Reasons that Brexit was a mistake number, well I lost count but the Davis Downside Dossier has the count at 1788. The FT has run an article reporting on the EU’s rejuvenated attempts move towards a defence union. For years now it has been working on common procurement chains and now is seeking to ensure security of supply, which is primarily likely to cause substitution of US weapons with indigenous European weapons but one piece of collateral damage will be the UK’s arms industry ability to supply to EU member states.
The FT article implies that the single market will be extended to defence supply. There are two impacts on this policy. One of them being the exposure of the lack of ambition of Labours plans to ”Fix Brexit”, agriculture, science, touring artists, and a free movement of consultants & professionals won’t be enough and Labour’s plans to trade our defence capability for single market opt-outs will look much less attractive to the European Union.
The second impact will be on BAE’s share price, which has done quite well this year.
The Ukraine War has been good for some businesses.It all goes to show that there’s a need to examine how the UK and Europe defends itself, if there is a sensible role for NATO as opposed to an EU institution or competency and to question whether the global i.e. the non-exclusively European nature of the UK’s warplane procurement plans are actually as effective as we need.
