40 Amendments of Clare MOODY related to 2017/0125(COD)
Amendment 50 #
Proposal for a regulation
Recital 1
Recital 1
(1) In the European Defence Action Plan, adopted on 30 November 2016, the Commission committed to complement, leverage and consolidate collaborative efforts by Member States in developing defence capabilities to respond to security challenges, as well as to foster a competitive and innovative European defence industry. It proposed in particular to launch a European Defence Fund to support investment in joint research and the joint development of defence equipment and technologies, thus fostering synergies and cost-effectiveness. The Fund would support cooperation during the whole cycle of defence product and technology development.
Amendment 64 #
Proposal for a regulation
Recital 2 a (new)
Recital 2 a (new)
(2a) Undertakings should be understood as referring to entities engaged in an economic activity regardless of their legal status and the way in which they are financed.
Amendment 67 #
Proposal for a regulation
Recital 3
Recital 3
(3) To better exploit economies of scale in the defence industry, the Programme should support the cooperation between undertakings in the development of defence products and technologies. In order to foster open and fair cooperation in the internal market, the Programme shall actively support the cross-border participation of SMEs.
Amendment 73 #
Proposal for a regulation
Recital 4
Recital 4
(4) The Programme should cover a two year period from 1 January 2019 to 31 December 2020 whereas the amount for the implementation of the Programme should be determined for this period. In order to finance the Programme from the general budget of the Union, an amount of EUR 500 million in current prices should be earmarked for that purpose. Considering that the Programme is a new initiative that was not foreseen when the multiannual financial framework for 2014-2020 was established, and to avoid any negative impact on the financing of existing multiannual programmes, that amount should be drawn primarily from unallocated margins under the multiannual financial framework ceilings. The final amount should be authorised by the European Parliament and the Council through the annual budgetary procedure.
Amendment 80 #
Proposal for a regulation
Recital 5
Recital 5
(5) The Programme should be implemented in full compliance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council6. Funding may take in particular the form of grants. Financial instruments or public procurement may be used where appropriatPublic procurement should be used where appropriate. Financial instruments could also be used in the future, reflecting the experiences from the Programme. __________________ 6 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).
Amendment 87 #
Proposal for a regulation
Recital 7
Recital 7
(7) In view of the specificities of the sector, in practice no collaborative project between undertakings will be launched if the Member States have not first agreed to support such projects. After having defined common defence capability priorities at Union-level and also taking into account where appropriate collaborative initiatives on a regional basis, Member States identify and consolidate militarydefence-related requirements and define the technical specifications of the project. They may also appoint a project manager in charge of leading the work related to the development of a collaborative project.
Amendment 93 #
Proposal for a regulation
Recital 9
Recital 9
(9) The Union financial support should not affect the export of products, equipment or technologies, and it should not affect the discretion of Member States regarding policy on the export of defence related products. The Union financial support should not affect Member States' export policies on defence related products, except products listed in the Annex 1.
Amendment 94 #
Proposal for a regulation
Recital 13
Recital 13
(13) As the Programme aims at enhancing the competitiveness of the Union's defence industry, only entities established in the Union and effectively controlled by Member States or their nationals or subsidiaries of third country undertakings located in the Union where the Member States participating in the Programme provide that undertaking with security clearances and the subsidiary contributes to the Union competitiveness in Defence should be eligible for support. Additionally, in order to ensure the protection of essential security interests of the Union and its Member States, the infrastructure, facilities, assets and resources used by the beneficiaries and subcontractors in actions funded under the Programme, shall not be located on the territory of non-Member States.
Amendment 126 #
Proposal for a regulation
Recital 13
Recital 13
(13) As the Programme aims at enhancing the competitiveness of the Union's defence industry, only entities established in the Union and effectively controlled by Member States or their nationals should be eligible for support. Additionally, in order to ensure the protection of essential security interests of the Union and its Member States, the infrastructure, facilities, assets and resources used by the beneficiaries and subcontractors in actions funded under the Programme, shall not be located on the territory of non-Member States and shall not be subject to control or restriction by third-countries which are not respecting the security and defence interests of the Member States and of the Union.
