#EUDefence: ‘If Europe does not take care of its own security, nobody else will do it for us’ Juncker

The European Commission put forward its proposal for a European Defence Fund today. By strengthening joint research and procurement the EU hopes to re-energise Europe’s defence industry and generate up to EUR 100 billion in efficiency savings.

European Commission President Jean-Claude Juncker said: “To guarantee our collective security, we must invest in the common development of technologies and equipment of strategic importance – from land, air, sea and space capabilities to cyber security. It requires more cooperation between Member States and greater pooling of national resources. If Europe does not take care of its own security, nobody else will do it for us. A strong, competitive and innovative defence industrial base is what will give us strategic autonomy."

Collectively EU Member States have a budget that is around 50% of the US defence spending, by working together defining and working towards joint defence capabilities, Europe will strengthen European security and foster a competitive and innovative industrial base. Over the last 10 years  cooperation in the field of defence has decreased.

Guy Verhofstadt, Leader of the ALDE (Liberal) group was one of the first MEPs to respond to the Commission’s proposals. As one of Europe’s strongest advocates for joint military capability for the EU Verhofstadt welcomed the Commission’s proposal.

“Working together on defence will make us stronger, safer and better off. EU Member States together spend nearly half of the American defence budget, yet they have only around 10-15% of US capabilities; we cannot afford such inefficiency any more. The EU is surrounded by a ring of autocrats and can no longer rely on the US for our security- we need to start building a European Defence Union with European integrated military forces.”

Under the European Defence Action Plan, the Commission proposes to:

The proposed Fund would includes two “windows" which are complementary but different in their legal structure and budget sourcing.

A "Research Window" to fund collaborative research in innovative defence technologies such as electronics, metamaterials, encrypted software or robotics. The Commission has already proposed EUR 25 million for defence research as part of the 2017 EU budget, and expects that this budget to increase to EUR 90 million until 2020. Under the post-2020 EU multiannual financial framework, the Commission intends to propose a dedicated defence research programme with an estimated amount of EUR 500 million per year.

A "Capability Window" would act as a financial tool allowing participating Member States to purchase certain assets together to reduce their costs. The capabilities would be agreed by the Member States, who would own the technology and equipment. For example, Member States may jointly invest in drone technology or bulk buy helicopters to reduce costs. As an order of magnitude, this window should be able to mobilise about EUR 5 billion per year. Financial instruments, such as bonds, could be issued to help governments invest in their research needs, helping to circumvent European budgetary constraints.

In addition to these two windows the European Structural and Investment Funds and European Investment Bank (EIB) group will provide financial support for SMEs and startups. The Commission will support EIB efforts to improve access to funding by the defence supply chains. It will promote EU co-financing of productive investment projects and the modernisation of the defence supply chains, as well as support for the right skills and technological ability to generate innovation.

By taking measures to strengthen the single market in defence procurement the Commission anticipates that its investment will be made easier on a cross-border basis. To do so, the Commission will push ahead with the effective application of the two directives on defence and security procurement and on EU transfers, support the development of industry standards, and promote the contribution of sectoral policies, such as EU space programmes, to common security and defence priorities.

The Commission will now present and discuss these proposals, in particular the creation of a European Defence Fund, with all stakeholders. The European Council on 15-16 December will be a key milestone.

Share this article: