BETA


Events

2023/10/26
   Final act published in Official Journal
2023/10/18
   CSL - Draft final act
Documents
2023/10/18
   CSL - Final act signed
2023/10/17
   EP - End of procedure in Parliament
2023/10/09
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2023/09/12
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 530 votes to 66, with 32 abstentions, a legislative resolution 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.

Parliament’s position adopted at first reading following the ordinary legislative procedure amended the Commission proposal as follows:

Subject matter

Members stated that this Regulation establishes a short-term instrument for the reinforcement of the European defence industry through common procurement for the period stemming from the date of entry into force of this Regulation to 31 December 2025 .

Objectives

The Instrument has the following objectives:

- to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB) , including SMEs 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 through the creation and ramp-up of its manufacturing capacities and the opening of the supply chains for cross-border cooperation throughout the Union, thereby allowing the EDTIB to provide the defence products needed by Member States;

- to foster cooperation in defence procurement processes between participating Member States in order to contribute to solidarity, prevent crowding-out effects, increase the effectiveness of public spending and reduce excessive fragmentation, ultimately leading to an increase in the standardisation of defence systems and greater interoperability between Member States’ capabilities, while preserving the competitiveness and diversity of products available to Member States and in the supply chain.

The objectives should be pursued with an emphasis on strengthening and developing the EDTIB throughout the Union to allow it to address, in particular, the most urgent and critical defence product needs , especially those revealed or exacerbated by the response to the Russian war of aggression against Ukraine, such as the shipment of defence products to Ukraine, taking into account the objectives of the Strategic Compass for Security and Defence and considering the work of the Defence Joint Procurement Task Force. This may be achieved through the replenishment of stockpiles which are depleted as a result of defence-product transfers to Ukraine, including with equipment available on the market, as well as through the replacement of obsolete equipment and the reinforcement of capabilities.

Budget

The financial envelope for the implementation of the Instrument should be EUR 300 million in current prices from the period from the date of entry into force of this Regulation to 31 December 2025.

Associated countries

The Instrument should be open to the participation of those members of the European Free Trade Association which are members of the European Economic Area.

Use of financing not linked to costs

Grants should take the form of financing not linked to costs, pursuant to the Financial Regulation.

The level of the Union contribution attributed to each action may be defined on the basis of factors such as: the complexity of the common procurement, for which a proportion of the estimated value of the common procurement contract and the experience gained in similar actions may serve as an initial proxy; the characteristics of the cooperation which are likely to give rise to greater interoperability outcomes and long-term investment signals to industry; or the number of participating Member States and associated countries or the inclusion of additional Member States or associated countries in existing cooperations.

The Union financial contribution to each action should not exceed 15 % of the financial envelope for the implementation of the Instrument and should be capped at 15 % of the estimated value of the common procurement contract per consortium of Member States and associated countries.

This amount should be capped at 20 % of the financial envelope and at 20 % of the estimated value of the common procurement contract where at least one of the following conditions is met: (i) Ukraine or Moldova are one of the recipients of additional quantities of defence products in the procurement action; (ii) at least 15 % of the estimated value of the common procurement contract is allocated to SMEs or midcaps as contractors or subcontractors.

Award criteria

The Commission should evaluate proposals on the basis of the following criteria for the awarding of the grants:

- the number of Member States or associated countries participating in each common procurement;

- the estimated value of the common procurement;

- a demonstration of the action's contribution to the strengthening of the competitiveness and to the adaptation, modernisation and development of the EDTIB;

- a demonstration of the action’s contribution to the replenishment of stockpiles, including those depleted as a result of the response to Russia’s war of aggression against Ukraine, to the replacement of obsolete equipment, and to the reinforcement of capabilities;

- the action’s contribution to overcoming obstacles to common procurement;

- the extent of the action’s contribution to the competitiveness and adaptation of the EDTIB to structural changes, including technological changes;

- the participation of SMEs and mid-caps;

- the creation of new cross-border cooperation between contractors and subcontractors in the supply chains throughout the Union.

Member States should determine among themselves the arrangements applicable to the protection of classified information for the purposes of the common procurements.

Evaluation report

The Commission should draw up an evaluation report on the instrument and submit it to the European Parliament and the Council by 31 December 2026 at the latest. This report should evaluate the impact and effectiveness of the actions undertaken under the Instrument, while also thinking critically ahead about ways to secure all the components needed in the Union defence supply chain.

