On 29 November 2024, Cartagena hosted an EPP-CoR Local Dialogue focused on shaping the future of Europe’s defence industry, with a strong emphasis on innovation, SMEs, and regional collaboration. Organised in partnership with the Regional Government of Murcia, the event attracted high-level participants to discuss the European Defence Industrial Strategy and the expansion of EU supply chains.
Fernando López Miras, President of the Region of Murcia and CoR rapporteur on the opinion ‘A Strong European Defence Industry’, stressed that "Without security, there is no freedom, and without freedom, there is no democracy. The European Union faces significant challenges, requiring investment, capacity-building, and a robust industrial base to reduce external dependency." He highlighted the need to secure financing for SMEs and called for cohesion funds and the European budget to prioritize defence without compromising other essential policies.
Roundtable I: Supporting the European Defence Industrial Strategy and SMEs
The first session focused on fostering innovation and creating opportunities for SMEs to thrive within the European defence ecosystem. Panelists discussed the challenges and opportunities for SMEs in integrating into the defence industry. Speakers highlighted the importance of fostering innovation networks, improving access to funding, and addressing bureaucratic barriers. They emphasised areas like cybersecurity, artificial intelligence, and advanced training as critical for the sector’s growth. MEP Nicolás Pascual de la Parte identified priority areas like cybersecurity, AI, supercomputing, and advanced training, urging collaboration and alternative financing mechanisms to address funding gaps. MEP Rasa Juknevičienė highlighted Europe’s pressing need for a cohesive strategy, noting that SMEs are vital but face challenges integrating into value chains while Pehr Granfalk, Vice-Chair of the ECON commission at the CoR, emphasised that regional innovation hubs are key to bridging the gap between SMEs and large enterprises.
Roundtable II: Expanding EU Defence Supply Chains
In the second session speakers addressed the need for stronger regional collaboration and streamlined processes to strengthen supply chains. Experts called for decisive political action to improve connectivity, reduce fiscal barriers, and ensure that investments benefit the European economy. Lt. Gen. Rubén García Servet stressed that political will is essential to foster connectivity and reduce bureaucratic barriers for SMEs. Agustín Conde Bajén, former Défense Secretary of State, warned that Europe’s reliance on costly energy and external defence solutions undermines its autonomy. José Luis Fuster Torres, Director of the Metal Technological Centre in Murcia, presented the CAETRA initiative as a model for regional mobilization of SMEs in defence and dual-use technologies. Adrian Teban, Mayor of Cugir and CoR member, called for better integration of regional strengths into the broader European defence framework.
Adrián Zittelli Ferrari, Director-General for European Affairs of Murcia, concluded by reaffirming the importance of regional collaboration in Europe’s defence strategy. He emphasised that the conclusions of this dialogue, alongside López Miras’s CoR opinion, should inform EU policy to ensure regions and SMEs are fully mobilized for innovation and strategic autonomy.
Key Takeaways
- Innovation, financing, and reduced bureaucracy are essential to advancing Europe’s defence industry.
- SMEs play a pivotal role in creating a resilient supply chain and must be better integrated into EU projects.
- Regional collaboration, as exemplified in Murcia, is crucial to developing a strong and competitive European defence ecosystem.
This EPP-CoR Local Dialogue served as a valuable platform for exchanging ideas and fostering innovation and regional cooperation to strengthen Europe’s defence capabilities. The discussions underscored the essential role of regions and SMEs in building a resilient European defence industry, highlighting the importance of regional innovation and SME participation in shaping effective strategies.