WEBVTT

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In Europe, the challenge
is demand is there,

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the spending is there,
but it's fragmented.

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- What do you think will
define the next phase

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of defense investment
over the coming years?

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- I'd like to make a difference
between the US and Europe.

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These are very different markets,

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and the US has a structural advantage

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based on the fact that there
is a single large buyer

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of defense equipment that can
send strong demand signals

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across the whole supply chain,

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from the primes to their suppliers.

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In Europe, the challenge
is demand is there,

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the spending is there,
but it's fragmented.

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So we have different
buyers, different standards,

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different procurement cycles,

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and the fragmentation becomes
not just a production problem,

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but it's also a financing problem.

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So the financing in Europe really

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would require a new market infrastructure.

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Obviously, the banks will
play a central role in this,

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especially in a bank-led financial system,

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but there is a role to
be played by insurance,

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by private capital,
national development banks,

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multinational development banks.

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We need platforms that can originate,

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pool the risk, and distribute this.

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So this is where the challenge comes,

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and this is what we are
trying to solve as well.

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- Thank you so much for your time.

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- Thank you for having me.

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(gentle music)