Joint procurement and inter-operability, EU Council ready for defence industry negotiations

Brussels – More interoperability, more production capacity, common European programmes: the EU Council is dictating the way forward for the defence industry through its negotiating position on the European Defence Industry Programme. Following the European Parliament’s initial approval, inter-institutional negotiations can now begin. According to the understanding reached between the 27 representatives of the Member States (COREPER), the common defence programme is to be used for funding in four areas. Emphasis is placed on common procurements by at least three countries (of which at least two must be EU Member States), including those for the creation and maintenance of defence industry readiness pools. The list of priorities then includes industrial strengthening and actions to accelerate the production capacity of defence products. Thirdly, European funds must support activities aimed at increasing interoperability and interchangeability, as well as initiatives to facilitate access to the defence market for small and medium-sized enterprises and start-ups. Finally, support for European defence projects of common interest, aimed at capability development, including those providing access to strategic sectors and systems forming European defence infrastructures of common interest and use.

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All of this, according to the representatives of the Member States, will benefit from the financial support of the EDIP programme for defence. EDIP makes available €1.5 billion in the form of grants by 31 December 2027. Of this budget, the European Defence Industrial Programme (‘the programme’) will benefit from a total of €1.2 billion, plus €300 million from the Ukraine Support Facility.

In order to strengthen the competitiveness of the EU defence industry and in line with the decisions taken in the framework of the €150 billion SAFE programme (the Instrument for Security Action in Europe), the EU Council stipulated that the cost of components from third and associated countries (Lichtenstein, Iceland, and Norway) shall not exceed 35 per cent of the estimated cost of the components of the final product. Furthermore, no components will be purchased from non-associated third countries that violate the security and defence interests of the EU or its member states. It also establishes the principle that the EU retains control over the design and development of its defence products.

Adam Szàapka, Minister for European Affairs of Poland, the country with
the rotating presidency of the EU Council, is satisfied: “The Council sends a clear message: the EU is stepping up defence readiness,” he chimes in after the agreement was reached. This agreement, he assures, “will support both the defence capabilities and the long-term preparedness of the EU.”