Defense summit looks at effects of crisis

SAUMUR, France, Sept. 10 (UPI) -- A high-level defense conference opening Thursday in central France looks at how the economic crisis is affecting the defense industry.

Called the Summer Defense Conference, the two-day event is the seventh installment of its kind and takes place in Saumur, central France. It is due to feature a keynote speech by French Defense Minister Herve Morin and draw an expected 350 French and European political and industry leaders. Senior French generals and executives of major defense companies including DCNS, Dassault Aviation, EADS, Safran and Thales are expected to attend.

The first day of the conference focuses on the impact of the downturn on defense in Europe, including budget priorities, economic consequences for the industry and how reduced spending could affect armed forces' performances in international security missions.

Several European nations have cut or are due to slash defense budgets because of the crisis; across Europe, several military equipment projects have been pushed back or downsized.

The second day will put international security policy on the agenda, with panels discussing Europe's ambitions to build up joint armed forces, the West's relations with Russia and the effects of the French decision to rejoin NATO's military command.

France re-entered NATO as a full member at the alliance's 60th-anniversary summit in France and Germany in April after leaving the military command in 1966 because Paris felt Washington dominated the alliance. The decision to rejoin NATO was pushed by French President Nicolas Sarkozy, who has tried to intensify relations with NATO and the United States.

France is the fourth-largest contributor of troops to NATO and has long backed the alliance financially. French soldiers have taken part in several major NATO missions, including those in Kosovo, Bosnia and Afghanistan.

The conference's second day will also examine military strategy issues such as the role of a modern air force in a post-Cold War world and the new capabilities required to lead a successful counterinsurgency fight.

Organized by consultancy CEIS, the conference features a demonstration of French military equipment at Camp Fontevraud.

The Summer Defense Conference has been organized every year since 2003. It is aimed at giving insights into current defense issues and anticipates key challenges in the security industry.