The Nordic Countries and the European Security and Defence Policy

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190 NATIONAL DEFENCE AND EUROPEAN COOPERATIONTable 10.1. Shares of exports of defence equipment of select EU countries that went toNordic countries, 2002Figures are percentages.Share of exports that went to Denmark, Share of exports that went toExporter Finland, Norway and Sweden non-Nordic EU membersFrance 2.1 14.3Germany 8.5 33.4UK 3.3 20.0Denmark 15.9 14.2Finland 67.8 10.2Sweden 42.2 17.4All EU 4.6 21.6Source: ‘Fifth Annual Report According to Operative Provision 8 of the European Code ofConduct on Arms Exports’, Official Journal of the European Union, C320 (31 Dec. 2003),URL , pp. 1–42. Data are according to the EU’sCommon Military List of equipment covered by its Code of Conduct on Arms Exports. No dataare available for exports from Norway.ities overlap in only some areas of technology, and the interests of the majorcountries differ substantially. Nonetheless, within the dynamics of the developingEuropean arms market, a strong Nordic dimension in defence productioncould well help balance the centralizing and monopolizing tendencies in theEU.IV. Will there be a Nordic dimension?While a Nordic dimension in defence industrial collaboration would be possiblepolitically, and even the economics of a strong Nordic dimension make sense,at least under some circumstances, Hagelin is correct in saying that it is unlikelythat a greater Nordic dimension will develop in the foreseeable future. The primaryreasons are the differences between defence industries in the Nordic countriesand their individual links to defence industries in other European countries.Hagelin provides both SIPRI and national data on the defence trade whichattest to the central position of Sweden. This may be complemented with datafor the European Union more generally.Table 10.1 shows, in the first column, how important Denmark, Finland,Norway and Sweden are as customers for the defence industries of select EUcountries. The Nordic countries are important markets for the Finnish (68 percent in 2002) and Swedish (42 per cent) defence industries. They are much lessimportant for the Danish defence industry (16 per cent), but its share is still wellabove the average for defence industries in the EU (5 per cent). Among themajor EU producers, Germany is clearly the strongest partner for the Nordic
DEFENCE INDUSTRIAL COLLABORATION 191Table 10.2. Imports by Nordic countries from Denmark, Finland and Sweden as ashare of imports of defence equipment from the EU, 2002Figures are percentages.ImporterImports from Denmark, Finland and Sweden asa share of imports from the European UnionDenmark 3.8Finland 75.7Sweden 14.8Norway 11.2All EU 3.8Source: ‘Fifth Annual Report According to Operative Provision 8 of the European Code ofConduct on Arms Exports’, Official Journal of the European Union, C320 (31 Dec. 2003),URL , pp. 1–42. Data are according to the EU’sCommon Military List of equipment covered by its Code of Conduct on Arms Exports. No dataare available for exports from Norway.countries: almost 9 per cent of German defence exports went to these fourcountries in 2002.In table 10.2, a different question is asked of the data: what proportion of theNordic countries’ imports of defence equipment from the EU come fromNordic countries (for which data are available)? A similar picture emerges:imports from other Nordic countries are very important for Finland (76 percent) but much less so for Sweden (15 per cent) and Norway (11 per cent),although these two countries import much more from the Nordic countries thanthe EU member states do on average (4 per cent). For Denmark (4 per cent), theother three Nordic suppliers are no more or less important than they are for therest of the EU.These data thus support the data presented by Hagelin in showing that theNordic dimension is of particular importance for Finland and of no importancefor Denmark. Norway and Sweden are somewhere in the middle.A picture of Swedish dominance emerges with respect to equity capital linksbetween major companies in the Nordic countries, as shown by Hagelin. TheSwedish defence industry has particularly strong links with the United Kingdom(aircraft and armoured vehicles), Germany (shipbuilding) and the USA(artillery and ammunition). While there are also equity links between Nordicdefence companies, the foreign ownership of major Swedish companies is moreimportant for the questions discussed here because of the central position of theSwedish defence industry in the Nordic area. The international orientationadopted by Sweden, as the most important defence producer among the Nordiccountries, has also found expression in Sweden’s leading role in European
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THE NORDICCOUNTRIES ANDTHE EUROPEAN
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Alyson J. K. Bailes (United Kingdom
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The Nordic Countries andthe Europea
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The Nordic Countries andthe Europea
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ContentsPrefacexiiAbbreviations and
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CONTENTSII. The European security c
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CONTENTSII. The small arms and ligh
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CONTENTSII. Iceland and the emergen
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PREFACEThe conference on the Nordic
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2 THE NORDIC COUNTRIES AND THE ESDP
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10 THE NORDIC COUNTRIES AND THE ESD
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Editor’s remarksGunilla HerolfPar
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EDITOR’S REMARKS 31which the vari
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EDITOR’S REMARKS 33mark as well s
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EDITOR’S REMARKS 35The Europeaniz
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1. Denmark and the European Securit
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DENMARK AND THE ESDP 39European def
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DENMARK AND THE ESDP 41safely leave
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DENMARK AND THE ESDP 43motions to t
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DENMARK AND THE ESDP 45effective
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DENMARK AND THE ESDP 47connected an
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52 INSTITUTIONAL AND NATIONAL POLIT
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100 INSTITUTIONAL AND NATIONAL POLI
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Part IINational defence and Europea
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114 THE BROADER DIMENSIONS OF SECUR
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6. The impact of EU capability targ
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CAPABILITY TARGETS AND OPERATIONAL
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Page 157 and 158: CAPABILITY TARGETS AND OPERATIONAL
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Page 161 and 162: THE CASE OF SWEDEN 143Government ha
Page 163 and 164: THE CASE OF SWEDEN 145immediate reg
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Page 167 and 168: THE CASE OF SWEDEN 149the navy will
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Page 187 and 188: HARDWARE POLITICS 169Sweden’s sec
Page 189 and 190: HARDWARE POLITICS 171the exploitati
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Page 195 and 196: HARDWARE POLITICS 177of internation
Page 197 and 198: HARDWARE POLITICS 179reluctant to a
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Page 201 and 202: HARDWARE POLITICS 183Nordic armamen
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Page 205 and 206: DEFENCE INDUSTRIAL COLLABORATION 18
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Page 211: Part IIINordic handling of the broa
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14. Nordic nuclear non-proliferatio
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16. Muddling through: how the EU is
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Editor’s remarksAlyson J. K. Bail
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302 THE NORDIC COUNTRIES, THEIR REG
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20. Iceland and the European Securi
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22. The Baltic states and security
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23. Baltic perspectives on the Euro
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AppendixExtracts from the Treaty Es
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ments, to promote measures to satis
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(c) strengthening systematic cooper
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Article III-303The Union may conclu
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shall carry out its tasks in liaiso
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EU CONSTITUTIONAL TREATY 403enhance
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ABOUT THE AUTHORS 405ning, Det 21.
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ABOUT THE AUTHORS 407Karlis Neretni
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ABOUT THE AUTHORS 409her publicatio
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INDEX 411Atlanticism 364banking 357
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INDEX 413Kosovo and 45Left Socialis
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INDEX 415Counter-Terrorism Coordina
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attle group 154, 181Central Union o
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INDEX 419Iceland Defense Force 328,
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INDEX 421Washington Declaration (19
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INDEX 423NPT (Non-Proliferation Tre
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ESDP and 12, 16, 19, 24, 54-55, 59,
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INDEX 427Vienna Documents 236Viking
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