Furthermore, the evaluation report should identify shortfalls and critical dependencies on non-associated third countries in respect of raw materials, components and production capacities, building on work undertaken in the context of the Observatory of Critical Technologies. The evaluation report should inform the Commission’s work on technology roadmaps, including mitigation measures to address those shortfalls and critical dependencies.

Documents
2023/09/11
   EP - Debate in Parliament
2023/07/17
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
2023/07/05
   CSL - Coreper letter confirming interinstitutional agreement
2023/07/05
   EP - Text agreed during interinstitutional negotiations
Documents
2023/05/10
   EP - Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
2023/05/08
   EP - Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
2023/04/28
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on Foreign Affairs and the Committee on Industry, Research and Energy adopted the joint report by Michael GAHLER (EPP, DE) and Zdzisław KRASNODĘBSKI (ECR, PL) 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.

The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:

Subject matter

The report clarified that the draft Regulation establishes a short-term instrument for European Defence Industry Reinforcement through common Procurement Act.

Objectives

The Instrument has the following objectives:

- to foster the competitiveness and efficiency of the EDTIB , including SMEs and mid-capitalisation companies (mid-caps), for a more resilient and secure Union, in particular by speeding up, in a collaborative manner, the adjustment of industry, in a cost-efficient way, to structural and technological changes, including enhancing its manufacturing capacities through technological innovation and the opening of the supply chains with cross-border engagement throughout the Union, thereby enhancing the EDTIB’s capacity to provide the most critical and urgent defence products needed by Member States;

- to foster cooperation in defence procurement process between Member States in order to contribute to solidarity, interoperability, and the prevention of crowding-out effects, as well as the reduction of fragmentation and the increase of the effectiveness of public spending and to foster a closer convergence of national standards and requirements in the field of the procurement of defence products, whilst preserving the competitiveness and diversity of products available to Member States and in the supply chain.

The objectives should be pursued with an emphasis on strengthening, developing and expanding EDTIB throughout the Union 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. This can be achieved through the replenishment of stockpiles which are depleted as a result of defence products transfers to Ukraine, including with the equipment available on the market, as well as through the replacement of obsolete equipment , in particular military equipment solutions designed and/or produced in the Soviet Union or later military equipment solutions based on them, and the reinforcement of overall defence capabilities.

Budget

The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 should be EUR 1 billion in current prices. The Union financial contribution to each action should not exceed 15 % of the overall amount and should be capped at 20 % of the estimated value of the common procurement contract per consortium of Member States and associated countries.

Participation of third countries

Apart from EU Member States, the instrument should be open to the participation of countries that are both Members of the European Free Trade Association and the European Economic Area - i.e. Iceland, Liechtenstein and Norway. Members stated that Member States that engage in a joint defence product procurement may also agree to procure additional products with Ukraine and Moldova.

Monitoring and reporting

By 31 December 2024, the Commission, in cooperation with the European Defence Agency, should draw up an evaluation report for the Instrument. The report should evaluate the contribution of the Instrument to the:

- creation of new cross-border cooperation between Member States and associated countries;

- participation of SMEs and mid-caps in the action, as contractors or subcontractors in the supply chain;

- strengthening of the EDTIB throughout the Union and ensuring a level-playing field for suppliers from the Member States;

- replenishment of stockpiles that have been depleted due to transfers of defence products to Ukraine;

- replacement of obsolete military equipment solutions designed and/or produced in the Soviet Union or later military equipment solutions based on them with Union solutions.

The report should identify the involvement of each Member State and evaluate the potential bottlenecks in the functioning of the Instrument.

In addition, the report should identify areas of critical dependencies and shortfalls regarding raw materials, components and production capacities of third-country origin, including an assessment of the possibilities for the development of alternatives within the Union.

Documents
2023/04/25
   EP - Vote in committee, 1st reading
2023/04/25
   EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2023/03/29
   EP - Committee opinion
Documents
2023/03/28
   EP - Committee opinion
Documents
2023/03/28
   EP - Committee opinion
Documents
2023/02/13
   EP - Amendments tabled in committee
Documents
2023/01/19
   EP - Referral to joint committee announced in Parliament
2023/01/18
   EP - Committee draft report
Documents
2022/12/20
   PT_PARLIAMENT - Contribution
Documents
2022/12/15
   EP - Referral to associated committees announced in Parliament
2022/12/08
   EP - GAHLER Michael (EPP) appointed as rapporteur in ['AFET', 'ITRE']
2022/12/08
   EP - KRASNODĘBSKI Zdzisław (ECR) appointed as rapporteur in ['AFET', 'ITRE']
2022/11/29
   EP - IJABS Ivars (Renew) appointed as rapporteur in IMCO
2022/11/03
   RO_SENATE - Contribution
Documents
2022/10/16
   SE_PARLIAMENT - Contribution
Documents
2022/10/11
   EP - HOHLMEIER Monika (EPP) appointed as rapporteur in CONT
2022/10/09
   ES_PARLIAMENT - Contribution
Documents
2022/09/21
   ESC - Economic and Social Committee: opinion, report
Documents
2022/09/13
   EP - RESSLER Karlo (EPP) appointed as rapporteur in BUDG
2022/09/12
   EP - Committee referral announced in Parliament, 1st reading
2022/07/19
   EC - Legislative proposal published
Details

