Progress: Procedure completed
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | IMCO | SCHWAB Andreas ( EPP) | MIKSER Sven ( S&D), SCHREINEMACHER Liesje ( Renew), CORMAND David ( Verts/ALE), JORON Virginie ( ID), FIDANZA Carlo ( ECR), KONEČNÁ Kateřina ( GUE/NGL) |
Committee Opinion | ITRE | ||
Committee Opinion | AFET | MIKSER Sven ( S&D) | Clare DALY ( GUE/NGL), Klemen GROŠELJ ( RE), Jérôme RIVIÈRE ( ID), Witold Jan WASZCZYKOWSKI ( ECR), Radosław SIKORSKI ( PPE) |
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Subjects
Events
The European Parliament adopted by 470 votes to 96, with 121 abstentions, a resolution on the implementation of Directive 2009/81/EC concerning procurement in the fields of defence and security, and of Directive 2009/43/EC, concerning the transfer of defence-related products.
The Defence Package directives are needed to further develop a common European security and defence culture, based on the Union's shared values and objectives. However, progress is still needed to fully achieve the objectives of these directives: in addition to the usual hurdles to market entry, such as geographical distance, language barriers and lack of knowledge of cross-border markets, SMEs in the defence sector face major difficulties in participating in public procurement.
Improving the functioning of the internal market for defence products through better implementation and enforcement of the defence package
Members reiterated their support for the ambitions of the defence package directives but regretted the continued fragmentation of the EU’s internal market for defence products, stressing that a very high volume of procurement expenditure is still incurred outside the directive and that an overwhelming percentage of contracts are still awarded nationally.
The systematic use by the Member States of the provisions relating to exclusion, in particular those laid down in Article 346 of the Treaty on the Functioning of the European Union (TFEU), could undermine the full and proper implementation of the Defence Procurement Directive.
Parliament considered that the effective implementation and enforcement of the Defence Procurement Directive remains a top priority and that, to this end, Member States should ensure equal treatment, transparency, competition and access to public procurement contracts.
As regards the Transfers Directive, the take-up of the new tools, including General Transfer Licences (GTLs), is relatively low compared to individual transfer licences. Lack of knowledge of the tools provided by the Directive, of the possibilities offered in the internal market and of the export control system used by Member States, in addition to the lack of harmonisation in the implementation of GTAs, are major obstacles to the effective application of the Directive.
The Commission is called on to be firm in its enforcement, including by making greater use of the right to initiate infringement proceedings, for example in the case of systematic use of exclusions.
Member States are asked for more systematic and comprehensive reporting of consistent, accurate and comparable data concerning their use of exemptions in order to improve scrutiny over and the implementation of the relevant Commission guidelines.
Tackling market fragmentation and increasing SME participation
Parliament noted that the level of SME participation in the defence market remains low and the certification processes are regarded as costly, lengthy and burdensome, and hence neither accessible nor attractive for SMEs. It called on Member States to follow the Commission's recommendation on access to cross-border defence markets for sub-suppliers and SMEs, in particular regarding the quality of information requirements, the division of contracts into lots or the alleviation of the administrative burden arising from the procurement procedure. The Commission is invited to improve SMEs' access to finance and to thoroughly examine the reasons why SMEs are not fully integrated into the single market for defence products.
The resolution suggests the creation of an updated map of relevant SME data that would allow Member States to identify SMEs with the necessary capacity for a given project.
Towards a European defence equipment market (EDEM)
Members considered that better implementation of the directives would enhance the effectiveness of defence initiatives launched in recent years, including the Permanent Structured Cooperation (PESCO), the Coordinated Annual Review of Defence (CARD), the EDF and the Capability Development Plan (CDP). They called on Member States to strengthen the EDEM by cooperating on projects under the PESCO and the EDF.
The Commission is invited to take specific actions to strengthen confidence between Member States in the field of defence and security. Member States are called upon to demonstrate political will by strengthening intra-EU defence procurement and research and development cooperation, as well as to use common procurement and research projects to boost interoperability between their militaries.
The resolution called for a more coherent implementation of the EU common position on arms exports and stresses the need for the Commission to present a strategy for a comprehensive EU-wide security of supply regime strategy, in order to establish a reliable and comprehensive European defence equipment market and an efficient defence sector.
Lastly, it recommended an appropriate analysis be carried out into what impact Brexit will have on the EU defence equipment market.
The Committee on the Internal Market and Consumer Protection adopted an own-initiative report by Andreas SCHWAB (EPP, DE) on the implementation of Directive 2009/81/EC, concerning procurement in the fields of defence and security, and of Directive 2009/43/EC, concerning the transfer of defence-related products. The report takes stock of the state of implementation of the two directives in order to allow the plenary to draw conclusions and make recommendations for concrete actions to be taken, both in terms of improving implementation and proposing possible legislative revisions.
Improving the functioning of the internal market for defence products through better implementation and enforcement of the defence package
Members reiterated their support for the ambitions of the defence package directives and stressed that the effective implementation of the directives is a step towards the EU’s ambition of strategic autonomy and a European Defence Union. They pointed out, however, that a very high volume of procurement expenditure is still incurred outside the directive and that an overwhelming percentage of contracts are still awarded nationally.
Members considered that the effective implementation and enforcement of the Defence Procurement Directive remains a top priority and that, to this end, Member States should ensure equal treatment, transparency, competition and access to public procurement contracts.
The report also stressed the importance of having a genuine internal market for intra-EU transfers of defence-related products. It noted that take-up of the new tools, including general transfer licences (GTLs), is relatively low compared to individual transfer licences, which were to be replaced by the new tools.
The Commission is called on to be firm in its enforcement, including by making greater use of the right to initiate infringement proceedings, for example in the case of systematic use of exclusions.
Member States are asked for more systematic and comprehensive reporting of consistent, accurate and comparable data concerning their use of exemptions in order to improve scrutiny over and the implementation of the relevant Commission guidelines.
Tackling market fragmentation and increasing SME participation
The report noted that the level of SME participation in the defence market remains low. It called on Member States to follow the Commission's recommendation on access to cross-border defence markets for sub-suppliers and SMEs, in particular regarding the quality of information requirements, the division of contracts into lots or the alleviation of the administrative burden arising from the procurement procedure. The Commission is invited to improve SMEs' access to finance and to thoroughly examine the reasons why SMEs are not fully integrated into the single market for defence products.
