Weaponising Europe? Rule-makers and rule-takers in the EU regulatory security state

Abstract

ABSTRACT In contrast to the conventional wisdom that security is governed exclusively by nation states exercising political authority to generate public security goods, the European Union can also be considered a security state: it governs security indirectly by making rules incentivising and steering the provision of public security goods. To what degree, however, does the EU govern defence markets, shape the trajectory of national defence capabilities, and direct efforts towards European strategic autonomy? This paper traces the EU’s attempts to regulate arms production and identifies critical junctures in EU authority as a market rule-maker over the means of force. It finds that market rule-takers—non-state defence firms—are shaped by EU epistemic authority and regulation. Specifically, EU rule-making shapes firm perceptions of relative defence market uncertainty. Firms perceiving future home defense markets as less risky due to regulatory oversight are incentivised to reduce their own current profits by self-funding innovation towards future defence requirements and procurement sales to their home states. By incentivising the non-state production of public security goods with its rule-making and relational market power, the EU is a modern regulatory security state, even in the defence domain where it has little political authority.