Brussels

Common EU defence: more cooperation and rationalised expenditure in the plans

The Commission launches the most ambitious industrial project in the military field at European level. The aim is to promote cooperation between companies, facilitating joint procurement of armaments

from our correspondent Beda Romano

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3' min read

BRUSSELS - On Tuesday, 5 March, the European Commission presented the most ambitious industrial project in the military field at European level. In essence, it is about promoting cooperation between companies in the sector, facilitating the joint procurement of armaments. The choice comes two years after the outbreak of war in Ukraine. Many member states are cold to the idea of transferring expertise to Brussels, despite a market that is as fragmented as it is inefficient.

Better Investing

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"Our defence spending goes on too many weapons systems, which are mainly bought outside the EU. Now that the defence budgets of all member states are rising sharply, we have to start investing better, which means above all investing together and investing in Europe,' explained Commission Vice-President Margrethe Vestager, presenting an eagerly awaited legislative initiative, anticipated by Il Sole 24 Ore, which caused quite a few discussions in the college.

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In fact, the project is based on two programmes created in 2023, known by the acronyms EDIRPA and ASAP. The former promotes joint procurement; the latter supports increased ammunition production. In this context, a body dedicated to coordination between the member countries will be created (in English, the Defence Industrial Readiness Board). The aim is to strengthen cooperation, in a field where prerogatives remain purely national.

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Buy European

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The EU executive proposes non-binding targets. By 2030, intra-European arms trade should account for 35% of the value of the European defence market. By 2030, EU procurement should account for 50 per cent of all European procurement. Finally, again by 2030, member states should jointly procure 40% of defence equipment. There is an attempt to impose (or rather suggest) some form of Buy European.

The new industrial programme will use EU money (also cohesion funds) with a budget line worth EUR 1.5 billion between 2025 and 2027. Further financial aid may intervene in the programme on the basis of Article 212 of the Treaties. The provision states that 'within their respective spheres of competence, the Union and the Member States shall cooperate with third countries and with the competent international organisations'.

More precisely, the new programme relies on existing instruments: not only the EU budget, but also the European Defence Fund. The policy framework is dictated by the strategic doctrine approved by the member states in 2022 and which envisages greater EU involvement in military affairs (see Il Sole/24 Ore of 22 March 2022). On the Ukrainian front, Brussels proposes the creation of a research centre dedicated to technological innovation in the military field, which will be based in Kiev.

Too much fragmentation

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At present, the fragmentation of the European market jumps out at you. The Twenty-Seven produce 17 tank models, 29 frigate models, 20 fighter models. The paradox is that European procurement of American products has increased from USD 15.5 billion in 2021 to USD 28.0 billion in 2022, according to data from Foreign Policy magazine. In 2022, defence procurement involving at least two member countries was just 18% of the total.

At a press conference here in Brussels, EU representatives were keen to emphasise that the European Commission will not use EU money for the purchase of armaments; it will not replace national governments in taking decisions related to the defence sector; it will not exceed its competences as specified in the Treaties. The clarification says a lot about how politically sensitive the topic is.

Beyond a confrontation between a maximalist France that would like new European debt to finance common security and a Germany that tends to be cautious about the idea of creating a new NextGenerationEU dedicated to defence, the topic touches the raw nerve of the military industry, always national and often protectionist. There is more. The industry relies on orders paid in advance. Until Europe puts cash on the table, the risk is that ambition remains an end in itself.

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