Towards a European defence equipment market (EDEM)
Members considered that better implementation of the directives would enhance the effectiveness of defence initiatives launched in recent years, including the Permanent Structured Cooperation (PESCO), the Coordinated Annual Review of Defence (CARD), the EDF and the Capability Development Plan (CDP). They called on Member States to strengthen the EDEM by cooperating on projects under the PESCO and the EDF.
The Commission is invited to take specific actions to strengthen confidence between Member States in the field of defence and security in order to enhance their cooperation and create a genuine single market for defence products.
Member States are called upon to demonstrate political will by strengthening intra-EU defence procurement and research and development cooperation, as well as to use common procurement and research projects to boost interoperability between their militaries.
The report called for a more coherent implementation of the EU common position on arms exports and stresses the need for the Commission to present a strategy for a comprehensive EU-wide security of supply regime strategy, in order to establish a reliable and comprehensive European defence equipment market and an efficient defence sector.
Documents
- Commission response to text adopted in plenary: SP(2021)409
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T9-0102/2021
- Committee report tabled for plenary: A9-0025/2021
- Committee opinion: PE657.437
- Amendments tabled in committee: PE660.265
- Committee draft report: PE658.808
- Committee draft report: PE658.808
- Amendments tabled in committee: PE660.265
- Committee opinion: PE657.437
- Commission response to text adopted in plenary: SP(2021)409
Votes
Marchés publics dans les domaines de la défense et de la sécurité et transferts de produits liés à la défense: mise en œuvre des directives en la matière - Procurement in the fields of defence and security and transfer of defence-related products: implementation of relevant Directives - Auftragsvergabe in den Bereichen Verteidigung und Sicherheit und Verbringung von Verteidigungsgütern: Umsetzung der einschlägigen Richtlinien - A9-0025/2021 - Andreas Schwab - § 10/1 #
A9-0025/2021 - Andreas Schwab - § 10/2 #
A9-0025/2021 - Andreas Schwab - Am 1 #
Marchés publics dans les domaines de la défense et de la sécurité et transferts de produits liés à la défense: mise en œuvre des directives en la matière - Procurement in the fields of defence and security and transfer of defence-related products: implementation of relevant Directives - Auftragsvergabe in den Bereichen Verteidigung und Sicherheit und Verbringung von Verteidigungsgütern: Umsetzung der einschlägigen Richtlinien - A9-0025/2021 - Andreas Schwab - Proposition de résolution #
Amendments | Dossier |
158 |
2019/2204(INI)
2020/11/06
AFET
82 amendments...
Amendment 1 #
Draft opinion Paragraph 1 1. Highlights that the directives in the Defence Package aim to promote further integration of the EU defence supply chain and increase mutual trust among Member States, transparency, equal treatment and the overall competitiveness of Europe’s defence industry; considers both directives as important elements for the establishment of a necessary European Strategic Autonomy through the development of a strong European Defence and Technological Industrial Base (EDTIB); believes that the full implementation of the directives can directly address current defence capability shortfalls;
Amendment 10 #
Draft opinion Paragraph 2 2. Emphasises that the Commission’s evaluation reports concluded in 2016 that both directives have helped to open up the internal market for defence, but that much more progress is needed; calls for more up- to-date evaluations to be conducted; calls on the Member States to fully implement both directives, and on the Commission to ensure full and consistent enforcement via a more extensive use of infringement procedures;
Amendment 11 #
Draft opinion Paragraph 2 2. Emphasises that the Commission’s evaluation reports concluded in 2016 that both directives have helped to open up the internal market for defence, but that much more progress is needed; calls for more up- to-date evaluations to be conducted;
Amendment 12 #
Draft opinion Paragraph 2 a (new) 2 a. Points out that the Defence Package was established in the context of consistent cuts to national defence budgets due to the immediate and long- term effects of the 2008 financial and economic crises in order to rationalise national defence expenditure and make better use of taxpayers’ money while also aiming at guaranteeing that Europe could rely on sufficient and strategic capabilities through cooperation in the defence industry sector at the Union level; underlines that the same spirit and objectives should apply in light of the expected economic recession that will follow the COVID-19pandemic, with foreseen shift of national resources from the defence sector to other national competences;
Amendment 13 #
Draft opinion Paragraph 2 a (new) 2 a. Believes that, after 11 years of existence where both directives had only very limited impact, and at times, when decisions have been taken that the EU level will play an important role in arms production via multi-billion military R&D funds such as EDF, it is high time to adapt the legislative framework and to revise both directives so that both can make a significant contribution to a well- functioning and reliable European defence sector in the near future;
Amendment 14 #
Draft opinion Paragraph 2 a (new) Amendment 15 #
Draft opinion Paragraph 2 b (new) 2 b. Underlines that in the expected context of economic recession due to the COVID-19 pandemic deeper cooperation in the defence industry sector at the Union level is needed, and it should be favoured by a partial revision of the two Directives that compose the Defence Package and relative documents, as well as a stricter implementation of the European Commission’s interpretative guidelines already published coupled with a more stringent supervisory role of the EC;
Amendment 16 #
Draft opinion Paragraph 2 b (new) 2 b. Stresses that in order to build a reliable and comprehensive European defence equipment market and an efficient defence sector the Commission needs to present without further delay a comprehensive EU-wide Security of Supply regime which was asked for by the 19-20 December 2013 European Council and paragraphe 21 of its conclusions but never presented by the Commission;
Amendment 17 #
Draft opinion Paragraph 2 b (new) 2 b. Regrets the persisting fragmentation of European defence market which still leads to unnecessary duplications and hence an inefficient expenditure of defence budgets, which are under extreme pressure due to the COVID-19 pandemic;
Amendment 18 #
Draft opinion Paragraph 2 c (new) 2 c. Is deeply concerned about the lack of data on the use of both directives during the last 11 years which undermines effective implementation, enforcement, transparency and public and parliamentary oversight; strongly believes that without reliable, precise and complete data decision-makers and various other stakeholders will not be able to engage in a meaningful process aiming at generating an effective, robust, and modern European defence equipment market; urges the Commission and the Member States to generate without delay high quality data on the implementation of both directives and to consider the creation of dedicated NACE or NC codes as their absence hinders any attempt at measuring how the structure of the European defence industry has evolved and to assess the true Europeanisation of defence value-chains;
Amendment 19 #
Draft opinion Paragraph 2 c (new) 2 c. Underlines that the development of the European defence industry, for which a functional European Defence Equipment Market is a prerequisite, is essential to achieve and inject coherence within European defence policy; underlines that a decade since the adoption of the two directives of the Defence Package it is clear that without a common vision and shared strategic outlook among Member States the effectiveness of any European initiative in the field of defence is limited and hence any funding to support defence project may eventually have limited impact on the competitiveness of the European defence industry;
Amendment 2 #
Draft opinion Paragraph 1 1.
