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European Defence Industry in Times of Austerity
Název práce v češtině: European Defence Industry in Times of Austerity
Název v anglickém jazyce: European Defence Industry in Times of Austerity
Klíčová slova: obranný průmysl, evropská obranná průmyslová základna, obranná integrace, restrukturalizace, Německo, Francie, Velká Británie
Klíčová slova anglicky: Defence industry, European Defence Industrial Base, Defence Integration, Restructuring, Germany, France, the United Kingdom.
Akademický rok vypsání: 2014/2015
Typ práce: diplomová práce
Jazyk práce: angličtina
Ústav: Katedra mezinárodních vztahů (23-KMV)
Vedoucí / školitel: doc. PhDr. Vít Střítecký, M.Phil., Ph.D.
Řešitel: skrytý - zadáno vedoucím/školitelem
Datum přihlášení: 01.06.2015
Datum zadání: 01.06.2015
Datum a čas obhajoby: 26.06.2017 08:30
Místo konání obhajoby: Jinonice - U Kříže 8, J3093, Jinonice - místn. č. 3093
Datum odevzdání elektronické podoby:19.05.2017
Datum proběhlé obhajoby: 26.06.2017
Oponenti: PhDr. Jan Beneš, Ph.D.
Kontrola URKUND:
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Předběžná náplň práce
The end of the Cold War in the beginning of the1990s has marked the shift in a bipolar world order system. Changing geopolitical, economic and social environment, as well as rapid technological progress, has led to a deep restructuring and streamlining of the defence entities in Europe and the United States. National States had to adapt to changing conditions by redefining their Defence and Security policies. Consequently, in over a decade the defence sector has undergone a drastic restructuring and consolidation. With European states have redefined their defence industrial policies by mainly reducing their military expenditures the national defence industries have suffered greatly. Defence companies had to streamline their production into new operational dimension of greater capacity requirements and weapons efficiency. Furthermore, national defence contractor has to cope with new technological innovations while dealing with budget cuts in public procurement policies.
Moreover, in the course of defence industry transition the relationship between the industry and the state has been changing drastically. During the Cold War period, the military sector and resources were tightly controlled by the state, so defence industrial sector was largely national. With the new world order, the relationship between states and their related defence industries gain more entrepreneurial character to a different extent. As national governments began to act as “real” customers, defence contractors had to adapt to a new market economy and competition. This led to gradual rationalization and institutionalization of defence sector beyond national border with a different degree of success.

