Post-Cold War European Defense Downturn (1990-2010)
After the Soviet collapse, European nations collected their 'peace dividend.' Defense spending fell from €132 billion in 1990 to €84 billion in 2000 (inflation-adjusted). The European defense industrial base consolidated and contracted, with the number of major firms declining 29-80% across subsectors. East Central European arms producers went bankrupt or struggled as their Soviet-era customers disappeared.
Defense companies merged or closed. Governments redirected spending to social programs. Military capability gaps emerged.
Europe became dependent on American defense imports for advanced systems. Industrial capacity atrophied, creating the ammunition shortages now exposed by Ukraine.
CSG's IPO represents the reversal of this 30-year trend. The same market forces that drove defense industry contraction are now driving expansion—but this time the trajectory is upward.