Amendment 20 #
Draft opinion Paragraph 2 c (new) 2 c. Recognises the relevance of EU- UK cooperation in the defence industry sector, as well as the importance of the cooperation already existing between individual EU Member States and the United Kingdom;
Amendment 21 #
Draft opinion Paragraph 2 d (new) 2 d. Before calling on the Member States to fully implement and apply the two directives, calls on the European leaders to act seriously on European defence policy, without hiding real actions behind ambiguous concepts such as strategic autonomy or a strategic compass; underlines that substantial cuts of funding for the EDF, military mobility and European Peace Facility, together with no concrete goals regarding military capabilities, will eventually lead to multiplication of ineffective projects and ineffectiveness of the EU spending;
Amendment 22 #
Draft opinion Paragraph 2 e (new) 2 e. Calls on the Member States to draw serious conclusions of the current pandemic with regards to the European defence industry and policy - given that the recession caused by the pandemic is likely to put pressure on defence budgets and foster nationalisation despite the supportive role played by the military forces to civilian authorities in the crisis and the fact that cooperation could lead to substantial savings; emphasizes that it also sheds new light on some of the Member States’ insistence on exclusive US security guarantees, without analysing the consequences of Washington's confrontational policy towards China; Calls on the European Commission to launch a serious analysis of the EU dependency on the US defence market, as well as of the dependency on civilian commercial sector in areas of big data, robotics and AI in front of recently enhanced global IT threats;
Amendment 23 #
Draft opinion Paragraph 2 f (new) 2 f. In this light, expresses hope that the creation of DG DEFIS, which finally brings the monitoring and management of the two directives under one DG, will also lead to creating intrinsic linkages between the two directives, eventually truly embedding defence industry into the internal market;
Amendment 24 #
Draft opinion Paragraph 3 3. Highlights that an overwhelming percentage of contracts are still awarded nationally;
Amendment 25 #
Draft opinion Paragraph 3 3. Highlights that an overwhelming percentage of contracts are still awarded nationally;
Amendment 26 #
Draft opinion Paragraph 3 3.
Amendment 27 #
Draft opinion Paragraph 3 3. Highlights that an overwhelming percentage of contracts are still awarded nationally; regrets the persistently significant degree of opacity in some acquisition practices; deplores the widespread use of exemptions and the persistence of offset requirements; calls for
Amendment 28 #
Draft opinion Paragraph 3 3. Highlights that an overwhelming percentage of contracts are still awarded nationally; regrets the persistently significant degree of opacity in acquisition practices; deplores the widespread use of exemptions and of offset requirements, which limits fair competition in the European defence equipment market; calls for the systematic and comprehensive reporting of data by Member States concerning their use of exemptions in order to improve scrutiny; calls for efforts to ensure the effectiveness of infringement procedures;
Amendment 29 #
Draft opinion Paragraph 3 3. Highlights that an overwhelming percentage of contracts are still awarded nationally; regrets the persistent
Amendment 3 #
Draft opinion Paragraph 1 1. Highlights that the directives in the Defence Package aim to promote further integration of the EU defence supply chain and increase mutual trust among Member States, transparency, equal treatment and the overall competitiveness of Europe’s defence industry, and as overarching objective, create a well-functioning, reliable and efficient European defence equipment market (EDEM);
Amendment 30 #
Draft opinion Paragraph 3 a (new) 3 a. Reiterates its support to the original ambition of the procurement directive to establish an open and competitive European defence equipment market (EDEM) and to boost the competitiveness of the European defence technological and industrial base (EDTIB), as they play a key role in improving and maintaining Europe’s security and capacity to defend itself against current and future threats;
Amendment 31 #
Draft opinion Paragraph 3 a (new) 3 a. Notes the disparities in publication rates of contract notices between Member States, points out that such disparities could cause a disruption to the internal market and that the lack of reciprocity could disincentivise Member States with a higher degree of implementation;
Amendment 32 #
Draft opinion Paragraph 3 a (new) 3a. Recalls Recital 18 of Directive 2009/81/EC and insists that European defence markets should primarily be open to European companies and, on a case- by-case basis, to non-EU entities, on the basis of recognised eligibility criteria;
Amendment 33 #
Draft opinion Paragraph 3 b (new) 3b. Recalls the strategic nature of supply chain security and reaffirms the importance of provisions concerning subcontracting aimed at dramatically limiting the risks associated with supply chains being open; also underlines the extreme competitiveness of American competitors, which is regularly promoted and defended by many Member States to the detriment of European industry players;
Amendment 34 #
Draft opinion Paragraph 3 c (new) 3c. Stresses that the defence sector is a very specific market in which research and development in major projects is often financed by Member State governments in accordance with their operational requirements and their capacity, their supply strategies and the corresponding industrial policies, in line with supply security considerations;
Amendment 35 #
Draft opinion Paragraph 4 Amendment 36 #
Draft opinion Paragraph 4 4. Points to the need to strictly limit the Member States’ use of exemptions, and in particular the potentially abusive use of Article 346 TFEU, in order to increase transparency and equality; calls on the Member States to strictly follow the Commission’s interpretative guidance as to the conditions under which Article 346 can be invoked; calls for a reduction in the use of exemptions and offset requirements in defence acquisitions, thereby enabling a faster and better development of the EDTIB as one of the key strategic aims of both directives;
Amendment 37 #
Draft opinion Paragraph 4 4. Points to the need to
Amendment 38 #
Draft opinion Paragraph 4 4. Points to the need to
Amendment 39 #
Draft opinion Paragraph 4 4. Points to the need to strictly limit the Member States’ use of exemptions, and in particular the potentially abusive use of Article 346 TFEU, in order to increase transparency and equality; calls on the Member States to strictly follow the Commission’s interpretative guidance as to the conditions under which Article 346 can be invoked; calls on the Commission to closely assess the necessity and proportionality of exemptions invoked by Member States on the basis of Article 346 TFEU;
Amendment 4 #
Draft opinion Paragraph 1 1. Highlights that the directives in the Defence Package aim to promote further integration of the EU defence supply chain
Amendment 40 #