This research project seeks to investigate, analyse and compare how new geopolitical environment has affected defence industrial policy of the three major European military powers – France, Germany and the United Kingdom. Moreover, the analysis of national defence industrial policy will be conducted within its military and material dimension. With a considerable body of analysis attributing causal primary to economic and industrial aspects of the national defence, this study seeks to analyse dynamics of the state-industry relationship. Therefore, the main objective of the research is to analyze national defence industry (being the targeted subject in this research) of chosen states and to examine the impact of economic and geopolitical pressures on their capacity.
This study is particularly relevant for the EU’s common defence and security policy for two contrasting reasons. The first is the great sensitivity of Member States over their national preferences in military matters, as evidenced by their efforts over the years to ensure that every aspect of defence policy is kept under national control and separate from EU institutions. The second is the growing recognition by Member States of the need to pool and share their military capabilities in order to protect national security interest in an international environment where, individually, they are losing influence. However, while there may be a rationale for greater defence cooperation if not further integration within EU, the institutional developments and legal framework of the cooperation on EU level indicates that nearly every attempt to facilitate defence cooperation is vigorously contested.
The issues of national defence policy dynamics in course of economic and budgetary crisis are both of political and academic relevance. Although, various aspects of the defence cooperation and integration within EU have received significant academia attention, the scholarship on the defence integration is generally fragmented in its theoretical inquiry. Thus, this research aims to explore an analytical utility of two main competing theories in the international relations, particularly Constructivism and Neorealism, in regards to the EU defence policy and interactions between main actors within. Critical assessment of two theories suggest that Neorealist insights on forms of alliance formation behavior and its systematic approach to international relations is of greater relevance for the present research’s objectives. Taking into consideration, that national governments are at the same time the main customers, regulators and financers of the defence industry, they are in a position to directly influence its structure and performance. With the assumption that states play a major role in the process of defence industry consolidation and they chose to participate in various integration projects in regards to their strategic objectives and interests, either it gaining more power or assuring its national sovereignty, this study lays within the Neorealist conceptual framework.
In this context, the central question of research is:
- How did member states of EU respond to geopolitical and economical context of the post-Cold War era in regard to their national defence industrial policies?
In respect to the research question a set of supplementary questions has been drawn: How the change in the high politics affected the other dimensions of the non-traditional aspect of international security, in particular how the relationship among economics-power-security reconfigured? How national industrial policies have influence the defence integration and institutionalization process within EU? In what ways EU institutions adopted their reasons of existence and co-existence into this new defence architecture?
Drawing from the realism assumption on the role of state’s interest in power configurations, the hypothesis of this study is:
Despite geopolitical pressures and economic stagnation, national states of the EU do not transition its control over assets that are strategically important to national sovereignty towards supranational entities.
Therefore, the integration of national defence sectors in the EU remains rather limited and fragmented. Its trajectory is controlled and enforced by the national states acting in the line with their objectives.
Examining the restructuring of national defence industry appears to be challenging due to the dynamic character of events that shape policy in this area. However, in order to achieve stated objectives qualitative with elements of quantitative research methods have been selected. The analysis is operated in deductive manner which is characterized by top-down approach. Moreover, the research design is comparative and case-oriented. Comparative research analysis of selected cases is perfectly suited to examine multi-causality of external as well as internal factors on national defence sectors in particular and unique context. As well as it gives the opportunity to compare the impact of the implemented austerity and restructuring measures by the state on national defence industry capacity and examine certain features of national defence spending trends. Thus, independent variable is structural precondition and assembly of national defence sector in the Cold War. In turn, the degree of defence industry restructuring, its retrenchment and success of implemented efforts to security and military reforms on national and EU levels are dependent variables. This research comprises set of intermediate variables shaped by national policy directions and national strategic cultures along with dynamics of international and institutional cooperation on the EU level.
The thesis is orginised in the following manner. In the beginning, the in-depth description of main defence industry characteristics will be provided. The structure of supply and deman side will be discussed in a greater detail in order to provide readers with broader understanding of defence industry peculiarities. In the next chapter, dynamics of defence cooperation within EU framework will be examined. The greater attention will be given to the European institutional and legal instruments in shaping defence cooperation of the national states. In the third chapter the theoretical framework of this thesis will be provided. It will focus on two main competing theories in the international relations - Constructivism and Neorealism. Their theoretical utility, strength and limits in regards to defence cooperation process in the EU will be analysed.
In next chapters the case study of France, Germany and the U.K. will be presented. Case study will be implemented in the similar manner:1) analysis of the state positiong in the defence industry after the Cold war; 2) economic trends and indicators of the national DTIB; 3) armed forces structural reforms and national procurement policy; 4) defence industry: the supply side; 5) Multilateral cooperation; 6) approach to CSDP; 7) Conclusion. In the conclusion chapter, the comparative analysis of national defence industrial policies will be conducted alongside with application of the theoretical insights on the European defence integration.

Germany, France and the United Kingdom have been selected for the following reasons. First, each represents relatively great military power within the EU and their Defence Industrial and Technological Base (DTIB) are of great importance in Europe. Secondly, they all represent distinctive models of state-industry relationship configuration, which were developed over the last decades. During the Cold War, the states had very similar positions and structure of DTIBs, where states were largely involved in the organization of the defence sector as the client who determined the way military programmes were developed and financed. However, in aftermath of the Cold War, each of these three states have chosen different path in developing state-industry relationship: the U.K. adopted the liberal model favoring open and competitive market; Germany decided to distance itself from its defence industry; France chose to preserve its military autonomy despite budgetary pressures.

The case study analysis is conducted through archival research based on scholarly literature, national security documents, mission and capability analyses, official EU documents and statements, and published interviews. Among others, the archival research will focus on national security policy documents relating to initiatives conducted in respond to the budgetary pressures, reports and investigations by national Ministry of Defence, various domestic agencies and parliamentary bodies in each country. It will also involve the examination of similar documents and reports produced through the European institutions and agencies. Finally, it will include an examination of key policy speeches by responsible ministers and heads of government related to defence policy at national and EU level.
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