2025StateoftheVITATechnologyIndustry

CRITICAL

EMBEDDEDSYSTEMS

TM

June2025

www.VITA.com

Disclaimer:TheviewsexpressedherearesolelythoseoftheauthorinhisprivatecapacityanddonotinanywayrepresenttheviewsofVITA.

VTA4

Contents

Introduction 1

EconomicConditions 1

Military 4

Technology 6

MergersandAcquisitions10

Summary 10

StateoftheVITATechnologyIndustryJune2025

by:RayAlderman,ChairmanoftheBoard,VITA

ThisreportprovidesthereaderwithupdatesonthestateoftheVITATechnologyindustryinparticularandoftheboardandsystemindustryingeneral,fromtheperspectiveofRayAlderman,theChairmanoftheBoardofVITA.VITAisthetradeassociationdedicatedtofosteringAmericanNationalStandardsInstitute(ANSI)accredited,opensystemarchitecturesincriticalembeddedsystemapplications.ThecompleteseriesofreportscanbefoundatMarketReports.(

www.VITA.com/

VITA_Technology_Industry

)

Introduction

Inaworldmarkedbypunitivetariffs,mergers,andtheongoingtug-of-warbetweenpolicyandlawingovernment,economicconditionsandleadershipchangesareshapingourgloballandscape.Amidstthesechallenges,naturalphenomenacontinuetounfold:volcanoeserupt,polaricecapsmelt,andglaciersbreakapart,crashingintoSwissvillages.TheMilkyWayGalaxyracestowardsacollisionwiththeAndromedaGalaxyatastaggering60milespersecond,whilegravitationalforcesthreatentohurlEarthawayfromtheSunintothevoidofspace.Additionally,artificialintelligenceispoisedtodrasticallyreduceEarth'spopulationtojust100millionpeople.Despitethesedramaticevents,restassuredthatnoanimalswereharmedduringthecreationofthisreport.

EconomicConditions

U.S.GDPdeclinedby0.3%inQ1-2025duetoreducedgovernmentspendingandincreasedimports(whicharesubtractedfromGDPnumbers),andallthenewtariffthreats.1U.S.inflationdeclinedto2.1%inApril,comingclosetotheFederalReserve’stargetof2%,buttheFedisnotreadytoreduceinterestratesjustyet(therateispresently4.5%).Tariffsonimportscoulddriveinflationbackupinthenextfewmonths.

InEurope,theymuddledalongwith0.3%GDPgrowthinQ1-2025,with2.4%inflation.MostEUcountrieshaveseenlacklustergrowthforawhile(especiallyGermany).TheproposedtariffscoulddrivedowntheirexportsandpushtheirGDPintodecline.TheU.S.isEurope'slargesttradingpartner,takinginabout21%

1"GrossDomesticProduct,1stQuarter2025,"U.S.BureauofEconomicAnalysis,April30,2025,

/news/2025/gross-domestic-product-1st-quarter-2025-advance-estimate

Copyright?2025VITA.Allrightsreserved.

Permissionforreuseisgrantedwithattribution.

VME,CriticalEmbeddedSystems,VPX,OpenVPX,VPXREDI,VXS,FMC,FMC+,XMC,XMC+,VNX,VNX+,andReliabilityCommunitylogosaretrademarksorregisteredtrademarksofVITA.

Othernamesandbrandsmaybeclaimedasthepropertyofothers.

-1-StateoftheVITATechnologyIndustry

June2025

-2-StateoftheVITATechnologyIndustry

June2025

ofallEUexports.ThetopimportsfromtheEUarepharmaceuticals,automobiles,machinery,andaircraft.Germanyistakingthebiggesthitfromthetariffs,followedbyIreland,Italy,andFrance.2

AlongsidethetradewarwiththeEU,U.S.policyisfinallygoingafterEuropefortrotting-outobscureinternetdatalawsandlevyingmassivefinesagainstU.S.techcompaniesforfrivolousandambiguousinfractions.3TheEUjustslappedApplewitha500millionEurofine,andMetawitha200millionEurofine.Generallyspeaking,theEUleadershipdoesnotunderstandhowtheinternetworksandwhatitcando(technically,economically,orculturally),ortheywouldhavefundeddevelopmentoftheirownversionsofGoogle,Meta,Amazon,Netflix,andApple(thecompaniestheyfinefrequently).Thevaluationofthese5companiesislargerthanallthecompanieslistedontheEUstockexchangecombined.IftheEUfinesaU.S.techcompanyforsomethinginthefuture,theadministrationcouldjustraisetariffsontheirproductscomingintotheU.S.andgetthemoneyback.

