European Defence Industrial Development Programme (EDIDP) within the - PowerPoint PPT Presentation

Austria Belgium Czech Rebublic Austria The Netherlands European Defence Industrial Development Programme (EDIDP) within the European Defence Fund Meeting with members of the EPP delegation in the European Parliament 22 November 2017 1630-1800 hrs Denmark Sweden Norway Finland

Preamble This presentation has been produced in agreement with the Defence and Security Industries Associations in Austria (WKÖ/ARGE), Belgium (BSDI), Czech Republic (DSIA), Denmark (FAD), Finland (AFDA), Netherlands (NIDV), Norway (FSI) and Sweden (SOFF), all member of the AeroSpace and Defence Industries Association of Europe (ASD)

content EDIDP (European Defence Industrial Developm. Progr. ) PESCO (Permanent Structured Cooperation)

Reasons for the meeting • EC proposal 7 June 2017: Regulation on establishment European Defence Industrial Developm. Progr. (EDIDP) • Ongoing considerations (report/public hearing/decision EDIDP) in the EP • Special position smaller nations and their defence industries: level playing field • Provide background information and highlight specific points of interest • Permanent Structured Cooperation (PESCO)

Defence Market in general • Defence market is imperfect: • limited nr of providers • limited nr of customers, all government Providing industries are mix of state-owned and private companies • European Defence Technological and Industrial Base (EDTIB) • dominated by industries in larger nations For political reasons the objective of a level playing field is essential: • defence industries in smaller nations provide significant • employment opportunities, also at higher education levels significant contribution to technology development, also outside • EDTIB (spill over) contribution to public support for defence • National DTIBs, also in smaller nations, consist of both large and • smaller Original Equipment Manufacturers, Supply Chains, start-ups and Knowledge institutes

European Defence Fund

Notional time schedules 2017 2018 2019 2020 2021 2022 2023 2024 2025 2027 Preparatory Action Defence 25 40 25 Research (90M) European Defence Research Programme (500 M/year) European Defence Industry Development Programme (500 Meuro) 251/249 Capability Window (EU contr. 1 B Euro/year) Capability Window (National contributions < 4 BEuro/year)

Current Status of EDIDP proceedings • MS discussions in the framework of the Estonian Presidency’s “Friends of the Presidency - FoP” meetings: • Latest draft as of 16 November 2017 • Council Legal Service advice awaited • Council decision planned December 2017 • Draft Report ITRE Rapporteur (Mme Grossetête) available, including proposals for amendments

Elements to be secured in the Regulation Objectives to foster competitiveness, including by focused research • Support cross border cooperation throughout the Union • EU level capability driven • Funding through grants • Funding bonus for SMEs, cross border participation, MidCap • involvement, and larger nr of co-financing MS IPR not EU owned, no EU export restrictions • Award criteria including in favor of SMEs •

PESCO common commitments, extract 18. (EDA-Occar) Commitment to the use of EDA as the European forum for joint capability development and consider the OCCAR as the preferred collaborative program managing organization. 19. (Approp. Industrial Policy) Ensure that all projects with regard to capabilities led by participating Member States make the European defence industry more competitive via an appropriate industrial policy which avoids unnecessary overlap. 20. (Pos. on EDTIB) Ensure that the cooperation programmes - which must only benefit entities which demonstrably provide added value on EU territory - and the acquisition strategies adopted by the participating Member States will have a positive impact on the EDTIB.

PESCO project governance “For capability development projects in particular, project management (specifications, acquisition strategy, choice of the executive agency, selection of the industrial companies, etc.) will remain the exclusive responsibility of the participating Member States associated to the project.” Relation with EDF?

Other topics for discussion • A harmonized EU Member States Export Policy is imperative to a successful implementation of the European Defence Fund • Alignment of EDF and PESCO, relevant to industrial postures is required • Ref Notification PESCO, commitments 18-20 and Annex III, para 2.2.2.

Questions?