A European readiness, preparedness and defence strategy – a BusinessEurope position paper

Key messages¹

• BusinessEurope is stepping up its engagement in security and defence as a new strategic priority. The war in Ukraine, rising geopolitical fragmentation and the weaponisation of economic interdependencies have fundamentally reshaped Europe’s operating environment. Safeguarding Europe’s security requires strengthening Europe’s competitiveness, industrial base, innovation capacity and its economic resilience – making security and defence policies an integral part of Europe’s long-term competitiveness and growth strategy.
• Europe must move towards a proactive, whole-of-society preparedness model underpinned by strong public-private cooperation. Recent crises have demonstrated the value of coordinated EU action, but also exposed structural gaps in preparedness. The EU must ensure the continuous functioning of critical infrastructure, supply chains and industrial systems under all circumstances. This requires a shift away from reactive crisis responses and towards a structured and permanent partnership between the European institutions, national authorities and the business community in preparedness planning and crisis response.
• Scaling Europe’s defence industrial base is both an economic opportunity and a security imperative. While defence remains primarily a national competence, increased investment should be used strategically to strengthen Europe’s industrial and technological base. SMEs play a pivotal role in the security and defence ecosystem, notably by strengthening resilient and integrated supply chains. Through stronger EU coordination and instruments such as the European Competitiveness Fund (ECF), defence spending can act as an economic engine – driving innovation, accelerating industrial scaling and reinforcing the EU’s long-term productivity and global competitiveness.
• A more integrated Defence Single Market and coordinated EU framework are critical for structural defence build-up. National responsibilities must be complemented by effective EU-level coordination to ensure an operational Defence Single Market, integrated supply chains and reduced regulatory fragmentation. Stronger alignment on procurement, standards, export and military mobility is key to scaling production and ensuring rapid deployment.
• The EU must strengthen international cooperation while safeguarding its strategic interests. A stronger European defence technological and industrial base should reinforce NATO and enable more balanced burden sharing among members. Cooperation with like-minded partners is crucial, while ensuring clear conditions regarding defence cooperation that protect Europe’s strategic interests, critical infrastructure and competitiveness.

¹ MEDEF does not endorse this position paper.