Activities of Elena YONCHEVA related to 2022/0219(COD)
Plenary speeches (1)
European Defence Industry Reinforcement through common Procurement Act (EDIRPA) (debate)
Shadow reports (1)
REPORT 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 (42)
Amendment 42 #
Proposal for a regulation
Recital 1
Recital 1
(1) The EU Heads of State or Government, meeting in Versailles on 11 March, committed to “bolster European defence capabilities” in light of the Russian military aggression against Ukraine. They agreed to increase defence expenditures, step up cooperation through joint projects, and common procurement of defence capabilities, close shortfalls, boost innovation and strengthen and develop the EU defence industry, which is a key player that should positively contribute to the security of Member States by providing effective new capabilities in a timely manner.
Amendment 48 #
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 now to address the existing shortfalls It has led to the return of high-intensity warfare and territorial conflict in Europe, requiring to the detriment of All European citizens and Member States. As a result the situation requires 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.
Amendment 58 #
Proposal for a regulation
Recital 3
Recital 3
(3) The Commission and the High Representative presented a Joint Communication on “The Defence Investment Gaps Analysis and Way Forward” on 18 May 2022. The Communication highlighted the existence, within the EU, of defence financial, industrial and capability gaps, caused by years of defence underspending, reduced industrial production capacity and limited joint procurement and collaboration.
Amendment 64 #
Proposal for a regulation
Recital 5
Recital 5
(5) Such a new instrument will contribute to reinforce common defence procurement in alignment with Member States' goal of 35% collaborative procurement for defence equipment and, through the associated Union financing, to strengthen EU defence industrial capabilities.
Amendment 67 #
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5a) This new instrument will be an important step towards to the creation of the EU Defence Union and shall contribute to enhance the Union’s open strategic autonomy, to strengthen its ability to protect its citizens and to reinforce the EU’s global position in the context of increasing security threats at the international level.
Amendment 68 #
Proposal for a regulation
Recital 5 b (new)
Recital 5 b (new)
(5b) The Instrument should also contribute to drive transformational change in the European Defence Technological and Industrial Base, simultaneous to improving security in the European Union. These changes include building more resilient supply chains, growing the advanced manufacturing sector and exports, and enhancing technological innovation.
Amendment 75 #
Proposal for a regulation
Recital 6
Recital 6
(6) Reinforcing the European Defence Technological and Industrial Base should therefore be at the core of those efforts. Indeed difficulties and gaps still exist and the European defence industrial base remains highly fragmented, inefficient, lacking sufficient collaborative action and inter- operability of products.
Amendment 77 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) National regulations and increasing administrative burden in the defence sector of the Member States contributed to hindering competition and reducing economies of scale in the European defence industrial base.
Amendment 86 #
Proposal for a regulation
Recital 10
Recital 10
(10) In the light of the above challenges and the related structural changes in the EU Defence industry, it appears necessary to speed up the adjustment of the European Defence Technological and Industrial Base, enhance its competitiveness and efficiency, encourage close cooperation and coordination and thereby contribute to strengthening and reforming Member States’ defence industrial capabilities. Addressing industrial shortfalls should include promptly tackling the most urgent gaps.
Amendment 97 #
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. Efforts to utilise economies of scale must be accompanied by measures aimed at ensuring a level-playing field for suppliers form all Member States.
Amendment 98 #
Proposal for a regulation
Recital 13
Recital 13
(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions, including common procurement, 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 administrative burdens, exploitation, maintenance and withdrawal of the systems.
Amendment 100 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) The instrument should be accompanied by measures aimed strengthening the European Defence Technological and Industrial Base European defence industry ensuring a level playing field for suppliers of all Member States and with particular attention to the involvement of SMEs, start-ups and mid-caps in the value chain.
Amendment 106 #
Proposal for a regulation
Recital 14
Recital 14
(14) This Instrument will build on and take into account the work of the Defence Joint Procurement Task Force established by the Commission and the High Representative/Head of the European Defence Agency, in line with the Joint Communication ‘Defence Investment Gaps Analysis and Way Forward”, to coordinate very short-term defence procurement needs and engage with Member States and EU defence manufacturers to support joint procurement to replenish stocks, notably in light of the support provided to Ukraine.
