Bloomberg: Europe Can't Supply Ukraine With Weapons Fast Enough, Here's Why
Defense contractors are under pressure to ramp up production but want long term government guarantees of sales
(Bloomberg) — “Before, we had time, but no money,” said Tommy Gustafsson-Rask, head of BAE Systems Hägglunds AB, reflecting a common theme across Europe’s defense industry. “Today, we have money, but no time.”
Almost 18 months into the war in Ukraine, Europe’s defense contractors — flooded with demand for everything from ammunition to shoulder-launched missiles and combat vehicles — face a dilemma. Do they gamble on expanding production, assuming that the war and tensions with Russia will last indefinitely? Or hold back until they get long-term commitments from governments that have spent the past few decades shaving or even slashing their defense budgets?
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WNU Editor: It is going to cost tens of billions in Euros (if not more) to upgrade and expand Europe's military industrial base. No defense contractor or manufacturer is going to make that type of financial commitment knowing all too well that should the war end tomorrow, government's will immediately cut defense spending.
And as for European governments willing to make that type of financial commitment?
I hear a lot of talk, but I doubt that European governments are going to give defense firms long-term commitments. Issues like this one are also not helpful .... Germany, Poland at odds over tank-repair center for Ukraine – Der Spiegel (RT).
3 comments:
Ah the golden prize ( defense contracts) so near yet so far away.
Not one Russian oligarch profited from the war not one. They all went broke.
WNU should form a band: WNU & the Vatniks
704.
How do you attempt to know this? Do you have access to thier bank accounts?
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