TheEUhasover1,000AI(ArtificialIntelligence)projectsunderway,buttheyaresmall,focusedprojects(exceptforMistralinFrance).Europehasalotofsmartpeople,butthepossibilitiesofwhattheycandoarerestrictedbytheirunreliablesupplyofenergyandlackofadequatesitesfordatacenters.4TheU.S.isbuildingmassiveAIdatacentersthatuse25K,50K,100K,250K,500K,and1millionGPUs,thatneedmegawattsofpower.Europe’spowergridhasproblemsasexhibitedbytherecentpoweroutagesinSpain,Portugal,andpartsofFrance.WewilldigdeeperintoAIinthetechnologysection.

Chinagrewat5.4%inQ1(ifyoubelievethenumbers)withinflationat0.3%.Again,thetariffscouldseriouslydamageChina’sexportsandsignificantlyreducetheirGDPinthecomingmonths.15%ofChina’sexportscometotheU.S.

TheU.S.has4.23%oftheworld’spopulationbutconsumes33%oftheworld'sresourcesaccordingtothelatestfigures.So,othercountriestakeadvantageofourlowtariffswhilelevyinghightariffsagainstimportedU.S.products(protectingtheirinefficientlocalindustriesfromcompetition).ThepresentadministrationisthreateningtosignificantlyraisetariffsonimportsfromEuropeandChinatoleveltheplayingfieldandreducetheU.S.tradedeficit.TheEUabolishedtariffsoncertaingoodsbetweenmembercountries,backin1968sotheymustextractmoneyfromtheU.S.tokeeptheirgamegoing.About13.7%oftheEUbudgetcomesfromtariffscollectedonimportedgoods.

ConsumerspendingintheU.S.is68%ofGDPwhilegovernmentspendingisabout36%(includingstateandlocaltaxes).That’smorethan100%becausetheU.S.hasbeenrunningadeficitforyears.InEurope,consumerspendingis50%ofGDP.Governmentspendingis48%ofGDPandtheygetthatmoneythroughhightaxesonearners(alongwithcollectingtariffsonU.S.importsandfiningU.S.techcompaniesregularly).TariffsandfinesareanimportantsourceofrevenuefortheEU.

YoushouldlookattheconsumerspendingandgovernmentspendingpercentagesofGDPforeachEUcountryontheweb.WhentheEUwasformed,itwasgoingtobealargerconsumermarketwith450millionpeoplethantheU.S.waswith350millionpeople.Butthatdidn’thappen.ManyEUcountrieshaveincometaxratesof50%.Andtheaveragevalue-addedtax(consumptiontax)intheEUis22%oneverythingtheybuy(likeanationalsalestax).ConsumerspendingdoesnotdrivetheEUGDP.TheEUeconomyisdrivenbygovernmentspending.

Meanwhile,goodnumbersfromChinaarehardtofind,butChinareliesontariffrevenuetoo.Recently,theU.S.droppedthetariffsonimportedChineseproductsfrom145%to30%whileChinaagreedtoreducetheirtariffsonimportedU.S.goodsfrom125%to10%.5Thatwillgiveyouanideaofthemagnitudeofthistradewar.InChina,only39%oftheirGDPisconsumerspending.About33%isgovernmentspending,andtherest(28%)isinvestmentsinthingslikehousingandinfrastructureprojects,andnetexports.Chinamayhave1.4billionpeople,butthosepeopledon’thavethemoneytodriveconsumerspendingandGDP.