Amendment 110 #
Proposal for a regulation
Recital 15
Recital 15
(15) The Instrument is cohershould be consistent with existing collaborative EU defence-related initiatives such as in the European Defence Fund as well as the Permanent Structured Cooperation (PESCO), and generates synergies with other EU programmes. The Instrument is fully coherent with the ambition of the Strategic Compass. Likewise, the Instrument should contribute to a competitive, open and efficient European defence market by aligning with existing Union legislation in the field, notably, Directive 2009/81/EC on procurement in the fields of defence and security.
Amendment 113 #
Proposal for a regulation
Recital 15
Recital 15
(15) The Instrument ishould be consistent coherent with existing collaborative EU defence-related initiatives such as in the European Defence Fund as well as the Permanent Structured Cooperation (PESCO), and generates synergies with other EU programmes. The Instrument is fully coherent with the ambition of the Strategic Compass.
Amendment 128 #
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 due diligence framework to identify, prevent, mitigate environmental and social risks, 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 142 #
Proposal for a regulation
Recital 20
Recital 20
(20) Where the Union grant takes the form of financing not linked to costs, the Commission should determine in the multiannual work programme the funding conditions for each action, in particular (a) a description of action involving cooperation for common procurement with a view to addressing the most urgent and critical capacity needs, (b) the milestones for the implementation of the action, (c) the rough order of magnitude expected from the common procurement and (d) the maximum Union contribution available. Additionally, it must determine the evaluation and selection procedure concerning the proposals, including the monitoring and disbursement process for the actions following their selection.
Amendment 146 #
Proposal for a regulation
Recital 21
Recital 21
(21) To generate the incentive effect, the level of Union contribution may be differentiated based on factors such as (a) the complexity of the common procurement, for which a proportion of the anticipated size of the procurement contract, based on experience gained in similar actions, may serve as an initial proxy, (b) the characteristics of the cooperation, such as joint usage, stockpiling, ownership or maintenance, which are likely to induce stronger interoperability outcomes and long-term investment signals to industry, and (c) the number of participating Member States or associated countries or the inclusion of additional Member States or associated countries to existing cooperations, and (d) the contribution of the action to supporting participation of small and medium-sized enterprises (SMEs) and middle capitalisation companies (mid- caps) in common procurement.
Amendment 160 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
This Regulation establishes the short-term instrument for the European Defence Industry Reinforcement through common Procurement Act (the ‘Instrument’).
Amendment 161 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) ‘common procurement’ means a cooperative procurement jointly conducted by at least threfive Member States;
Amendment 180 #
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), and opening the supply chains throughout the Union, including SMEs and mid-caps, for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities; , also through technological innovations;
Amendment 184 #
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, start-ups and mid-caps, for a more resilient and secure Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities;
Amendment 189 #
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, closer collaboration, interoperability, prevention of crowding- out effects, avoidreducing fragmentation and, increasing the effectiveness of public spending, and expanding cross-border supply chains within the European Union.
Amendment 194 #
Proposal for a regulation
Article 3 – paragraph 1 – point b a (new)
Article 3 – paragraph 1 – point b a (new)
(ba) to replenish stocks, in particular the most urgent and critical defence products needs by the Union, mainly those created by the disruption caused by the urgent transfer of defence products to Ukraine, taking into account the work of the Defence Joint Procurement Task Force.
Amendment 200 #
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 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, increasing the strategic autonomy of the Union and strengthen its ability to protect its citizens.
Amendment 202 #
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 to allow it to address in particular the most urgent and critical defence products and combat medical equipment 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 and in line with the Joint Communication on the Defence Investment Gaps Analysis and Way forward.
Amendment 208 #
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 m1.5 billion in current prices.
Amendment 228 #
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 or completed before applying for the financial contribution.
Amendment 229 #
Proposal for a regulation
Article 6 – paragraph 3 – point 1 (new)
Article 6 – paragraph 3 – point 1 (new)
(1) The financial contribution to each approved action must not exceed 20% of the amount referred to in Article 4(1).
Amendment 243 #
Proposal for a regulation
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2a. The minimum level of the Union contribution attributed to each action will be set out in the work programme referred to in Article 11 of the present regulation. The level of the Union contribution attributed to a given action will increase from its minimum level in the following cases, which indicate common procurement of higher value: a) At least 10% of the estimated value of the common procurement contract is allocated to SMEs, as contractors or subcontractors, that meet the funding conditions specified in Article 8 of the present regulation; b) At least 15% of the estimated value of the common procurement contract is allocated to mid-caps, as contractors or subcontractors, that meet the funding conditions specified in Article 8 of the present regulation.
Amendment 253 #
Proposal for a regulation
Article 8 – paragraph 6
Article 8 – paragraph 6
6. The participating Member States shall provide to the Commission a notification from the procurement agent on the guarantees provided by a contractor or subcontractor involved in the common procurement that is established in the Union or an associated third country and controlled by a non-associated third country or a non-associated third country entity. The guarantees and related provisions in the procurement contract shall be made available to the Commission upon request. The guarantees shall provide assurances that the involvement of the contractor or subcontractor involved in the common procurement fulfil strict conditions relating to the due diligence framework to identify, prevent, mitigate environmental and social risks and does not contravene the security and defence interests of the Union and its Member States as established in the framework of the CFSP pursuant to Title V of the TEU, or the objectives set out in Article 3.
Amendment 264 #
Proposal for a regulation
Article 8 – paragraph 8 a (new)
Article 8 – paragraph 8 a (new)
8a. When contractors and subcontractors involved in the common procurement use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries, the commonly procured product shall meet the Union’s environmental, social, governance and ethics rules, as they are applied to the defence products manufactured in the European Union.
Amendment 301 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. The Instrument shall be implemented through a multiannual work programme as referred to in Article 110 of the Financial Regulation.
Amendment 314 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
1. The Commission shall draw up an mid-term/interim evaluation report for the Instrument not later than 31 December 2024 and3, followed by a full evaluation report not later than 31 December 2024, to be submit itted to the European Parliament and to the Council. The report shall evaluate the impact and effectiveness of the actions taken under the Instrument. Furthermore, it will present the findings of the monitoring and disbursement process set out in the work programme.
Amendment 315 #
Proposal for a regulation
Article 12 – paragraph 1 – point 1 (new)
Article 12 – paragraph 1 – point 1 (new)
(1) Furthermore, the report should in cooperation with the European Defence Agency, incorporate findings and recommendations pertaining to the use of raw materials, components and production capacities from third countries within the various actions for which there was no European substitute.
Amendment 317 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. The report shall build on consultations of Member States and key stakeholders and shall, in particular, assess the progress made towards the achievement of the objectives set out in Article 3 and evaluate the Instrument contribution to the following: a) participation of SMEs, start-ups and mid-caps in the action as contractors and subcontractors involved in the common procurement; b) reinforcement of the EDTIB throughout the Union; c) identification of the involvement of each Member States.
Amendment 319 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. The report shall build on consultations of Member States and key stakeholders and shall, in particular, assess the progress made towards the achievement of the objectives set out in Article 3. and evaluate the Instrument's success:
Amendment 320 #
Proposal for a regulation
Article 12 – paragraph 2 – point a (new)
Article 12 – paragraph 2 – point a (new)
(a) creating new cross-border cooperation between Member States;
Amendment 321 #
Proposal for a regulation
Article 12 – paragraph 2 – point b (new)
Article 12 – paragraph 2 – point b (new)
(b) developing new industrial synergies within the European Defence Industry;
Amendment 322 #
Proposal for a regulation
Article 12 – paragraph 2 – point c (new)
Article 12 – paragraph 2 – point c (new)
(c) Offering a level-playing field for existing companies and SMEs in the EDTIB;
Amendment 323 #
Proposal for a regulation
Article 12 – paragraph 2 – point d (new)
Article 12 – paragraph 2 – point d (new)
(d) incorporating a broad share of companies from across the EU;
Amendment 331 #
Proposal for a regulation
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2a. The Commission shall provide, in particular, SMEs and mid-caps the information needed to allow and facilitate their participation in the common procurement process, including supporting instruments to reduce administrative burdens.