Following provisional agreements on simplifying the European Defence Fund and permitting, on 19 May (see EUROPE 13871/4), the Cyprus Presidency of the EU Council and European Parliament negotiators reached a provisional agreement, on Wednesday 10 June, on the last outstanding proposal in the defence simplification omnibus concerning intra-EU transfers and procurement.
The agreement removes administrative delays linked to security and defence procurement, facilitates transfers of defence products within the EU and strengthens intra-EU cooperation.
It aligns the Commission proposal with the general public procurement rules, where appropriate, while taking account of the specificities of the defence market. The threshold values for defence procurement contracts have been quadrupled in order to reduce the administrative burden and give authorities more time to focus on essential major defence projects.
The agreement also introduces the possibility of occasional joint procurement, a de minimis rule for contract modifications and enhanced flexibility in framework agreements, which may last up to 10 years.
Lastly, the co-legislators decided to introduce two new mandatory general transfer licences: one for transfers between certified suppliers and recipients, the other for transfers carried out within the framework of an intra-EU industrial partnership. Member States will be required to publish these licences, which will give industry a more predictable framework for intra-EU transfers.
The Parliament and the Council also adopted a joint statement in which they undertake to examine in the future the Commission’s powers regarding management of the transfer framework and the issue of European preference criteria in defence public procurement. These two issues were the main sticking points during the May negotiations (see EUROPE 13871/4). The introduction of a European preference was supported by the European Parliament, but the Council wanted discussions on the so-called ‘European preference’ clause to be postponed until the review of the public procurement directives scheduled for this year.
In their statement, the Council and the European Parliament acknowledged the urgency of strengthening Europe’s defence capabilities “decisively” by 2030, consolidating the European defence technological and industrial base (EDTIB), supporting SMEs, removing bottlenecks in public procurement and ensuring the proper functioning of the European market for defence products, including intra-European access to supply chains.
They take note of the announced revision of the Defence Procurement Directive, which should be based on an impact assessment, and call on the Commission to consider further initiatives aimed at strengthening the EDTIB and promoting defence capabilities. The Council and the European Parliament also agree to examine and assess these initiatives without delay and in a spirit of sincere and mutual cooperation.
The provisional agreement must now be approved by the Council and the European Parliament before being submitted for legal-linguistic revision with a view to the co-legislators’ formal adoption of the legislative acts in the coming months.
Criticism in the Parliament. The S&D and Greens/EFA groups in the European Parliament criticised the lack of ambition in the agreement. The S&D group has already called on the European Commission to present “without delay” a full revision of the directives on transfers and public procurement, “based on a rigorous impact assessment going beyond the scope of mere simplification”. (Original version in French by Camille-Cerise Gessant)