On Thursday 1 December, the Council of the European Union approved its position (general approach) on the proposal for a regulation establishing the European Defence Industry Reinforcement through common procurement act (EDIRPA) (see EUROPE 12996/5).
In its general approach, the EU Council confirmed the Commission’s proposal to allocate €500 million from the EU budget for the period from the entry into force of the regulation until 2024. These actions must be carried out by a consortium of at least three Member States.
According to the EU Council’s position, EU funds will only finance joint procurement actions for which the cost of components originating in the EU and its associated countries is at least 70% (70% of the value of the final product). No components may come from non-associated third countries which contravene the security and defence interests of the European Union and its Member States, including respect for the principle of good neighbourly relations.
A number of conditions are set for contractors, subcontractors and defence products to be eligible, “all with a view to strengthening the competitiveness of the European defence technological and industrial base”, the EU Council said in its statement. With some exceptions, contractors and executive management structures should be established in the EU or associated countries, and not controlled by third countries. In addition, there should be no restrictions - such as patents - on the components, with exceptions for critical needs.
The general approach of the EU Council takes into account the development of existing cooperation in the defence sector in the transatlantic context and with other like-minded democratic countries.
This general approach is the starting point for the negotiations with the European Parliament.
The latter, for its part, has not yet adopted its position. The distribution of competences of the parliamentary committees on this text should take place next week. (Original version in French by Camille-Cerise Gessant)