2"What’satstakeasTrump’stariffsthreatenEUexports,"Reuters,May26,2025,

/business/autos-transportation/whats-stake-trumps-tariffs-threaten-eu-exports-2025-05-26/

3MichaelToth

,"TrumpurgesEuropetoreformunfairtaxpolicies,"TheHill,June5,2025,

/opinion/5333915-trump-administration-europe-tariffs/

4TobySterling,"Europeandatacentrespaceshortageexpectedin2025asAIbooms,"Reuters,February5,2025,

/news/european-data-centre-space-shortage-125207382.html

5NickEdser

,

JonathanJosephs&LucyHooker

,"MarketsriseasUSandChinaagreetoslashtariffs,"BBCNews,May12,2025,

/news/articles/czx0ry7kdk5o

-3-StateoftheVITATechnologyIndustry

June2025

Accordingtothelatestfigures,theglobaldebt-to-GDPratiois328%.6Takealookatthedebt-to-GDPratiosofallthecountriesintheworldontheweb.You’llseethatmanynationsareabove100%(includingtheU.S.).Thatmeansthatthosecountriesareoperatingonborrowedmoneyandmustpayinterestonthatdebt.Interestpaymentsbycountriestakemoneyawayfromothergovernmentprograms.Thecountriesbelow100%arefinancingtheiroperationwithtaxesandtariffs(alongwithfinesagainstU.S.techcompaniesinsomeinstances).Whenacountrycan’traisetaxesontheirpeopleandbusinessesanyhigher,withoutcreatingarevolt,theymustborrowmoney(whichhastobepaidbackwithinterest),orraisetariffsonimportedgoodsfromothercountries,orcreatelawsandfineothercountry’scompaniesforviolatingthem.Theycouldjustprintmoremoneytoo,butthatdevaluesthecurrencyandintroduceshyper-inflation.WesawthathappenwiththeWeimarRepublicafterWWIandseveralSouthAmericancountries(likeVenezuela)recently.

Taxes,tariffs,borrowing,frivolousfines,andprintingmoneyaretheonlysubstantialsourcesofincomeforacountrythathasnonaturalresourcestosellontheworldmarkets(likeoilormineralsorlumber).AlltheMiddleEastcountriessurvivebysellingoil.CanadaandAustraliaandAfricancountriessurvivebysellingminerals,ores,gold,anddiamonds.Europehasfewernaturalresourcestosell.Iftheyborrowmoney(bysellingbonds),theirdebt-to-GDPratiowillgohigher,andtheirinterestpaymentswillincrease.

What’sgoingonwiththetariffs,fromahigherlevel,isthereversalofglobalizationwherecountriesbecameeconomicallyentangledanddependentuponothercountries’exports.Thatmakestheimportingcountry’ssupplychainvulnerabletodisruption.Theoppositeofglobalizationisprotectionism,andtariffsarethetoolusedtochangethestatusquowhenthingsgetoutofbalance.Countriescanmakeproducts,exportthemtotheU.S.,paythetariffs,andtrytosellthemintheU.S.atahigherprice.OrtheycanopenfactoriesintheU.S.,createjobs,paylocaltaxes,andselltheirproductscheaperintheU.S.That’sthegamebeingplayedoutinthetariffwarsrightnow.Sofar,foreigncompanieshaveannouncedover$5trillioninForeignDirectInvestment(FDI)intheU.S.overthenext10years,tobuildnewfactories.Wewillseeifthatnumberholds.Whenyoumixpoliticsandeconomics,andthrowinadashoftariffs,thingsgetremarkablyinteresting.

Whilethetradewarisgoingon,there’sanotherwarunderwayinsidetheU.S.government:policyversuslaw.PresidentTrumphassignedover150executiveordersestablishingpolicysinceJanuary.Theseincludethetariffsonimports,eliminatingsomegovernmentagencies,reorganizationofothergovernmentagenciesandlayoffs,pullingfundingforselectgovernmentsponsoredentitiesandcollegeresearchgrants,andenforcingimmigrationlawsthroughdeportations.Over200lawsuitshavebeenfiledagainsttheadministration’spolicies.Manyofthesesuitsaremaking

“Democracyismessy,butitsureisentertaining!"

theirwaythroughthelowercourtsandappealscourtsontheirwaytotheSupremeCourt.So,theAdministrativeBranchofourgovernment(thatestablishespolicy)islockinghornswiththeJudicialBranch(whichevaluatesthepoliciesagainstexistinglaws).Congress(theLegislativeBranchthatmakesthelaws)issittingontheirhandsandwatchingastheconflictunfolds.Democracyismessy,butitsureisentertaining!