Amendment 142 #
Proposal for a regulation
Recital 14
Recital 14
(14) Eligible actions developed in the context of Permanent Structured Cooperation in the institutional framework of the Union would ensure enhanced cooperation between undertakings in the different Member States on a continuous basis and thus directly contribute to the aims of the Programme. Such projects, and especially projects with considerable participation of SMEs and Mid-caps, and in particular cross-border SMEs, should thus be eligible for an increased funding rate.
Amendment 152 #
Proposal for a regulation
Recital 16
Recital 16
(16) The promotion of innovation and technological development in the Union defence industry should take place in a manner coherent with the security interests of the Union. Accordingly, the action's contribution to those interests and to the defence capability priorities commonly agreed by Member States should serve as an award criterion. Within the Union, common defence capability priorities are identified notably through the Capability Development Plan. Other Union processes such as the Coordinated Annual Review on Defence (CARD) and the Permanent Structured Cooperation will support the implementation of relevant priorities through enhanced cooperation. Where appropriate regional or international cooperative initiatives, such as in the NATO context, and serving the Union security and defence interest, and which do not in principle prevent any Member State from participating, at least at the subcontractor level, may also be taken into account.
Amendment 156 #
Proposal for a regulation
Recital 16
Recital 16
(16) The promotion of innovation and technological development in the Union defence industry should take place in a manner coherent with the security interests of the Union. Accordingly, the action's contribution to those interests and to the defence capability priorities commonly agreed by Member States should serve as an award criterion. Within the Union, common defence capability priorities are identified notably through the Capability Development Plan. Other Union processes such as the Coordinated Annual Review on Defence (CARD) and the Permanent Structured Cooperation will support the implementation of relevant priorities through enhanced cooperation. Where appropriate regional or international cooperative initiatives, such as in the NATO context, and serving the Union security and defence interest, mayshould also be taken into account.
Amendment 200 #
Proposal for a regulation
Recital 25
Recital 25
(25) The Commission should draw up an implementation report at the end of the Programme, and an interim report after one year of implementation of the Programme, examining the financial activities in terms of financial implementation results and where possible, impact. Thise reports should also analyse the cross border participation of SMEs in projects under the Programme as well as the participation of SMEs to the global value chain. The interim report should be presented to the European Parliament and should be part of the text of the new programme for the period after 2020. The implementation report shall be presented to the European Parliament.
Amendment 211 #
Proposal for a regulation
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) to foster the competitiveness and innovation capacity of the Union defence industry and to strengthen the Union´s strategic autonomy by supporting actions in their development phase;
Amendment 228 #
Proposal for a regulation
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
(b) to support and leverage the cross- border cooperation between undertakings, including small and medium-sized enterprises, in the development of technologies or products in line with defence capability priorities commonly agreed by Member States within the Unionas well as intermediate manufacturing enterprises (SMIEs), in the value chains of defence technologies or products;
Amendment 240 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Beneficiaries shall be undertakings established in the Union, in which Member States and/or nationals of Member States own more than 50% of the undertak. The infrastructure, facilities, assets and resources used by the beneficiaries, including subcontractors and other third parties, ing and effectively control it within the meaning of Article 6(3), whether directly or indirectly through one or more intermediate undertakings. In addition, allctions funded under the Programme shall not be located on the territory of non-Member States during the entire duration of the action. The use of those infrastructures, facilities, assets and resources used by the participants, including subshall not be subject to control or restrictions by third countractors and other third parties, in actions funded under the Programme shall not be located on the territory of non-Member States during the entire duration of the actionies or third- country entities. The beneficiaries’ ultimate controlling company may be headquartered outside of the Union provided that there are sufficient safeguards in place to protect the Union’s IPR and security interests thereby providing effective control within the meaning of Article 6(3).