4a. Calls for clarification of the guidance notes on exclusions to ensure their correct use, particularly those concerning cooperation, compensation and government-to-government markets; asks for the guidance notes on cooperation to enable a new Member State to participate in a project even after the R&D stage, and for them to be expanded to cover other forms of cooperation, such as cross-purchases between two Member States and government-to-government markets between Member States; calls for clarification of the guidance notes on government-to-government markets and for them to be adapted to the boom in American Foreign Military Sales practices and the new forms of public procurement;
Amendment 41 #
Draft opinion Paragraph 4 a (new) 4 a. Recognises that the list of products to which the provisions of paragraph 1(b) of Article346 TFEU apply defined in the Council Decision 255/58 of 15 April 1958 does not reflect the current priorities of the Union and the development of European defence integration registered in the last sixty years; underlines that the aforementioned list is too general since it only mentions the type of products without specifying their characteristics, thus allowing for broad use of exemptions by Member States; recommends the initiation of a proposal from the Commission to make changes to the aforementioned list of products to make it more detailed and specific with the aim to clearly define the types and characteristics of products that may be subject to exemptions;
Amendment 42 #
Draft opinion Paragraph 4 a (new) 4 a. Underlines that there is an urgent need to question the traditional interpretation of Article 346 in light of the fact that purely national defence products do not exist anymore due to multinational supply chains, multinational collaborative defence projects and a growing importance of the EU level in military R&D;
Amendment 43 #
Draft opinion Paragraph 4 a (new) 4 a. Reiterates experts’ warnings that if Member States continue their current practices, whereby on average less than 20 % of defence procurement results in collaborative projects, the European defence industry and its technological innovation capacity will be doomed to decline;
Amendment 44 #
Draft opinion Paragraph 4 a (new) 4 a. Calls, therefore, on the Commission to be bold when it comes to the enforcement of directive 2009/81/EC and act on a proactive basis to prevent the misuse of the exceptions;
Amendment 45 #
Draft opinion Paragraph 4 b (new) 4 b. Calls for the abolishing of the exemption for government-to-government sales in the context of the revision of the directive; stresses that data suggests that procurement of many high-value, strategic, and complex defence systems are done under the G2G exemption of Article 13f, in some cases even without the required market analysis, which de facto deprives European industry from market access;
Amendment 46 #
Draft opinion Paragraph 4 c (new) 4 c. Reminds that abolishing the government-to-government sales exemption would not mean that European governments are not allowed to for example procure US weapon systems in particular under the form of US Foreign Military Sales (FMS) but that European companies would have a fairer chance to present alternative technology;
Amendment 47 #
Draft opinion Paragraph 5 5.
Amendment 48 #
Draft opinion Paragraph 5 5. Welcomes the provisions of the directive that aim to foster cooperative procurement in the field of defence, and calls on the Member States to make use of all the cooperation possibilities offered by the directive with a pure spirit of solidarity, notably under the European Defence Industrial Development Programme (EDIDP) and the future European Defence Fund (EDF); recommends that major defence projects currently run on a bilateral or multinational basis by Member States outside of the framework of EU defence initiatives should be integrated therein in order to allow the meaningful participation of those Member States willing to take part in the projects, ensure coherence of actions, avoid duplications making better use of taxpayers’ money, and guarantee consistent added value to the whole Union;
Amendment 49 #
Draft opinion Paragraph 5 5. Welcomes the provisions of the directive that aim to foster cooperative procurement in the field of defence, and calls on the Member States to make use of all the cooperation possibilities offered by the directive, notably under the European Defence Industrial Development Programme (EDIDP) and the future European Defence Fund (EDF); calls for enhanced cooperation through common defence R&D projects and acquisitions to support the development of the EDTIB;
Amendment 5 #
Draft opinion Paragraph 1 1. Highlights that the directives in the Defence Package aim to promote further integration of the EU defence supply chain and increase mutual trust among Member States, transparency, equal treatment and the overall competitiveness and operational capability and interoperability of Europe’s defence industry;
Amendment 50 #
Draft opinion Paragraph 5 a (new) 5 a. Calls for renewed efforts to tackle persistent technological and innovation gaps and lags in the EDTIB, in order to reduce the growing European dependence on defence imports;
Amendment 51 #
Draft opinion Paragraph 5 a (new) 5 a. Underlines that decreased defence investments may contribute to renationalisation of supply chains which is in contrast to the Directive’s objectives;
Amendment 52 #
Draft opinion Paragraph 6 Amendment 53 #
Draft opinion Paragraph 6 6. Encourages Member States to systematically follow the Commission’s 2018 recommendation on cross-border market access for sub-suppliers and SMEs, notably on translating tenders, announcing large procurement programmes in advance, or dividing them into smaller lots, and conducting up to date mapping exercises of their industrial capabilities including the technological capabilities of SMEs, and then make these data public and properly advertised for allowing prime contractors in other Member States to identify SMEs with the adequate competencies required for launching a joint project;
Amendment 54 #
Draft opinion Paragraph 6 6. Encourages Member States to
Amendment 55 #
Draft opinion Paragraph 6 6. Encourages Member States to systematically follow the Commission’s
Amendment 56 #
Draft opinion Paragraph 6 6. Encourages Member States to systematically follow the Commission’s 2018 recommendation on cross-border market access for sub-suppliers and SMEs, notably on translating tenders, announcing large procurement programmes in advance, or dividing them into smaller lots, when it does not adversely affect the overall balance, the cost and the timeline of programmes;
Amendment 57 #
Draft opinion Paragraph 6 6. Notes that SME participation in the field of defence procurement remains low; Encourages Member States to systematically follow the Commission’s 2018 recommendation on cross-border market access for sub-suppliers and SMEs, notably on translating tenders, announcing
Amendment 58 #
Draft opinion Paragraph 6 a (new) 6 a. Believes in this regard, that the Commission must thoroughly examine the causes behind the lack of SME participation;
Amendment 59 #
Draft opinion Paragraph 7 7. Calls on the Member States to show full political will in ensuring the effective implementation of the directive’s provisions and in increasing intra-EU defence acquisition and R&;D cooperation; calls on Member States to make use of common defence R&D and acquisitions to raise the level of interoperability among their militaries;
