Negotiators from the European Parliament and the Cyprus Presidency of the Council of the European Union reached agreements on Tuesday 19 May on several aspects of the defence simplification package (‘Omnibus V’) (see EUROPE 13661/6).
The negotiators thus agreed on simplifying and implementing the European Defence Fund, by updating and clarifying the list of award criteria. As proposed by Parliament, excellence criteria in the field of defence, as well as quality and efficiency, are given priority. Administrative requirements for SMEs have also been reduced.
The rules on increased financing under the Fund, whether eligible actions or financing rates, have been updated. This financing will apply, in addition to permanent structured cooperation projects, to actions developed within a Structure for European Armament Programme (SEAP), as established by the Regulation on the European defence industry programme (EDIP) (see EUROPE 13839/13).
The co-legislators also agreed to include costs linked to testing activities carried out in Ukraine in financing under the Fund.
As regards chemicals, the co-legislators confirmed that Member States may apply certain derogations from European environmental and chemicals legislation in the interests of defence. These derogations will be authorised only if they are justified.
On Tuesday morning, after a first meeting on permit issuance for defence preparedness projects, the negotiators had parted without an agreement, notably on the question of derogations from tacit approval. They met again later in the day, this time reaching an agreement.
As regards the concept of tacit approval, which is not legally admissible in all national jurisdictions, the text specifies that such approval is possible only if the Member State has the required legal authorisation. The possibility has been introduced for Member States not to apply it if they can demonstrate that the project presents a serious risk to human health – including environment-related risks – or national security.
Parliament and the EU Council agreed to extend the time limits for an authorisation, with a possible extension up to 102 working days (that is, six months) if the authority invokes exceptional circumstances, on a case-by-case basis.
The negotiators also decided that there would, by default, be a single point of contact: one authority, a single contact, for each defence preparedness project. However, the presence of several single points of contact is authorised only if a Member State’s decentralised administrative organisation strictly requires it and if effective coordination mechanisms guarantee that each project retains a clearly identified contact.
Member States will have to report annually to the Commission on the authorisations granted, including tacit approvals. A formal review clause is provided for no later than 31 December 2028, and then every four years.
Discussions continue on intra-EU transfers and defence equipment procurement. By contrast, on the evening of Monday 18 May, the discussions on intra-EU transfers of defence products and defence equipment procurement was also unsuccessful.
The question of eligibility criteria for procurement and the powers conferred on the European Commission in relation to harmonising the transfer framework are still the subject of disagreement between the negotiators. Thus, according to a European source, while Parliament is ready to be flexible regarding the Commission’s powers, the EU Council does not wish to delegate powers to it.
As regards eligibility criteria, the EU Council would not wish to include a European preference. In its negotiating position, it had decided that discussions on the so-called ‘European preference’ clause would be postponed until the revision of the Directives on public procurement, scheduled for this year. Parliament would favour eligibility that includes, for example, countries with which the EU has a strategic and security partnership.
“The Cyprus Presidency remains committed to the simplification agenda and to concluding negotiations on the three proposals that are part of the overall defence plan during our term of office, and is working actively to that end”, said a Cypriot official. The EU Council is linking the three negotiations in order to secure an overall agreement, whereas Parliament has no objection to adopting the texts separately. (Original version in French by Camille-Cerise Gessant)