In a previous series, Geopoliticalmonitor.com examined some of the pressing issues facing the European defense establishment. One such issue was the impact of Brexit, mainly how the exiling of defense majors like BAE Systems would hurt European competitiveness vis-à-vis US, Russian, and Chinese providers, and how this new environment might give rise to greater competition (rather than the desired consolidation) between European defense industries.

Judging by the Sweden’s rumored inclusion in the British-led Tempest program, these concerns are merited. It appears the British defense industry won’t be going quietly into the night whenever (if ever) Brexit finally happens.

Background

According to the Financial Times, Sweden intends to sign onto the British-led Tempest consortium to build a next-generation fighter jet. An official announcement is expected at the Royal International Air Tattoo show later this month.

Stockholm’s involvement will inevitably leverage Saab, Sweden’s largest defense provider and the 36th largest company in the world in terms of sales in 2017, according to the SIPRI rankings. Saab is behind the popular fourth-generation fighter JAS 39 Gripen which remains in service in air forces around the world, including in Sweden, Czech, and South Africa.

The Gripen E, one of the newest configurations, is reportedly being considered by the Canadian government as a possible replacement for its aging fleet of F-18s.

The British Tempest consortium already includes BAE Systems, Leonardo (UK arm of the Italian company), MBDA (joint Leonardo-Airbus-BAE venture), and Rolls-Royce. It aims to build a sixth-generation replacement for the Eurofighter Typhoon by 2035 – five years before that previous standard in continental avionics is officially decommissioned from the RAF. The effort is expected to pull in some £2 billion in investment from both government and private industry.

The consortium is competing with a Franco-German initiative called the Future Combat Air System (FCAS), which includes Dassault Aviation and Airbus. Spain also signed onto the venture last month.