On Wednesday 30 April, Member States’ ambassadors to the European Union (Coreper) continued their discussions on the legislative proposal to introduce the European ‘SAFE’ instrument for granting loans to Member States wishing to invest more in military spending (see EUROPE 13619/14).
The basis for the discussion was a new compromise proposal from the Polish Presidency of the Council of the EU, sent to the Member States the day before and drawn up after two weeks of bilateral discussions. Compared with previous versions, this proposal would strengthen the EU Council’s powers of control to the detriment of the European Commission.
The participation of third countries, in particular the United Kingdom and Canada, in joint procurement projects for military equipment covered by the future ‘SAFE’ instrument remains at the heart of the discussions. To achieve this, the European Union will first have to sign security and defence partnerships with London and Ottawa. This should be done with the UK at the EU/UK summit in London to be held on Monday 19 May (see EUROPE 13630/14).
In principle, the participation of third countries in the ‘SAFE’ instrument should be open to NATO member countries. Some delegations are calling for inclusive language vis-à-vis the United States. Greece and Cyprus, however, are still opposed to financial aid from the EU that would benefit Turkey’s military industry.
Other outstanding questions concern the criteria for defining eligible military equipment and the possibility of supporting small and medium-sized enterprises who are active in the defence sector. The establishment of a link between the provision of support via the ‘SAFE’ instrument and compliance with conditionality in terms of the rule of law has also been noted.
Coreper will continue its discussions on Wednesday 7 May with the aim of reaching a text that is as stable as possible between then and the Ecofin Council meeting on Tuesday 13 May, when the European finance ministers will review the discussions. The EU/UK summit will be an important milestone in this process. It is hoped that a political agreement will be reached in the EU Council by the end of May, although the deadline for the Foreign Affairs Council and Defence Council meetings on 19 and 20 May is regarded as ambitious. (Original version in French by Mathieu Bion)