Israel likes not liking Europe. History, as well as the European nations' pro-Arab stance, coupled with Israel's close ties to the US (which is currently locked in a series of conflicts with Europe), has given rise to a fairly chilly relationship. But a new study finds that this situation can and should be changed fundamentally, and that the economic aspect can play a major part.
The report was written by Brig. Gen. (res.) Uzi Eilam, the former head of the Ministry of Defense mission to Europe, former director general of the Israeli Atomic Energy Commission and former Chief Scientist and director of R&D at the Ministry of Defense. The study was published by the Jaffee Center for Strategic Studies at Tel Aviv University.
Eilam's thesis is that the newly expanded 25-country European Union is formulating its own identity in terms of defense, in order to handle international terrorism and other threats to the continent. Israel, he claims, can turn this into a first-class diplomatic and economic asset.
Israel has an advantage regarding the products Europe needs to form this new defense and security identity, Eilam says. "Technology and combating terror will be the main tools to leverage Israel. The technological aspect will be used to forge industrial partnerships and improve competition. It will also contribute to the economic well-being of the European nations, and their industries."
Eilam doesn't make light of the difficulties in Israel's path, chiefly the cool relations between Israel and Europe. He says there is a need for a very high-level diplomatic umbrella organization to conduct negotiations between Israel and the EU, to anchor the understandings reached in clearly delineated agreements between Israel and each individual country, as well as between Israel and the EU overall.
The study recommends initiating contact in the field. "Major European industries are rooted historically in defense industry. Their human, physical and technological infrastructure reflects that of the defense sector. Each one of these big corporations has subsidiaries that develop and produce military systems, as well as companies derived from military systems.
"This situation opens up the possibility of dialogue and understanding that leads to cooperation with industries outside the EU, including Israel's defense industry, which has a great deal of experience, and competitiveness in defense manufacturing".
More specifically, Eilam says, "Israel can use assets like its technological and industrial ability to manufacture and market weapons systems worldwide, as well as its know-how in anti-terror field capability and technology".
Eilam then goes on to name specific EU countries and outline the sort of ties Israel must create with each one. Surprisingly, he says that France is the key country. "Israel is capable of developing cooperation with France in a wide range of defense industries".
Ties with Great Britain should be reinforced through technology as it relates to anti-terror activity. That London is a terror target, much like Jerusalem, is a fact that should be utilized. Israel already has long-standing defense and security links with Germany, evinced by the Merkava tank project, joint submarine development, and others.
Another country, no less important, is Italy, one of Europe's most industrialized nations. Eilam feels that even though Israel's defense procurement from Italy is limited, and cannot serve as a basis for cooperation on the defense level, "it would be beneficial to initiate and implement joint ventures with Italian industry".
In principle, Eilam writes, "It is possible to achieve the target set by Israel's Ministry of Defense of $100 million in defense exports to the EU annually. To achieve this goal, it would be prudent to understand the new mechanism and dynamic of European policy for arms procurement and production.
"A coordinated effort is needed here between Israel's defense establishment and its representatives in Europe, and the defense industry in Israel. Defense procurement -- a multimillion-dollar field -- should reorient itself towards European industry. This sort of procurement could be used as a springboard for many future European-Israeli partnerships".
Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, March 13, 2005