Activities of Olivier CHASTEL related to 2022/0219(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council on establishing the European defence industry reinforcement through common procurement act
Amendments (46)
Amendment 13 #
Proposal for a regulation
Recital 5
Recital 5
(5) Such a new instrument will contribute to reinforce common defence procurement and, through the associated Union financing through sufficient funding, however without cuts from other Union programmes, to strengthen the EU defence industrial capabilities and cooperation in procurement operations.
Amendment 22 #
Proposal for a regulation
Recital 16
Recital 16
(16) As the instrument aims to enhance the competitiveness and, efficiency and the independence of the Union’s defence industry, to benefit from the instrument, according to the legal basis, common procurement contracts will need to be placed with legal entities which are established in the Union or in associated countries and are not subject to control by non-associated third countries or by non- associated third- country entities. In that context, control should be understood to be the ability to exercise a decisive influence on a legal entity directly, or indirectly through one or more intermediate legal entities. Additionally, in order to ensure the protection of essential security and defence interests of the Union and its Member States, the infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country.
Amendment 22 #
Proposal for a regulation
Recital 17
Recital 17
(17) In certain circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third-country entities. In that context, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled and that the participation doesn´t endanger the strategic autonomy of the Union and its Member States.
Amendment 23 #
Proposal for a regulation
Recital 18
Recital 18
(18) Furthermore, the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to control or restriction by a non-associated third country or a non-associated third country entity in order to hinder any kind of interference through the defence product.
Amendment 25 #
Proposal for a regulation
Recital 19
Recital 19
(19) Grants under the Instrument may take the form of financing not linked to cost based on the achievement of results by clearly defined reference to work packages, milestones or targets of the common procurement process, in order to create the necessary incentive effect.
Amendment 27 #
Proposal for a regulation
Recital 23
Recital 23
(23) In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, financial contribution should not cover a period prior to the date of submission of the grant application, except in duly justified exceptional cases. In order to avoid any disruption in Union support which could be prejudicial to the interests of the Union, it should exceptionally be possible to provide in the financing decision for financial contributions to actions that cover a period fromwithin the scope of this programme that cover a period from the beginning of the unjustified Russian invasion of Ukraine that started on the 24 February 2022, even if they have started before the grant application was submitted.
Amendment 28 #
Proposal for a regulation
Recital 24
Recital 24
(24) Regulation (EU, Euratom) No 2018/1046 (the ‘Financial Regulation’) applies to this Programme. It lays down clearly definied rules on the implementation of the Union budget, including the rules on grants.
Amendment 28 #
(10) In the light of the above challenges and the related structural changes in the EU Defence industry, and in accordance with Article 173 of the Treaty on the Functioning of the European Union, it appears necessary to speed up the adjustment of the European Defence Technological and Industrial Base, enhance its competitiveness and efficiency, and thereby contribute to strengthening and reforming Member States’ defence industrial capabilities. Addressing industrial shortfalls should include promptly tackling the most urgent gaps.
Amendment 32 #
Proposal for a regulation
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, interoperability, prevention of crowding- out effects, avoiding fragmentation and increasing the effectiveness of public spending in the Union and its Member States.
Amendment 32 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16 a) Considering the very nature of this instrument, based on its legal basis, which aims at strengthening the European defence industry, any possible derogation shall be kept to a strict minimum.
Amendment 33 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 shall be EUR 500 million in current prices, from unallocated funds without cuts from ongoing programmes.
Amendment 34 #
Proposal for a regulation
Recital 17
Recital 17
(17) In certain exceptional circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third- country entities. In that context, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non- associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.
Amendment 37 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. The objectives shall be pursued with an emphasis on strengthening and developing the Union defence industrial base in accordance with the legal basis of the instrument to allow it to address in particular the most urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force.
Amendment 40 #
Proposal for a regulation
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Grants implemented under direct management shall be awarded and thoroughly managed in accordance with Title VIII of the Financial Regulation.
Amendment 40 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. The Instrument shall be implemented in direct management in accordance with the Financial Regulation. Grants shall take the form of financing not linked to costs referred to in Article 180(3) of the Financial Regulation.
Amendment 41 #
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. WBy way of derogation to Article 193 of the Financial Regulation, and where necessary for the implementation of an action, financial contributions may cover a perioctions started prior to the date of the request for financial contributions for that action, provided that these actions hasve not started prior to the 24 February 2022. 18 May 2022 and have not been completed before the signature of the grant agreement. Retroactively eligible actions must comply with all eligibility criteria provided for in Articles 7 and 8.
