Shadow Defence Secretary Jim Murphy has urged government ministers to "urgently convene" talks to "develop a fresh defence industrial plan" after the proposed BAE-EADS merger was called off.
Mr Murphy said:
Now that the answer to the future of UK defence manufacturing cannot be found in France and Germany, it must lie in Britain and other established markets.
Those Conservative MPs who were warning against the involvement of French and German governments must now demand a more active industrial strategy from the British government.
It has not taken long since the collapse of the proposed merger with Franco-German company EADS for the BAE board to be put under pressure.
The EADS and BAE mega merger is not going to go ahead, at least for now.
Talks between the two major defence companies continued into the night as they look to strike a deal.