2022/0219(COD) | [ParlTrack]

Proposal for a regulation
Article 8 – paragraph 10 a (new)

10 a. The cost of components originating in non-associated third countries shall not exceed 20 percent of the value of the end product. No components shall be sourced from non- associated third countries that contravene the security and defence interests of the Union and its Member States, in particular Russia.

Amendment 112 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 8 – paragraph 10 a (new)

10 a. No components shall be sourced from non-associated third countries that contravene the security and defence interests of the Union and its Member States, including respect for the principle of good neighbourly relations.

Amendment 113 #

Proposal for a regulation
Article 8 – paragraph 10 b (new)

10 b. By the way of derogation from paragraph 10a, the cost of components originating in non-associated third countries that are members of NATO shall not exceed 50 percent of the value of the end product.

Amendment 114 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 9 – paragraph 1 – point a

(a) public ~~contracting~~ authorities or contracting entities as defined in Directives 2014/24/EU9 and 2014/25/EU10 of the European Parliament and of the Council; _________________ 9 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). 10 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).f Member States recognised as such by national law;

Amendment 115 #

Proposal for a regulation
Article 9 – paragraph 1 – point a

Amendment 116 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Arba KOKALARI

Proposal for a regulation
Article 9 – paragraph 1 – point b

(b) public authorities of associated ~~third~~ countries.

Amendment 117 #

Proposal for a regulation
Article 9 – paragraph 1 – point b a (new)

(b a) procurement agents referred to in Article 2(5)

Amendment 118 #

Proposal for a regulation
Article 10 – paragraph 1 – point 1

1. The contribution of the action to strengthening and developing the Union defence industrial base to allow it to address in particular the most urgent and critical defence products needs as referred to in Article 3, including with respect to procurement procedure and delivery lead times, replenishment of stocks, availability and supply; (a) the contribution to the creation of new cross-border cooperation between the Member States or associated third countries; (b) the demonstration of the action’s contribution to the replenishment of stockpiles that have been depleted as a result of the response to the Russian military aggression against Ukraine; (c) the demonstration of the action’s contribution to the replacement of stockpiles of Soviet-era legacy defence systems with European solutions; (d) the contribution of the action to strengthening and developing the Union defence industrial base to allow it to address in particular the most urgent and critical defence products needs as referred to in Article 3, including with respect to procurement procedure and delivery lead times, replenishment of stocks and replacement of stocks with European solutions, availability and supply; (e) the contribution of the action to competitiveness and adaptation of the EDTIB throughout the Union, including through the envisaged ramp-up of its manufacturing capacities, reservation of manufacturing capacities, its reskilling and upskilling, and overall modernization; (f) the contribution of the action to strengthening cooperation among Member States or associated third countries and interoperability of products; (g) the participation of contractors and subcontractors established in Member States that have a common border with Russia or with countries aggressed by Russia, or that have their territorial waters or Exclusive Economic Zones adjacent to those of the countries aggressed by Russia; (h) the estimated size of the common procurement and any declaration by the participants that they will jointly use, stockpile, own or maintain the procured defence products; (i) catalytic effect of Union financial support through demonstration of how the Union contribution can overcome obstacles to common procurement; (j) quality and efficiency of the plans for carrying out of the action. The weighting of the award criteria shall be determined by the Commission, assisted by the Committee as referred to in Article 14.

Amendment 119 #

Sven MIKSER, Marc ANGEL, René REPASI

Proposal for a regulation
Article 10 – paragraph 1 – point 1

1. The contribution of the action to ~~1. strengthening and developing the Union defence industrial base to allow it to address in particular the most urgent and critical defence products ne~~address the most urgent and critical defence products in particular the replenishment of stockpiles that have been depleteds as ~~referred to in Article 3, including with respect to procurement procedure and delivery lead times, replenishment of stocks, availability and supply~~a result of the unprovoked and unjustified military aggression against Ukraine, as well as the replacement and reinforcement of capabilities as referred to in Article 3;

Amendment 120 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Article 10 – paragraph 1 – point 1

1. The cdemonstr~~ibu~~ation of the action's contribution to strengthening, modernising and developing the ~~Union defence industrial base~~EDTIB to allow it to address in particular the most urgent and critical defence products needs as referred to in Article 3, including with respect to procurement procedure and delivery lead times, replenishment of stocks, availability and supply;

Amendment 121 #

Proposal for a regulation
Article 10 – paragraph 1 – point 1

1. The contribution of the action to strengthening and developing the ~~Union~~ defence industrial base of the EU Member States to allow ithem to address in particular the most urgent and critical defence products needs as referred to in Article 3, including with respect to procurement procedure and delivery lead times, replenishment of stocks, availability and supply;

Amendment 122 #

Proposal for a regulation
Article 10 – paragraph 1 – point 1 a (new)

1 a. the demonstration of the action’s contribution to the replenishment of stockpiles, including those that have been depleted as a result of the response to the military aggression against Ukraine, as well as the replacement and reinforcement of capabilities as referred to in Article 3;

Amendment 123 #

Proposal for a regulation
Article 10 – paragraph 1 – point 2

2. the contribution of the action to competitiveness and adaptation of the EDTIB, including through the envisaged ramp-up of its manufacturing capacities, reservation of manufacturing capacities, its reskilling and upskilling, and overall modernization;deleted

Amendment 124 #

Proposal for a regulation
Article 10 – paragraph 1 – point 2

Amendment 125 #

Proposal for a regulation
Article 10 – paragraph 1 – point 3

~~3. the contribution of the action to strengthening cooperation among Member States or associated countries and interoperability of products;~~deleted

Amendment 126 #

Proposal for a regulation
Article 10 – paragraph 1 – point 3

3. the contribution of the action to strengthening coo~~peration among Member States or associated countries and interoperability of~~rdination, cooperation and interoperability of products among Member States or associated countries in particular the proportional sharing of technical financial risks and opportunities to address, in particular the most urgent and critical defence products; needs;

Amendment 127 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Tomislav SOKOL, Arba KOKALARI

Proposal for a regulation
Article 10 – paragraph 1 – point 4

~~4. the number of Member States or associated countries participating in the common procurement;~~deleted

Amendment 128 #

Sven MIKSER, Marc ANGEL

Proposal for a regulation
Article 10 – paragraph 1 – point 4

4. the number of Member States or associated countries participating in the common procurement, the value of defence product transfers to Ukraine, proportional to population and GDP and decrease in defence product stockpiles since 24 February 2022;

Amendment 129 #

Proposal for a regulation
Article 10 – paragraph 1 – point 4

4. the number of Member States or associated countries or third countries that are candidates for accession to the European Union participating in the common procurement;

Amendment 130 #

Proposal for a regulation
Article 10 – paragraph 1 – point 4 a (new)

4 a. the estimated value of the common procurement;

Amendment 131 #

Proposal for a regulation
Article 10 – paragraph 1 – point 5

~~5. the estimated size of the common procurement and any declaration by the participants that they will jointly use, stockpile, own or maintain the procured defence products;~~deleted

Amendment 132 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 10 – paragraph 1 – point 5

5. the estimated ~~siz~~value of the common procurement ~~and any declaration by the participants that they will jointly use, stockpile, own or maintain the procured defence products~~;

Amendment 133 #

Proposal for a regulation
Article 10 – paragraph 1 – point 6

~~6. catalytic effect of Union financial support through demonstration of how the Union contribution can overcome obstacles to common procurement;~~deleted

Amendment 134 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 10 – paragraph 1 – point 6

6. ~~catalytic effect of Union financial support through demonstration of how the Union contribution can overcome obstacles to common procurement~~the action’s contribution to the creation of new cross-border cooperation between contractors and subcontractors and the enhancement of existing as well as the creation of new durable supply chains throughout the Union;

Amendment 135 #

Proposal for a regulation
Article 10 – paragraph 1 – point 7

~~7. quality and efficiency of the plans for carrying out of the action.~~deleted

Amendment 136 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Tomislav SOKOL, Arba KOKALARI

Proposal for a regulation
Article 10 – paragraph 1 – point 7 a (new)

7 a. the extent of the action's contribution to diversify supply chains through the involvement of SMEs and mid-caps;

Amendment 137 #

Sandro GOZI, Stéphanie YON-COURTIN, Jordi CAÑAS, Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Georgios KYRTSOS, Olivier CHASTEL

Proposal for a regulation
Article 10 – paragraph 1 – point 7 a (new)

7 a. The interplay of the action within the framework of the European Defence Fund.

Amendment 138 #

Proposal for a regulation
Article 10 – paragraph 1 – point 7 a (new)

7 a. the participation of SMEs as contractors or subcontractors;

Amendment 139 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Article 10 – paragraph 1 – point 7 a (new)

7 a. the participation of SMEs and Mid-caps.

Amendment 14 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Recital 4

(4) A dedicated short-term instrument, designed in a spirit of solidarity, was indicated as a tool to incentivise Member States, on a voluntary basis, to pursue common procurement to fill the most urgent and critical gaps, especially those created by the response to the current Russia’s aggression, in a collaborative way, and allow and incentivise further military assistance to Ukraine.

Amendment 140 #

Sandro GOZI, Stéphanie YON-COURTIN, Jordi CAÑAS, Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Georgios KYRTSOS, Olivier CHASTEL

Proposal for a regulation
Article 10 – paragraph 1 – point 7 b (new)

7 b. The contribution of the action to diversifying the supply chain by involving SMEs and mid-capitalisation companies in the manufacturing process in the manufacturing process.

Amendment 141 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, Maria GRAPINI, René REPASI, Brando BENIFEI, Patrizia TOIA

Proposal for a regulation
Article 10 – paragraph 1 a (new)

the participation of SMEs, start-ups and mid-caps;

Amendment 142 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI, Brando BENIFEI, Patrizia TOIA

Proposal for a regulation
Article 10 – paragraph 1 b (new)

the impact on the defence sector R&D and the innovation capability.

Amendment 15 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, Maria GRAPINI, René REPASI

Proposal for a regulation
Recital 5

(5) Such a new instrument will contribute to reinforce common defence procurement, in particular, achieving the 35% aim of total defence equipment spending for procurement in cooperation with other Member States and, through the associated Union financing, to strengthen EU defence industrial capabilities in a cost-efficient manner that utilises economies of scale.

Amendment 16 #

Proposal for a regulation
Recital 5

(5) Such a new instrument will contribute to reinforce common defence procurement and, through the associated Union financing, to strengthen EU Member States' defence industrial capabilities.

Amendment 17 #

Proposal for a regulation
Recital 12 a (new)

(12 a) The Instrument has to serve as a precursor for the European Defence Investment Plan (EDIP), a long-term procurement instrument that should enhance the competitiveness, the efficiency, the industrial capacity, the interoperability and the consolidation of the European Defence Industrial Base.

Amendment 18 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 12 b (new)

(12 b) The Instrument should be accompanied by efforts to strengthen and harmonise the European defence and security markets, services and systems in order to create a level-playing field for suppliers from all Member States, specially SMEs and Mid-caps.

Amendment 19 #

Proposal for a regulation
Recital 14

(14) This Instrument will build on and take into account the work of the Member States and the Defence Joint Procurement Task Force established by the Commission and the High Representative/Head of Agency, in line with the Joint Communication ‘Defence Investment Gaps Analysis and Way Forward”, to coordinate very short-term defence procurement needs and engage with Member States and EU defence manufacturers to support joint procurement to replenish stocks, notably in light of the support provided to Ukraine.

Amendment 20 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 16

(16) As the instrument aims to enhance the competitiveness and efficiency of the Union’s defence industry, 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. In that context, control should be understood to be the ability to exercise a decisive influence on a legal entity directly, or indirectly through one or more intermediate legal entities. Additionally, in order to ensure the protection of essential security and defence interests of the Union and its Member States, the infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Taking into account the short-term need to replenish and expand defence stocks, especially those exacerbated by the transfer of defence products to Ukraine, this restriction should not apply to subcontractors. At the same time, the cost of components originating in non- associated third countries should not exceed 20 percent of the value of the end product. This limit should be increased to 50 percent of the value of the end product for the components originating in non- associated third countries that are members of NATO. Components should not be sourced from non-associated third countries that contravene the security and defence interests of the Union and its Member States, including the respect for the principle of good neighbourly relations.

Amendment 21 #

Proposal for a regulation
Recital 16

Amendment 22 #

Stéphanie YON-COURTIN, Sandro GOZI, Jordi CAÑAS, Dominique RIQUET, Nathalie LOISEAU, Georgios KYRTSOS, Olivier CHASTEL

Proposal for a regulation
Recital 16

(16) As the instrument aims to enhance the competitiveness ~~and~~, efficiency and the independence of the Union’s defence industry, to benefit from the instrument, according to the legal basis, common procurement contracts will need to be placed with legal entities which are established in the Union or in associated countries and are not subject to control by non-associated third countries or by non- associated third- country entities. In that context, control should be understood to be the ability to exercise a decisive influence on a legal entity directly, or indirectly through one or more intermediate legal entities. Additionally, in order to ensure the protection of essential security and defence interests of the Union and its Member States, the infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country.

