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Brussels should incentivise Europe’s defence industry to increase production and promote consolidation, the president of the European Commission has said, as she warned the “world has got rougher”.

Ursula von der Leyen said the commission was developing its defence industry strategy informed by the experience of using taxpayer cash to boost the production of Covid-19 vaccines and for joint purchases of gas.

“We have to spend more, we have to spend better, we have to spend European,” von der Leyen said in an interview with the Financial Times on Thursday.

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