• Commentary
  • Research
  • Experts
  • Events
Carnegie China logoCarnegie lettermark logo
{
  "authors": [
    "Judy Dempsey"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace",
    "Carnegie Europe"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Europe",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "Europe"
  ],
  "topics": [
    "Foreign Policy"
  ]
}

Source: Getty

In The Media
Carnegie Europe

Can a Defense Merger Change Britain’s Attitude Toward Europe?

A merger between the European aerospace giant EADS and its British rival, BAE Systems, could be a catalyst for Europe taking a hard look at not only its defense but also its research and development sectors.

Link Copied
By Judy Dempsey
Published on Oct 1, 2012

Source: New York Times

If it goes ahead, could the merger between the European aerospace giant EADS and its British rival, BAE Systems, change Britain’s attitude toward Europe? The skeptics are many, the optimists few.

With the British government now so extraordinarily anti-European, it is hard to see any future BAE-EADS tie-up making a difference.

BAE has had a special relationship with the United States as one of the few European defense manufacturers to supply the Defense Department with cutting-edge military equipment.

Yet with defense spending being cut, even in the United States, BAE is now looking to EADS for growth, especially in the civil aircraft sector.

What an irony for BAE, which a few years ago sold its share in EADS.

A merger should surely provide BAE and the British government with some influence over the future direction of EADS. BAE would only hold a minority stake and one would only expect lots of political interference by France and Germany in the joint company. Along with Spain, they are the shareholders in EADS — and famous for wrangling to get the maximum of jobs in their own countries.

But, say analysts, there is a bigger, strategic interest at stake for Europe and for Britain: A merger would make Europe a very serious competitor to the United States, a point I make in my column this week.

Boeing, the American aerospace giant, is already a fierce competitor with Airbus. But with BAE’s state-of-the-art military technology, Europe could find new markets in Asia and elsewhere.

A merger could, in the longer term, also be a catalyst for Europe taking a hard look at not only its defense but also its research and development sectors. The former is hampered by duplication, the latter by a lack of funding. Both have been a brake on Europe’s ability to decide what kind of security and defense policy it needs for the 21st century.

Of course, British conservative lawmakers would balk at the idea that a BAE-EADS deal could lead to a more integrated European defense policy.

Yet Britain’s conservative government is pushing the deal because it knows that it presents the only hope for keeping a national stake in a major aerospace company.

British conservative prime ministers, from Edward Heath to John Major, have found over time that their country could not do without Europe. The BAE-EADS deal may be a similar moment of truth for David Cameron.

This article originally appeared in the New York Times.

About the Author

Judy Dempsey

Nonresident Senior Fellow, Carnegie Europe

Dempsey is a nonresident senior fellow at Carnegie Europe

    Recent Work

  • Commentary
    Europe Needs to Hear What America is Saying

      Judy Dempsey

  • Commentary
    Babiš’s Victory in Czechia Is Not a Turning Point for European Populists

      Judy Dempsey

Judy Dempsey
Nonresident Senior Fellow, Carnegie Europe
Judy Dempsey
Foreign PolicyEurope

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie China

  • Commentary
    Malaysia’s Year as ASEAN Chair: Managing Disorder

    Malaysia’s chairmanship sought to fend off short-term challenges while laying the groundwork for minimizing ASEAN’s longer-term exposure to external stresses.

      Elina Noor

  • Commentary
    When It Comes to Superpower Geopolitics, Malaysia Is Staunchly Nonpartisan

    For Malaysia, the conjunction that works is “and” not “or” when it comes to the United States and China.

      Elina Noor

  • Commentary
    Neither Comrade nor Ally: Decoding Vietnam’s First Army Drill with China

    In July 2025, Vietnam and China held their first joint army drill, a modest but symbolic move reflecting Hanoi’s strategic hedging amid U.S.–China rivalry.

      • Nguyen-khac-giang

      Nguyễn Khắc Giang

  • Commentary
    China’s Mediation Offer in the Thailand-Cambodia Border Dispute Sheds Light on Beijing’s Security Role in Southeast Asia

    The Thai-Cambodian conflict highlights the limits to China's peacemaker ambition and the significance of this role on Southeast Asia’s balance of power.

      Pongphisoot (Paul) Busbarat

  • Trump and Xi on a red background
    Commentary
    Emissary
    China Is Determined to Hold Firm Against Trump’s Pressure

    Beijing believes that Washington is overestimating its own leverage and its ability to handle the trade war’s impacts. 

      • Sheena Chestnut Greitens

      Rick Waters, Sheena Chestnut Greitens

Get more news and analysis from
Carnegie China
Carnegie China logo, white
Keck Seng Tower133 Cecil Street #10-01ASingapore, 069535Phone: +65 9650 7648
  • Research
  • About
  • Experts
  • Events
  • Contact
  • Careers
  • Privacy
  • For Media
Get more news and analysis from
Carnegie China
© 2026 Carnegie Endowment for International Peace. All rights reserved.