Amendment 250 #
Proposal for a regulation
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1 a. Where an undertaking’s ultimate controlling company is located outside of the Union, it shall only be eligible for funding provided the following cumulative conditions are met as determined by the Ministries of Defence of each Member State that participates in the action: 1.The undertaking offers products, assets or technologies of which there is no Union equivalent that may be used as an alternative; 2.The use of that undertaking does not contravene the security and defence interests of the Union; 3.The Ministry of Defence of the Member State where the undertaking is located has provided that undertaking with security clearance and demands that ‘Chinese walls’ exist between the subsidiary and the ultimate controlling company that prevent essential know-how, technologies from being moved to the ultimate controlling company; 4.Any ownership of know-how and IPR that arises through use of the Programme does not leave the Union; 5.The ultimate controlling company, nor the third country where it is located, does not control or restrict the use of know- how, technologies and IPR arising through use of the Programme.
Amendment 259 #
Proposal for a regulation
Article 4 – paragraph 3
Article 4 – paragraph 3
3. The Union's financial assistance shall be implemented by the Commission as provided for by Regulation (EU, Euratom) No 966/2012 directly or indirectly by entrusting budget implementation tasks to the European Defence Agency or the entities listed in Article 58(1) (c) of that Regulation.
Amendment 261 #
Proposal for a regulation
Article 4 – paragraph 4
Article 4 – paragraph 4
4. In case a project manager is appointed by Member States, tMember States shall appoint a project manager. The Commission shall execute the payment to the eligible beneficiaries after informconsulting the project manager.
Amendment 266 #
Proposal for a regulation
Article 6 – paragraph 1 – introductory part
Article 6 – paragraph 1 – introductory part
1. The Programme shall provide support for actions by beneficiaries in the development phase covering both new and the upgrade of existing products and technologies developed wholly or in significant part in the Union by Member States, in relation to:
Amendment 300 #
Proposal for a regulation
Article 6 – paragraph 4
Article 6 – paragraph 4
4. When it relates to actions defined under point (b) to (f) of the first paragraph, the action must be based on common technical specifications. Consortia shall demonstrate that at least two Member States intend to jointly procure the final product or use the technology in a coordinated way, including joint procurement where applicable.
Amendment 322 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. Beneficiaries and their subcontractors shall be undertakings established in the Union, in which are effectively controlled by Member States and/or nationals of Member States own more than 50% of the undertaking and effectively control it within the meaning of Article 6(3), whether directly or indirectly through one or more intermediate undertakings. In addition, all infrastructure, facilities, assets and resources used by the participants, including subcontractors and other third parties, in actions funded under the Programme shall not be located on the territory of non-Member States during the entire duration of the action. The use of such infrastructure, facilities, assets and resources shall not be subject to any control or restriction by a third country or a non-EU entity.
Amendment 329 #
Proposal for a regulation
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1a. By way of derogation from paragraph 1, an undertaking controlled by non-EU States or by non-EU entities shall be eligible if the Member State it is located in provides sufficient assurances, in accordance with national procedures, that this would not contravene the security and defence interests of the Union and its Member States as established in the framework of Common Foreign and Security Policy in accordance with Title V of the TEU.