Amendment 6 #
Draft opinion Paragraph 1 a (new) 1 a. Reminds that the current European defence industrial landscape is characterise by industrial overcapacities, duplication,fragmentation, poor levels of transparency and also cases of corruption which, altogether, amount to annual losses of between EUR 25-100 Billion of defence expenditure according to the Commission; believes that a modern, robust, efficient and reliable European defence equipment market significantly contributes to Europe’s security as it would well equip Member States armed forces;
Amendment 60 #
Draft opinion Paragraph 7 7. Calls on the Member States to show full political will
Amendment 61 #
Draft opinion Paragraph 7 7. Calls on the Member States to show full political will in ensuring the effective and harmonised implementation of the directive’s provisions;
Amendment 62 #
Draft opinion Paragraph 7 a (new) Amendment 63 #
Draft opinion Paragraph 7 a (new) 7 a. Calls on the Commission to further support Member States with the implementation of the Directive 2009/43/EC on intra-EU transfers of defence-related products by continuing dialogue with national authorities on this matter;
Amendment 64 #
Draft opinion Paragraph 7 b (new) 7 b. Calls on the Commission and Member States to raise awareness of the directives tools and benefits, especially with regard to SMEs;
Amendment 65 #
Draft opinion Paragraph 8 8. Underlines that
Amendment 66 #
Draft opinion Paragraph 8 8. Underlines that a more coherent interpretation and consistent implementation of the EU Common Position on Arms Exports is needed in order to limit fragmentation of the EU’s internal defence market and ensure the EU’s credibility as a global actor; underlines that the Council, in its Conclusions of 16 September 2019, notes that the strengthening of a European defence technological and industrial base should be accompanied by closer cooperation and convergence in the field of export control of military technology and equipment calls for action to address any loopholes which may exist among the ICT directive, the Common Position and the Dual-Use Regulation; underlines the necessity for
Amendment 67 #
Draft opinion Paragraph 8 8. Underlines that a more coherent interpretation and consistent implementation of the EU Common Position on Arms Exports is needed in order to limit fragmentation of the EU’s internal defence market and ensure the EU’s credibility as a global actor; calls for action to address any loopholes which may exist among and between the ICT directive, the Common Position and the Dual-Use Regulation; underlines the necessity for prior authorisation before re- exporting products and components, given the discrepancies in the implementation of the Common Position; behind this background, rejects the use of so called de-minimis rules for the transfer of components which exempt military technology from checks against the eight arms exports criteria up to a specific threshold;
Amendment 68 #
Draft opinion Paragraph 8 8. Underlines that a more coherent interpretation and consistent implementation of the EU Common Position on Arms Exports is needed in order to limit fragmentation of the EU’s internal defence market and ensure the EU’s credibility as a global actor; calls for action to address any loopholes which may exist among the ICT directive, the Common Position and the Dual-Use Regulation;
Amendment 69 #
Draft opinion Paragraph 8 8. Underlines that a more coherent interpretation and consistent implementation of the EU Common Position on Arms Exports
Amendment 7 #
Draft opinion Paragraph 1 a (new) 1 a. Notes the sale of arms is tied closely with issues related to national security; and recognises that the sale of arms remains in the sovereign control of the member states for the purposes of national security;
Amendment 70 #
Draft opinion Paragraph 8 8. Underlines that
Amendment 71 #
Draft opinion Paragraph 8 8.
Amendment 72 #
Draft opinion Paragraph 8 a (new) 8 a. Recommends to conduct appropriate analysis on the Directives’ impact on EU-UK cooperation in the defence industry sector in the post-Brexit scenario; calls for the inclusion of specific provisions on defence industry cooperation between the EU and the UK in accordance with the specificities of any potential general agreement that could be reached between the parties;
Amendment 73 #
Draft opinion Paragraph 8 a (new) 8 a. Calls for the revision of the ICT directive with the aim of integrating the eight EU criteria on arms exports which would make sure that intra-Community transfers do not undermine arms export policies towards third countries and that there is an increase in convergence between Member States;
Amendment 74 #
Draft opinion Paragraph 9 9.
Amendment 75 #
Draft opinion Paragraph 9 9. Deplores the limited use of the general transfer licences (GTLs); calls on Member States to increase transparency by
Amendment 76 #
Draft opinion Paragraph 9 9. Deplores the limited use of the general transfer licences (GTLs); calls on Member States to increase transparency by following more thoroughly the guidelines and recommendations issued by the Commission on which products should be subject to the use of GTLs; underlines the need to provide translations of national transfer licences regulations;
Amendment 77 #
Draft opinion Paragraph 9 a (new) 9 a. Calls on Member States to develop harmonized global and individual transfer licences (GlTLs) for EDIDP and EDF projects in order to lift any obstacle to the fulfilment of these projects; calls on the European Commission to fully support these initiatives and assist Member States;
Amendment 78 #
Draft opinion Paragraph 10 10. Stresses the importance of
Amendment 79 #
Draft opinion Paragraph 10 10. Stresses the importance of ensuring the accessibility and usability of the CERTIDER online database
Amendment 8 #
Draft opinion Paragraph 2 2. Emphasises that the Commission’s evaluation reports concluded in 2016 that both directives have helped to open up the internal market for defence, but that much more progress is needed; calls for more up- to-date evaluations to be conducted, taking into consideration the study by the European Parliament Research Service (EPRS) of 19 October 2020; calls on the Member States to fully implement and apply both directives, and on the Commission to ensure full and consistent enforcement to avoid its uneven application among Member States;
Amendment 80 #
Draft opinion Paragraph 10 10.
Amendment 81 #
Draft opinion Paragraph 10 10. Stresses the importance of ensuring the accessibility of the CERTIDER online database and of making data systematically available on intra-EU arms transfers, in order to provide for meaningful scrutiny
Amendment 82 #
Draft opinion Paragraph 10 a (new) 10 a. Expresses its firm believe that the EU Member States, including the European Members of NATO, must improve their defence capabilities and capacities, and sees the effective implementation of the directives as one necessary aspect in the EU’s ambition to become more autonomous and work towards a European defence union.
Amendment 9 #
Draft opinion Paragraph 2 2.
source: 660.191
2020/11/11
IMCO
76 amendments...