Amendment 42 #
Proposal for a regulation
Article 8 – paragraph 4
Article 8 – paragraph 4
4. Contractors and subcontractors involved in the common procurement shall be established, evaluated and have their executive management structures in the Union. They shall not be subject to control by a non- associated third country or by a non- associated third country entity.
Amendment 45 #
Proposal for a regulation
Article 8 – paragraph 9
Article 8 – paragraph 9
9. Common procurement procedures and contracts shall also include a requirement forspecifying that the defence product to cannot be subject to a restriction by a non- associated third country or a non- associated third country entity.
Amendment 46 #
Proposal for a regulation
Recital 22
Recital 22
(22) Member States should appoint a procurement agent to conduct a common procurement on their behalf. The procurement agent should be a contracting authority established in a Member State or an associated third country, including Union bodies or international organisations, such as the Organisation Conjointe de Coopération en matière d'ARmement (OCCAR). The instrument should be without prejudice to the rules laid down in particular by the Directive 2009/81/EC on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security. Additional eligibility requirements as set out in article 8 in this regulation should be part of the tender documents and prevail over conflicting laws of the Member State in which the procurement agent is established.
Amendment 49 #
Proposal for a regulation
Recital 2
Recital 2
(2) The unjustified invasion of Ukraine by the Russian Federation on 24 February 2022 and the ongoing armed conflict in Ukraine has made it clear that it is critical to act nowurgently to address the existing shortfalls It has led to the return of high- intensity warfare and territorial conflict in Europe,. It requiringes a significant increase in the capacity of Member States to fill the most urgent and critical gaps, especially those exacerbated by the transfer of defence products to Ukraine, in particular in the Member States in its close neighbourhood.
Amendment 61 #
Proposal for a regulation
Recital 4
Recital 4
(4) A dedicated short-term instrument, designed in a spirit of solidarity, was indicated as a tool to incentivise Member States, on a voluntary basis, to pursue common procurement to fill the most urgent and critical gaps, especially those created by the response to the current Russia’s aggression, in a collaborative way.
Amendment 66 #
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5a) This instrument should be viewed as a first step towards more coordination in the field of security and defence, and, together with future measures, paves the way towards a European defence single market and a European Defence Union. European unity and interoperability are key for the future of the European security architecture.
Amendment 87 #
Proposal for a regulation
Article 8 – paragraph 8
Article 8 – paragraph 8
8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Where no competitive substitutesthere are no readily available substitutes in the Union or in an associated third country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.
Amendment 90 #
Proposal for a regulation
Recital 11
Recital 11
(11) Common investment and defence procurement should in particular be incentivised, as such collaborative actions would ensure that the necessary changes in the EU industrial base takes place in a collaborative manner, avoiding further fragmentation of the industry, and increasing interoperability.
Amendment 95 #
Proposal for a regulation
Recital 13
Recital 13
(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions while allowing economies of scale in the actions undertaken by Member States to reinforce and modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. Incentivizing common procurement would also result into diminished costs in terms of exploitation, maintenance and withdrawal of the systems. The instrument should be accompanied by efforts to preserve a level playing field for suppliers from all Member States and to create incentives for the expansion of the EDTIB to more Member States.
Amendment 96 #
Proposal for a regulation
Article 8 – paragraph 9
Article 8 – paragraph 9
9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction to use, maintain, modify or transfer it by a non- associated third country or a non- associated third country entity.
Amendment 100 #
Proposal for a regulation
Article 8 – paragraph 9 a (new)
Article 8 – paragraph 9 a (new)
9 a. In regard of the urgency of the situation, a defence product subject to a restriction to transfer by a non-associated third country or a non-associated third country entity may be declared eligible by the Commission where the Member States or associated countries participating in the common procurement have demonstrated that this derogation only concerns defence products being in use prior to 24 February 2022 within the Armed Forces of all Member States or associated countries participating in the common procurement.
Amendment 106 #
Proposal for a regulation
Article 8 – paragraph 10 – point b
Article 8 – paragraph 10 – point b
(b) other subcontractors to which at least 105 % of the work share is allocated;
Amendment 108 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14a) The ‘Defence Investment Gaps Analysis and Way Forward’, should become an annual report to ensure that EU military landscape is monitored and stocks are prepared, interoperable, and ready for deployment.
Amendment 110 #
Proposal for a regulation
Article 8 – paragraph 10 a (new)
Article 8 – paragraph 10 a (new)
10 a. The proportion of the equipment originating from non-associated third countries shall not exceed 25% of the value of the end product. No components shall be sourced from non-associated third countries that contravene the security and defence interests of the Union and its Member States, including respect for the principle of good neighbourly relations.
Amendment 120 #
Proposal for a regulation
Recital 15 b (new)
Recital 15 b (new)
(15b) To make sure that all these initiatives are coherent, the Commission should prepare an overview of all instruments that can facilitate the joint procurement process and facilitate dialogue with Member States and their governments.