Amendment 23 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 16

(16) As the iInstrument aims to enhance the competitiveness and efficiency of the Union’s defence industry, to benefit from the instrument, common procurement contracts will need to be placed with ~~legal entities which are~~contractors and subcontractors established in the Union or in associated countries and are not subject to control by non-associated third countries or by non- associated third- country entities. In that context, control should be understood ~~to be~~as the ability to exercise a decisive influence on a ~~legal entity~~contractor or subcontractor directly, or indirectly through one or more intermediate legal entities. Additionally, in order to ensure the protection of ~~essential~~ security and defence interests of the Union and its Member States, the infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated ~~third~~ country.

Amendment 24 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Recital 16

Amendment 25 #

Proposal for a regulation
Recital 16 a (new)

(16a) Following the recent military and diplomatic posturing of Turkish President Erdogan in his dealings with European countries, Turkey, unlike other NATO member countries, can no longer be considered a reliable ally when it comes to defence and security. It can therefore not be allowed to participate in the European defence programme.

Amendment 26 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 16 a (new)

(16a) It is considered that too many Member States are reliant mainly on third countries to meet their defence needs;

Amendment 27 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 16 b (new)

(16b) Calls for tenders financed by ‘European’ funds should be reserved for European bidders.

Amendment 28 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 16 c (new)

16c. European internal market preference for local or European defence industries is necessary for their revival in Europe.

Amendment 29 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 16 d (new)

16d. It is necessary to bolster the strategic autonomy and technological sovereignty of the Member States by reducing technological and industrial dependency and ensuring better supervision of foreign subsidies and foreign direct investment in Europe, in order to fend off attempts by third countries to gain control of critical European companies;

Amendment 30 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 16 d (new)

16d. Supply chain security is of great strategic importance, necessitating subcontracting provisions designed to reduce drastically the risks related to the opening up or interruption of the supply chain caused by the involvement of third country companies where this can be avoided.

Amendment 31 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 17

(17) In certain circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third-country entities. In that context, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non- associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.deleted

Amendment 32 #

Sandro GOZI, Stéphanie YON-COURTIN, Jordi CAÑAS, Dominique RIQUET, Nathalie LOISEAU, Georgios KYRTSOS, Olivier CHASTEL

Proposal for a regulation
Recital 17

(17) IRegardless of the country in which the contracted party is established, increasing the common procurement of defence capabilities in the short-run and inducing cooperation, contributes to create favourable market conditions, such as structuring of the demand side in the EU, and hence contributes to the reinforcement of the EDTIB. Consequently, in certain strict circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third- country entities. In that context, a ~~legal entity~~contractor or a subcontractor established in the Union or in an associated ~~third~~ country and controlled by a non-associated ~~third~~ country or a non-associated ~~third~~ country entity may participate as contractor ~~and~~or subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.

Amendment 33 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Recital 17

(17) In certain circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third-country entities. In that context, a ~~legal entity~~contractor or subcontractor established in the Union or in an associated third country and controlled by a non- associated third country or a non- associated third country entity may participate as contractor ~~and~~or subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.

Amendment 34 #

Proposal for a regulation
Recital 17

(17) In certain exceptional circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third- country entities. In that context, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non- associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.

Amendment 35 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Lara COMI, Arba KOKALARI

Proposal for a regulation
Recital 18

(18) Furthermore, the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to control or restriction by a non-associated third country or a non-associated third country entity.deleted

Amendment 36 #

Proposal for a regulation
Recital 18

(18) Furthermore, the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to ~~control or restriction by a non-asso~~a use restriction by a non-associated third country or a non-associated third country entity. In urgent cases, this requirement should not apply if the procured products were in use prior to 24 February 2022 within the armed forces of at least one of the member states participating in the common procurement. Where the derogation applies, countries participat~~ed third country or a non-associated third country entity~~ing in the common procurement should study the feasibility of replacing the components causing the restriction by restriction-free components from the Union or associated third countries and submit their findings to the Commission. The Commission should provide a non-confidential summary of all such findings in the report referred to in article 12 to help identify technological gaps in the European Defence Technological and Industrial Base .

Amendment 37 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Recital 18

(18) Furthermore, the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to controls or restrictions by a non-associated third country or a non-associated third country entity, in particular those that contravene the security and defence interests of the Union and its Member States and limit Member States’ ability to use it.

Amendment 38 #

Proposal for a regulation
Recital 18

(18) Furthermore, the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to ~~control or~~a restriction by a non-associated third country or a non- associated third country entity that limits Member States’ ability to use it.

Amendment 39 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 18

(18) Furthermore, the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to any form of control or restriction by a non-associated ~~third~~ country or a non-associated ~~third~~ country entity.

Amendment 40 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI, Brando BENIFEI, Patrizia TOIA

Proposal for a regulation
Recital 18 a (new)

(18 a) The Instrument’s conditions for eligible entities and award criteria are specific to its emergency and short-term nature and are without prejudice to a future long-term EU framework for Defence Joint Procurement, including the European Defence Investment Program (EDIP) regulation.

Amendment 41 #

Proposal for a regulation
Recital 18 a (new)

(18a) The purpose of the emergency instrument is to strengthen existing industries in Europe and not to disrupt the internal market by creating competitors through public subsidies.

Amendment 42 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 18 b (new)

(18b) European subcontractors and manufacturers of critical components or systems must be strengthened and protected from predatory tactics adopted by third country undertakings;

Amendment 43 #

Sven MIKSER, Marc ANGEL, René REPASI

(21) To generate the incentive effect, the level of Union contribution may be differentiated based on factors such as (a) the complexity of the common procurement, for which a proportion of the anticipated size of the procurement contract, based on experience gained in similar actions, may serve as an initial proxy, (b) the characteristics of the cooperation, such as joint usage, stockpiling, ownership or maintenance, which are likely to induce stronger interoperability outcomes and long-term investment signals to industry, and (c) the number of participating Member States or associated countries or the inclusion of additional Member States or associated countries to existing cooperations.

Amendment 44 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 21

(21) To generate the incentive effect, the level of Union contribution may be differentiated based on factors such as (a) the complexity of the common procurement, for which a proportion of the anticipated size of the procurement contract, based on experience gained in similar actions, may serve as an initial proxy, (b) the characteristics of the cooperation, such as joint usage, stockpiling, ownership or maintenance, which are likely to induce stronger interoperability outcomes and long-term investment signals to industry, ~~and~~ (c) the number of participating Member States or ~~associated countries or~~ the inclusion of additional Member States ~~or associated countries~~ to existing cooperations and (d) the proportion of production taking place in Europe.

Amendment 45 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, René REPASI

Proposal for a regulation
Recital 22

Amendment 46 #

Stéphanie YON-COURTIN, Sandro GOZI, Jordi CAÑAS, Dominique RIQUET, Nathalie LOISEAU, Georgios KYRTSOS, Olivier CHASTEL

Proposal for a regulation
Recital 22

(22) Member States should appoint a procurement agent to conduct a common procurement on their behalf. The procurement agent should be a contracting authority established in a Member State or an associated third country, including Union bodies or international organisations, such as the Organisation Conjointe de Coopération en matière d'ARmement (OCCAR). The instrument should be without prejudice to the rules laid down in particular by the Directive 2009/81/EC on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security. Additional eligibility requirements as set out in article 8 in this regulation should be part of the tender documents and prevail over conflicting laws of the Member State in which the procurement agent is established.

Amendment 47 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Arba KOKALARI

Proposal for a regulation
Recital 22

Amendment 48 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Amendment 49 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Recital 22 a (new)

(22a) According to a report by the European Parliament Research Service - EPRS (p.111), US foreign military sales for 2016-2018 amounted to USD 55 billion or 32% of the total defence expenditure of all the EU Member States. The latter are required to set a minimum annual quota for the production in Europe of acquisitions through this instrument. That quota may not be less than 50%, to be reassessed annually with a view to increasing the European share of procurement and strengthening the European defence industry.

Amendment 50 #

1. Only actions fulfilling all of the following criteria shall be eligible for funding under the Instrument:

Amendment 51 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Arba KOKALARI

Proposal for a regulation
Article 7 – paragraph 1 – point a

(a) the actions shall involve cooperation among public authorities of Member States and of associated countries for common procurement ofaddressing the most urgent and critical defence products ~~between eligible entitie~~needs implementing the objectives referred to in Article 3;

Amendment 52 #

Proposal for a regulation
Article 7 – paragraph 1 – point a

(a) the actions shall involve cooperation between eligible entities as referred to in Article 9 for common procurement of the most urgent and critical defence products between eligible entities implementing the objectives referred to in Article 3;

Amendment 53 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 7 – paragraph 1 – point a

(a) the actions shall involve cooperation for common procurement of the most urgent and critical defence products between eligible entities, as referred to in Article 9, implementing the objectives referred to in Article 3 paragraph 2;

Amendment 54 #

Proposal for a regulation
Article 7 – paragraph 1 – point a

Amendment 55 #

Brando BENIFEI, Patrizia TOIA

Proposal for a regulation
Article 7 – paragraph 1 – point b

(b) the actions shall involve new cooperation or an extension of existing cooperation to at least one new Member States or associated countries;

Amendment 56 #

Proposal for a regulation
Article 7 – paragraph 1 – point c

(c) the actions involving new cooperation, including within an existing framework, or an extension of existing cooperation shall be carried out by a consortium of at least ~~thre~~five Member States;

Amendment 57 #

Proposal for a regulation
Article 7 – paragraph 1 – point c

Amendment 58 #

Marco CAMPOMENOSI, Alessandra BASSO, Antonio Maria RINALDI, Isabella TOVAGLIERI

Proposal for a regulation
Article 7 – paragraph 1 – point c

Amendment 59 #

Proposal for a regulation
Article 7 – paragraph 1 – point c

Amendment 60 #

Virginie JORON, Jean-Lin LACAPELLE, Markus BUCHHEIT

Proposal for a regulation
Article 7 – paragraph 1 – point d

(d) the actions shall comply with the annual minimum production quota in Europe and fulfil the additional conditions as set out in Article 8.

Amendment 61 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Tomislav SOKOL, Arba KOKALARI

Proposal for a regulation
Article 7 – paragraph 1 a (new)

1 a. Third countries that are candidates for accession to the European Union may also be associated to the eligible actions under paragraph 1 of this article, provided that the Member States participating in the common procurement unanimously agree to it.

Amendment 62 #

Proposal for a regulation
Article 8 – title

Additional ~~funding~~eligibility conditions

Amendment 63 #

Proposal for a regulation
Article 8 – title

Additional ~~funding~~eligibility conditions

Amendment 64 #

Proposal for a regulation
Article 8 – paragraph 1

1. Member States or associated third countries shall appoint a procurement agent to act on their behalf for the purpose of the common procurement. The procurement agent shall carry out the procurement procedures and conclude the resulting agreements with contractors on behalf of the participating Member States and associated third countries participating in the common procurement.

Amendment 65 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Tomislav SOKOL, Arba KOKALARI

Proposal for a regulation
Article 8 – paragraph 1

1. Member States or associated third countries shall appoint a procurement agent to act on their behalf for the purpose of the common procurement. The procurement agent shall carry out the procurement procedures and conclude the resulting agreements with contractors on behalf of the ~~participating Member States~~Member States and the associated countries participating in the common procurement.

Amendment 66 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 8 – paragraph 1

Amendment 67 #

Proposal for a regulation
Article 8 – paragraph 1

1. Member States or associated third countries shall appoint a procurement agent to act on their behalf for the purpose of the common procurement. The procurement agent shall carry out the procurement procedures and conclude the resulting agreements with contractors on behalf of the countries participating ~~Member States~~in the common procurement.

Amendment 68 #

Proposal for a regulation
Article 8 – paragraph 1

1. Member States or associated third countries shall together appoint a procurement agent to act on their behalf for the purpose of the common procurement. The procurement agent shall carry out the procurement procedures and conclude the resulting agreements with contractors on behalf of the participating Member States.

Amendment 69 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Tomislav SOKOL, Arba KOKALARI

Proposal for a regulation
Article 8 – paragraph 1

1. Member States or associated third countries shall appoint a procurement agent to act on their behalf for the purpose of the common procurement. The procurement agent shall carry out the procurement procedures and conclude the resulting ~~agreemen~~contracts with contractors on behalf of the participating Member States.

Amendment 70 #

Proposal for a regulation
Article 8 – paragraph 2

2. The procurement procedures referred to in paragraph 1 shall be based on an agreement to be signed by the participating Member States with the procurement agent under the conditions set out in the work programme referred to in Article 11. The member states participating in the agreement may unanimously authorise the procurement agent to invite and enter into an agreement with third countries that are candidates for accession to the European Union to procure additional quantities of the procured product.

