About the economy of defence

The economy of defence, as it is often called, comprehends the elements – often private companies and the main buyer, the State – that produce all the goods and technologies that are necessary to equip the Armed Forces and for the exercise of war.

The economy of defence is not an independent group of companies from the rest of the economy. On the contrary, most of the companies that produce military goods and technologies do also produce civilian goods and technologies. As a matter of fact, the commerce of military equipments alone is not always enough to make a company sustainable.

Nonetheless, it is an indispensable part of the economy and of the life of a State.

Following the trend of globalization, the economy of defence is also an internationalized sector with many pieces being produced either in one country and sold in another, or produced in different countries.

Hence, few countries in the world are autonomous in the military goods and technologies production sector. Some, as the United-States or France are renowned for their economy of defence; employing hundreds of thousands.

Therefore, being autonomous in the production of military goods and technologies represents two types of benefice: prestige and strength, for the country does not need support if it has to wage war.

For war is almost a natural element in international relations and a country should, because of that, prepare for it.

In most western countries, State agencies (for example, Direction Générale de l’Armement in France; Direção-Geral dos Recursos da Defesa Nacional in Portugal; the European Defence Agency for the European Union) list the companies that contribute directly or indirectly to the economy of defence; manage the public acquisitions in this sector; authorize the production of certain goods and technologies that require licences; and ,might even develop projects with universities and private companies for innovation in this sector. These agencies have, in general, a role of encouraging the overall development of the economy of defence.

The purpose of this company is also to encourage the development of the European economy of defence, doing its bit. More specifically, taking into account the economic differences between the European countries, especially in the south, where this company is based, it is a wish and a project, for which a hard effort will be furnished, to see its autonomy in the production of military goods, technologies and facilities.

Europa Victrix