Lobbying by the defense and arms industry has significantly shaped recent decisions to increase defense budgets in both the UK and the EU.

While geopolitical events like the war in Ukraine have provided a clear political justification for increased spending, the arms industry has been instrumental in influencing how and where that money is spent.

Their influence has been institutionalized and is a key driver behind the recent surge in defense budgets and the prioritization of military-industrial concerns in national and European policy.

The UK: A Deeply Embedded Relationship

In the UK, lobbying's influence on defense spending is not a simple "one-off" action; it's a structural part of the government-industry relationship.

• Unparalleled Access: Major defense firms, notably BAE Systems, have an extraordinary level of access to the highest levels of government. An analysis showed that between 2012 and 2023, BAE Systems had more meetings with UK prime ministers and other government officials than any other private company, averaging a meeting once every three days. This "open-door" policy ensures that the industry's voice is dominant in discussions about defense and security.

• The "In-House" Lobbying Loophole: The majority of lobbying in the UK is conducted by in-house teams employed directly by defense companies. Since the UK's lobbying transparency laws don't cover these lobbyists, their activities and the scale of their influence are largely hidden from the public. This lack of transparency allows the industry to exert pressure without public scrutiny.

• Influence on Procurement: Lobbying heavily influences the UK's defense procurement strategy. A large portion of UK defense spending is channeled through non-competitive, single-source contracts, a system that effectively guarantees a profit for top suppliers. The industry has consistently lobbied for this approach, arguing it's necessary for complex projects. However, critics argue it removes competition and value for money, allowing corporate interests to dictate spending priorities.

The EU: The "Gold Rush" in Brussels

The EU's recent moves toward greater defense integration have triggered a "gold rush" for arms lobbyists in Brussels. They have been instrumental in pushing for and shaping the EU's new defense architecture.

• Creating the European Defence Fund (EDF): The creation of the EDF, with an €8 billion budget, is a prime example of the industry's influence. The European Commission established advisory groups heavily dominated by representatives from defense companies. These groups directly shaped the fund's agenda and priorities, ensuring that the EDF would primarily serve the industry's interests. This effectively turned a public defense fund into a commercial opportunity for private firms.

• Surging Lobbying Budgets: Since the start of the war in Ukraine, the lobbying budgets of the largest European defense companies have increased by roughly 40%. This surge is directly tied to a rise in meetings with EU officials, as firms vie for a share of the new funding and push for streamlined procurement rules. . This increased financial and personnel commitment is aimed at shaping the EU's strategic response to security threats.

• The Revolving Door: The "revolving door" between EU institutions and the defense industry is highly active. Former EU officials with deep knowledge of the budget and procurement processes can secure lucrative positions in the defense industry, leveraging their networks and insider knowledge to gain privileged access for their new employers.

The Broader Strategic Influence

Beyond direct budget figures, lobbying shapes the entire strategic context of defense spending.

• Framing the Threat: While national security agencies and NATO provide threat assessments, the arms industry's lobbying influences how those threats are framed and what capabilities are deemed necessary to counter them. They often promote a narrative that emphasizes the need for expensive, high-tech military hardware, which happens to be what they manufacture. This contrasts with a focus on lower-cost or non-military solutions, which receive less attention.

• Selling an Industrial Strategy: The industry has successfully lobbied for the idea that defense spending is not just a security necessity but also a crucial tool for economic growth and job creation. By linking military spending to national prosperity, they make it politically easier for governments to justify budget increases. This is a powerful lobbying tactic that has been particularly effective in the UK, where the government has publicly stated its commitment to using defense investment to drive economic growth and create jobs across the country.