Amendment 71 #

Marco CAMPOMENOSI, Alessandra BASSO, Antonio Maria RINALDI, Isabella TOVAGLIERI

Proposal for a regulation
Article 8 – paragraph 2

2. The procurement procedures referred to in paragraph 1 shall be based on an agreement to be signed by the participating Member States with the procurement agent under the conditions set out in the work programme referred to in Article 11. The agreement shall specify, inter alia, the details of the procedure and the reason of its choice, the assessment of the tenders and the award of the contract.

Amendment 72 #

Sven MIKSER, Marc ANGEL, Brando BENIFEI, Patrizia TOIA

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union, in an associated third country or transatlantic partnership countries. They shall not be subject to control by a non- associated third country or by a non- associated third country entity, or alternatively shall have been subject to screening within the meaning of Regulation (EU) 2019/452 and, where necessary, mitigation measures, taking into account the objectives referred to in Article 3.

Amendment 73 #

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union or in an associated country. They shall not be subject to control by a non- associated third country or by a non- associated third country entity or, alternatively, shall have been subject to screening within the meaning of Regulation (EU) 2019/452 and, where necessary, mitigation measures, taking into account the objectives referred to in Article 3.

Amendment 74 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Lara COMI, Arba KOKALARI

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union or in an associated third country. They shall not be subject to control by a non- associated third country or by a non- associated third country entity. or, alternatively, shall have been subject to screening within the meaning of Regulation (EU) 2019/452 and, where necessary, mitigation measures, taking into account the objectives referred to in Article 3.

Amendment 75 #

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union. They shall not be subject to control by a non- associated third country or by a non- associated third country entity or have undergone a screening within the meaning of Regulation (EU) 2019/452 and where necessary, have taken mitigation measures.

Amendment 76 #

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union or in associated countries. They shall not be subject to any form of control by a non- associated ~~third~~ country or by a non- associated ~~third~~ country entity.

Amendment 77 #

Marco CAMPOMENOSI, Alessandra BASSO, Antonio Maria RINALDI, Isabella TOVAGLIERI

Proposal for a regulation
Article 8 – paragraph 4

Amendment 78 #

Proposal for a regulation
Article 8 – paragraph 5

5. By way of derogation from paragraph 4, a legal entity established in the Union or in an associated ~~third~~ country and controlled by a non-associated third country or a non-associated third country entity may participate asin the common procurement if it provides guarantees verified by the Member State or associated country in which the contractor ~~and~~or subcontractor involved in the common procurement ~~only if it provides guarantees approved by the Member State or associated third~~is established. The guarantees shall provide assurances that the involvement of the contractor or subcontractor involved in the common procurement does not countr~~y in which the contractor is established.~~ avene the security and defence interests of the Union and its Member States as established in the framework of CFSP pursuant to Title V of the TEU, or the objectives set out in Article 3.

Amendment 79 #

Proposal for a regulation
Article 8 – paragraph 5

Amendment 80 #

Sven MIKSER, Marc ANGEL, Maria GRAPINI, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 8 – paragraph 5

Amendment 81 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Arba KOKALARI

Proposal for a regulation
Article 8 – paragraph 5

5. By way of derogation from paragraph 4, a legal entity established in the Union or in an associated ~~third~~ country and controlled by a non-associated ~~third~~ country or a non-associated ~~third~~ country entity may participate as contractor and subcontractor involved in the common procurement only if it provides guarantees approved by the Member State or associated ~~third~~ country in which the contractor is established.

Amendment 82 #

Proposal for a regulation
Article 8 – paragraph 5

Amendment 83 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Maria da Graça CARVALHO, Lara COMI, Arba KOKALARI

Proposal for a regulation
Article 8 – paragraph 7 – introductory part

7. The guarantees shall be based on a standardised template adopted by the Commission by means of an implementing act in accordance with Article 14 by [1 month after entry into force of this regulation]. The guarantees and the template shall be part of the tender specification. The guarantees shall in particular substantiate that, for the purposes of the common procurement, measures are in place to ensure that:

Amendment 84 #

Proposal for a regulation
Article 8 – paragraph 7 a (new)

7 a. The guarantees shall be based on a standardised template provided by the Commission and shall be part of the tender specifications to ensure a harmonised use throughout the European Union, reduce the bureaucratic load, specially for SMEs and Mid-caps, and promote a level playing-field.

Amendment 85 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, René REPASI

Proposal for a regulation
Article 8 – paragraph 8

8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Where no ~~competitive substitutes are readily~~relevant infrastructure, facilities, assets and resources are available in the Union or in an associated third country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries, provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 86 #

Stéphanie YON-COURTIN, Sandro GOZI, Jordi CAÑAS, Dominique RIQUET, Nathalie LOISEAU, Georgios KYRTSOS, Olivier CHASTEL

Proposal for a regulation
Article 8 – paragraph 8

8. The infrastructure, facilities, assets and resources of the contractors ~~and subcontractors~~ involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Where no competitive substitutes are readily available in the Union or in an associated third country, contractors ~~and subcontractors~~ involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 87 #

Proposal for a regulation
Article 8 – paragraph 8

8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Where ~~no competitive substitutes~~there are no readily available substitutes in the Union or in an associated third country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 88 #

Proposal for a regulation
Article 8 – paragraph 8

8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated ~~third~~ country. Where no competitive substitutes are readily available in the Union or in an associated ~~third~~ country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated ~~third~~ countries provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 89 #

Proposal for a regulation
Article 8 – paragraph 8 a (new)

8 a. By the way of derogation from paragraph 8, taking into account the short-term need to replenish and expand defence stocks, including to compensate for the military assistance to Ukraine, the restriction as referred to in paragraph 8 of this Article shall not apply to subcontractors involved in the common procurement, provided that this does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 90 #

Andreas SCHWAB, Andrey KOVATCHEV, Pablo ARIAS ECHEVERRÍA, Lara COMI, Arba KOKALARI

Proposal for a regulation
Article 8 – paragraph 9

Amendment 91 #

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity. that limits member states' ability to use the defence product. By way of derogation from the previous sentence, in urgent cases, the requirement shall not apply if the procured products were already in use prior to 24 February 2022 within the armed forces of at least one member state participating in the common procurement. Where the derogation applies, countries participating in the common procurement shall study the feasibility of replacing the components causing the restriction by restriction-free components from the Union or associated third countries, and submit their findings to the Commission. The Commission shall provide a non- confidential summary of all such findings in the report referred to in article 12.

Amendment 92 #

Marco CAMPOMENOSI, Alessandra BASSO, Antonio Maria RINALDI, Isabella TOVAGLIERI

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity directly, or indirectly through one or ore intermediary legal entities, that limits Member States´ ability to use it.

Amendment 93 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO, René REPASI, Patrizia TOIA, Brando BENIFEI

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity directly or indirectly through one or more intermediary legal entities, that limits Member States’ ability to use it.

Amendment 94 #

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity directly, or indirectly through one or more intermediary legal entities, that limits Member States’ ability to use it.

Amendment 95 #

Stéphanie YON-COURTIN, Sandro GOZI, Jordi CAÑAS, Dominique RIQUET, Nathalie LOISEAU, Georgios KYRTSOS, Olivier CHASTEL

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or, a non- associated third country entity or a Member State not party to the joint procurement arrangements.

Amendment 96 #

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction to use, maintain, modify or transfer it by a non- associated third country or a non- associated third country entity.

Amendment 97 #

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated ~~third~~ country or a non- associated ~~third~~ country entity.

Amendment 98 #

Sven MIKSER, Marc ANGEL, Carlos ZORRINHO

Proposal for a regulation
Article 8 – paragraph 9 a (new)

9 a. The requirement for the defence product referred to in paragraph 9 does not apply when all the following conditions are met: (a) Common procurement procedures and contracts refer to urgent and critical defence products that are needed to replenish stocks that has been reduced as a result of the response to the Russian military aggression against Ukraine;and (b) the capacity of the EDTIB to fill the most urgent and critical gaps in the stocks of the Member States is not sufficient or is not able to provide the defence products in an adequate timeframe;and (c) Member States or associated countries participating in the common procurement have carefully assessed the feasibility of replacing the components that cause the restriction by an alternative restriction- free component of EU origin;and (d) the procured products were in use prior to 24 February 2022 within the armed forces of all the Member States participating in the common procurement.

Amendment 99 #

Proposal for a regulation
Article 8 – paragraph 9 a (new)

9 a. By way of derogation from paragraph 9, in light of the Russian aggression in Ukraine and the urgency to procure with the support of the Instrument, the requirement referred to in paragraph 9 does not apply to urgent and critical defence products required to replenish stockpiles, provided all the following conditions are met: (a) Member States or associated third countries participating in the common procurement commit to study the feasibility of replacing the components that cause the restriction by alternative restriction-free components of EU origin; (b) the procured products or components thereof were in use prior to 24 February 2022 within the armed forces of a majority of the Member States participating in the common procurement.

source: 740.803

2023/02/13 AFET, ITRE 299 amendments...

Amendment 100 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Recital 13 a (new)

(13a) The instrument should be accompanied by measures aimed strengthening the European Defence Technological and Industrial Base European defence industry ensuring a level playing field for suppliers of all Member States and with particular attention to the involvement of SMEs, start-ups and mid-caps in the value chain.

Amendment 101 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Christophe GRUDLER, Ivars IJABS, Karen MELCHIOR

Proposal for a regulation
Recital 13 a (new)

(13a) This instrument should be used as a jumpstart to replace old soviet-era military equipment and to stimulate investment in cutting edge technology in defence through support for joint R&D.

Amendment 102 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Nathalie LOISEAU, Petras AUŠTREVIČIUS, Stéphanie YON-COURTIN, Dominique RIQUET, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Christophe GRUDLER, Ivars IJABS, Karen MELCHIOR

Proposal for a regulation
Recital 13 b (new)

(13b) This instrument should be effective, seamless, and de- bureaucratised, in order to encourage SME participation, to stimulate innovation in defence products, and to open up the defence market to new European companies from across the EU.

Amendment 103 #

Sara SKYTTEDAL, Christian EHLER, Marian-Jean MARINESCU, Tomas TOBÉ, Ivan ŠTEFANEC

Proposal for a regulation
Recital 14

(14) This Instrument will build on and take into account the work of the Defence Joint Procurement Task Force established by the Commission and the High Representative/Head of Agency, in line with the Joint Communication ‘Defence Investment Gaps Analysis and Way Forward”’, to coordinate very short-term defence procurement needs and engage with Member States and EU defence manufacturers to support common procurement to replenish stocks~~, notably in light of the support provided to~~ with high- technology, easily deployable defence capabilities, giving priority to states in the vicinity of Ukraine, which have considerably reduced their stocks in the context of Russia’s aggression against Ukraine.

Amendment 104 #

Proposal for a regulation
Recital 14

(14) This Instrument will build on and take into account the work of the Defence Joint Procurement Task Force established by the Commission and the High Representative/Head of Agency, in line with the Joint Communication ‘Defence Investment Gaps Analysis and Way Forward”, to coordinate very short-term defence procurement needs and engage with Member States and EU defence manufacturers to support joint procurement to replenish stocks~~, notably in light of the support provided to Ukraine~~ with urgently needed and rapidly deployable equipment, notably in light of the support provided to Ukraine, in particular by the Member States in its close neighbourhood.

Amendment 105 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 14

(14) This Instrument will build on and take into account the work of the Defence Joint Procurement Task Force established by the Commission and the High Representative/Head of Agency, in line with the Joint Communication ‘Defence Investment Gaps Analysis and Way Forward”, to coordinate very short-term defence procurement needs and engage with Member States and EU defence manufacturers to support joint procurement to replenish, strengthen and increase stocks, notably in light of the support provided to Ukraine and in view to perpetuate it.

Amendment 106 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Recital 14

(14) This Instrument will build on and take into account the work of the Defence Joint Procurement Task Force established by the Commission and the High Representative/Head of the European Defence Agency, in line with the Joint Communication ‘Defence Investment Gaps Analysis and Way Forward”, to coordinate very short-term defence procurement needs and engage with Member States and EU defence manufacturers to support joint procurement to replenish stocks, notably in light of the support provided to Ukraine.

Amendment 107 #

Fabio Massimo CASTALDO

Proposal for a regulation
Recital 14 a (new)

(14a) The Union has a specific instrument for providing defence equipment to Third Countries, namely the European Peace Facility (EPF). The Union has already provided defence equipment worth 3 billion euro to Ukraine through the EPF, and should continue to channel its support through this specific instrument.

Amendment 108 #

Proposal for a regulation
Recital 14 a (new)

(14a) The ‘Defence Investment Gaps Analysis and Way Forward’, should become an annual report to ensure that EU military landscape is monitored and stocks are prepared, interoperable, and ready for deployment.

