:
“Our government is delivering the change we promised: cracking down on waste and boosting Britain’s
defence industry. We will forge “One Defence”, which is clear in its goals and consistent in its methods, to
make Britain secure at home and strong abroad.
“The world is more dangerous, with growing Russian aggression, conflict in the Middle East and increasing
global threats.
“These vital reforms will make UK military decision making faster, keep the country safer and achieve best
value for taxpayers. This Government will strengthen UK Defence to respond to increasing threats”.
(“Major defence reforms launched, with new National Armaments Director to tackle waste and boost
th
industry”: John Healey, Secretary of State for Defence; UK MoD; 25 October, 2024)
6. “Leverage has been called "negotiation's prime mover," conferring power to reach agreement "on your
terms." This power, however, is not always benign. When a negotiator has sufficient power to compel a
counterparty to accept a set of unfavorable (sic) terms, the use of leverage may cross a line into
inappropriate or illegal coercion”.
The significance of Kirgis’ research to this paper is amplified by his references to negotiations between the
USA’s Republicans and President Obama’s Democratic government regarding its proposed Affordable Care
Act in 2013. Negotiations became increasingly “acrimonious”, with the President declaring that “the
financial well-being of the American people is not leverage to be used”, asserting that House Republicans
“will not collect a ransom in exchange for not crashing the American economy”.

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07/07/2025 Richard Hooke 2025