Amendment 359 #
Proposal for a regulation
Article 10 – paragraph 1 – point a
Article 10 – paragraph 1 – point a
(a) excellence, industrial performance and ability to show significant advantages over existing products or technologies
Amendment 366 #
Proposal for a regulation
Article 10 – paragraph 1 – point b
Article 10 – paragraph 1 – point b
(b) contribution to the innovation and technological development of defence industries and thus to fostering the industrial and strategic autonomy of the Union in the field of defence technologies; and,
Amendment 380 #
Proposal for a regulation
Article 10 – paragraph 1 – point d a (new)
Article 10 – paragraph 1 – point d a (new)
(da) the proportion of the overall budget of the action to be allocated to the participation of SMEs established in the European Union, either as members of consortium, subcontractors or as other undertakings in the supply chain; and
Amendment 382 #
Proposal for a regulation
Article 10 – paragraph 1 – point e
Article 10 – paragraph 1 – point e
(e) for actions described in points (b) to (e) of Article 6(1), the contribution to the competitiveness of the European defence industry through the demonstration by the beneficiaries that Member States have committed to jointly produce and procure the final product or technology in a coordinated way, including joint procurement where applicable.
Amendment 387 #
Proposal for a regulation
Article 10 – paragraph 1 – point e a (new)
Article 10 – paragraph 1 – point e a (new)
(ea) for actions described in points (b) to (e) of Article 6(1), the contribution to the competitiveness of the European defence industry through the demonstration by the beneficiaries that Member States intend to jointly produce the final product or technology in a coordinated way.
Amendment 399 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. The financial assistance of the Union provided under the Programme may not exceed 20% of the totaleligible cost of the action where it relates to prototypingactions as defined in Article 6(1)(b). In all the other cases, the assistance may cover up to the total cost of the action.
Amendment 404 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. An action developed by a beneficiaryconsortium referred to in Article 7 paragraph 2 may benefit from a funding rate increased by an additional 10 percentage points.
Amendment 407 #
Proposal for a regulation
Article 11 – paragraph 2 a (new)
Article 11 – paragraph 2 a (new)
2a. An action developed by a consortium as defined in Article 6(1) in which at least 5% of the eligible cost of the action is committed to SMEs, which are established in the EU, it may benefit from an increased funding rate up to 10%.
Amendment 410 #
Proposal for a regulation
Article 11 – paragraph 2 b (new)
Article 11 – paragraph 2 b (new)
2b. An action developed by a consortium as defined in Article 6(1) in which at least 5% of the eligible cost of the action is committed to SMEs, which are established in the EU other than those where the undertakings in the consortium which are not SMEs are established may benefit from an increased funding rate up to 20%.
Amendment 412 #
Proposal for a regulation
Article 11 – paragraph 2 c (new)
Article 11 – paragraph 2 c (new)
2c. An action developed by a consortium as defined in Article 6(1) in which at least 5% of the eligible cost of the action is committed to Mid-caps which are established in the EU may benefit from an increased funding rate up to 10%.
Amendment 414 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
The CommissUnion shall not own the products or technologies resulting from the action nor shall it have any IPR claim , including licence rights, pertaining to the action.
Amendment 418 #
Proposal for a regulation
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
The results of actions which receive funding under the Programme shall not be subject to any control or restriction by a third country or a non-EU entity.
Amendment 436 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. The work programme shall ensure that a credible proportionleast 15 % of the overall budget will benefit actions enabling the cross-border participation of SMEs and Mid-Caps.
Amendment 445 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. The proposals submitted following the call for proposals shall be evaluated by the Commission assisted by independent experts on the basis of the award criteria of Article 10. The experts should be members of a committee set up in accordance with Regulation (EU) No 182/2011.
Amendment 450 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. The European Defence Agency shall be invited to contribute as observer.
Amendment 465 #
Proposal for a regulation
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
2a. In due time before the end of this Programme, the Commission shall, as appropriate, put forward a legislative proposal for a continuation of the industrial development programme in the field of defence, together with appropriate financing under the new multiannual financial framework.
Amendment 471 #
Proposal for a regulation
Annex I (new)
Annex I (new)
ANNEX I Non eligible products: - Weapons of mass destruction and related warhead technologies - Banned weapons and munitions and weapons not compliant with international humanitarian law - Fully autonomous weapons that enable strikes to be carried out without human intervention Non eligible products, when they are mainly developed for export purposes: - Small arms and light weapons