Amendment 109 #

Eero HEINÄLUOMA, Elena YONCHEVA

Proposal for a regulation
Recital 15

(15) The Instrument ishould preserve and enhance coherentce with existing collaborative EU defence-related initiatives such as in the European Defence Fund ~~as well as~~, the Permanent Structured Cooperation (PESCO), ~~and generates synergies with other EU programmes.~~the Coordinated Annual Review on Defence (CARD), and the Capability Development Plan (CDP), and generates synergies with other EU programmes, including those that can finance programmes that can foster the cross- fertilisation between the civilian and the military domain despite the fact that they might not be specifically intended for defence-related initiatives The Instrument is fully coherent with the ambition and the findings of the Strategic Compass, with this document that should serve as a basis for the revision of the CDP and, whenever appropriate and with the aim of avoiding unnecessary duplications, it should act in coordination with the goals and priorities of the North Atlantic Treaty Organization (NATO), which remains the cornerstone of European security architecture.

Amendment 110 #

Proposal for a regulation
Recital 15

(15) The Instrument ~~is coher~~should be consistent with existing collaborative EU defence-related initiatives such as in the European Defence Fund as well as the Permanent Structured Cooperation (PESCO), and generates synergies with other EU programmes. The Instrument is fully coherent with the ambition of the Strategic Compass. Likewise, the Instrument should contribute to a competitive, open and efficient European defence market by aligning with existing Union legislation in the field, notably, Directive 2009/81/EC on procurement in the fields of defence and security.

Amendment 111 #

Henna VIRKKUNEN, Sara SKYTTEDAL, Tomas TOBÉ

Proposal for a regulation
Recital 15

(15) The Instrument is coherent with existing collaborative EU defence-related initiatives such as in the European Defence Fund as well as the Permanent Structured Cooperation (PESCO), and generates synergies with other EU programmes. The Instrument is fully coherent with the ambition of the Strategic Compass. and the goals and priorities of the North Atlantic Treaty Organisation (NATO), which remains the foundation of the collective defence of its allies and is essential for Euro-Atlantic security.

Amendment 112 #

Proposal for a regulation
Recital 15

(15) The Instrument is coherent with existing collaborative EU defence-related initiatives such as in the European Defence Fund as well as the Permanent Structured Cooperation (PESCO), and generates synergies with other EU programmes. The instrument shall complement the existing Defence and Security Procurement Directive (2009/81/EC). The Instrument is fully coherent with the ambition of the Strategic Compass.

Amendment 113 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Recital 15

(15) The Instrument ishould be consistent coherent with existing collaborative EU defence-related initiatives such as in the European Defence Fund as well as the Permanent Structured Cooperation (PESCO), and generates synergies with other EU programmes. The Instrument is fully coherent with the ambition of the Strategic Compass.

Amendment 114 #

Vangelis MEIMARAKIS, Maria SPYRAKI, Stelios KYMPOUROPOULOS, Elissavet VOZEMBERG-VRIONIDI, Manolis KEFALOGIANNIS, Anna-Michelle ASIMAKOPOULOU, Theodoros ZAGORAKIS, Eleni STAVROU

Proposal for a regulation
Recital 15 a (new)

(15a) Member States that participate in the common procurement of defence products under the Instrument should have a right to invite Ukraine and Moldova to participate in the action. To this end, the Member States should authorise a procurement agent to enter into an agreement for procuring additional quantities of the defence product. Such an agreement would benefit the EDTIB as those countries’ participation would provide better economies of scale and scope, higher demand and interoperability at the technical level, common training, cross-servicing and maintenance, which would provide a foundation for the later inclusion of their defence industries in the EDTIB. It would also strengthen the two countries’ defence capabilities in light of Russia’s aggression and threats. The possibility to participate on the invitation of the Member States in the procurement agreement should be open only to countries that do not contravene the security and defence interests of the Union and its Member States, including respect for the principle of good neighbourly relations. It should also be open to Georgia.

Amendment 115 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Nathalie LOISEAU, Petras AUŠTREVIČIUS, Stéphanie YON-COURTIN, Dominique RIQUET, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Ivars IJABS, Karen MELCHIOR

Proposal for a regulation
Recital 15 a (new)

(15a) Member States participating in the common procurement of defence products under this Instrument should have a right to invite Ukraine and Moldova to participate in the action. To do this they should authorise a procurement agent to enter into an agreement for procuring additional quantities of the defence product with these countries. Such an agreement would benefit the EDTIB as these countries' participation would provide for a better economy of scale and scope, higher demand and interoperability at the technical level, common training, cross-servicing and maintenance which would provide a foundation for the later inclusion of their defence industries in the EDTIB. It would also strengthen the two countries' defence capabilities in light of Russia's aggression and threat. The possibility to participate on the invitation of the Member States in the procurement agreement should be open to Georgia as soon as the European Council grants it the status of candidate country once the priorities specified in the Commission’s opinion on Georgia’s membership application have been addressed.

Amendment 116 #

Sara SKYTTEDAL, Christian EHLER, Tomas TOBÉ, Marian-Jean MARINESCU, Ivan ŠTEFANEC

Proposal for a regulation
Recital 15 a (new)

(15a) Member States that participate in the common procurement of defence products under the Instrument should have a right to invite candidate countries, notably Ukraine, Moldova and the Western Balkan countries, as well as associated countries to participate in the action. To this end, the Member States should authorise a procurement agent to enter into an agreement for procuring additional quantities of the defence product with those third countries. Such an agreement would benefit the EDTIB as those countries’ participation would provide better economies of scale and scope, higher demand and interoperability at the technical level, common training, cross-servicing and maintenance, which would provide a foundation for the later inclusion of their defence industries in the EDTIB. It would also strengthen the candidate countries’ defence capabilities for facing the multifaceted threats emanating from all strategic direction.

Amendment 117 #

Proposal for a regulation
Recital 15 a (new)

(15a) Cooperation with the United States of America and the United Kingdom is vital for European defence and security. In light of surging protectionist tendencies in the United States, epitomised by the Inflation Reduction Act, it is important to pursue an amicable transatlantic relationship and strengthen its ties, while striving for a level playing field.

Amendment 118 #

Proposal for a regulation
Recital 15 a (new)

(15a) As 21 EU Member States are also members of NATO, it is vital that both organizations significantly increase their efforts to harmonize their planning process as well as their standards in order to ensure compatibility, interoperability and interchangeability between the armed forces and their equipment.

Amendment 119 #

Proposal for a regulation
Recital 15 b (new)

(15b) As the instrument seeks inter alia to increase competitiveness and efficiency of the European Defence Technological and Industrial Base as well as the effectiveness of public spending, it is vital to also increase efforts to finally fulfil the ambition to establish a real common market for defence products as envisaged by Directive 2009/81/EC and Directive 2009/43/EC. To that end, EU Member States should improve harmonisation of implementation and application of these directives as well as demonstrate restraint in invoking derogations on the basis article 346 Treaty on the Functioning of the European Union. In addition, the Commission should thoroughly assess the justification of the invocation of such derogations by EU Member States in order to facilitate the establishment of a common market for defence products with an adequate level playing field.

Amendment 120 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Nathalie LOISEAU, Petras AUŠTREVIČIUS, Dominique RIQUET, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Christophe GRUDLER, Olivier CHASTEL, Karen MELCHIOR

Proposal for a regulation
Recital 15 b (new)

(15b) To make sure that all these initiatives are coherent, the Commission should prepare an overview of all instruments that can facilitate the joint procurement process and facilitate dialogue with Member States and their governments.

Amendment 121 #

Proposal for a regulation
Recital 15 c (new)

(15c) The Commission together with the EEAS should hold regular briefings and training programs with Member States to ensure they are ready to absorb funds and can make full use of this instrument. Regular info sessions should also be made available for the defence industry, including for SMEs.

Amendment 122 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 16

Amendment 123 #

(16) As the instrument aims to enhance the competitiveness ~~and~~, efficiency and independence of the Union’s defence industry, to benefit from the instrument in accordance with the legal basis, common procurement contracts will need to be placed with legal entities which are established in the Union or in associated countries and are not subject to control by non-associated third countries or by non- associated third- country entities. In that context, control should be understood to be the ability to exercise a decisive influence on a legal entity directly, or indirectly through one or more intermediate legal entities. Additionally, in order to ensure the protection of essential security and defence interests of the Union and its Member States, the infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country.

Amendment 124 #

Proposal for a regulation
Recital 16

Amendment 125 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 16 a (new)

(16a) Regardless of the country in which the contracted party is established, increasing the common procurement of defence capabilities in the short-run and inducing cooperation, contributes to create favourable market conditions in the EU, such as structuring of the demand side, and hence contributes to the reinforcement of the EDTIB. Consequently, in certain strict circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non- associated third-country entities.

Amendment 126 #

Proposal for a regulation
Recital 16 a (new)

(16a) Considering the very nature of this instrument, based on its legal basis, which aims at strengthening the European defence industry, any possible derogation shall be kept to a strict minimum.

Amendment 127 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 17

Amendment 128 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Recital 17

(17) In certain circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non -associated third-country entities. In that context, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the due diligence framework to identify, prevent, mitigate environmental and social risks, to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.

Amendment 129 #

Proposal for a regulation
Recital 17

(17) In ~~certain~~strictly framed exceptional circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non -associated third- country entities. In that context, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non- associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.

Amendment 130 #

Proposal for a regulation
Recital 17

(17) In certain circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by ~~non-associated~~ third countries or ~~non-associated~~ third- country entities. In that context, a legal entity established in the Union or, in a~~n associated~~ third country associated with the EU or in NATO member states and controlled by a ~~non-associated~~ third country or a ~~non- associated~~ third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.

Amendment 131 #

Arnaud DANJEAN, François-Xavier BELLAMY

Proposal for a regulation
Recital 18

Amendment 132 #

Proposal for a regulation
Recital 18

Amendment 133 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Recital 18

Amendment 134 #

Dominique RIQUET, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 18 a (new)

(18a) As the instruments intends to strengthen the EDTIB and defence capabilities within the Union, it is vital to enhance the EDTIB’s capacity to provide all necessary components of defence products in order to avoid restrictions by third countries due to the absence of components of EU origin. To that end the Commission, together with the European Defence Agency, should identify those components and assess possibilities for their development within the Union making use of EU instruments such as the European Defence Fund.

Amendment 135 #

Proposal for a regulation
Recital 18 a (new)

(18a) As specific safeguards are provided for the purpose of the appreciation of the control or the restriction of a product by a non- associated third country or a non- associated third country entity, compliance with the foreign direct investments screening mechanism established by Regulation (EU) 2019/452 is insufficient to derogate from the principle of non-control of use.

Amendment 136 #

Mick WALLACE, Marc BOTENGA

Proposal for a regulation
Recital 19

Amendment 137 #

Mick WALLACE, Marc BOTENGA

Proposal for a regulation
Recital 19

(19) Grants under the Instrument may take the form of financing not linked to cost based on the achievement of results by reference to work packages, milestones or targets of the common procurement process, in order to create the necAny EU-Instrument should be subject to strict social conditionality, stringent ethical principles and relevant national, Union and international legislation, including the Charter of Fundamental Rights of the European Union and the Convention for the Protection of Human Rights and Fundamental Freedoms and its Supplementary Protocols, the precautionary principle, and international humanitarian law, and when contributing to ressear~~y incentive effect~~ch and development, yield proportionate public ownership of intellectual property rights.

Amendment 138 #

Proposal for a regulation
Recital 19

Amendment 139 #

Zdzisław KRASNODĘBSKI, Elżbieta KRUK, Izabela-Helena KLOC

Proposal for a regulation
Recital 19

(19) Grants under the Instrument may take the form of financing not linked to cost based on the achievement of results by reference to work packages, milestones or targets of the common procurement process, in order to create the necessary incentive effect provided that the Union does not co-finance the defence product itself which would be non-compliant with the Instrument’s legal base and primary law.

Amendment 140 #

Proposal for a regulation
Recital 19

(19) Grants under the Instrument ~~may~~should take the form of financing not linked to cost based on the achievement of results by reference to work packages, milestones or targets of the common procurement process, in order to create the necessary incentive effect.

Amendment 141 #

Proposal for a regulation
Recital 20

(20) Where the Union grant takes the form of financing not linked to costs, the Commission should determine in the work programme the funding conditions for each action, in particular (a) a description of action involving cooperation for common procurement with a view to addressing the most urgent and critical capacity needs, (b) the milestones for the implementation of the action, (c) the rough order of magnitude expected from the common procurement and (d) the maximum Union contribution available; in this regard, In order to boost interoperability among the Armed Forces of EU Member States, financing for common procurement through EDIRPA should be given primarily to those consortia that see the participation of a higher Number of Member States.

Amendment 142 #

Proposal for a regulation
Recital 20

(20) Where the Union grant takes the form of financing not linked to costs, the Commission should determine in the multiannual work programme the funding conditions for each action, in particular (a) a description of action involving cooperation for common procurement with a view to addressing the most urgent and critical capacity needs, (b) the milestones for the implementation of the action, (c) the rough order of magnitude expected from the common procurement and (d) the maximum Union contribution available. Additionally, it must determine the evaluation and selection procedure concerning the proposals, including the monitoring and disbursement process for the actions following their selection.