DidIleaveanythingout?Yea…backin2021,theOrganizationforEconomicCooperationandDevelopment(OECD)inParis,createdaworldwide15%minimumtaxoncorporateearningsregardlessofwherethoseprofitsaregenerated.MostoftheEUcountrieshavesigneduptoenforcethisnewrule.TheU.S.willnotsign-upforyetanothergoofylawcomingoutofEurope.WhatinspiredthislawwaswhenAppleincorporatedtheirEuropeandivisioninIrelandin1980,basedonthelowtaxrateforcorporationsthere(comparedtootherEUcountries).In2020,theEuropeanCommissionclaimedthatIrelandinappropriatelyandillegallyreducedtheircorporatetaxratetoattractcompaniestoincorporatethere.In2024,theEuropeanUnionCourtofJusticeruledthatApplemustpayIreland$14billioninbacktaxes.7IfApplepaysthebacktaxes,Ireland’sGDPwillincreaseby2.5%fromthattransactionalone.Apple’sback-taxpaymentwouldbe$2,641.51foreachpersoninIreland(apopulationof5.3millionpeople).

6LibbyGeorge,"GlobalDebtMarchestoRecordHigh,RaisingRiskofBondVigilantes,IIFSays,”Reuters,February25,2025,

https://

/markets/rates-bonds/global-debt-marches-record-high-raising-risk-bond-vigilantes-iif-says-2025-02-25/

7CarmenMolinaAcosta

,“TopEUCourtRulesAppleOwesIrelandOver$14BinBackTaxes,”InternationalConsortiumofInvestigativeJournalists,September13,2024,

/investigations/paradise-papers/top-eu-court-rules-apple-owes

-

ireland-over-14b-in-back-taxes/#:~:text=In%20a%20blow%20to%20Apple,in%20back%20taxes%20to%20Ireland

-4-StateoftheVITATechnologyIndustry

June2025

WhileEuropeisfiningU.S.techcompanies,theU.S.islookingatbreakingthemup.TheDepartmentofJusticeisscrutinizingApple,Meta,Amazon,andGoogleforantitrustviolations.8

IampickingonEuropehere,becausetheyhavebeenmoredeviousinusingtariffsandnewlawsandfinestomanipulatetradethantheChinese.Let’sexploretheMilitarymarketsnext.IssueswithinNATOhavealotincommonwiththetradewarandtariffs.

Military

Let’scontinueherewithsomepointsmadeaboutNATOintheEconomicConditionssection.In2006,NATOmembersadoptedguidelinestospend2%oftheirGDPondefense.Nineteenyearslater,afterreaffirmingthatcommitmentin2014,only23ofthe32NATOmembersmeetthatgoaltoday.SeveraltopNATOcountriesstilldon’tmeetthegoalofspending2%oftheirGDPondefense(Canada,Spain,andItaly).TheU.S.spent3.4%ofGDPondefensein2024.PresidentTrumptoldNATOcountriesthattheyneedtoraisetheirdefensespendingto5%oftheirGDP,tocatch-uponyearsofignoringthe2%goal.DefenseministersoftheNATOnationsaremeetinginBrusselsinJune,toeatsomeMoules-frites,drinksomeEvian,anddiscussthisnewspendingtarget.9

