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Current economic crisis in the EU can prove to be a turning point for the European defence-industrial base. The purpose of this article is to analyse the current state of the EU-based defence sector and possible trajectories of its future evolution. In order to achieve this aim, an overview of defence industry’s functions has been provided, followed by SWOT analysis of internal and external factors influencing the current and future position of the European defence-industrial base. Presentation of the sector’s strengths and weaknesses, as well as threat and opportunities coming from the external environment provides basis for assessment of possible future directions of industry’s evolution.

Defence Industry in the European Union – Challenges and Opportunities in Times of Economic Crisis