Besides, there’s a major difference now from those years: back then, european nations still pretty much leaded the world. They had a massive economic power, and the greatest military weight in the whole world. The Royal Navy alone could dominate the world, and in part it did. European nations had the edge in military technology too.

But now? Question yourself about the differences of the world in which we live now. European nations don’t lead anymore. They don’t have any particular technological edge of advantage. And about sheer military power, well… look at the sad state of the Royal Navy to have an image of what happened across Europe.

I don’t talk because of fear, but because my reasoning makes me think this way. I don’t see a nice future ahead for Europe, unless things start to change soon.

It’s all a matter of finding a politic balance, i fear.

Collective efforts to acquire kit may help reduce cost for the kit because you are sharing non-recurring R&D costs, as well as enjoying lower cost-per-unit when buying in greater numbers. Much to be said for that.

However, there are pitfalls to look out for. For example, if you buy a piece of kit that is shared by all, that mean your kit is not fully configured to meet your unique set of requirements and the cost associated with customizing your kit may be prohibitive. Additionally, you may not enjoy a cost-break because your country may not be cleared for sharing of certain types of technology/capability and that means a unique piece of kit (increased cost).

Just something to consider.

And about defence, there’s more to say. In time of economic crisis, jobs are invaluable. The defence industry gives a job to hundred thousands persons, and generates job for people in every sector.
Think about the thousands of jobs and the hundreds of companies that will be kept alive and working by, to quote just one, the Carrier Vessel project. Personally, defence doesn’t just protect the nation. It keeps the economy kicking and the technology progressing. Historically, it’s always been this way.
I find absurd to slash defence projects, creating thousands more unemployed persons that have a social and economic weight, to “fight the recession”.
I’d rather take more time to fill the public debt than cut spending and create unemployed crowds. There can be no good in such moves.

I see, for many reasons, a strong need for defence.

Look into China’s bad debts, and especially Russia’s demographics to find their Achilles Heels. In fact I strongly recommend you read this excellent article about dependency ratios http://www.gladwell.com/2006/2006_08_28_a_risk.html for a different perspective.

Is this fundamentally necessary? Exactly what is stopping the armies of interested nation states issuing a project with designated requirements to the private arms companies?
The US Government isn’t designing the F35, they let those clever chaps at Boeing and Lockheed get on with it, and picked the best entry.

If a way could be devised to keep the politicians and lobbyists out of the selection process, why would any nation run the design process?

And anyway, China is only part of the matter. Russia is growing stronger and stronger, and its politic orientation over eastern Europe isn’t very friendly (Read Iskander missiles at the borders with Poland, read Georgia war, and many other problems). Putin made no mystery that he wants a powerful Russia: they are building a new model of SSN, a new SSBN, new strategic missiles (Bulava and more Topol M on order), are flying their stealth fighter prototype from January and have announced in these days plans for a new strategic bomber.
Besides, the admirals have pointed out their dreams for 6 aircraft carriers (doubts on the affordability of such a plan are there, obviously) and Russia is currently negotiating to buy 4 Mistral ships from France, which already scared Georgia and caused diplomatic tension. And Russia from several months already restarted its flights of bombers over the North Sea.
I don’t see a safe world around Europe. I don’t really see a safe world for Europe. There’s plenty of reasons to think about future, and about defence. And about defence of the resources, too.
Europe depends far too much from oil and gas coming from Russia. The oil pipeline crossing Georgia (probably the true reason for Russia to intervene in the conflict) is vital for Europe’s interests. And the new, projected Nabucco pipeline, planned, if i remind correctly, to cross Afghanistan and reach Turkey, is another need.
But they’ll have to be protected, too.