100countriesraisedtheirmilitaryspendingin2024,andglobalmilitaryspendingrose9.4%to$2.718trillion(thereare195countriesintheworldtoday,dependingonhowmanyAfricannationssplitinhalfwhileyouarereadingthisreport).Ofthattotal,NATOspendingwas$1.506trillionor55%ofglobaldefensespending.TheU.S.contributed66%ofthetotalNATOexpenditurewhileEuropeancountriesspent30%(therestcomesfromotherNATOaffiliatesoutsideofEuropeproper).NATOspendingrose8.9%in2024.TheAsia-Pacificregion’smilitaryspendingis22%ofworldmilitaryspendingandthat’srising.ChinaishalftheAsia-Pacificspending(11%)andRussiaaccountsforabout6%ofglobalmilitaryspending.About10%comesfromtheMiddleEast.TherestisscatteredaroundinsmallercountriesinSouthAmericaandAfrica.10ThekeypointsherearethatNATOis55%ofglobalmilitaryspending,andtheEuropeannations(withtheir450millionpeople)onlycontribute30%totheirdefensewhilethe350millionpeopleinAmericacontribute66%.That’sthesizeoftheimbalanceinNATO.

Europehasacombinedforceofabout1.5millionuncoordinatedmilitarypersonnelwithoutaunifiedcommand.11That’swhytheU.S.hasabout100,000troopsstationedacrossEurope.MarkRutte(previousprimeministerofNetherlandsuntil2024)istheadministrativehead(SecretaryGeneral)ofNATO.LtGeneralAlexusGrynkewichhasbeennominatedtotakeoverascommandinggeneralofNATO(alsocalledSACEUR:SupremeAlliedCommanderEurope)andthecommandinggeneralofEUCOM(EuropeanCommand,oneofthe11combatcommandsintheU.S.militarystructure).12HisjobistobringsomelevelofadultsupervisionandcoordinationtotheEU’sfragmentedmilitaryforcesunderNATO.AllCommandingGeneralsofNATO,sinceitsinceptionin1949,havecomefromtheU.S.AlltheDeputySupremeAlliedCommanderEurope(DSACEUR)peoplehavecomefromEnglandorGermanysince1949.IftheU.S.pullstroopsoutofEurope,itisestimatedthatEuropeancountrieswillneedanadditional300,000troopstomeettheirdefenseneeds,alongwithalocalcommandinggeneral.

Thisraisesaninterestingquestion.You’vegotNATO,withtheresponsibilityofdefendingEurope,andyouhavetheEUwhoexertscontroloversomecollectivedefensemoney.Thatcreatesaconflict.PoliticaldecisionsbytheEUwilldeterminewherethemoneygoesandthatsaysthatthetopcountrieswithinfluencewillprimarilybenefit(Germany,France,Italy,Spain,andNetherlands).TheremainingEUcountrieswillgetthecrumbs.ButNATOcountriesmaygooff

8BlakeMontgomery,"CanUSmonopolylawsreininSiliconValley?,”TheGuardian,April29,2025,

/technology/2025/apr/29/big-tech-us-eu-apple-meta

9HollyEllyatt

,"Likeitornot,NATO’shittinga5%defensespendingtarget,U.S.says,"CNBC,June5,2025,

/2025/06/05/5percent-will-happen-us-says-as-nato-defense-spend-hike-looks-likely.html

10

"UnprecedentedriseinglobalmilitaryexpenditureasEuropeanandMiddleEastspendingsurges,"SIPRI,April28,2025,

/media/press-release/2025/unprecedented-rise-global-military-expenditure-european-and-middle-east-spending-surges

11AlessioDell

'

Anna

,

MertCanYilmaz

,

PaulaSoler

,"ThisishowmanymoresoldiersandinvestmentsEuropeneedsto

protectitselfwithouttheUS,"EuroNews,February28,2025,

/my-europe/2025/02/28/

this-is-how-many-more-soldiers-and-investments-europe-needs-to-protect-itself-without-the-

12LolitaC.Baldor

,"TrumptapsseniorAirForcecommanderforEuropeanCommandboss,"DefenseNews,June5,2025,

/news/pentagon-congress/2025/06/05/trump-taps-senior-air-force-commander-for-european-command-boss/

-5-StateoftheVITATechnologyIndustry

June2025

ontheirownanddecidewheretheirmoneyisspentandonwhatplatforms.You’llseethathappeninginmydiscussionontheirplatformprojects.WiththethreatsofareducedcommitmentandpullingU.S.troopsoutofEurope,IseeNATOdrivingEuropeandefensespending,notthepoliticiansinBrussels.