Amendment 143 #

Arnaud DANJEAN, François-Xavier BELLAMY

Proposal for a regulation
Recital 20

Amendment 144 #

Proposal for a regulation
Recital 20

Amendment 145 #

Proposal for a regulation
Recital 21

(21) To generate the incentive effect, the level of Union contribution may be differentiated based on factors such as (a) the complexity of the common procurement, for which a proportion of the anticipated size of the procurement contract, based on experience gained in similar actions, may serve as an initial proxy, (b) the characteristics of the cooperation, such as joint usage, stockpiling, ownership or maintenance, as well as replacement of stockpiles of Soviet-era legacy defence systems with European solutions, developed under an EU design authority and with unrestricted ability for Member States to use, maintain and modernize them, which are likely to induce stronger interoperability outcomes and long-term investment signals to industry, and (c) the number of participating Member States or associated countries or the inclusion of additional Member States or associated countries to existing cooperations.

Amendment 146 #

Eero HEINÄLUOMA, Elena YONCHEVA

Proposal for a regulation
Recital 21

(21) To generate the incentive effect, the level of Union contribution may be differentiated based on factors such as (a) the complexity of the common procurement, for which a proportion of the anticipated size of the procurement contract, based on experience gained in similar actions, may serve as an initial proxy, (b) the characteristics of the cooperation, such as joint usage, stockpiling, ownership or maintenance, which are likely to induce stronger interoperability outcomes and long-term investment signals to industry, ~~and~~ (c) the number of participating Member States or associated countries or the inclusion of additional Member States or associated countries to existing cooperations, and (d) the contribution of the action to supporting participation of small and medium-sized enterprises (SMEs) and middle capitalisation companies (mid- caps) in common procurement.

Amendment 147 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 21

(21) To generate the incentive effect, the level of Union contribution may be differentiated based on factors such as (a) the complexity of the common procurement, for which a proportion of the anticipated size of the procurement contract, based on experience gained in similar actions, may serve as an initial proxy, (b) the characteristics of the cooperation, such as joint usage, stockpiling, ownership or maintenance, which are likely to induce stronger interoperability outcomes and long-term investment signals to industry, ~~and~~ (c) the number of participating Member States or associated countries or the inclusion of additional Member States or associated countries to existing cooperations, and (d) the development of the action supported as part of the European Defence Fund.

Amendment 148 #

Sara SKYTTEDAL, Christian EHLER, Michael GAHLER, Marian-Jean MARINESCU, Tomas TOBÉ, Ivan ŠTEFANEC

Proposal for a regulation
Recital 21 a (new)

(21a) Russia’s brutal and unprovoked war of aggression against Ukraine became a turning point for European security, and in particular for Bulgaria, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Sweden and Finland that are bordering Russia and Ukraine or have their territorial waters or Exclusive Economic Zones adjacent to those of Ukraine or Russia. Those Member States have become the target of threatening rhetoric and hostile actions by Russia, supported by Belarus. Despite facing fundamental threats to their own security, they continue to support Ukraine in providing assistance, including military assistance, thus significantly depleting their own stockpiles. The Instrument should therefore provide incentives for the participation of those Member States by granting higher Union contribution to actions where at least two such Member States participate. In addition, such a higher Union contribution should also apply for actions in which Member States decide to authorise the procurement agent to procure additional quantities of the respective defence product for Ukraine and Moldova. Given that those countries are partially occupied by Russia or its proxies, and are the targets of Russia’s military aggression or are under threat of a direct Russian military intervention, further support for Ukraine and Moldova, which are Union candidate countries, would substantially contribute to European security, while strengthening the EDTIB and fostering cooperation in defence procurement.

Amendment 149 #

Vangelis MEIMARAKIS, Maria SPYRAKI, Stelios KYMPOUROPOULOS, Elissavet VOZEMBERG-VRIONIDI, Manolis KEFALOGIANNIS, Anna-Michelle ASIMAKOPOULOU, Theodoros ZAGORAKIS, Eleni STAVROU

Proposal for a regulation
Recital 21 a (new)

(21a) Russia’s brutal and unprovoked war of aggression against Ukraine became a turning point for European security, and in particular for Bulgaria, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Finland that are bordering Russia and Ukraine or have their territorial waters or Exclusive Economic Zones adjacent to those of Ukraine. Those Member States have become the target of threatening rhetoric and hostile actions by Russia, supported by Belarus. Despite facing fundamental threats to their own security, they continue to support Ukraine in providing assistance, including military assistance, thus significantly depleting their own stockpiles. The Instrument should therefore provide incentives for the participation of those Member States by granting higher Union contribution to actions where at least two such Member States participate. In addition, such a higher Union contribution should also apply for actions in which Member States decide to authorise the procurement agent to procure additional quantities of the respective defence product for Ukraine and Moldova. Given that those countries are partially occupied by Russia or its proxies, and are the targets of Russia’s military intervention, further support for Ukraine and Moldova would substantially contribute to European security, while strengthening the EDTIB and fostering cooperation in defence procurement.

Amendment 150 #

Proposal for a regulation
Recital 21 a (new)

(21 a) The war of aggression started by Russia against Ukraine has highlighted the need to strengthen and increase the effectiveness of the stance of deterrence and defence of the EU’s and NATO’s eastern frontier and the strategic importance of the Black Sea region for Euro-Atlantic security. The tool should strengthen the deterrence capacity of states on the EU’s and NATO’s eastern frontier by creating procurement programmes that fulfil the aims of this Regulation.

Amendment 151 #

Proposal for a regulation
Recital 21 a (new)

(21a) The major part of the Union contribution should foster the objectives of the instrument. Where a derogation from this principle applies and where simultaneously it cannot be established that the estimated value of the common procurement contract does not comprise any value added tax, the level of Union contribution may also be differentiated based on those factors in order to ensure that at least 70% of the Union contribution will benefit the EDTIB.

Amendment 152 #

Sara SKYTTEDAL, Christian EHLER, Marian-Jean MARINESCU, Tomas TOBÉ, François-Xavier BELLAMY, Ivan ŠTEFANEC, Henna VIRKKUNEN

Proposal for a regulation
Recital 22

Amendment 153 #

Klemen GROŠELJ

Proposal for a regulation
Recital 23

(23) In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, financial contribution should not cover a period prior to the date of submission of the grant application, except in duly justified exceptional cases, like supplementing strategic stocks of ammunition and other relevant military equipment. In order to avoid any disruption in Union support which could be prejudicial to the interests of the Union, it should be possible to provide in the financing decision for financial contributions to actions that cover a period from the 24 February 2022, even if they have started before the grant application was submitted.

Amendment 154 #

Proposal for a regulation
Recital 23

(23) In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, financial contribution should not cover a period prior to the date of submission of the grant application, except in duly justified exceptional cases, such as equipment replacement sent to Ukraine. In order to avoid any disruption in Union support which could be prejudicial to the interests of the Union, it should be possible to provide in the financing decision for financial contributions to actions that cover a period from the 24 February 2022, even if they have started before the grant application was submitted.

Amendment 155 #

Proposal for a regulation
Recital 26

(26) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council3 , Council Regulation (Euratom, EC) No 2988/954 , Council Regulation (Euratom, EC) No 2185/965 and Council Regulation (EU) 2017/19396 , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. It is of the essence to counteract corruption and uphold the rule of law. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council7 . In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights. _________________ 3 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999,(OJ L248, 18.9.2013, p. 1. 4 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p.1). 5 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L292,15.11.96 , , p.2). 6 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L283, 31.10.2017, p.1). 7 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

Amendment 156 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Nathalie LOISEAU, Petras AUŠTREVIČIUS, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Philippe OLIVIER

Proposal for a regulation
Recital 26 a (new)

(26a) The EPPO and OLAF should closely monitor this instrument and its implementation in order to proactively prevent any risk of corruption.

Amendment 157 #

Proposal for a regulation
Recital 27 a (new)

(27a) Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment sets eight criteria to govern Member State’s arms export decisions.

Amendment 158 #

Proposal for a regulation
Recital 27 b (new)

(27b) Deepening cooperation among Member States at Union level in defence- related areas should go hand-in-hand with the strengthening of parliamentary oversight and control by both the European Parliament and national parliaments.

Amendment 159 #

Elena YONCHEVA, Attila ARA-KOVÁCS, Giuliano PISAPIA

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes ~~the European Defence Industry Reinforcement~~an instrument to strengthen the Defence Technological and Industrial Base (EDTIB) through common Pprocurement ~~Act~~ (the ‘Instrument’).

Amendment 160 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 1 – paragraph 1

This Regulation establishes the short-term instrument for the European Defence Industry Reinforcement through common Procurement Act (the ‘Instrument’).

Amendment 161 #

Proposal for a regulation
Article 2 – paragraph 1 – point 1

(1) ‘common procurement’ means a cooperative procurement jointly conducted by at least ~~thre~~five Member States;

Amendment 162 #

Proposal for a regulation
Article 2 – paragraph 1 – point 1

(1) ‘common procurement’ means a cooperative procurement jointly conducted by at least t~~hree~~wo Member States;

Amendment 163 #

Proposal for a regulation
Article 2 – paragraph 1 – point 1

(1) ‘common procurement’ means a cooperative procurement jointly conducted by at least ~~thre~~five Member States;

Amendment 164 #

Proposal for a regulation
Article 2 – paragraph 1 – point 2

(2) ‘control by a ~~non-associated~~ third country or by a ~~non-associated~~ third -country entity’ means the ability to exercise a decisive influence on a legal entity directly or indirectly through one or more intermediate legal entities;

Amendment 165 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 4

(4) ‘~~non-associated~~ third-country entity’ means a legal entity that is established in a ~~non-associated~~ third country or, where it is established in the Union or, in an country associated ~~country~~with the EU or in a NATO member state, that has its executive management structures in a ~~non-associated~~ third country;

Amendment 166 #

Proposal for a regulation
Article 2 – paragraph 1 – point 5

(5) ‘procurement agent’ means a contracting authority as defined in Directive 2009/81/EC, established in a Member State or an associated country, or the European Defence Agency or an international organisation such as OCCAR, designated by at least three Member States to conduct a common procurement on their behalf~~, including Union bodies or international organisations;~~ ;

Amendment 167 #

Proposal for a regulation
Article 2 – paragraph 1 – point 5

(5) ‘procurement agent’ means a contracting authority established in a Member State or an associated country designated by at least ~~thre~~five Member States to conduct a common procurement on their behalf, including Union bodies or international organisations;

Amendment 168 #

Sara SKYTTEDAL, Christian EHLER, Tomas TOBÉ, Ivan ŠTEFANEC, Marian-Jean MARINESCU

Proposal for a regulation
Article 2 – paragraph 1 – point 5 a (new)

(5a) ‘defence products’ mean products awarded in the fields of defence and security, within the meaning of Article 2 of Directive 2009/81/EC, as well as medical supplies and medical support equipment in order to replenish, and, if considered to be necessary in light of the changed security situation, to expand stockpiles depleted as a result of the response to the Russian military aggression against Ukraine; the list set out in the aforementioned Directive has to be interpreted in a broad way in the light of the evolving character of technology, procurement policies and military requirements. For the purpose of this regulation, defence products should also cover products which, although initially designed for civilian use, are later adapted to military purposes;

Amendment 169 #

Proposal for a regulation
Article 2 – paragraph 1 – point 5 a (new)

Amendment 170 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 2 – paragraph 1 – point 6

(6) ‘third country’ means a country that is not a member of the Union or associated with it or that is not a member of the North Atlantic Treaty Organisation.

Amendment 171 #

Proposal for a regulation
Article 2 – paragraph 1 – point 6 a (new)

(6a) ‘classified information’ means information or material, in any form, the unauthorised disclosure of which could cause varying degrees of prejudice to the interests of the Union, or of one or more of the Member States, and which bears an EU classification marking or a corresponding classification marking, as established in the Agreement between the Member States of the European Union, meeting within the Council, regarding the protection of classified information exchanged in the interests of the European Union;

Amendment 172 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 6 a (new)

(6a) ‘defence products’ means products and services within the scope of Article 2 of Directive 2009/81/EC.

