Research spending: The European Commission under former President Prodi has proposed a new EU budget for the period 2007-2013. The Communication on security research from 2004 has proposed an annual budget of one billion euros to defence-related research. The upcoming negotiations on the budget are likely to be influenced by the battle for cohesion funds which 'old' recipients such as Spain, Portugal and Greece stand to lose. The outcome of these difficult budget talks may affect the overall amount of funds allocated to security research.
The debate on defence research is generally marked by a widespread recognition of the possible synergy between the military applications of civil research, and the need to leverage it further still.
Procurement: The EDA, European Defence Agency, is endeavouring to stimulate greater efficiency in European defence procurement. This is being backed by the Commission's Green Paper on defence procurement.
Industry policy: European and international defence industries are eager to get their share of a more open defence market. There are hopes of developing cutting edge technology that would contribute to industry growth and general job creation at EU level.
There are European complaints that companies do not get equal access to US defence markets and US defence technology, whereas US defence contractors maintain that European-produced technology has already made important inroads into the US defence products.
Attitudes: Have the EU policy-makers fully understood the nature of the threat from terrorism, and is there a will to make the choices needed, is a question being raised by US observers. Another issue is whether the necessary 'crisis mindset' needed to deal with a potential full-scale terrorist attack is fully present both from law enforcement and from European level infrastructure management .