AfterWWIIandtheformationofNATO,manyEuropeancountriesuseddifferentcalibersfortheirrifleandartilleryammunition.So,ammunitionfromoneNATOcountrycouldnotbesharedwithanotherNATOcountry.In1951,NATOestablishedSTANAG(StandardizationAgreement)specificationsandin1957,adoptedthe7.62mmX51mm(.308caliber)riflecartridgeacrossallNATOmembersforriflesandmachineguns.In1980,the5.56mmX45mm(.223caliber)cartridgewasadopted.In2001,NATOadoptedthe12.7mmX99mm(.500caliber)heavymachinegunammunitionstandard.Inthe1960’s,NATOadoptedthe155mm(6inch)artillerycaliber,butmanyEuropeancountriestakelibertieswiththetechnicalspecificationsraisingsafetyandlegalconcernsifammunitionmadeinonecountryisfiredinthecannonofanothercountry.In1998,NATOadoptedthe105mm(4-inch)artillerycaliberfortanks.13ThereareotherSTANAGspecificationsforcommonpistolammunition,andNATOistryingtosort-outanyvariationsnowandgetallthecountriestomakecommonammunition.

TheU.S.hasfourpublicshipyardsthatconcentrateonrepairingandmodernizingthenuclearaircraftcarriersandsubmarines:NorfolkNavalShipyard,PortsmouthNavalShipyard,PugetSoundNavalShipyard,andPearlHarborNavalShipyard.OnlyonecompanybuildsU.S.Navyaircraftcarriers:HuntingtonIngalls(NewportNewsShipyard).Onlytwocompaniescanbuilddestroyers:HuntingtonIngalls(inPascagoula,MS)andGeneralDynamics(BathIronWorksinBath,ME).Onlytwocompaniescanbuildsubmarines:GeneralDynamics(ElectricBoatdivisioninGroton,CT)andHuntingtonIngalls(NewportNewsShipbuildingdivisioninVirginia).There’sonlyonecompanybuildingmissilefrigates:FincantieriMarinetteMarine(Marinette,WI).TherearetwocompaniesthatbuildsmallerboatsliketheLitteralCombatShip:FincantieriMarinette,andAustal(inMobile,AL).Thereareafewothercompanies,likeGD-NAASCOthatbuildamphibiouslandingships,oilers,andcargoships.Ittakesyearstobuildanavalwarship.TheU.S.hasabout7majorshipyardsthatcanbuildwarshipsandthatneedstoincrease.

Ontheotherhand,thereare14shipbuildingyardsscatteredacross9countriesinEurope:Italy,France,UK,Greece,Portugal,Germany,Netherlands,Croatia,andNorway.Andtheydon’thavemuchworkfromtheirmilitary.Theyhavebeenbusybuildingcruiseshipsfortourists.Youcan’tswingadeadcat,nearanyriverinEuropethat’smorethan4feetdeep,withouthittingacruiseshippassingby(thereare246deep-watercruiseshipsand405rivercruiseshipsoperatinginEuropetoday,foratotalof651).EuropehasnocommonstrategyfortheirNavalforces,sotheir14shipyardsneedtomergedownto4or5primarysuppliersmakingonlyafewwarshipdesigns.NoneoftheseEUcountrieswanttoseetheirshipbuildingcompaniesmergedwithanothercountry’sshipbuildingcompanies.Andtheycertainlydon’twanttousecommonmilitaryshipdesignseither.

Thereare3countriesthatcanbuildtanksinEurope,involume:Germany,France,andtheUK.Theirtankshavenointerchangeableparts.Thereare4newtankdesignprogramsongoinginEuropetoday:MGCS(MainGroundCombatSystem)leadbyGermanyandFrancealongwith6othercountries;MARTE(MainArmoredTankofEurope)leadbyGermany,Italy,andSpainwith9othercountries;GermanyandItalyareworkingonanothernewtank;and,theUKisworkingontheirnewChallenger3tankwithGermany,Obviously,someofthesetankprogramsneedtomergeandhavecommonparts.14

Thereare2groundcombatvehicle(GCV)programsactiveinEurope:FranceandGermanyareworkingtogetheronaGCVundertheMGCSprogram.Germany,Sweden,Denmark,Latvia,andFinlandareworkingtogetherontheCAVS(CommonArmoredVehicleSystem)program.Therearenotmanycommonpartshere,exceptformaybesomenuts,bolts,andscrews.

