European defence firms struggle for growth amid procurement hurdles

European defence stocks lag despite new funds because manufacturing takes time and political unity is lacking.

European defence contractors face sluggish market performance despite rising government expenditure. Production takes time to ramp up even after contracts are secured. Political divisions among European Union nations further hinder local procurement efforts.

• The executive viewThe head of missile manufacturer MBDA noted that political hurdles continue to slow efforts to prioritise local suppliers.
• The security factorEuropean governments remain divided regarding their reliance on security guarantees from the United States.