Financing the European defence industry

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Although the European defence industry is generally competitive, more than a decade of underinvestment has kept it from reaching its full potential. The significant under-investment in European defence is demonstrated by the severe difficulties the European defence technological and industrial base (EDTIB) has in obtaining finance. Member States' defence budgets will continue to be the EDTIB's main source of funding; however, more collaborative actions and spending would enhance output and efficiency.
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