On Wednesday 26 November, the EU Member States’ representatives approved the EU Council’s position on a package of European Commission proposals (see EUROPE 13661/6) aimed at simplifying certain provisions related to security and defence procurement, facilitating defence investments and improving market conditions for the defence industry.
The so-called ‘Omnibus V’ package, presented on 17 June, includes a draft regulation on defence readiness and facilitating defence investments and favourable conditions for the defence industry, a draft regulation on accelerating authorisation of defence readiness projects (see EUROPE 13754/25) and a draft directive on simplifying EU transfers of defence-related products and simplifying security and defence procurement.
The EU Council broadly maintained the general thrust of the Commission’s proposals, while introducing a number of targeted amendments.
For example, concerning the draft regulation on defence readiness, the EU Council’s mandate restricts the eligibility of costs for testing done outside the EU or countries associated with the European Defence Fund (EDF) to testing activities in Ukraine, while specifying that the eligibility of these costs must benefit the funded actions and strengthen the competitiveness of the network of European defence companies and research institutes that aim to provide the EU with military capabilities and technologies.
The text introduces an increased funding rate bonus for EDF projects involving SMEs.
The mandate also emphasises that co-financing Member States must have fair access to the results of development projects.
Regarding the draft regulation on accelerating permit granting, the EU Council maintains the default decision period for granting a permit at 60 days, but simplifies the possibility to extend this period by up to 90 days and makes it more flexible.
The mandate also retains the proposal for tacit approval of a permit application if the competent authority has not taken a decision before the deadline expires. However, it introduces an obligation to inform the project promoter of this approval within 10 days, and the decision may be contested by the parties concerned. Approval must be granted by the competent authority.
It is up to Member States to decide whether a project located on their territory qualifies as a defence readiness project. The mandate also gives Member States the possibility to introduce into national law a derogation from the general rule of tacit approval in duly justified cases where substantiated evidence demonstrates the existence of a credible and serious risk to human health, the safety of workers, national security or the environment.
Finally, regarding the draft directive on simplifying intra-EU transfers and defence procurement, the mandate raises the thresholds in order to reduce administrative burdens and give authorities more time to focus on essential major defence projects.
The EU Council simplifies the conditions for using the ‘negotiated’ procedure for certain procurements so that urgent capability needs can be quickly met. There are no conditions attached to this simplified procedure. (Original version in French by Camille-Cerise Gessant)