EU to reshape it’s defense industry

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 A reshaping plan of the EU defense industries may create additional problems for the Israeli defense industries, according to the Israeli Defense Ministry officials.

AFP top EU officials will set out a series of recommendations next week aimed at boosting Europe’s fragmented and cash-strapped defense industry.

The sector provides some 400,000 jobs and generated turnover of around 90 billion euros (US $115 billion) in 2010, according to the European Union.

i-HLS Israel Homeland Security

EU officials said that sharp cuts to government budgets due to the debt crisis make it imperative that research, technology, manufacturing and procurement all be better integrated to make the money go further.

Special EU rules allowing governments to close off sensitive areas will also be addressed in a package of proposals to be submitted to an EU leaders` summit in December dedicated to the subject of defense.

The objective is to “identify areas where Europe can develop its own capacities “

For example, the officials said that Europe should build its own drones, rather than importing them,” he said, suggesting that it could also buy aircraft or navy refueling systems for pooled use by EU member states, and integrate cyber or maritime security networks.

This plan according to the Israeli sources will make the export of Israeli defense systems to European countries even more difficult.