PURPOSE: to establish the European defence industry reinforcement through common procurement act.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the invasion of Ukraine by Russia on 24 February 2022 and the ongoing armed conflict in Ukraine has led to the return of high-intensity warfare and territorial conflict in Europe , requiring 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.

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. The Versailles declaration notably states that Member States should: (i) increase defence expenditures; (ii) step up cooperation through joint projects; (iii) close shortfalls and meet capability objectives; (iv) boost innovation including through civil/military synergies; (v) strengthen and develop the EU defence industry, including SMEs.

While cooperation presents several obvious advantages (increased interoperability, reduced unit and maintenance costs) EU Member States continue to procure defence systems in a mostly national manner . According to European Defence Agency Data for 2020, EU Member States invested only EUR 4.1 billion in collaborative defence equipment procurement (11% of their total spending), a 13% decrease compared to 2019. This is far below the 35% benchmark to which Member States committed. Fragmentation of the demand side of the defence market results into a series of problems and inefficiencies, including on the supply side, while increasing maintenance costs of a plethora of different systems.

Incentivising joint procurement is therefore a necessity . The current situation requires a policy intervention at EU level to improve the level of cooperation by incentivising financial cooperation between Member States in the defence procurement process.

CONTENT: the proposal aims at establishing a short-term instrument to enhance Member States' collaboration in the defence procurement phase . It will incentivise Member States to pursue collaborative actions and in particular, when they procure in order to fill these gaps, to do so jointly, increasing the level of interoperability and strengthening and reforming their defence industrial capabilities.

The Instrument will help to reinforce and develop the Union defence industrial base to allow it to address the industrial gaps relative to the most urgent and critical defence products needs especially those revealed or exacerbated by the response to the Russian aggression against Ukraine.

The proposed Instrument will complement existing EU programmes such as the European Defence Industrial Development Programme and the European Defence Fund as well as EU defence initiatives such as the Permanent Structured Cooperation (PESCO). It will also generate synergies with the implementation of the Strategic Compass for Security and Defence and other EU programmes. In order to benefit from the instrument, 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.

The Instrument also takes up the European Defence Fund’s approach when it comes to forbidding support for goods or services, which are prohibited by applicable international law, or lethal autonomous weapons without the possibility for meaningful human control over selection and engagement decisions when carrying out strikes against humans.

The financial envelope for the implementation of the Instrument for the period from period from the entry into force to 31 December 2024 shall be EUR 500 million in current prices.

Documents

Activities

Votes

Mise en place de l’instrument visant à renforcer l’industrie européenne de la défense au moyen d’acquisitions conjointes - A9-0161/2023 - Michael Gahler, Zdzisław Krasnodębski - Accord provisoire - Am 2 #

2023/09/12 Outcome: +: 530, -: 66, 0: 32
DE IT PL ES FR RO NL SE HU CZ BE EL PT BG FI LT DK HR AT SI SK EE LV LU IE MT CY
Total
85
64
45
53
74
30
27
19
16
19
19
19
21
13
12
11
13
12
17
8
9
6
7
5
13
5
6
icon: PPE PPE
159

Hungary PPE

1

Denmark PPE

For (1)

1

Estonia PPE

For (1)

1

Latvia PPE

2

Luxembourg PPE

1

Malta PPE

For (1)

1

Cyprus PPE

2
icon: S&D S&D
125

Czechia S&D

For (1)

1

Belgium S&D

1

Greece S&D

1

Bulgaria S&D

Abstain (1)

4

Finland S&D

1

Lithuania S&D

2

Denmark S&D

2

Slovenia S&D

2

Slovakia S&D

2

Estonia S&D

2

Latvia S&D

2

Luxembourg S&D

For (1)