Amendment 173 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 6 b (new)

(6b) ‘classified information’ means information or material, in any form, the unauthorised disclosure of which could cause varying degrees of prejudice to the interests of the Union, or of one or more of the Member States, and which bears an EU classification marking or a corresponding classification marking, as established in the Agreement between the Member States of the European Union, meeting within the Council, regarding the protection of classified information exchanged in the interests of the European Union;

Amendment 174 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 2 – paragraph 1 – point 6 b (new)

(6b) ‘sensitive information’ means information and data, including classified information, that is to be protected from unauthorised access or disclosure because of obligations laid down in Union or national law or in order to safeguard the privacy or security of a natural or legal person;

Amendment 175 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 2 – paragraph 1 – point 6 c (new)

(6c) ‘sensitive information’ means information and data, including classified information, that is to be protected from unauthorised access or disclosure because of obligations laid down in Union or national law or in order to safeguard the privacy or security of a natural or legal person;

Amendment 176 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB), including SMEs and mid- capitalisation companies (mid-caps), for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including the creation and ramp- up of its manufacturing capacities, in accordance with the legal basis of the instrument, in order to provide the most critical and urgent defence products needed by Member States;

Amendment 177 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB) for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities; accordingly, 100% of the orders to be financed by EDIRPA must be placed with EU undertakings;

Amendment 178 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB) for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities and alternative solutions provided by the European defence industry for the safe operation until replacement of the systems left from the Soviet era;

Amendment 179 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB), including SMEs and mid- capitalisation companies (mid-caps) for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural and technological changes, including ramp-up of its manufacturing capacities and increase in the resilience of its supply chains;

Amendment 180 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB), and opening the supply chains throughout the Union, including SMEs and mid-caps, for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities; , also through technological innovations;

Amendment 181 #

Sara SKYTTEDAL, Christian EHLER, Marian-Jean MARINESCU, Ivan ŠTEFANEC, Tomas TOBÉ, Henna VIRKKUNEN

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB), including SMEs and mid- capitalisation companies (mid-caps), for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities, while safeguarding cost efficiency;

Amendment 182 #

Henna VIRKKUNEN, Tomas TOBÉ

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB) for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities and the opening of the supply chains to companies of all sizes and located throughout the Union;

Amendment 183 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB) for a more resilient Union without distorting the functioning of the European Single Market, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities;

Amendment 184 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB), including SMEs, start-ups and mid-caps, for a more resilient and secure Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities;

Amendment 185 #

Zdzisław KRASNODĘBSKI, Elżbieta KRUK, Izabela-Helena KLOC, Witold Jan WASZCZYKOWSKI, Alexandr VONDRA

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the ~~competitiveness and~~ efficiency of the European Defence Technological and Industrial Base (EDTIB) for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ~~ramp-up of its manufacturing capacities~~conversion of excess capacity to civilian production;

Amendment 186 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) to foster cooperation in defence procurement process between ~~participating~~ Member States in order to contribut~~ing~~e to solidarity, interoperability, and prevention of crowding- out effects, a~~voiding fragmentation and increasing~~s well as to reduce fragmentation, when it is not beneficial for the competition and diversity of products available on the European defence market, and to increase the effectiveness of public spending.

Amendment 187 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, interoperability, prevention of crowding- out effects, avoiding fragmentation ~~and~~, increasing the effectiveness of public spending, and encouraging the harmonisation of defence procurement legislation across Member States.

Amendment 188 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, interoperability, including with NATO, prevention of crowding- out effects, avoiding fragmentation, bridging gaps between defence industries at EU level and increasing the effectiveness of public spending.

Amendment 189 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, closer collaboration, interoperability, prevention of crowding- out effects, ~~avoid~~reducing fragmentation ~~and~~, increasing the effectiveness of public spending, and expanding cross-border supply chains within the European Union.

Amendment 190 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, interoperability, prevention of crowding- out effects, avoiding fragmentation ~~and~~, increasing the effectiveness of public spending, and fostering the emergence of European standards in the field of defence.

Amendment 191 #

Tomas TOBÉ, Henna VIRKKUNEN

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, interoperability, prevention of crowding- out effects, avoiding fragmentation, meet the increased demand and increasing the effectiveness of public spending.

Amendment 192 #

Proposal for a regulation
Article 3 – paragraph 1 – point b – point i (new)

i) to stimulate the uptake of new technologies in the EDTIB and to support the development of a defence technological and industrial base in more Union Member States.

Amendment 193 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Stéphanie YON-COURTIN, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Olivier CHASTEL, Karen MELCHIOR

Proposal for a regulation
Article 3 – paragraph 1 – point b – point ii (new)

ii) to reduce dependencies on non- democratic countries for critical defence technologies and components.

Amendment 194 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 3 – paragraph 1 – point b a (new)

(ba) to replenish stocks, in particular the most urgent and critical defence products needs by the Union, mainly those created by the disruption caused by the urgent transfer of defence products to Ukraine, taking into account the work of the Defence Joint Procurement Task Force.

Amendment 195 #

Sara SKYTTEDAL, Christian EHLER, Tomas TOBÉ, Marian-Jean MARINESCU, Ivan ŠTEFANEC

Proposal for a regulation
Article 3 – paragraph 1 – point b a (new)

(ba) incentivise a decrease in disparate national standards and requirements in the context of procurement of defence products.

Amendment 196 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 3 – paragraph 2

2. The objectives shall be pursued with an emphasis on strengthening and developing the Union defence industrial base to allow it to address in particular the most urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force. This can be achieved with unrestricted ability for Member States to use, maintain, modernise and transfer the defence products. The content of the defence products originating from the European Union, for all its components, shall represent at least 80% of the value of the defence products commonly procured. No components shall be sourced from non- associated third countries that contravene the security and defence interests of the Union and its Member States, including respect for the principle of good neighbourly relations.

Amendment 197 #

Proposal for a regulation
Article 3 – paragraph 2

2. The objectives shall be pursued with an emphasis on strengthening and developing the Union defence industrial base to allow it to address in particular the most urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force and the capability gaps identified in the Joint Communication of the Commission and the High-Representative on Defence investment gaps analysis. This can be achieved through the replenishment of stockpiles, including with the equipment in the EDTIB, as well as through the replacement of obsolete ones, especially post-Soviet equipment, and the reinforcement of overall defence capabilities.

Amendment 198 #

Proposal for a regulation
Article 3 – paragraph 2

2. The objectives shall be pursued with an emphasis on strengthening and developing the Union defence industrial base to allow it to address in particular the most urgent and critical defence products needs, ~~especially~~including those revealed or exacerbated by the response to the Russian aggression against Ukraine~~, taking into account the work of the Defence Joint Procurement Task Force~~ as well as the need to respond adequately to the multifaceted threats emanating from every strategic direction, taking into account the Joint Communication JOIN(2022) 24 final of the Commission and the High Representative of 18 May 2022 on the Defence Investment Gaps Analysis and Way Forward and the work of the Defence Joint Procurement Task Force this can be achieved through the replenishment of stockpiles and the reinforcement of overall defence capabilities.

Amendment 199 #

Proposal for a regulation
Article 3 – paragraph 2

2. The objectives shall be pursued with an emphasis on strengthening and developing the ~~Unio~~European dDefence iTechnological and Industrial bBase (EDTIB), to allow it to address in particular the most urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force and the Joint Communication JOIN(2022) 24 final of the Commission and the High Representative/Head of the European Defence Agency of 18 May 2022 on the Defence Investment Gap Analysis and Way Forward.

Amendment 200 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 3 – paragraph 2

Amendment 201 #

Proposal for a regulation
Article 3 – paragraph 2

(2) The objectives shall be pursued with an emphasis on strengthening and developing the Union defence industrial base to reinforce its readiness against external factors while ensuring long-term peaceful cooperation among Member States, to allow it to address in particular the most urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force.

Amendment 202 #

Tomas TOBÉ, Henna VIRKKUNEN

Proposal for a regulation
Article 3 – paragraph 2

Amendment 203 #

Proposal for a regulation
Article 3 – paragraph 2

Amendment 204 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 3 – paragraph 2

2. The objectives shall be pursued with an emphasis on strengthening and developing the Union defence industrial base in accordance with the legal basis of the instrument to allow it to address in particular the most urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force.

Amendment 205 #

Proposal for a regulation
Article 3 – paragraph 2

2. The objectives shall be pursued with an emphasis on strengthening ~~and~~, developing, modernising, and expanding the Union defence industrial base to allow it to address in particular ~~the most~~ urgent and critical defence products needs, especially those revealed or exacerbated by the response to the Russian aggression against Ukraine, taking into account the work of the Defence Joint Procurement Task Force.

Amendment 206 #

Sara SKYTTEDAL, Christian EHLER, Tomas TOBÉ, Marian-Jean MARINESCU, Ivan ŠTEFANEC

Proposal for a regulation
Article 3 – paragraph 2 – point 1 (new)

(1) While fragmentation of the EDTIB is to be counteracted, there also exists necessary and valuable diversification with positive ramifications, not least from a security perspective.

Amendment 207 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 3 – paragraph 2 a (new)

2a. Nothing in this Instrument shall be interpreted as constraining the Member States arms export policies, in particular shipments to Ukraine.

Amendment 208 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS

Proposal for a regulation
Article 4 – paragraph 1

1. The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 shall be EUR ~~500 m~~1.5 billion in current prices.

Amendment 209 #

1. The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 shall be EUR ~~500 m~~1.5 billion in current prices.

Amendment 210 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 4 – paragraph 1

1. The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 shall be EUR ~~500 m~~1.5 billion in current prices.

Amendment 211 #

Proposal for a regulation
Article 4 – paragraph 1 – indent 1 (new)

- The agreement between the participating Member States and the procurement agent referred to in Article 8(2) of this Regulation may authorise the procurement agent to invite and enter into an agreement for procuring additional quantities of the defence product subject to the common procurement with those third countries such as Ukraine and the Republic of Moldova that are candidates for accession to the European Union and whose territory is in immediate proximity or affected by the war on Ukrainian territory and whose territory is occupied by forces supported by the Russian Federation. Such additional procurement arrangements shall be without prejudice to the applicable provisions of Union law and any relevant international obligations of the participating Member States.

Amendment 212 #

Proposal for a regulation
Article 4 – paragraph 1 a (new)

1a. The maximum amount that can be allocated to a joint public procurement project is 10% of the amount mentioned in paragraph (1).

Amendment 213 #

Proposal for a regulation
Article 4 – paragraph 2 a (new)

2a. The amount referred to in paragraph 1 shall not be used to co- finance defence products.

Amendment 214 #

Proposal for a regulation
Article 4 – paragraph 4 a (new)

4a. Any funding for joint procurement shall, prior its approval, demonstrate that it does not fuel the global arms race and does not risk contributing to the violation of, nor otherwise undermining, international and international humanitarian law, as well as human rights; the Council Common Position 2008/944/CFSP on arms exports shall be strictly applied.

Amendment 215 #

Proposal for a regulation
Article 4 – paragraph 4 b (new)

4b. Any funding for the joint procurement of weaponry shall be linked to a strict and non-negotiable ban on member States re-exporting jointly procured components, military equipment or armaments.

Amendment 216 #

Proposal for a regulation
Article 4 – paragraph 4 c (new)

4c. Any joint procurement should serve to rationalise, not to increase Member States’ military budgets and serve for territorial self-defence only.

Amendment 217 #

Proposal for a regulation
Article 4 – paragraph 4 d (new)

4d. The European Parliament will be involved at every step of the procedure and guarantee full transparency, strict control and scrutiny rights in the application of these criteria and safeguards.

Amendment 218 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Karen MELCHIOR

Proposal for a regulation
Article 5 – title

~~Thir~~Associated countries a~~ssociated~~nd additional arrangements applicable to othe ~~Instrument~~r third countries

Amendment 219 #

Proposal for a regulation
Article 5 – paragraph 1

The Instrument shall be open to the participation of the Member States and members of the European Free Trade Association which are members of the European Economic Area (associated countries), in accordance with the conditions laid down in the Agreement on the European Economic Areaonly; no third country will be associated to the Instrument.

Amendment 220 #

Ivars IJABS

Proposal for a regulation
Article 5 – paragraph 1 a (new)

The agreement between the participating Member States and the procurement agent referred to in Article 8(2) of this Regulation may authorise the procurement agent to invite and enter into an agreement for procuring additional quantities of the defence product subject to the common procurement with those third countries such as Ukraine and Moldova, which are candidates for accession to the European Union and whose territory is in immediate proximity or affected by the war on Ukrainian territory and whose territory is occupied by forces supported by the Russian Federation. Such additional procurement arrangements shall be without prejudice to the applicable provisions of Union law and any relevant international obligations of the participating Member States.

Amendment 221 #

Vangelis MEIMARAKIS, Maria SPYRAKI, Stelios KYMPOUROPOULOS, Elissavet VOZEMBERG-VRIONIDI, Manolis KEFALOGIANNIS, Anna-Michelle ASIMAKOPOULOU, Theodoros ZAGORAKIS, Eleni STAVROU

Proposal for a regulation
Article 5 – paragraph 1 a (new)

The agreement between the participating Member States and the procurement agent referred to in Article 8(2) of this Regulation may authorise the procurement agent to invite and enter into an agreement for procuring additional quantities of the defence product subject to the common procurement with candidate countries. Such additional procurement arrangements shall be without prejudice to the applicable provisions of Union law and any relevant international obligations of the participating Member States. Whenever appropriate, participation to the instrument should also be opened to other third countriues in accordance with the rules and conditions already set out for the participation in PESCO projects.

