A NEW DEAL FOR

EUROPEAN DEFENCE

Towards a more competitive and

efficient European defence

and security sector

DG Enterprise and Industry Defence, Aeronautics and Maritime Industries

Context

Future of Europe's defence industry

European Council in December 2013

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Market Fragmentation and Contraction

Lack of new programmes

Industrial Overcapacity and Duplication

• Falling R&D investment

Challenges for Europe's defence industry

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4EDA Data 2011

Source: CEPS Policy Brief No 297, July 2013

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Source: RAND Europe analysis of HIS Jane's data

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Security challenges

Identified deficiencies in CSDP capabilities

New security threats

Need for Europe to assume greater responsibilities in Security & Defence

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AREAS OF ACTION

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Deepen the Internal Market for Defence & Security

Defence Procurement Directive 2009/81

Persisting distortions and discriminatory practices

State aids

Security of supply important for defence and supply chains

Intra EU Transfer directive 2009/43 facilitating transfer of defence products in the internal market

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Deepen the Internal Market for Defence & Security

Actions Ensure market efficiency: market monitoring & guidance for correct application

Tackle Market Distortions:

offsets phasing out &

state aid monitoring

Mutual assurance for supply between MS

Optimisation of transfer regime

Green Paper on defence industrial capabilities

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Strengthen the competitiveness of the EDTIB

Standardisation/ Certification

Raw Materials

SMEs: COSME, EEN, regional strategy

Skills: Sector Skills Alliances, ESF

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Standardization

Use of national defence standards:

Hinders co-operation and interoperability

Increases cost for the industry

Actions

Promote Hybrid standards for dual use

Explore the establishment of mechanism

to draft European military standards

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Certification

Certification cost

50% more development time

20% increase in development cost

Action

Explore options for involving EASA in certifying airworthiness of military aircrafts

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Raw Materials

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Raw materials

Indispensable in many defence applications

Critical for competitiveness of the industry

Supply risks

Actions

Screening of raw materials

Targeted actions if necessary

SMEs

Difficulties in accessing markets in other MS and third countries, R&D, financing

Actions

European Strategic Cluster Partnership

COSME, EIF, Structural Funds for dual use

Entrerprise Europe Network

Defence industrial integration into regional smart specialisation strategies

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Skills

Impact of restructuring Securing critical skills and competencies

Actions Promote skills through Sector Skills

and Knowledge Alliances Retraining by ESF/EGAF Structural and Investment Funds to help regions affected by restructuring

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Exploit civilian/military synergies

Research: Pre-Commercial Procurement, Preparatory Action for CSDP related Research

Dual use capabilities

Space: SST, SATCOM/MILSATCOM, High Resolution

Energy: Energy Efficiency, Renewable Energy and Alternative Fuels, Energy Infrastructure

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Research

Technologies dual in nature

Security theme of FP7, KETs

Synergies and spill-over effect

Actions

Pre-commercial procurement of dual use prototypes

Preparatory action on CSDP related research

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Dual Use Capabilities

Actions

Interoperability of information service sharing between civilian and defence users

Establishment of civil-military cooperation group

EU-owned/leased dual-use capabilities

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Space

Space technologies and infrastructures by nature are dual use (high costs of separation)

Actions

Space Surveillance and Tracking system

Act to overcome fragmentation in security

SATCOM, next generation MILSATCOM

Imaging capabilities for CSFP/CSDP, next

generation of high resolution imaging

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Energy

Armed Forces are the biggest public consumers of energy in the EU

Largest public owner of free land

Dependence on fossil fuels

Security of energy supply

Strategic Energy Technology (SET) Plan

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Energy

Actions

Applicability of EU energy

concepts to the defence sector

Comprehensive energy concept for armed forces

Guidebook on renewable energy and energy efficiency

Exchange information with SET-PLAN Steering Group

Guidance in implementation of 2012/27/EU

Support GO GREEN project and possible expansion

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Strengthening the International Dimension

Mrestricted access to third markets

Offsets requirements imply loss of technological advantage

Dual-use export control policy

Actions

Mitigate offsets requirements

Promote European companies

Dual Use export control review

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The Way ahead

• Integrated approach across the civ-mil dividing line

• Consultation Mechanism with national authorities

• Roadmap: actions and timelines

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Thank you for your attention!

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