Brussels, 22/07/2013 (Agence Europe) - On Wednesday 24 July, the Commission is to adopt its communication relating to a more competitive and effective security and defence sector. The result of work by the Task Force Defence set in place by Commissioners Michel Barnier (Internal Market) and Antonio Tajani (Industry) under the aegis of President José Manuel Barroso, the communication aims to fuel debate by heads of state and/or government during the European Council on defence to be held on 19 and 20 December. It is presented in the form of an action plan calling upon all the instruments available to the European Union for supporting the European defence technological and industrial base (EDTIB) and developing the capabilities needed by the Union and its member states to ensure their security and defence.
The text has ambitious aims. “Europe must be able to assume its responsibilities for its own security and for international peace and stability in general. This necessitates a certain degree of strategic autonomy: to be a credible and reliable partner, Europe must be able to decide and to act without always depending on the capabilities of third parties. Security of supply, access to critical technologies and operational sovereignty are therefore crucial and should guide our action”, one reads in the introduction.
The communication is structured around the main challenges (for the requirements of this summary, however, our presentation does not exactly follow the structure of the action plan contained in the communication):
1. Completion of an internal market allowing an end to be put to the national fragmentation relating to acquisitions which increases costs and makes industry more fragile. This part underlines the Commission's resolve to actively monitor the opening of member state defence markets and to clarify the limits of certain exemptions under the defence and security procurement directive, especially government-to-government contracts and international agreements, in order to prevent abusive use undermining the correct application of the 2009 directive.
2) Eradication of competition distortion and other abusive practices. The Commission will, in particular, deploy the means available to it against offsets which promote national companies to the detriment of other providers. The Commission will also verify whether all the conditions are met when Article 346 is invoked (essential security interests) by member states to justify state aid. It points out that the burden of proof is incumbent upon member states.
3) Stronger security of supply. In addition to a consultation process with the member states in which the European Defence Agency (EDA) will be involved with a view to reaching a mutual commitment on supply security, the European Commission will prepare a Green Paper on control of sensitive industrial capabilities in the security and defence sector. It is a matter of reflecting on ways to complement, at European level, national legislation on foreign investment. The idea here is to establish a European system of information exchange and to consult between member states in order to resolve the problems that could be posed when control is taken of an economic operator in an increasingly integrated industrial fabric.
4) Standardisation and certification. The Commission will promote the development of hybrid standards for products that can have both civilian and military applications. After a first example in 2012 with software defined radio, other standards should follow in the fields of CBRN detection/protection, airborne remotely piloted air systems (RPAS), specifications of navigability and data sharing. The use of common standards in the defence sector will make it possible to strengthen cooperation and interoperability between European armed forces while improving the competitiveness of European industry in the emerging technologies, the Commission underlines. With the EDA, the Commission also plans to reflect on the establishment of a mechanism aimed at developing European standards for military applications at the request of member states and at identifying best practices for defence acquisitions. It plans to promote a common approach to certification in order to bring costs down and speed up the development of capabilities. The establishment of a European certification system for military airworthiness is envisaged. This is a key point: according to EDA estimates, the lack of common military airworthiness certification entails 20% more costs and extends by 50% the time required for the development of an aircraft. And this is but one example of the additional cost and delay due to the co-existence of national certification systems.
5) Supplies of raw materials, including rare earths, essential for many defence applications. The Commission will study the needs of the defence industry and prepare, if necessary, measures to ensure supplies.
6) Better account taken of SMEs and subcontractors in the industrial fabric. Measures are foreseen to strengthen the industrial fabric (development of clusters, and resorting to Horizon 2020 and Cosme, cohesion funds, etc.). The Commission is also contemplating resorting to the European Social Fund (ESF) and the structural funds in order to contribute to safeguarding competences, mainly in the industrial restructuring context.
7) Research. The Commission underlines the need to exploit dual technology synergies as far as possible. It confirms its intention to launch a pre-commercial acquisition programme of prototypes, beginning with CBRN detection, drones and communication equipment based on software defined radio. It will also examine the possibilities of ensuring European funding for CSDP-related research, mainly through a preparatory action for research especially targeting fields in which EU defence capabilities will be the most useful.
8) Development of dual capabilities that could be procured, detained and operated directly by the Union. The text indicates that the Commission will examine with the European External Action Service (EEAS) which are the areas in which such capabilities could be the most useful for security and defence policies. Commissioner Barnier, we would point out, has regularly spoken of air transport, surveillance drones and hospital ships in this context.
9) Development of space capabilities for surveillance of space and the protection of infrastructure (including Galileo and Copernicus), satellite communications including those specific to the military (MILSATCOM) and high resolution satellite imagery for civilian and military use.
10) Energy. The communication provides for the setting in place of a consultation forum with the member states with a view to analysing the possibilities of extending existing measures on renewable energies and energy efficiency and adjusting them to the defence sector. This is in order to identify priorities for the development of a comprehensive energy concept for the armed forces. The Commission is also proposing to provide support for the EDA's pilot development project known as the Go Green project (use of military property for the purpose of producing renewable energy, with photovoltaic systems in the test phase). Finally, there is reference in the communication to synergies that can be provided by two research programmes aimed at developing the use of alternative fuels and new technologies.
11) Strengthened international dimension. The Commission is proposing to initiate dialogue with the parties concerned on how to support European industries on third country markets and avoid the negative impact on the way the internal market works relating to offsets granted during export contracts. The Commission also announces a communication defining a long term vision of export controls on dual purpose goods and technologies presenting strategic interest.
This plan of action can be foreseen as the European Commission's contribution to the setting in place of a European Capabilities and Armaments Policy (ECAP), provided under Article 42 of the European Union treaty, and advocated by the Commission. This is one of the points that appear in the call made by the European Commission to the European Council at the end of the communication. It also underlines that it is “crucial to develop a European Defence Industrial Strategy based on a common understanding of the degree of autonomy Europe wants to maintain in critical technology areas”. The text also expresses the Commission's readiness to mobilise Union policies for contributing to the joint initiatives of several member states in the security and defence sectors. Finally, the communication underlines that decisions relating to investment and to security and defence capabilities must be based on a common understanding of interests and threats, hence the need for Europe to have a strategic approach that covers all the military and non-military aspects of security.
In order to develop and implement this roadmap, the Commission will set in place a “consultation mechanism” with a view to establishing a direct and regular dialogue with the relevant national authorities for the different topics covered by the communication. (OJ/transl.jl)