1
4

Cyprus S&D

2
icon: Renew Renew
94

Poland Renew

1
3

Hungary Renew

2

Greece Renew

1

Bulgaria Renew

2

Finland Renew

3

Lithuania Renew

1

Croatia Renew

For (1)

1

Slovenia Renew

2

Slovakia Renew

2

Estonia Renew

2

Latvia Renew

For (1)

1

Luxembourg Renew

2

Ireland Renew

2
icon: ECR ECR
57

Romania ECR

1

Netherlands ECR

Against (1)

Abstain (2)

5

Greece ECR

1

Bulgaria ECR

1

Lithuania ECR

1

Croatia ECR

1

Slovakia ECR

For (1)

1

Latvia ECR

For (1)

1
icon: Verts/ALE Verts/ALE
65

Italy Verts/ALE

Abstain (1)

3

Poland Verts/ALE

For (1)

1

Spain Verts/ALE

Against (1)

4

Romania Verts/ALE

1

Netherlands Verts/ALE

3

Sweden Verts/ALE

2

Czechia Verts/ALE

2

Belgium Verts/ALE

3

Portugal Verts/ALE

1

Finland Verts/ALE

2

Lithuania Verts/ALE

2

Denmark Verts/ALE

2

Austria Verts/ALE

3

Luxembourg Verts/ALE

For (1)

1

Ireland Verts/ALE

2
icon: NI NI
36

Germany NI

For (1)

3

France NI

Against (1)

3

Netherlands NI

For (1)

Against (1)

2

Belgium NI

For (1)

1

Lithuania NI

1

Croatia NI

2

Latvia NI

Against (1)

1
icon: ID ID
57

Czechia ID

Against (1)

1

Denmark ID

Against (1)

1

Austria ID

3

Estonia ID

For (1)

1
icon: The Left The Left
35

France The Left

Against (1)

5

Netherlands The Left

Abstain (1)

1

Sweden The Left

For (1)

1

Czechia The Left

Against (1)

1

Belgium The Left

Against (1)

1

Finland The Left

For (1)

1

Denmark The Left

1

Ireland The Left

Abstain (1)

4

Cyprus The Left

2
AmendmentsDossier
497 2022/0219(COD)
2023/02/01 IMCO 129 amendments...
source: 740.803
2023/02/13 AFET, ITRE 299 amendments...
source: 742.484
2023/02/16 BUDG 40 amendments...
source: 742.512
2023/03/02 CONT 29 amendments...
source: 745.171

History

(these mark the time of scraping, not the official date of the change)

