Brexit countdown leaves British defense industry uneasy

Sophia Besch, a researcher at the Centre for European Reform, told the RUSI audience that “on balance Brexit could mean that in the EU countries that are proponents of European protectionism, of the buy Euro mentality, will have a greater voice post Brexit.” 

Notwithstanding the economic and exchange rate pressures potentially influencing defense procurement, Besch said that whatever the outcome of the negotiations, the impact on industry may not be felt for a while, in part due to the duration of existing equipment programs.

“Ongoing projects run over a long time span and are unlikely to be gravely affected by Brexit the day the UK leaves the EU. So in the short term, no real drastic changes; but in the long term, one big question is: Could the UK be left out of major procurement programs in the future?” Besch offered the conference attendees...

...Besch said it was important to recognize that the EU currently has little influence or input on the Europe continent when it comes to putting major defense equipment program cooperation in place. 

Joint program development is intergovernmental, using frameworks like the letter of intent cooperation agreement signed by Britain, France, Germany, Italy, Spain and Sweden, rather supranational, with EU input, she said.