Policies are often used to create markets or - like in this case is propose - to create that demand. The article makes the argument that free market failed to deliver in this sector in Europe. One of the explanations is that once you lag behind competitors, if policies don't force to value specific parameters that can be fulfilled only by other competitors, no competitors will join the market because nobody is going to choose them. So the author argues for example to impose regulation for public tenders such as "must be subject to only EU laws". This creates a demand, which is not currently matching any offer in the market and creates market incentives for new players to compete. So regulations can absolutely work where "free" market fails (quotes because even the big 3 are/were pumped full of money by government/defense contracts).