Josselin Droff and Julien Malizard published the article «50 shades of procurement: the European defence trilemma in defence procurement strategies »in The Economics of Peace and Security Journal (EPSJ)
The authors address the issue of choices made by European countries in terms of equipment acquisition defence, Given the different strategic and economic challenges they have faced since the end of the Cold War.
La Augustine's law - the rising trend in equipment costs - makes it increasingly difficult for a country to have complete control over the entire spectrum of capabilities and all stages of equipment production. Countries are therefore seeking to reconcile the desire to preserving strategic industrial autonomy, They are trying to contain the cost of the latter in order to meet the needs of their armed forces.
The article discusses’a trilemma facing European countries between independence, cost control and economic benefits. To highlight this trilemma, several procurement methods are examined, ranging from national production to off-the-shelf purchases, cooperative production, licensed production, leasing and even the relinquishment of military capabilities.
The proposed analytical framework shows that the joint maximisation of strategic and economic benefits is a myth. It there is no «miracle solution» in terms of acquisition choices and returns on investment depend on the preferences of the countries, objectives and markets studied.
