On Tuesday 12 December, the Council of the EU agreed its position (general approach) on the proposed regulation establishing the European Defence Industrial Development Programme (EDIDP).
In a press release, Jüri Luik, the Estonian Minister for Defence stated, “The purpose of the regulation, which is an integral part of the European Defence Fund, is to establish a programme aiming at supporting the competitiveness and innovation capacity of the Union’s defence industry with a budget of €500 million for 2019-2020”.
With this programme, the Council aims to provide incentives so that the member states cooperate in the promotion of joint defence and industrial development through co-financing from the EU budget that will rise to a rate of €500 million for 2019 and 2020.
Under the terms of the member states’ agreement of principle, the Council seeks to incentivise cross-border participation of small and medium-sized enterprises (SMEs) in the EDIDP. If a consortium develops action in the context of permanent structured cooperation (see EUROPE 11923), it will be able to benefit from higher co-financing.
According to the Council, the funds are expected to come “exclusively… and without encroaching on the remit of the budgetary authority" from the re transfer of funds from the “competitiveness for growth and employment” section in the multiannual financial framework for 2014-2020. This was explained in the text of the agreement obtained by EUROPE.
By adopting this position, the Council will be able to begin inter-institutional negotiations with the European Parliament, which has still not adopted its position. The negotiations are expected to begin in 2018 and aim to finance the first capability projects in 2019. (Original version in French by Camille-Cerise Gessant)