The paper examines the economic and institutional determinants of the defense industry in the transformed security environment, emphasizing the sector’s importance for national defense. It assesses the implementation of the European Union (EU) Defense Industry Program in the wake of Russia’s invasion of Ukraine, focusing on implementation challenges, the role of multinational firms, and issues surrounding dual-use technologies. The research question asks which economic determinants influence program implementation and contribute to the EU’s economic and political security. The Program’s establishment within the EU’s first defense industry strategy marks a pivotal milestone for enhancing preparedness and the competitiveness of Europe’s defense technology and industrial base. Methodologically, the study combines qualitative and quantitative approaches.
This paper is partly devoted to defining economic warfare and its position in the system of international relations. The role of economic warfare in shaping internal and external policies of s country is described in selected examples using the historical-logical method. The article provides a typology of the elements of trade warfare. Based on the analysis of selected determinants, the latest facts of trade warfare after the year 2015 are analysed. The treatise concludes: a trade war in one sector of the economy may spread into other sectors, whereas economic warfare is a priori waged against an economy.