The first product from the alliance will likely be a military drone capable of carrying all the munitions currently used by fighter jets, with a prototype ready in about a year’s time.

Italy's Leonardo and Turkey's Baykar announced on Thursday they were setting up a joint venture to produce unmanned aerial vehicles (UAV), as defence companies scramble to respond to the surge in European military spending.

A new Joint Venture between Leonardo and Baykar, based in Italy, will exploit the industrial synergies and complementarities of both companies in the