Amendment 1 #
Motion for a resolution Recital -A (new) -A. whereas well-functioning markets are created by rules and their strict implementation and assertive enforcement; whereas the same applies to the vision of a future European Defence Equipment Market (EDEM);
Amendment 10 #
Motion for a resolution Recital G a (new) Ga. whereas there is the need to develop a comprehensive and holistic concept for a European defence equipment market which formally connects all existing fragments such as the EDIDP, PADR, EDF, PESCO, Common Position on Arms Exports, the Dual-Use Regulation, the two directives of the 2009 Defence Package and future initiatives such as common rules on security of supply;
Amendment 11 #
Motion for a resolution Recital G a (new) Ga. whereas there is a need to protect and strengthen European subcontractors and manufacturers of critical components or systems in light of the predatory approach of third country undertakings;
Amendment 12 #
Motion for a resolution Recital G b (new) Gb. whereas without inter-linkages between the different fragments and policy coherence there is the risk that the EU level adds to the existing market distortions and other highly inefficient processes and policies in the defence sector;
Amendment 13 #
Motion for a resolution Recital G c (new) Gc. whereas, after 11 years of implementation with very little impact, and in light of the creation of EU defence funds worth nearly EUR 10 billion for the next MFF which will introduce the EU as main actor in European military R&D, it is high time to revise both directives in order to ensure their meaningful contribution to the creation of an efficient and performant European Defence Equipment Market (EDEM);
Amendment 14 #
Motion for a resolution Recital G d (new) Gd. whereas there is a massive lack of data as regards the use or non-use of both directives which makes it extremely difficult for lawmakers and stakeholders to assess the impact of the directives and possible weaknesses as well as strong points;
Amendment 15 #
Motion for a resolution Subheading 1 Improving the functioning of the internal market for defence products through better implementation and
Amendment 16 #
Motion for a resolution Paragraph 1 1.
Amendment 17 #
Motion for a resolution Paragraph 1 1. Welcomes some of the positive trends witnessed in the progressive implementation of the Defence Procurement Directive, namely the increasing number of contract notices and contract-award notices issued by Member States, and the increasing proportion of procurement that has been tendered competitively through Tenders Electronic Daily (TED); stresses, however, that a very high volume of procurement expenditure is still incurred outside the directive and an overwhelming percentage of contracts are still awarded nationally;
Amendment 18 #
Motion for a resolution Paragraph 1 1. Welcomes some of the positive trends witnessed in the progressive implementation of the Defence Procurement Directive, namely the
Amendment 19 #
Motion for a resolution Paragraph 2 2. Underlines that
Amendment 2 #
Motion for a resolution Recital A A. whereas the Defence Procurement Directive seeks to introduce fair and transparent rules for defence procurement in an effort to make it easier for defence companies in the Member States to access other Member States’ defence markets; notes that there is unfortunately no adequate access for SMEs and that they face major challenges when participating in public procurement procedures;
Amendment 20 #
Motion for a resolution Paragraph 2 a (new) 2a. Underlines that there is an urgent need to question the traditional interpretation of Article 346 TFEU in light of the fact that purely national defence products do not exist anymore due to multinational supply chains, multinational collaborative defence projects and a growing importance of the EU level in military R&D;
Amendment 21 #
Motion for a resolution Paragraph 2 a (new) 2a. Recalls in particular that the development of a European defence technological and industrial base requires the establishment of a European preference for local or European production in defence procurement in Europe;
Amendment 22 #
Motion for a resolution Paragraph 2 b (new) Amendment 23 #
Motion for a resolution Paragraph 2 b (new) 2b. Considers that too many Member States source mainly from third countries to meet their defence needs;
Amendment 24 #
Motion for a resolution Paragraph 2 c (new) 2c. Reminds that abolishing the government-to-government sales exemption would not mean that European governments are not allowed to, for example, procure US weapon systems in particular under the form of US Foreign Military Sales (FMS) but that European companies would have a fairer chance to present alternative technology;
Amendment 25 #
Motion for a resolution Paragraph 3 3.
Amendment 26 #
Motion for a resolution Paragraph 3 3. Believes, in this regard, that the Commission should take a more proactive role in monitoring the exclusions used by the Member States in their awarding of contracts outside the scope of the Defence Procurement Directive, and should not be mainly reliant on received complaints filed by the industry; urges therefore the Commission to adopt a more assertive enforcement policy;
Amendment 27 #
Motion for a resolution Paragraph 3 3. Believes, in this regard, that the Commission should take a more proactive role in monitoring the G2G exclusions used by the Member States in their awarding of contracts outside the scope of the Defence Procurement Directive, and should not be mainly reliant on received complaints filed by the industry;
Amendment 28 #
Motion for a resolution Paragraph 3 3. Believes, in this regard, that the Commission should take
Amendment 29 #
Motion for a resolution Paragraph 3 a (new) 3a. Considers that when a contracting authority authorises economic operators from countries outside the European Union or the European Economic Area to participate in a procedure for the award of defence or security contracts, this authorisation must take into account, inter alia, the requirements of security of information and supply, the safeguarding of defence and state security interests, the interest in developing the European defence technological and industrial base and the requirements of reciprocity;
Amendment 3 #
Motion for a resolution Recital A A. whereas the Defence Procurement Directive seeks to introduce fair and transparent rules for defence procurement
Amendment 30 #
Motion for a resolution Paragraph 3 b (new) 3b. Deplores the use of G2G exclusions to allow for FMS acquisitions on a very large scale from third country partners and the distortions of competition suffered by European actors;
Amendment 31 #
Motion for a resolution Paragraph 4 4. Considers that there is still a strong
Amendment 32 #
Motion for a resolution Paragraph 4 4. Considers that there is still a strong need to focus on the effective implementation and enforcement of the Defence Procurement Directive, considers that, for that to happen, the Member States should focus on ensuring equal treatment, transparency and competition and that the Commission should focus on implementing common reporting standards and providing the Member States with further guidelines on the application of the provisions laid down in the directive;
Amendment 33 #
Motion for a resolution Paragraph 4 4. Considers that there is still a strong need to focus on the effective implementation of the Defence Procurement Directive, considers that, for that to happen, the Member States should focus on ensuring equal treatment of suppliers of hardware manufactured in Europe, transparency and competition and that the Commission should focus on providing the Member States with further guidelines on the application of the provisions laid down in the directive;
Amendment 34 #
Motion for a resolution Paragraph 4 a (new) 4a. Stresses the need for coherence between the implementation of Directive 2009/81 and the European Defence Fund; as such, calls for tenders financed by ‘European’ funds should be reserved for European solutions;
Amendment 35 #