events/15
date
2023-10-26T00:00:00
type
Final act published in Official Journal
procedure/final
title
Regulation 2023/2418
url
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32023R2418
procedure/stage_reached
Old
Procedure completed, awaiting publication in Official Journal
New
Procedure completed
events/14
date
2023-10-18T00:00:00
type
Final act signed
body
CSL
procedure/stage_reached
Old
Awaiting signature of act
New
Procedure completed, awaiting publication in Official Journal
events/13
date
2023-10-17T00:00:00
type
End of procedure in Parliament
body
EP
docs/8
date
2023-10-18T00:00:00
docs
title: 00040/2023/LEX
type
Draft final act
body
CSL
events/12
date
2023-10-09T00:00:00
type
Act adopted by Council after Parliament's 1st reading
body
EP/CSL
procedure/stage_reached
Old
Awaiting Council's 1st reading position
New
Awaiting signature of act
docs/8
date
2023-09-12T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2023-0301_EN.html title: T9-0301/2023
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/11/summary
  • The European Parliament adopted by 530 votes to 66, with 32 abstentions, a legislative resolution 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.
  • Parliament’s position adopted at first reading following the ordinary legislative procedure amended the Commission proposal as follows:
  • Subject matter
  • Members stated that this Regulation establishes a short-term instrument for the reinforcement of the European defence industry through common procurement for the period stemming from the date of entry into force of this Regulation to 31 December 2025 .
  • Objectives
  • The Instrument has the following objectives:
  • - to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB) , including SMEs 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 through the creation and ramp-up of its manufacturing capacities and the opening of the supply chains for cross-border cooperation throughout the Union, thereby allowing the EDTIB to provide the defence products needed by Member States;
  • - to foster cooperation in defence procurement processes between participating Member States in order to contribute to solidarity, prevent crowding-out effects, increase the effectiveness of public spending and reduce excessive fragmentation, ultimately leading to an increase in the standardisation of defence systems and greater interoperability between Member States’ capabilities, while preserving the competitiveness and diversity of products available to Member States and in the supply chain.
  • The objectives should be pursued with an emphasis on strengthening and developing the EDTIB throughout the Union to allow it to address, in particular, the most urgent and critical defence product needs , especially those revealed or exacerbated by the response to the Russian war of aggression against Ukraine, such as the shipment of defence products to Ukraine, taking into account the objectives of the Strategic Compass for Security and Defence and considering the work of the Defence Joint Procurement Task Force. This may be achieved through the replenishment of stockpiles which are depleted as a result of defence-product transfers to Ukraine, including with equipment available on the market, as well as through the replacement of obsolete equipment and the reinforcement of capabilities.
  • Budget
  • The financial envelope for the implementation of the Instrument should be EUR 300 million in current prices from the period from the date of entry into force of this Regulation to 31 December 2025.
  • Associated countries
  • The Instrument should be open to the participation of those members of the European Free Trade Association which are members of the European Economic Area.
  • Use of financing not linked to costs
  • Grants should take the form of financing not linked to costs, pursuant to the Financial Regulation.
  • The level of the Union contribution attributed to each action may be defined on the basis of factors such as: the complexity of the common procurement, for which a proportion of the estimated value of the common procurement contract and the experience gained in similar actions may serve as an initial proxy; the characteristics of the cooperation which are likely to give rise to greater interoperability outcomes and long-term investment signals to industry; or the number of participating Member States and associated countries or the inclusion of additional Member States or associated countries in existing cooperations.
  • The Union financial contribution to each action should not exceed 15 % of the financial envelope for the implementation of the Instrument and should be capped at 15 % of the estimated value of the common procurement contract per consortium of Member States and associated countries.
  • This amount should be capped at 20 % of the financial envelope and at 20 % of the estimated value of the common procurement contract where at least one of the following conditions is met: (i) Ukraine or Moldova are one of the recipients of additional quantities of defence products in the procurement action; (ii) at least 15 % of the estimated value of the common procurement contract is allocated to SMEs or midcaps as contractors or subcontractors.
  • Award criteria
  • The Commission should evaluate proposals on the basis of the following criteria for the awarding of the grants:
  • - the number of Member States or associated countries participating in each common procurement;
  • - the estimated value of the common procurement;
  • - a demonstration of the action's contribution to the strengthening of the competitiveness and to the adaptation, modernisation and development of the EDTIB;
  • - a demonstration of the action’s contribution to the replenishment of stockpiles, including those depleted as a result of the response to Russia’s war of aggression against Ukraine, to the replacement of obsolete equipment, and to the reinforcement of capabilities;
  • - the action’s contribution to overcoming obstacles to common procurement;
  • - the extent of the action’s contribution to the competitiveness and adaptation of the EDTIB to structural changes, including technological changes;
  • - the participation of SMEs and mid-caps;
  • - the creation of new cross-border cooperation between contractors and subcontractors in the supply chains throughout the Union.
  • Member States should determine among themselves the arrangements applicable to the protection of classified information for the purposes of the common procurements.
  • Evaluation report
  • The Commission should draw up an evaluation report on the instrument and submit it to the European Parliament and the Council by 31 December 2026 at the latest. This report should evaluate the impact and effectiveness of the actions undertaken under the Instrument, while also thinking critically ahead about ways to secure all the components needed in the Union defence supply chain.
