4 days ago
Next round of talks over EU defence industry programme centre around role of foreign defence firms
Negotiations over the EU's proposed European Defence Industrial Programme (EDIP) between Parliament and the Council will hinge primarily on just how much money can flow to non-European defence companies.
Technical trilogue talks on the programme start on Thursday, following an initial round of political discussions between MEPs and Council representatives earlier this week over the Commission's proposed €1.5 billion plan to revamp Europe's defence industry .
Both sides are aiming for a final decision in October, according to two sources close to the file.
Parliament negotiators object to waiving otherwise strict eligibility rules for missile and ammunition producers headquartered outside the EU – a concession several EU capitals insisted on during negotiations before agreeing to support the programme.
A compromise text agreed by member states two weeks ago would exempt ammunition and missile makers from rules requiring technology sharing with European firms in order to qualify for EDIP funding – including so-called "design authority", which gives EU-based companies the right to modify and redesign products.
Parliament strongly opposes any exemptions to the eligibility criteria governing which contractors and subcontractors can take part in EDIP-funded defence projects. MEPs adopted their version of the EDIP text – which doesn't include such carve-outs – two months ago. Differing defence goals The Commission first unveiled the plan more than a year ago, but progress has been slow due to lengthy disagreements over how much EDIP money can flow to outside firms. Some want to use the programme to build up Europe's defence sector and steer money toward domestic firms, while others see the priority as buying needed military hardware as quickly and efficiently as possible.
MEPs largely take the former view, seeing the programme as a long-term roadmap to rebuild Europe's industrial defence base and reduce reliance on weapons manufacturers in third countries, particularly the United States. Granting access to non-EU missile and ammunition producers is seen as counterproductive.
Some MEPs have argued that countries could tap into the programme's budget for European production, while still purchasing foreign military equipment out of their own national budgets. More money? Parliament is hoping to land on a much higher number than the current €1.5 billion envisioned for the programme. Among those pushing for that are the two French co-rapporteurs, François-Xavier Bellamy of the centre-right European People's Party (EPP) and Raphaël Glucksmann of the centre-left Socialists and Democrats (S&D).
Broadening the proposed €1.5 billion should also be high on the agenda. MEPs pitched a much higher envelope in March, including an additional €15 billion from the €150 billion Security Action for Europe (SAFE) loan programme. It could also be bolstered by an additional €5 billion in SAFE loans for Ukraine's defence industry and purchases from Ukrainian firms.
Denmark, which took over the Council presidency from Poland earlier this week, is leading the talks on behalf of the member states. The country, which had an opt-out on EU defence policy until just two years ago, has made the file one of the top priorities for the presidency.
Technical talks will follow on Friday, and three additional technical trilogues are scheduled until 18 July.
(bts, aw)
