Access to finance

Investing in Europe's future

The aerospace and defence industry is a strategic sector for Europe; it contributes to its security, sovereignty, innovation, and competitiveness. It also supports the green and digital transitions, by developing solutions for sustainable mobility, connectivity, and environmental protection.

However, the industry faces a major challenge: it is a capital-intensive sector, which requires heavy and long-term investments in research, development, innovation, and production. Product life cycles often span decades, from initial research to final deployment and user-related services such as maintenance.

What are the main challenges for the industry?

Access to reliable and affordable financial services is crucial for maintaining a robust and competitive European industrial and technological base. Without adequate financing, the industry cannot invest in the development of new technologies and products, nor in the modernization of its infrastructure and workforce.

An increasing number of aerospace and defence-related companies across Europe, particularly SMEs, have struggled in recent years to access basic services like bank accounts or insurance. This is often due to the environmental, social, and governance (ESG) criteria of financial actors, which exclude cooperation with aerospace and defence companies.

Another challenge is the lack of adequate public funding for the industry, especially in the space sector. Europe invests seven times less than the US in its space policy, which hampers its efforts to be self-reliant and independent in this strategic domain.

ASD has identified secure access to finance as a key issue that concerns the industry across Europe and companies of all sizes.

ASD Papers

Explore ASD papers on issues relating to access to finance for the aerospace and defence industry