During a first inter-institutional meeting on Thursday 15 March, the Council and the European Parliament gave an overview of their respective positions on the European defence industrial development programme for the period 2019-2020. The two institutions differ on a number of points including on financing arrangements and eligibility criteria.
Within the framework of the new European priorities in the field of security and defence, the European Commission presented a European co-financing programme to support transnational defence-related industrial projects (see EUROPE 11777). The European Parliament finalised a position in February (see EUROPE 11966), while the Council adopted a general approach at the end of last year (see EUROPE 11924). There are many points on which they differ.
Beginning with the budget, the Council wanted funding of the programme by redeployment on the basis of existing budgetary lines (Connecting Europe Mechanism or CEM, space programmes Galileo, Copernicus and Egnos), while the Parliament first of all advocates the use of non-allocated margins in the context of the multiannual financial framework. This is a particularly important condition for MEPs who wish to launch a powerful message for future defence policy in the next budgetary cycle.
The stances taken by the two institutions also differ greatly over the eligibility criteria of projects. The Council sets as a minimum condition that projects should include stakeholders from at least two member states, while the Parliament imposes at least three member states in order to strengthen the European dimension of funded projects.
On the subject of eligibility criteria for companies held by a third country, the Parliament calls for the companies themselves to come and prove to the European Commission that they fully comply with the requirements of the programme with regards the protection of European interests in the field of defence. The Council, for its part, suggests that member states (where the company held by a third country or third country national is situated) should provide assurance regarding the protection of European interests in the field of defence and security. In the event of change in the control of a company taking part in the project, the Parliament proposes that the Commission verify whether the eligibility criteria are still upheld, while the Council does not propose anything.
On coverage of SMEs, MEPs say 15% of the budget set out in the programme should be devoted to them, while the Council advocates 10%.
The two institutions think along different lines regarding the decision-making process for the attribution of funds, with the Parliament wanting a delegated act (which includes the Parliament) and the Council preferring an implementation act.
Regarding management of the programme, the Parliament wants this to be in the hands of the Commission, and consequently direct. The Council, on the other hand, wants it open to member states and to the European Defence Agency.
Finally, the Parliament calls on the Commission to draft a report in which it identifies the products and technologies that cause dependency on third countries.
Political talks will begin during the next interinstitutional meeting on 10 April. The third meeting is scheduled for 3 May, when a final agreement on this dossier will be sought. (Original version in French by Pascal Hansens)