The European defence market is changing. Where once each nation maintained its own defence industry, this is no longer a viable model as Europe faces enormous pressure from the US, which has the worlds largest defence market. In August this year, a new European Directive (2009/81/EC) on defence and security procurement came into force. The new Directive brings defence procurement more into line with mainstream public procurement. Previously member states were able to avoid openly tendering for even quite mundane items of equipment by invoking Article 296 of the European Treaty and stating that they were for their ‘essential security interests.’
Earlier today the Stockholm County Administrative Court ruled that a €240 million armoured personnel carrier deal with the Finnish arms manufacturer, Patria, had breached Swedish public procurement law. The Swedish Defense Materiel Administration (FMV) has been ordered to repeat the tender process despite awarding the contract to Patria in June.
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