Interview: Nordic defence cooperation grows, politics lags - Finkielman

Few outside the sector appreciate the extent of industrial cooperation already under way across the Nordic region.

That is the view of Joachim Finkielman, director of DI Danish Defence and Security Industries - the National Defence Industry Association in Denmark.

- A great deal is happening, both bilaterally and trilaterally. This is partly driven by overlapping procurement, Finkielman says, citing the CV90 programme and Patria’s Common Armoured Vehicle System, CAVS, as examples.

Finland and Sweden

Defence Nordic has asked the industry directors in Denmark, Finland, Norway and Sweden for their assessment of the region’s defence industrial base, the state of cooperation, its potential and the barriers that remain.

In Denmark, Finkielman notes that political ambition to strengthen Nordic cooperation has long been present and is likely to become more central in the coming years. However, he adds a note of caution.

- We still have little to show in terms of concrete, joint Nordic projects. The main example is the common uniform programme, which has taken more than ten years and is only now being phased in, he says:

- Developments in the wider security environment have nevertheless made the Nordic dimension more important.

He points to Sweden and Finland’s accession to NATO and the war in Ukraine. In his assessment, these developments have removed some earlier obstacles and increased the potential for cooperation in both the short and longer term.

- There is political will, and companies are working together across borders. But genuine momentum behind structured Nordic cooperation has yet to materialise, he says.

The question is what would create that momentum.

Finkielman identifies two prerequisites. The first is clear political decisions to pursue a distinct Nordic track. This would require the four countries to avoid duplicating efforts and instead allocate responsibilities according to national strengths.

- Denmark has strong capabilities in ship design, so it could design naval platforms for the region. Norway has particular expertise in air defence and missiles, so it could assume responsibility there, and so on, he says.

He notes that a Nordic treaty in 1998 led to the creation of the company now known as Nammo. Although Denmark was not a party, the agreement reflected an ambition for joint Nordic ammunition production and off take.

Making cooperation more attractive

The second prerequisite is to make Nordic industrial cooperation more commercially and administratively attractive by removing remaining barriers.

Production and export licensing regimes, for example, should be reviewed to facilitate manufacturing across the region and allow governments to procure via one another’s contracts. 

This already occurs in some cases, he says, noting that Denmark is procuring infantry fighting vehicles through a Swedish framework.

Finkielman would like Nordic companies and defence ministries to consider regional partners as the default option.

 - This is also about security of supply, he says, pointing to growing international interest in the Nordic defence market.

Denmark is currently the highest defence spender among the four countries, a position that is increasingly visible in industry engagement.

At the Danish Defence Annual Conference in February, a record 1,000 participants and 100 exhibiting companies attended, well above the previous year’s figures.

In August, DALO Industry Days will feature dedicated national pavilions from across the Nordic region and are also expected to reach capacity.

- There is significant interest in the Nordic market. Much is under way, but until the remaining barriers are addressed and political leaders commit to joint programmes, cooperation will not fully accelerate, Joachim Finkielman says.