This is a wake-up call moment for Europe. An increasing number of countries are being ruled by autocrats. Treaties and international agreements are being disregarded more frequently. China and Russia want to expand their territories by force, and the United States has threatened to do so. The only thing that matters to counter aggression is power, primarily military power, backed up by economic power.

Realistically, there are three military superpowers: the US, China and Russia. Europe should be fourth. But it relies on uncertain protection from the North Atlantic Treaty Organization (NATO) and the US nuclear umbrella. It is punching well below its weight. We are wasting resources by developing military equipment at a national level and spending huge sums of money on duplicate projects across Europe.

Take Europe’s three fighter aircraft: the Eurofighter, the Rafale and the Gripen. We are spending the money three times, yet we are a long way from the technical level of the American F-22 fighter aircraft. So what should be done?

First, we need to take lessons from US defense spending. A good example is the contract for the new US fighter aircraft. Two companies were invited to submit bids. Both were commissioned to build two prototypes: one with a GE engine and one with a Pratt & Whitney engine. Both competitors included major suppliers, such as Boeing, in each of their consortium. Following extensive testing, Lockheed Martin was awarded the contract for the F-22. The winner was obliged to include the loser with a certain percentage of the contract. This way, the government achieved both an efficient solution and the preservation of competition.

Second, we should learn from how the US has adapted its defense budget to pivot to next-generation capabilities, where funds are increasingly allocated to missiles, drones, software and artificial intelligence. In Europe, we are still failing to adapt our procurement systems to where warfare is going next.

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