Brussels, 21/11/2005 (Agence Europe) - Meeting within the steering committee of the European Defence Agency (EDA) in Brussels on Monday, the European ministers of defence gave their agreement to the implementation, starting on 1 July 2006, of a code of conduct designed to open up the defence equipment market to competition. The new regime provides, amongst other things, for the Member States to inform their partners of calls for tender launched within this sector, together with information on the successful tenderers, both via the EDA, and it brings in a verification and control system.
Although it is not binding, the aim of this code is to bring greater transparency and competition to this ultra-protected sector. "This is a crucial stage to ensure that our defence industries remain competitive", commented the High Representative for the External Policy of the EU, Javier Solana. The 24 Member States of the EDA (only Denmark did not join in virtue of its opt out in defence matters) will have until next spring to say whether they intend to sign up to this code, which is to enter into force on 1 July 2006. "A substantial majority of Member States, if not all" have indicated their willingness to take part, Nick Witney, executive director of the EDA, told the press. Only Spain, which has no objection to the implementation of this code, is unlikely to take part in it, according to Spanish Defence Secretary, Francisco Pardo (because Madrid fears that this may harm the interests of a multitude of small businesses with specialisations in this field).
Currently, the European armament market, which is worth some 30 billion EUR a year, more often than not escapes competition rules in force within the EU, in the name of the protection of national security. Almost three-quarters of calls for tender on this sensitive market thus enjoy derogations, on the basis of article 296 of the Treaty, which allows them to be exempted from free competition. However, now that Europe is trying to hold onto its position in this field, particularly against the United States, it needs to stimulate and consolidated its market for armaments, which remains highly fragmented, particularly in the field of terrestrial and maritime equipment. By reducing this market fragmentation, we will "consolidate the technological and industrial basis of Defence Europe", Mr Witney emphasised.