Amendment 222 #

Proposal for a regulation
Article 5 – paragraph 1 a (new)

The agreement between the participating Member States and the procurement agent referred to in Article 8(2) of this Regulation may authorise the procurement agent to invite and enter into an agreement for procuring additional quantities of the defence product subject to the common procurement with Ukraine and Moldova whose territory is in immediate proximity or affected by the war on Ukrainian territory and whose territory is occupied by forces supported by the Russian Federation. Such additional procurement arrangements shall be without prejudice to the applicable provisions of Union law and any relevant international obligations of the participating Member States.

Amendment 223 #

Tomas TOBÉ

Proposal for a regulation
Article 6 – paragraph 2

2. The EU funding shall incentivize the cooperation between Member States and participating parties referred to in Article 5, to fulfil the objectives referred to in Article 3. The financial contribution shall be set up taking into consideration the collaborative nature of the common procurement plus an appropriate amount to create the incentive effect necessary to induce cooperation.

Amendment 224 #

Dominique RIQUET, Nathalie LOISEAU, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 6 – paragraph 2

2. The EU funding shall incentivize the cooperation between Member States to fulfil the objectives referred to in Article 3. The financial contribution shall be set up taking into consideration the collaborative nature of the common procurement plus an appropriate amount to create the incentive effect necessary to induce cooperation without co-financing the defence products.

Amendment 225 #

Proposal for a regulation
Article 6 – paragraph 2

2. The EU funding shall incentivize the cooperation between Member States to fulfil the objectives referred to in Article 3. The financial contribution shall be set up taking into consideration the collaborative nature of the common procurement ~~plus an appropriate amount~~ to create the incentive effect necessary to induce cooperation.

Amendment 226 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 6 – paragraph 3

3. WBy way of derogation to Article 193 of the Financial Regulation, and where necessary for the implementation of an action, financial contributions may cover a period prior to the date of the request for financial contributions for that action, provided that the action has not started prior to ~~the 24 February 2022~~18 May 2022 and the common procurement has not been tendered before the signature of the Grant Agreement.

Amendment 227 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Stéphanie YON-COURTIN, Dominique RIQUET, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Olivier CHASTEL, Ivars IJABS, Karen MELCHIOR

Proposal for a regulation
Article 6 – paragraph 3

3. Where necessary for the implementation of an action, financial contributions may cover a period prior to the date of the request for financial contributions for that action, provided that the action has not started prior to the 24 February 2022 and have not been completed before the signature of the grant agreement.

Amendment 228 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 6 – paragraph 3

3. Where necessary for the implementation of an action, financial contributions may cover a period prior to the date of the request for financial contributions for that action, provided that the action has not started prior to the 24 February 2022 or completed before applying for the financial contribution.

Amendment 229 #

Proposal for a regulation
Article 6 – paragraph 3 – point 1 (new)

(1) The financial contribution to each approved action must not exceed 20% of the amount referred to in Article 4(1).

Amendment 230 #

Sara SKYTTEDAL, Christian EHLER, Michael GAHLER, Marian-Jean MARINESCU, Tomas TOBÉ, Ivan ŠTEFANEC

Proposal for a regulation
Article 6 – paragraph 3 a (new)

3a. The Union financial contribution to each action shall not exceed 15 % of the amount referred to in Article 4(1) and shall be capped at 20 % of the estimated value of the common procurement contract per consortium of Member States and associated countries. By way of derogation from the first subparagraph, the Union financial contribution to each action shall not be lower than 20 % of the amount referred to in Article 4(1) and shall be capped at 25 % of the estimated value of the common procurements contract, where one or both of the following conditions is met: (a) at least two members of a consortium of Member States and associated countries have a common border with Russia or with countries aggressed by Russia, or have their territorial waters or exclusive economic zones adjacent to those of Russia or the countries aggressed by Russia; (b) one of the third countries referred to in Article 5(1a) is a recipient of additional quantities in the procurement action in accordance with that paragraph.

Amendment 231 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 6 – paragraph 4 a (new)

4a. The level of EU contribution for each action must not exceed the 15 percent of the estimated value of the common procurement and is capped at 15 percent of the amount referred to in Article 4 (1). Furthermore, the EU contribution shall be defined by the following factors: (a) the strategic value of the procured defence equipment and the added value in terms of interoperability; (b) the complexity of the common procurement; (c) the number of Member States, candidate countries, and associated countries to each action, or the expansion of already existing consortia to other Member States, candidate countries, or associated countries.

Amendment 232 #

Riho TERRAS

Proposal for a regulation
Article 6 – paragraph 4 a (new)

4a. The Union financial contribution shall be prioritised for the consortia of Member States or associated countries, which seek to address replenishing the stocks of the most urgent and critical defence products needs revealed or exacerbated by the response to the Russian aggression against Ukraine.

Amendment 233 #

Riho TERRAS

Proposal for a regulation
Article 6 – paragraph 4 b (new)

4b. The Union financial contribution shall be prioritised for the consortia of Member States or associated countries, which pledge to partially donate the defence products as aid to Ukraine. The work programme referred to in Article 11 shall lay down further incentives to that end.

Amendment 234 #

Proposal for a regulation
Article 7 – paragraph 1 – point a

(a) the actions shall involve cooperation for common procurement of ~~the most~~ urgent and critical defence products between eligible entities implementing the objectives referred to in Article 3;

Amendment 235 #

Proposal for a regulation
Article 7 – paragraph 1 – point b

(b) the actions shall involve new cooperation or an extension of existing cooperation to at least one new Member States or associated countries;

Amendment 236 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 7 – paragraph 1 – point b

(b) the actions shall involve new cooperation or an extension of existing cooperation to at least onew Member States or associated countr~~ies~~y;

Amendment 237 #

Proposal for a regulation
Article 7 – paragraph 1 – point b

(b) the actions shall involve new cooperation or an extension of existing cooperation to new Member States ~~or associated countries~~;

Amendment 238 #

Proposal for a regulation
Article 7 – paragraph 1 – point c

Amendment 239 #

Proposal for a regulation
Article 7 – paragraph 1 – point c

Amendment 240 #

Proposal for a regulation
Article 7 – paragraph 1 – point c

Amendment 241 #

Proposal for a regulation
Article 7 – paragraph 1 – point d a (new)

(da) Any weaponry acquired jointly with EU funding shall serve defensive purposes only and be strictly limited to the protection of the EU territory; its use for military operations abroad, including EU missions, is prohibited, so as to guarantee full respect of of international and international humanitarian law, as well as human rights;

Amendment 242 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 7 – paragraph 2 – point b

(b) actions for common procurement of lethal autonomous weapons without the possibility for meaningful human control over selection and engagement decisions when carrying out strikes against humans or nuclear weapons.

Amendment 243 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI

Proposal for a regulation
Article 7 – paragraph 2 a (new)

2a. The minimum level of the Union contribution attributed to each action will be set out in the work programme referred to in Article 11 of the present regulation. The level of the Union contribution attributed to a given action will increase from its minimum level in the following cases, which indicate common procurement of higher value: a) At least 10% of the estimated value of the common procurement contract is allocated to SMEs, as contractors or subcontractors, that meet the funding conditions specified in Article 8 of the present regulation; b) At least 15% of the estimated value of the common procurement contract is allocated to mid-caps, as contractors or subcontractors, that meet the funding conditions specified in Article 8 of the present regulation.

Amendment 244 #

Proposal for a regulation
Article 8 – paragraph 1

1. Member States or associated third countries in accordance with Article 5 shall appoint a procurement agent to act on their behalf for the purpose of the common procurement. The procurement agent shall carry out the procurement procedures and conclude the resulting agreements with contractors on behalf of the participating Member States.

Amendment 245 #

Proposal for a regulation
Article 8 – paragraph 4

Amendment 246 #

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union. They shall not be subject to control by a non- associated third country or by a non- associated third country entity, or alternatively shall have been subject to screening within the meaning of Regulation (EU) 2019/452 and, where necessary, mitigation measures, taking into account the objectives referred to in Article 3.

Amendment 247 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union, in a country associated with it or in NATO member states. They shall not be subject to control by a ~~non- associated~~ third country or by a ~~non- associated~~ third- country entity.

Amendment 248 #

Proposal for a regulation
Article 8 – paragraph 5

5. By way of derogation from paragraph 4, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement only if ~~it provides~~ guarantees approved by the Member State or associated third country in which the contractor is established are made available to the Commission by the procurement agent or if it demonstrates that it has been subject to a screening within the meaning of Regulation (EU) 2019/452 and, where necessary, to mitigating measures equivalent to the conditions of paragraph 7.

Amendment 249 #

Proposal for a regulation
Article 8 – paragraph 5

Amendment 250 #

Dominique RIQUET, Dragoş TUDORACHE, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 5

5. ~~By way of derogation from paragraph 4, a~~A legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may not participate as contractor and subcontractor involved in the common procurement ounl~~y if~~ess, and by way of derogation from paragraph 4, it provides guarantees approved by the Member State or associated third country in which the contractor is established.

Amendment 251 #

Dominique RIQUET, Stéphanie YON-COURTIN, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 5

5. By way of derogation from paragraph 4, a legal entity established in ~~the Union or in an associated third country~~EU or NATO member states or in a third country associated with the EU and controlled by a ~~non-associated~~ third country or a ~~non-associated~~ third country entity may participate as contractor and subcontractor involved in the common procurement only if it provides guarantees approved by the Member State or associated third country in which the contractor is established.

Amendment 252 #

Proposal for a regulation
Article 8 – paragraph 6

6. The participating Member States shall provide to the Commission a notification from the procurement agent on the guarantees provided by a contractor or subcontractor involved in the common procurement that is established in the Union or an associated third country and controlled by a non- associated third country or a non- associated third country entity. The guarantees and related provisions in the procurement contract shall be made available to the Commission upon request. The guarantees shall provide assurances that the involvement of the contractor or subcontractor involved in the common procurement does not contravene the security and defence interests of the Union and its Member States as established in the framework of the CFSP pursuant to Title V of the TEU, or the objectives set out in Article 3.

Amendment 253 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 8 – paragraph 6

6. The participating Member States shall provide to the Commission a notification from the procurement agent on the guarantees provided by a contractor or subcontractor involved in the common procurement that is established in the Union or an associated third country and controlled by a non-associated third country or a non-associated third country entity. The guarantees and related provisions in the procurement contract shall be made available to the Commission upon request. The guarantees shall provide assurances that the involvement of the contractor or subcontractor involved in the common procurement fulfil strict conditions relating to the due diligence framework to identify, prevent, mitigate environmental and social risks and does not contravene the security and defence interests of the Union and its Member States as established in the framework of the CFSP pursuant to Title V of the TEU, or the objectives set out in Article 3.

Amendment 254 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 6

6. The participating Member States shall provide to the Commission a notification from the procurement agent on the guarantees or the equivalent measures provided by a contractor or subcontractor involved in the common procurement that is established in the Union or an associated third country and controlled by a non- associated third country or a non- associated third country entity. The guarantees, the equivalent measures and related provisions in the procurement contract shall be made available to the Commission upon request. The guarantees and equivalent measures shall provide assurances that the involvement of the contractor or subcontractor involved in the common procurement does not contravene the security and defence interests of the Union and its Member States as established in the framework of the CFSP pursuant to Title V of the TEU, or the objectives set out in Article 3 of this Regulation.

Amendment 255 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 6

6. The participating Member States 6. shall provide to the Commission a notification from the procurement agent on the guarantees provided by a contractor or subcontractor involved in the common procurement that is established in the Union or, an associated third country or a NATO member state and controlled by a ~~non-associated~~ third country or a ~~non-associated~~ third -country entity. The guarantees and related provisions in the procurement contract shall be made available to the Commission upon request. The guarantees shall provide assurances that the involvement of the contractor or subcontractor involved in the common procurement does not contravene the security and defence interests of the Union and its Member States as established in the framework of the CFSP pursuant to Title V of the TEU, or the objectives set out in Article 3.

Amendment 256 #

Proposal for a regulation
Article 8 – paragraph 7 – introductory part

7. The guarantees and equivalent measures shall in particular substantiate that, for the purposes of the common procurement, measures are in place to ensure that:

Amendment 257 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Olivier CHASTEL, Karen MELCHIOR

Proposal for a regulation
Article 8 – paragraph 7 – point a

(a) control over the contractor or subcontractor involved in the common procurement is not exercised in a manner that restrains or restricts its ability to carry out the order and to deliver results in accordance with the terms of the procurement contract and;

Amendment 258 #

Sara SKYTTEDAL, Christian EHLER, Ivan ŠTEFANEC, Tomas TOBÉ, Marian-Jean MARINESCU

Proposal for a regulation
Article 8 – paragraph 7 – point b

(b) access by a non-associated third country or by a non-associated third- country entity to ~~sensitive~~classified information is prevented and the employees or other persons involved in the common procurement have national security clearance issued by a Member State.

Amendment 259 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 7 – point b

(b) access by a ~~non-associated~~ third country or by a ~~non-associated~~ third- country entity to sensitive information is prevented and the employees or other persons involved in the common procurement have national security clearance issued by a Member State.

