The European Parliament’s co-rapporteurs on the European Defence Industry Programme (EDIP), François-Xavier Bellamy (EPP, French) and Raphaël Glucksmann (S&D, French), want to see a substantial increase in the funds available for this programme, according to their draft report obtained by Agence Europe.
Thus, while the Commission has proposed €1.5 billion, the co-rapporteurs want €21.5 billion. In addition to this 1.5 billion euros, they propose that 15 billion euros from the ‘Security Action for Europe (SAFE) through the reinforcement of European Defence Industry Instrument’ – 10% of its overall budget – be converted into grants and reallocated to EDIP. The same applies to actions to strengthen Ukraine’s defence technological and industrial base (DTIB): five billion from SAFE, again converted into subsidies, should be added to EDIP. The Commission’s initial proposal does not include specific funding for the Ukrainian DTIB.
In addition to the extra funding, Mr Glucksmann and Mr Bellamy are tightening up the eligibility criteria. “Ensuring strategic autonomy over European defence capabilities is paramount for our security. EU funding should therefore be directed to European industries, supporting the development of defence capabilities owned and controlled by European entities. This approach ensures that external restrictions do not hinder the definition, adaptation or evolution of defence products”, emphasise the rapporteurs in an explanatory note.
Thus, according to them, the beneficiaries of EDIP funding, in addition to being established in the EU or in an associated country, must have their “executive management structures” located in these same territories.
Furthermore, contrary to the European Commission’s proposal, which considers that in order to be eligible for funding, collaborative projects must involve at least three eligible entities from at least three Member States or associated countries, the rapporteurs propose that they should involve at least five entities established in at least five different Member States or associated countries, “among which at least four eligible entities established in four different Member States".
The co-rapporteurs also explain that the cost of components originating in the EU or associated countries “shall not be lower than 80% of the estimated value of the end product”. The Council of the EU, which has not yet adopted its position, is expected to set its sights on 65%.
To see the draft report: https://aeur.eu/f/g2l and the amendments: https://aeur.eu/f/g2m (Original version in French by Camille-Cerise Gessant)