Brussels, 07/10/2005 (Agence Europe) - On Tuesday 4 October, the European Parliament's Internal Market Committee adopted the own initiative report by Joachim Wuermeling (EPP-ED, Germany) responding very positively to the European Commission Green Paper on EU defence procurement unveiled in September 2004. He notes in this report that EU industry and Member States should abandon the reservations about the idea of a European defence market that they have been coming up with for years. The report will be on the agenda of the 14-17 November European Parliament plenary.
The European Parliament's Internal Market Committee welcomes the Green Paper and urges the Commission to continue its efforts to gradually ensure greater transparency and fairness in the awarding of European defence contracts between Member States. The suggestions set out in the Green Paper were welcomed (adopting a communication explaining Article 296 to prevent its misuse, and a directive on EU arms, munitions and war material procurement markets). The MEPs called on the European Defence Agency to devise an Article 296 code of conduct for defence procurements.
EU countries are allowed under Article 296 of the EC Treaty, to derogate from Community rules on public procurement on grounds of national security in the area of arms production. According to MEPs, 'this loophole is being systematically abused by Member States' armaments agencies, leading to a situation whereby most defence contracts are awarded on the basis of national rules. This, in turn, is aggravating by fragmentation of arms markets, limiting interoperability between military systems and hampering European cooperation in international operations. The Commission, MEPs agreed, should trey to end such general derogations by adopting both ain Interpretative Communication on Article 296 and a new directive on defence procurement'. 'The inevitable concentration of the armaments industry, the Committee concluded, should be subject to greater monitoring and control by the Commission with regard to competition law.'
To ensure more competition, the MEPs urged 'the Commission to tackle a host of … obstacles to enhanced competition within the arms industry, such as the restrictions on cross-border trade in armaments within the EU, the exertion of political influence on award decisions and the lack of research cooperation,' and practical problems with arms export licences, lack of control of state aid measures and the lack of market conditions at global level.