In a strategy paper published on Tuesday 8 October, the EPP Group in the European Parliament called for a genuine European Defence Union.
“It is high time to build a true European Defence Union”, the EPP stresses, arguing that “we must urgently pursue a systematic overhaul of Europe’s defence”.
The EPP focuses on five actions: the implementation of a genuine defence single market; investment in the defence technologies of the future, emerging and disruptive defence technologies; defence cooperation and integrated European capabilities; more investment, smart regulation, stronger industrial capabilities and better infrastructures; and finally, a strong voice in the world on security and defence.
Highlighting the continuing inefficiency of the European defence market, the group believes that “[a] fully-fledged Single Market for Defence should entail substantial investments in our industrial capacity, removing cross-border barriers, as well as promoting the development of pan-European value and supply chains”. In its view, the share of intra-European trade in the defence sector needs to be considerably increased.
The EU, “together with its Member States and in close cooperation with our transatlantic partners”, must also tackle ambitious European projects, “such as a common and interoperable missile defence shield, a European nuclear shield and a DARPA-style European Defence Advanced Research Programme Agency”. The EPP is also calling for increased support for research and development, a common headquarters and the strengthening of the EU Intelligence Analysis Centre (INTCEN).
In addition, the EPP believes that the next Multiannual Financial Framework must provide “considerably increased” resources to innovate and help meet Europe’s defence needs. It proposes exploring new ways of funding European programmes, including a review of the mandate of the European Investment Bank (EIB) and additional VAT exemptions. In view of the difficulties the defence industry is experiencing in obtaining private funding, the EPP is calling for the definitions of environmental, social and governance criteria to be harmonised, taking into account the features specific to the defence industry, encouraging banks to make their policies more flexible and demanding a review of legislation and taxonomy.
See the document: https://aeur.eu/f/drh (Original version in French by Camille-Cerise Gessant)