Motion for a resolution Paragraph 4 a (new) 4a. Calls on the Member States to properly implement the Defence Procurement Directives and those with a large established defence industry to lead by example;
Amendment 36 #
Motion for a resolution Paragraph 5 5. Considers that some aspects of the implementation of the Defence Procurement Directive could be improved, such as, where relevant, the Member States’ use of the open procedure as provided for in Directive 2014/24/EC9 and
Amendment 37 #
Motion for a resolution Paragraph 5 5. Considers that some aspects of the implementation of the Defence Procurement Directive could be improved, such as the Member States’ use of the open procedure as provided for in Directive 2014/24/EC9 and how consistently they apply that directive whenever possible; believes, however, that
Amendment 38 #
Motion for a resolution Paragraph 5 5. Considers that some aspects of the implementation of the Defence Procurement Directive could be improved, such as the Member States’ use of the open procedure as provided for in Directive 2014/24/EC9 and how consistently they apply that directive whenever possible; believes, however, that no revision of the Defence Procurement Directive is needed at this point, since the existing regulatory
Amendment 39 #
Motion for a resolution Paragraph 5 a (new) 5a. Wishes, on the other hand, for the exclusion be made more flexible for defence and security cooperation so as to allow for the participation of an additional Member State in a project, even after the R&D phase, and for it to be expanded to cover other forms of cooperation, such as cross-purchases between two Member States and government-to-government markets between Member States, and for user clubs to be created for solutions developed and conceived under the leadership of European industry;
Amendment 4 #
Motion for a resolution Recital C a (new) Ca. whereas the Defence Package Directives are needed to further develop a common European security and defence culture, based on the European Union's shared values and objectives, with respect to the specific character of the security and defence policies of the Member States;
Amendment 40 #
Motion for a resolution Paragraph 5 b (new) 5b. Considers that the Commission should clarify the conditions for the application of the government-to- government exclusion in order to avoid anti-competitive practices organised by third countries, such as foreign military sales (FMS), which lead to unfair competition and seriously hamper the capabilities of Member States’ companies; calls also for the guidance note on ‘government-to-government’ exclusion to cover new forms of procurement such as the Global-FMS concept;
Amendment 41 #
Motion for a resolution Paragraph 5 c (new) 5c. Calls for greater transparency on the advantages offered by the direct and indirect compensation negotiated by third countries in the European Union;
Amendment 42 #
Motion for a resolution Paragraph 6 6. Calls, therefore, on the Commission to
Amendment 43 #
Motion for a resolution Paragraph 8 8. Observes, further, that there was a slower and lower than expected uptake of certification, and that there are still barriers to effective application of the directive, with low levels of awareness, particularly among SMEs, of the tools available under the directive, and the system used by the Member States in their export controls, in addition to the lack of harmonisation in the implementation of GTLs, which act as major barriers to the effective application of the directive; underlines the fact that an introduction of the ‘de Minimis’ rule principle, known from the Schmidt-Debré harmonisation agreement, in bilateral and/or multilateral agreements between Member States has the potential to further stimulate participation of SMEs in joint ventures and common export licenses throughout the internal market;
Amendment 44 #
Motion for a resolution Paragraph 8 8. Observes, further, that there was a slower and lower than expected uptake of certification, and that there are still barriers to effective application of the directive, with low levels of awareness, particularly among SMEs, of the tools available under the directive and the opportunities that exist on the internal market, and of the system used by the Member States in their export controls, in addition to the lack of harmonisation in the implementation of GTLs, which act as major barriers to the effective application of the directive;
Amendment 45 #
Motion for a resolution Paragraph 8 a (new) 8a. Underlines that a more coherent interpretation and consistent implementation of the EU Common Position on Arms Exports is needed in order to limit fragmentation of the EU’s internal defence market and ensure the EU’s credibility as a global actor; calls for action to address any loopholes which may exist among and between the ICT directive, the Common Position and the Dual-Use Regulation; underlines the necessity for prior authorisation before re-exporting products and components, given the discrepancies in the implementation of the Common Position; behind this background, rejects the use of so called de-minimis rules for the transfer of components which exempt military technology from checks against the eight arms exports criteria up to a specifics threshold;
Amendment 46 #
Motion for a resolution Paragraph 8 b (new) 8b. Calls for the revision of the ICT directive with the aim of integrating the eight EU criteria on arms exports which would make sure that intra-Community transfers do not undermine arms export policies towards third countries and that there is an increase in convergence between Member States;
Amendment 47 #
Motion for a resolution Paragraph 9 9. Considers, therefore, that the Transfers Directive has only partially achieved its main objectives, in particular that of smoothing the circulation of defence-related products within the internal market and of having an efficient internal market, greater security of supply and improved competitiveness, and that a revision of the Transfers Directive is therefore needed;
Amendment 48 #
Motion for a resolution Paragraph 10 10. Underlines the importance of having a genuine internal market for intra- EU transfers of defence-related products, and also of facilitating transfers from third countries, while at the same time ensuring the transparent monitoring of the whole process, where national authorities are aware of what and to whom products are transferred and where the export authorisations and other restrictions to exports are brought to a required minimum;
Amendment 49 #
Motion for a resolution Paragraph 10 a (new) 10a. Recalls that the export of defence- related products, both within the Union and to non-EU countries, must remain at the sole discretion of the Member States.
Amendment 5 #
Motion for a resolution Recital D D. whereas the 2016 Commission evaluation concluded that the objectives of
Amendment 50 #
Motion for a resolution Paragraph 12 12. Calls on the Commission to
Amendment 51 #
Motion for a resolution Paragraph 12 a (new) 12a. Calls for increased development of contacts and exchanges between the national transfer control communities across the EU to address the existing divergences of transfer control practices and the lack of trust among Member States, as well as to assess the appointment of unique national points of contact for intra-EU transfers related issues1a; __________________ 1aResearch Paper on the implementation of Directive 2009/81/EC, concerning procurement in the fields of defence and security, and of Directive 2009/43/EC, concerning the transfer of defence-related products, written by Jean-Pierre Maulny and Dr Edouard Simon, Institut des Relations Internationales et Stratégiques (IRIS); and Dr Alessandro Marrone, Istituto Affari Internazionali (IAI)
Amendment 52 #
Motion for a resolution Paragraph 13 13. Calls on the Member States to take due account of the Commission recommendations on the scope of application and conditions of GTLs and to avoid adding conditions for transfers under GTLs, which would contradict or undermine the conditions listed in the recommendations; underlines the need to provide translations of national transfer licences regulations;
Amendment 53 #
Motion for a resolution Paragraph 15 15.
