On 30-31 May, the European Council may ask the EU Council to further examine the main measures proposed on 18 May by the European Commission and the European External Action Service (EEAS) to address the shortfall in military investment.
The joint communication of the Commission and the EEAS calls for the joint procurement of military equipment (see EUROPE 12955/1).
According to a draft conclusion from the Secretariat-General to the Member States dated 19 May, the European Council invites the EU Council to consider, in accordance with the respective competences conferred by the treaties, “measures to coordinate very short-term defence procurement needs to support joint procurement to replenish stocks, notably in the light of the support provided to Ukraine”.
The EU Council should also consider a short-term instrument to strengthen European defence industrial capabilities through joint procurement. The Commission proposes that this instrument be allocated €500 million for 2023-2024.
The development of a common EU strategic planning and defence procurement function should also be explored.
In addition, the leaders invite their ministers to consider further measures to map the current and additional production capabilities needed, and to strengthen the capacity and resilience of the European defence, industrial and technological sectors. They recommend strengthening the role of the European Investment Bank in supporting European defence, including industrial production capacity, “if necessary by adapting its lending policy”.
Furthermore, the European Council should underline its interest in presenting a possible establishment of a common European defence investment programme (EDIP), “including a vehicle for value added tax (VAT) exemption and for European defence projects of high common interest”. The Commission is expected to present a proposal on the EDIP in the autumn.
See the draft conclusions: https://aeur.eu/f/1QZ (Original version in French by Camille-Cerise Gessant)