The EU can’t use their engineers to create cars and AWACS. Things would have to change massively to compete and develop everything twice, like North Korean levels of modesty in compensation for workers.

Yes it can. There already is Swedens GlobalEye and if you not spend the money on American systems, you can built a decent European alternative. Something similar holds true for all sort of other weapon systems.

Of course, if the EU keeps silent, like with Venezuela, Kuba or Iran, countries will have to give in to the threats and actions.

There are 25,000 Cubans fighting for Russia against Ukraine. Iran is also openly supporting Russia in the war having send soldiers to Crimea and selling a lot of weapons to Russia. The response pro Venezuela should have been stronger, but they are also friends of Russia.