Abstract
Since the end of the Cold War, Europe's defence industry continues to consolidate, and this process has resulted in significant restructuring across European borders. Having examined the post-Cold War changing economic and technological conditions in the armaments market, the article investigates how the interplay between the defence industries' strategies in facing this new environment and the EU initiatives in the security realm has transformed Europe's defence industrial base. The implications of these changes for transatlantic industrial relations are then analysed in the space sector. It is argued that the political economy of the transatlantic relationship has experienced a shift of relative market power away from the US towards Europe.
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