Amendment 121 #
Proposal for a regulation
Recital 15 c (new)
Recital 15 c (new)
(15c) The Commission together with the EEAS should hold regular briefings and training programs with Member States to ensure they are ready to absorb funds and can make full use of this instrument. Regular info sessions should also be made available for the defence industry, including for SMEs.
Amendment 137 #
Proposal for a regulation
Article 10 – paragraph 1 – point 7 a (new)
Article 10 – paragraph 1 – point 7 a (new)
7 a. The interplay of the action within the framework of the European Defence Fund.
Amendment 140 #
Proposal for a regulation
Article 10 – paragraph 1 – point 7 b (new)
Article 10 – paragraph 1 – point 7 b (new)
7 b. The contribution of the action to diversifying the supply chain by involving SMEs and mid-capitalisation companies in the manufacturing process in the manufacturing process.
Amendment 154 #
Proposal for a regulation
Recital 23
Recital 23
(23) In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, financial contribution should not cover a period prior to the date of submission of the grant application, except in duly justified exceptional cases, such as equipment replacement sent to Ukraine. In order to avoid any disruption in Union support which could be prejudicial to the interests of the Union, it should be possible to provide in the financing decision for financial contributions to actions that cover a period from the 24 February 2022, even if they have started before the grant application was submitted.
Amendment 179 #
Proposal for a regulation
Article 3 – paragraph 1 – point a
Article 3 – paragraph 1 – point a
(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB), including SMEs and mid- capitalisation companies (mid-caps) for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural and technological changes, including ramp-up of its manufacturing capacities and increase in the resilience of its supply chains;
Amendment 187 #
Proposal for a regulation
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, interoperability, prevention of crowding- out effects, avoiding fragmentation and, increasing the effectiveness of public spending, and encouraging the harmonisation of defence procurement legislation across Member States.
Amendment 192 #
Proposal for a regulation
Article 3 – paragraph 1 – point b – point i (new)
Article 3 – paragraph 1 – point b – point i (new)
i) to stimulate the uptake of new technologies in the EDTIB and to support the development of a defence technological and industrial base in more Union Member States.
Amendment 193 #
Proposal for a regulation
Article 3 – paragraph 1 – point b – point ii (new)
Article 3 – paragraph 1 – point b – point ii (new)
ii) to reduce dependencies on non- democratic countries for critical defence technologies and components.
Amendment 205 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. The objectives shall be pursued with an emphasis on strengthening and, developing, modernising, and expanding the Union defence industrial base to allow it to address in particular the most urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force.
Amendment 227 #
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. Where necessary for the implementation of an action, financial contributions may cover a period prior to the date of the request for financial contributions for that action, provided that the action has not started prior to the 24 February 2022 and have not been completed before the signature of the grant agreement.
Amendment 257 #
Proposal for a regulation
Article 8 – paragraph 7 – point a
Article 8 – paragraph 7 – point a
(a) control over the contractor or subcontractor involved in the common procurement is not exercised in a manner that restrains or restricts its ability to carry out the order and to deliver results in accordance with the terms of the procurement contract and;
Amendment 292 #
Proposal for a regulation
Article 10 – paragraph 1 – point 2
Article 10 – paragraph 1 – point 2
2. the contribution of the action to competitiveness and adaptation of the EDTIB, including through the envisaged ramp-up of its manufacturing capacities, reservation of manufacturing capacities, its reskilling and upskilling, and overall modernizsation including increased military interoperability between Member States and with NATO;
Amendment 293 #
Proposal for a regulation
Article 10 – paragraph 1 – point 3
Article 10 – paragraph 1 – point 3
3. the contribution of the action to strengthening cooperation among Member States or associated countries and interoperability of products, Ukraine and the Republic of Moldova, and any declaration by the participants to strengthen their defence cooperation beyond the joint procurement;
Amendment 294 #
Proposal for a regulation
Article 10 – paragraph 1 – point 3 a (new)
Article 10 – paragraph 1 – point 3 a (new)
3a. 3a. the extent to which the procurement stimulates the expansion of the EDTIB to more Member States, the modernization of Member States military capabilities, and the uptake of cutting- edge technologies and equipment;
Amendment 310 #
Proposal for a regulation
Article 11 – paragraph 4 – point 1 (new)
Article 11 – paragraph 4 – point 1 (new)
(1) The Commission, assisted by the European Defence Agency, shall endeavour to identify those components of non EU origin for which no alternative exists in the Union and take appropriate measures to foster their development in the Union, including through research and development, and in particular, through the European Defence Fund.