Then,there’saircraft.Thereare3next-generationfighterplaneprogramsinEurope:FCAS(FutureCombatAirSystem)ledbyGermany,France,andSpain;GCAP(GlobalCombatAirProgram)ledbytheUK,Italy,andJapan;andSwedenisdevelopinganadvancedversionoftheirGripenfighterwithThailandandBrazil.Meanwhile,10EUcountriesarebuyingtheU.S.-madeF-35.Therearenotmanycommonpartshereeither.Whenyoulookatthecountriesinvolvedin

13LtGenL.Landrum,ColJoelP.Gleason,ColG.Corrado,"Turningstandardammunitionintosharableammunition,"NATOReview,November

10,2023,

/docu/review/articles/2023/11/10/turning-standard-ammunition-into-sharable-ammunition/index.html

14Jos

é

AlbertoHipMolina

,"EUtankstandardization:Currentsituationandfuture.Successorabridgetoofar?,"UniversidaddeNavarra,December

27,2024,

/web/global-affairs/european-european-union-tank-standardization-current-situation-and-future

-6-StateoftheVITATechnologyIndustry

June2025

thesefragmentedprojects,mostofthemhavefailingautoindustries.Theymightrepurposethosefactoriestobuildmilitaryplatforms,tokeepthejobsandtaxrevenue.

Withallthesenewplatforms,andwithoutmanycommonparts,aEuropeanair-groundwarwithRussiawouldbealogisticschallengeforNATO.AmericanGeneralOmarBradley,duringWWII,oncesaid,“Amateurstalktactics,professionalstalklogistics.”O(jiān)nceyouputplatformsandsoldiersintoawar,supplyingthemwithwhattheyneediscritical.CouldNATOcountriesagreeoncommonplatformsmadewithcommonparts?That’sdoubtfulwhenyoulookatalltheprogramsmentioned.

TheEUdoeshaveaEuropeanDefenseAgency,runbyKajaKallasfromEstonia,butcommonplatformsdon’tseemtobeapriorityeventhoughtheywouldincreaseefficiencyandlowercosts.AEuropeanDefenseFundhasbeencreatedwith1.065billionEuro($1.218billionUSD)allocatedforresearchanddevelopmentofnewmilitaryweaponsandplatforms.15EstimatesfromtheEUsaythatEuropeneedsabout800billionEuro(about$915billionUSD)torearmand

defenditself.

“Hopefully,youcannowseesomeofthefrustrationswithinNATO…andhow itcanbecomeapawn(or arook,oraknight,ora bishop)inthetariffwarchessgamethat’sgoingon."

Hopefully,youcannowseesomeofthefrustrationswithinNATO…andhowitcanbecomeapawn(orarook,oraknight,orabishop)inthetariffwarchessgamethat’sgoingon.IftheU.S.startspullingtroopsoutofEurope,asleverageinthetariff-tradewar,theEUwillbecomeincrediblyvulnerable.ItwouldtakemanyyearsforthemtorampuptheirmilitariestothepointwheretheycandefendthemselvesandcostthembillionsofEurostheydon’thave.Couldthisreallyhappen?Italreadyhas,toadegree.PresidentTrumppulled12,000U.S.troopsoutofGermanyin2020,16andhesaidrecentlythatheisconsideringpulling35,000moreU.S.troopsoutofGermanyandsendingthemtoEasternEuropeancountries.17

EuropeanNATOcountiesarespendingmoreontheirmilitariestoday,sothingsaremovingintherightdirection.Butevenafter19years,theyfailedtomeettheircommitmentstospend2%oftheirGDPondefense.We’llhavetowaitandseehowlongittakesthemtospend5%oftheirGDPtostrengthenNATO.Frommyreading,nobodyhasproposedaproperlevelofEuropeanspendingtoU.S.spendingonNATO.Maybe,areversalofthepresentratioisagoodstartingpoint.

Technology

Twomajorforcesdrivingthetechi