  • Furthermore, the evaluation report should identify shortfalls and critical dependencies on non-associated third countries in respect of raw materials, components and production capacities, building on work undertaken in the context of the Observatory of Critical Technologies. The evaluation report should inform the Commission’s work on technology roadmaps, including mitigation measures to address those shortfalls and critical dependencies.
docs/8
date
2023-09-12T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2023-0301_EN.html title: T9-0301/2023
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/10/docs
  • url: https://www.europarl.europa.eu/doceo/document/CRE-9-2023-09-11-TOC_EN.html title: Debate in Parliament
events/11
date
2023-09-12T00:00:00
type
Decision by Parliament, 1st reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2023-0301_EN.html title: T9-0301/2023
forecasts
  • date: 2023-09-12T00:00:00 title: Vote in plenary scheduled
procedure/stage_reached
Old
Awaiting Parliament's position in 1st reading
New
Awaiting Council's 1st reading position
events/10
date
2023-09-11T00:00:00
type
Debate in Parliament
body
EP
forecasts/0
date
2023-09-11T00:00:00
title
Debate in plenary scheduled
forecasts/0/title
Old
Indicative plenary sitting date
New
Debate in plenary scheduled
forecasts/1
date
2023-09-12T00:00:00
title
Vote in plenary scheduled
docs/9
date
2022-12-20T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2022)0349 title: COM(2022)0349
type
Contribution
body
PT_PARLIAMENT
events/9
date
2023-07-17T00:00:00
type
Approval in committee of the text agreed at 1st reading interinstitutional negotiations
body
EP
docs
docs/6/docs/0/url
https://www.europarl.europa.eu/RegData/commissions/afet/lcag/2023/07-05/CJ42_LA(2023)004484_EN.pdf
docs/7
date
2023-07-05T00:00:00
docs
url: https://www.europarl.europa.eu/RegData/commissions/itre/inag/2023/07-05/CJ42_AG(2023)751750_EN.pdf title: PE751.750
type
Text agreed during interinstitutional negotiations
body
EP
docs/6
date
2023-07-05T00:00:00
docs
title: GEDA/A/(2023)004484
type
Coreper letter confirming interinstitutional agreement
body
CSL
forecasts
  • date: 2023-09-11T00:00:00 title: Indicative plenary sitting date
docs/6
date
2023-04-28T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2023-0161_EN.html title: A9-0161/2023
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/6/summary
  • The Committee on Foreign Affairs and the Committee on Industry, Research and Energy adopted the joint report by Michael GAHLER (EPP, DE) and Zdzisław KRASNODĘBSKI (ECR, PL) 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.
  • The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:
  • Subject matter
  • The report clarified that the draft Regulation establishes a short-term instrument for European Defence Industry Reinforcement through common Procurement Act.
  • Objectives
  • The Instrument has the following objectives:
  • - to foster the competitiveness and efficiency of the EDTIB , including SMEs and mid-capitalisation companies (mid-caps), for a more resilient and secure Union, in particular by speeding up, in a collaborative manner, the adjustment of industry, in a cost-efficient way, to structural and technological changes, including enhancing its manufacturing capacities through technological innovation and the opening of the supply chains with cross-border engagement throughout the Union, thereby enhancing the EDTIB’s capacity to provide the most critical and urgent defence products needed by Member States;
  • - to foster cooperation in defence procurement process between Member States in order to contribute to solidarity, interoperability, and the prevention of crowding-out effects, as well as the reduction of fragmentation and the increase of the effectiveness of public spending and to foster a closer convergence of national standards and requirements in the field of the procurement of defence products, whilst preserving the competitiveness and diversity of products available to Member States and in the supply chain.
  • The objectives should be pursued with an emphasis on strengthening, developing and expanding EDTIB throughout the Union 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. This can be achieved through the replenishment of stockpiles which are depleted as a result of defence products transfers to Ukraine, including with the equipment available on the market, as well as through the replacement of obsolete equipment , in particular military equipment solutions designed and/or produced in the Soviet Union or later military equipment solutions based on them, and the reinforcement of overall defence capabilities.
  • Budget
  • The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 should be EUR 1 billion in current prices. The Union financial contribution to each action should not exceed 15 % of the overall amount and should be capped at 20 % of the estimated value of the common procurement contract per consortium of Member States and associated countries.
  • Participation of third countries
  • Apart from EU Member States, the instrument should be open to the participation of countries that are both Members of the European Free Trade Association and the European Economic Area - i.e. Iceland, Liechtenstein and Norway. Members stated that Member States that engage in a joint defence product procurement may also agree to procure additional products with Ukraine and Moldova.
  • Monitoring and reporting
  • By 31 December 2024, the Commission, in cooperation with the European Defence Agency, should draw up an evaluation report for the Instrument. The report should evaluate the contribution of the Instrument to the:
  • - creation of new cross-border cooperation between Member States and associated countries;
  • - participation of SMEs and mid-caps in the action, as contractors or subcontractors in the supply chain;
  • - strengthening of the EDTIB throughout the Union and ensuring a level-playing field for suppliers from the Member States;
  • - replenishment of stockpiles that have been depleted due to transfers of defence products to Ukraine;
  • - replacement of obsolete military equipment solutions designed and/or produced in the Soviet Union or later military equipment solutions based on them with Union solutions.
  • The report should identify the involvement of each Member State and evaluate the potential bottlenecks in the functioning of the Instrument.
  • In addition, the report should identify areas of critical dependencies and shortfalls regarding raw materials, components and production capacities of third-country origin, including an assessment of the possibilities for the development of alternatives within the Union.
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Rules of Procedure EP 58
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