The creation of an efficient European defence market will enable the European Union to strengthen its industrial base, to become the most competitive and knowledge-based economy in the world and to meet its ambitions in terms of both political influence and military power. The industry welcomes the European Commission new initiative, the “Defence Package”, as a tool to create this integrated market and meet the Lisbon Strategy objectives. However, some issues are still to be addressed, especially the need to sustain continuous investment of public funds in research & development.