Amendment 54 #
Motion for a resolution Paragraph 16 a (new) 16a. Stresses that, in order to build a reliable and comprehensive European defence equipment market and an efficient defence sector, the Commission needs to present without further delay a comprehensive EU-wide Security of Supply regime which was asked for by the 19-20 December 2013 European Council and paragraph 21 of its conclusions but never presented by the Commission;
Amendment 55 #
Motion for a resolution Paragraph 17 17.
Amendment 56 #
Motion for a resolution Paragraph 17 17. Calls on the Commission and Member States to improve the quality, transparency and availability of data, such as TED data,
Amendment 57 #
Motion for a resolution Paragraph 17 a (new) 17a. Calls on the Commission to study the feasibility of establishing common standardised administrative forms with the objective of lowering businesses' administrative burden, particularly for SMEs, and build a European approach to transfers of defence-related products;
Amendment 58 #
Motion for a resolution Paragraph 18 18. Calls on the Commission to introduce a quicker simplified preliminary procedure in the first phase of the infringement procedure (administrative letter requesting explanations) in the event of a clear distortion of competition detrimental to a European company, and to be bold in enforcing the directives, including, where necessary, by making use of infringement procedures;
Amendment 59 #
Motion for a resolution Paragraph 18 18. Calls on the Commission to be
Amendment 6 #
Motion for a resolution Recital D a (new) Da. whereas following the military stances adopted by Erdoğan recently, Turkey is no longer a reliable ally in the fields of defence and security like other NATO members;
Amendment 60 #
Motion for a resolution Paragraph 18 18. Calls on the Commission to be bold in enforcing the directives, including, where necessary, by making more use of infringement procedures;
Amendment 61 #
Motion for a resolution Paragraph 19 19. Notes that SMEs appear to be less successful in winning contracts under the Defence Procurement Directive than in general EU public procurement; notes, further, that the subcontracting provisions of the directive have clearly not been used on a regular and structured basis by Member States’ authorities; finds that some Member States experience these provisions as complex and difficult to use, which partially explains the limited impact of the directive, and that there is hence a need for SMEs to be encouraged to participate in this process and for procedures to be simplified in order to cut red tape;
Amendment 62 #
Motion for a resolution Paragraph 19 a (new) 19a. Highlights that certification processes are regarded as costly, lengthy and burdensome, hence neither accessible nor attractive for SMEs;
Amendment 63 #
Motion for a resolution Paragraph 20 20. Considers, therefore, that the goal of increasing SME participation has
Amendment 64 #
Motion for a resolution Paragraph 21 21. Is of the opinion that the subcontracting provisions of the directive had no or a very limited impact on the cross-border access of sub-suppliers and defence SMEs; calls on the Member States to ascertain that their internal procedures a
Amendment 65 #
Motion for a resolution Paragraph 21 21. Is of the opinion that the
Amendment 66 #
Motion for a resolution Paragraph 21 a (new) 21a. Recalls the strategic nature of supply chain security and reaffirms the importance of provisions concerning subcontracting aimed at dramatically limiting the risks associated with supply chains being open or interrupted;
Amendment 67 #
Motion for a resolution Paragraph 22 22. Calls on the Commission to continue its work and thoroughly examine the causes behind the lack of SME participation, and consider creating an updated map of data on relevant SMEs, outlining their industrial and technological capabilities, which can be publicly accessed by prime contractors from other Member States in order to identify SMEs with relevant capabilities needed for a project;
Amendment 68 #
Motion for a resolution Paragraph 22 22. Calls on the Commission to continue its work and thoroughly examine the causes behind the lack of SME participation and to find an effective means for SMEs to participate in the public procurement process;
Amendment 69 #
Motion for a resolution Paragraph 23 23. Considers that Member-State action could significantly improve cross-border market access for SMEs and sub-suppliers in the defence sectors, and therefore, calls on the Member States to
Amendment 7 #
Motion for a resolution Recital E E. whereas the EPRS study pointed out the
Amendment 70 #
Motion for a resolution Paragraph 24 a (new) 24a. Calls on the Commission to improve access to finance for SMEs such as European guarantee funds;
Amendment 71 #
Motion for a resolution Paragraph 25 25. Considers that better implementation of the directives is critical in order to attain the overarching objective of improving the functioning of the internal market for defence products and of contributing to the establishment of an open EDEM
Amendment 72 #
Motion for a resolution Paragraph 25 a (new) 25a. Recalls the need to strengthen Member States’ strategic autonomy and technological sovereignty by reducing technological and industrial dependencies and by better controlling foreign subsidies and foreign direct investment in Europe, in order to protect critical European companies against attempts by third countries to control them;
Amendment 73 #
Motion for a resolution Paragraph 25 a (new) 25a. Urges the Commission and the Member States to generate without delay high quality data on the implementation of both directives and to consider the creation of dedicated NACE or NC codes as their absence hinders any attempt at measuring how the structure of the European defence industry has evolved and to assess the true Europeanisation of defence value-chains;
Amendment 74 #
Motion for a resolution Paragraph 26 26. Calls on the Commission to work towards increasing the uptake of the legislative framework on transfers of defence-related products, improving the availability of GTLs throughout the EU and addressing the limited application of the certification scheme, which
Amendment 75 #
Motion for a resolution Paragraph 28 28.
Amendment 76 #
Motion for a resolution Paragraph 28 28.
Amendment 8 #
Motion for a resolution Recital E a (new) Ea. whereas the EPRS report (p. 111) states that: ‘American FMS sales (foreign military sales) for the period 2016-2018 accounted for USD 55 billion or 32 % of the total defence procurement expenditure for all EU countries’; whereas Greece purchased 30 F-16 (FMS) in the midst of the Greek euro crisis of 2009-2010;
Amendment 9 #
Motion for a resolution Recital G a (new) Ga. whereas an important reason for the lack of participation of SMEs is the lack of cross-border access to supply chains; whereas, defence supply chains have a substantial national focus, which adds challenges for SMEs that wish to enter defence supply chains in other European countries; whereas, moreover, OEMs continue and limit themselves to subcontract SME's they have a pre- existing working relationship with, due to financial reasons;
source: 660.265
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