Pentagon acquisition chief heads to Paris with concerns about Euro defense spending plans

Pentagon acquisition chief Ellen Lord said today she is concerned defense spending plans being advanced by the European Union will shut out U.S. industry from participating.

The programs, the European Defence Fund (EDF) and the Permanent Structured Cooperation (PESCO), promise to increase defense spending and cooperation across Europe, a major demand of President Trump since he took office. The EDF is projected to increase defense spending across the EU to 5.5 billion Euros per year after 2020, while PESCO outlines legally binding commitments from 25 member states to cooperate on various defense projects.

However, U.S. officials are now warning the plans will potentially freeze out the American defense industry. The tension is unfurling as U.S. officials prepare to attend the Paris Air Show, the largest aerospace exhibition in the world, later this month.

"I am concerned about EDF and PESCO and the opportunity for U.S. industry to participate in Europe, as European industry has the opportunity to participate in the U.S.," Lord said during a pre-show press conference at the National Press Club in Washington.

Under PESCO, third-party states may only "exceptionally be invited by project participants," according to the EU Council Decision governing the process.

Lord said she has had "active discussions" with her European counterparts about technologies and cooperative development projects.

"I am very much in favor of making sure that they consider what we have for technology," she said.

Aerospace Industries Association President Eric Fanning, speaking alongside Lord, said the decision how to allocate EDF and PESCO funds "is obviously a government decision."

"When the playing field is level, American companies do really well," he added without commenting further on the issue.

Meanwhile, Lord said she would be advocating for U.S. industry during her discussions in Paris.

"I let the customer drive the dialogue, so we are prepared to talk about a number of things," Lord said. "Our NATO programs, we're particularly interested in [those]."