Amendment 260 #

Proposal for a regulation
Article 8 – paragraph 7 a (new)

7a. The Commission shall inform the committee referred to in article 14 of any legal entity to be eligible in accordance with paragraph 5.

Amendment 261 #

Dominique RIQUET, Stéphanie YON-COURTIN, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 8

8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Where no competitive substitutes are readily available in the Union or in an associated third country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 262 #

Proposal for a regulation
Article 8 – paragraph 8

8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of an EU or NATO Member State or of a~~n associated~~ third country associated with the EU. Where no competitive substitutes are readily available in the Union or in an associated third country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of ~~the~~EU or NATO Member States or of th~~e associated third countries~~ird countries associated with the EU provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 263 #

Proposal for a regulation
Article 8 – paragraph 8

8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Where ~~no competitive substitutes~~there are no readily available alternatives in the Union or in an associated third country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.

Amendment 264 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 8 – paragraph 8 a (new)

8a. When contractors and subcontractors involved in the common procurement use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries, the commonly procured product shall meet the Union’s environmental, social, governance and ethics rules, as they are applied to the defence products manufactured in the European Union.

Amendment 265 #

Proposal for a regulation
Article 8 – paragraph 9

Amendment 266 #

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity, directly, or indirectly through one or more intermediary legal entities, that limits Member States' ability to use it.

Amendment 267 #

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity directly, or indirectly through one or more intermediary legal entities, that limits Member States’ ability to use it.

Amendment 268 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 8 – paragraph 9

9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity directly or indirectly through one or more intermediary legal entities, that limits Member States’ ability to use it.

Amendment 269 #

Proposal for a regulation
Article 8 – paragraph 9

Amendment 270 #

Dominique RIQUET, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

9. Common procurement procedures and contracts shall also include a requirement ~~for~~specifying that the defence product to cannot be subject to a restriction by a non- associated third country or a non- associated third country entity.

Amendment 271 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 9 – subparagraph 1 (new)

By way of derogation from paragraph 9, in light of the current situation and the urgency to procure with the support of the Instrument, the requirement referred to in paragraph 9 does not apply to urgent and critical defence products, provided all the following conditions are met: (a) Member State or associated countries participating in the common procurement commit to study the feasibility of replacing the components that cause the restriction by an alternative restriction-free component of EU origin; (b) the procured products were in use prior to 24 February 2022 within the armed forces of a majority of the Member States participating in the common procurement.

Amendment 272 #

Proposal for a regulation
Article 8 – paragraph 9 a (new)

9a. By way of derogation from paragraph 9, and in regard of the urgency of the situation and the short-term nature of the Instrument, a defence product subject to a restriction by a non- associated third country or a non- associated third country entity shall be eligible for common procurement only if the Member States or associated countries participating in the common procurement request to waive this requirement. The request shall in particular substantiate that the following conditions are cumulatively met: (a) The waiver shall only concern defence products being in use prior to 24 February 2022 within the Armed Forces of all Member States or associated countries participating in the common procurement. (b) The waiver shall only concern defence products the stocks of which need to be replenished due to the new security environment in Europe, and (c) The waiver shall only concern defence products the non-availability of which, due to an absence of waiver, would put at risk the requesting Member States’ immediate ability to defend themselves’.

Amendment 273 #

Proposal for a regulation
Article 8 – paragraph 10 – introductory part

10. For the purposes of this Article, ‘subcontractors involved in the common procurement’ means a~~ll of the following:~~ny entity which provides critical inputs that possess unique attributes essential for the functioning of a ‘product and is allocated at least 10 per cent of the value of the contract.

Amendment 274 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 – introductory part

Amendment 275 #

Proposal for a regulation
Article 8 – paragraph 10 – introductory part

10. For the purposes of this Article, and in view of criticality and urgency to procure to fulfil the objectives of this regulation, ‘subcontractors involved in the common procurement’ means a~~ll of the following~~re only the ones:

Amendment 276 #

Dominique RIQUET, Dragoş TUDORACHE, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 – introductory part

10. For the purposes of this Article, ‘subcontractors involved in the common procurement’ means allny of the following:

Amendment 277 #

Nicola DANTI, Giuseppe FERRANDINO

Proposal for a regulation
Article 8 – paragraph 10 – point a

~~(a) subcontractors with a direct contractual relationship to a contractor;~~deleted

Amendment 278 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 – point a

(a) ~~subcontractors~~ with a direct contractual relationship to a contractor;

Amendment 279 #

Nicola DANTI, Giuseppe FERRANDINO

Proposal for a regulation
Article 8 – paragraph 10 – point b

~~(b) other subcontractors to which at least 10 % of the work share is alloca~~deleted;

Amendment 280 #

Dominique RIQUET, Dragoş TUDORACHE, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 – point b

(b) other subcontractors to which at least 10 % of the work share is allocated or owning the intellectual property of essential components of the system;

Amendment 281 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Frédérique RIES, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 – point b

(b) ~~other subcontractors~~ to which at least 105 % of the work share is allocated;

Amendment 282 #

Nicola DANTI, Giuseppe FERRANDINO

Proposal for a regulation
Article 8 – paragraph 10 – point c

~~(c) subcontractors which may require access to classified information in order to carry out the common procurement.~~deleted

Amendment 283 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Frédérique RIES, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 – point c

(c) ~~subcontractors which may require access to classified informa~~providing critical inputs that possess unique attributes essential for the function ing o~~rder to carry out the common procuremen~~f a product.

Amendment 284 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Frédérique RIES, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 a (new)

10a. Products and services that guarantee cybersecurity and ensure that the communications of the digital elements of goods acquired under this Regulation are secure must originate wholly within the EU unless it is not possible to find industrial solutions within the EU that will guarantee cybersecurity and the security of communications by the goods. In order to identify the entities authorised to supply the products and services referred to in this paragraph pursuant to this Regulation, it is understood that, solely in respect of companies that produce such products and services, they must meet the conditions set out in paragraph 4 and must own the intellectual property of the products and software designed for cybersecurity and information and their source codes, and that these must be deposited in data centres located inside the EU, or the companies must be controlled by entities that meet the requirements set out in paragraph 4.

Amendment 285 #

10a. The proportion of the equipment originating from non-associated third countries shall not exceed 20 per cent of the value of the end product. No components shall be sourced from non- associated third countries that contravene the security and defence interests of the Union and its Member States, including respect for the principle of good neighbourly relations.

Amendment 286 #

Proposal for a regulation
Article 8 – paragraph 10 a (new)

10a. The cost of components originating in non-associated third countries shall not exceed 30 per cent of the value of the end product. No components shall be sourced from non- associated third countries that contravene the security and defence interests of the Union and its Member States, including respect for the principle of good neighbourly relations.

Amendment 287 #

Dominique RIQUET, Dragoş TUDORACHE, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 8 – paragraph 10 a (new)

10a. The cost of components originating in non-associated third countries shall not exceed 30 per cent of the value of the end product.

Amendment 288 #

Proposal for a regulation
Article 8 – paragraph 10 a (new)

10a. The cost of components originating in non-associated third countries shall not exceed 10 per cent of the value of the end product.

Amendment 289 #

Proposal for a regulation
Article 9 – paragraph 1 – point b

~~(b) public authorities of associated third countries.~~deleted

Amendment 290 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 9 – paragraph 1 – point b a (new)

(ba) Non-EU contractors and subcontractors are excluded from the scope of EDIRPA, as well as companies that face serious allegations of corruption;

Amendment 291 #

Proposal for a regulation
Article 10 – paragraph 1 – point 1

1. The contribution of the action to strengthening and developing the Union defence industrial base to allow it to address in particular ~~the most~~ urgent and critical defence products needs as referred to in Article 3, including with respect to procurement procedure and delivery lead times, replenishment of stocks, availability and supply;

Amendment 292 #

Proposal for a regulation
Article 10 – paragraph 1 – point 2

Amendment 293 #

Proposal for a regulation
Article 10 – paragraph 1 – point 3

3. the contribution of the action to strengthening cooperation among Member States or associated countries ~~and interoperability of products~~, Ukraine and the Republic of Moldova, and any declaration by the participants to strengthen their defence cooperation beyond the joint procurement;

Amendment 294 #

Proposal for a regulation
Article 10 – paragraph 1 – point 3 a (new)

3a. 3a. the extent to which the procurement stimulates the expansion of the EDTIB to more Member States, the modernization of Member States military capabilities, and the uptake of cutting- edge technologies and equipment;

Amendment 295 #

Proposal for a regulation
Article 10 – paragraph 1 – point 4 a (new)

4a. whether the participants include Member States on the Eastern Flank, Ukraine, or the Republic of Moldova;

Amendment 296 #

Proposal for a regulation
Article 10 – paragraph 1 – point 6

6. catalytic effect of Union financial support through demonstration of how the Union contribution can overcome obstacles to common procurement and contribute to the goal of moving towards a European Defence Union;

Amendment 297 #

Proposal for a regulation
Article 10 – paragraph 1 – point 7 a (new)

7a. The contribution of the action to diversifying the supply chain by involving SMEs and mid-capitalisation companies in the manufacturing process.

Amendment 298 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 10 – paragraph 1 – point 7 a (new)

7a. The articulation of the action in the framework of the European Defence Fund.

Amendment 299 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Dominique RIQUET, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Karen MELCHIOR

Proposal for a regulation
Article 10 – paragraph 1 a (new)

In order to support a rapid, effective and coordinated response to the most urgent and critical defence needs, joint procurement where at least one member of the consortium is bordering a zone of military conflict, is directly involved in a military conflict, or has territory under foreign military occupation shall be given priority and benefit from a higher percentage contribution.

Amendment 300 #

Proposal for a regulation
Article 10 a (new)

Article 10 a Requirements for common procurement of defence product subject to a restriction by a third country 1. The requirements for the defence product subject to a restriction by a non- associated third country or a non- associated third country entity shall not apply, when the following conditions are all met: (a) Common procurement procedures and contracts refer to urgent and critical defence products that are needed to replenish stocks that have been reduced as a result of the response to the Russian military aggression against Ukraine; and (b) the capacity of the EDTIB to fill the most urgent and critical gaps in the stocks of the Member States is not sufficient or is not able to provide the defence products in an adequate timeframe; and (c) Member States or associated countries participating in the common procurement have carefully assessed the feasibility of replacing the components that cause the restriction by an alternative restriction- free component of EU origin; and (d) the procured products were in use prior to 24 February 2022 within the armed forces of all the Member States participating in the common procurement.

Amendment 301 #

Proposal for a regulation
Article 11 – paragraph 1

1. The Instrument shall be implemented through a multiannual work programme as referred to in Article 110 of the Financial Regulation.

Amendment 302 #

Riho TERRAS

Proposal for a regulation
Article 11 – paragraph 1

1. The Instrument shall be implemented through an annual work programme as referred to in Article 110 of the Financial Regulation.

Amendment 303 #

Sara SKYTTEDAL, Christian EHLER, Ivan ŠTEFANEC, Marian-Jean MARINESCU

Proposal for a regulation
Article 11 – paragraph 2

2. The Commission shall, by means of a~~n implementing~~ delegated act, adopt the work programme referred to in paragraph 1. The ~~implementing~~delegated act shall be adopted in accordance with the ~~examination~~ procedure referred to in Article 1~~4 paragraph~~ 3a.

Amendment 304 #

Proposal for a regulation
Article 11 – paragraph 2

2. The Commission shall, by means of a~~n implementing~~ delegated act, adopt the work programme referred to in paragraph 1. The ~~implementing~~delegated act shall be adopted in accordance with the examination procedure referred to in Article 14 paragraph 3.

Amendment 305 #

Proposal for a regulation
Article 11 – paragraph 2

2. The Commission shall, by means of a~~n implementing~~ delegated act, adopt the work programme referred to in paragraph 1. The ~~implementing~~delegated act shall be adopted in accordance with the examination procedure referred to in Article 14 paragraph 3.

Amendment 306 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Nathalie LOISEAU

Proposal for a regulation
Article 11 – paragraph 3

3. The work programme shall set out: (a) the minimum financial size of the joint procurement actions ~~and determine~~; (b) the indicative amount of financial support for actions carried out by the minimum number of Member States as referred to in point c) of Article 7 paragraph 1 ~~as well as~~; (c) incentives for procurement of higher value and inclusion of additional Member States or associated countries; (d) the funding priorities in line with the needs referred to in Article 3 paragraph 2; (e) a description of actions involving cooperation for common procurement; (f) the estimated value of the common procurement; (g) the procedure for evaluation and selection of the proposals.

Amendment 307 #

Proposal for a regulation
Article 11 – paragraph 3

3. The work programme shall set out the minimum financial size of the joint procurement actions and determine the indicative amount of financial support for actions carried out by the minimum number of Member States as referred to in point c) of Article 7 paragraph 1 as well as incentives for procurement of higher value and inclusion of additional Member States or associated countries or countries referred to in Article 5, subparagraph 2.

Amendment 308 #

Proposal for a regulation
Article 11 – paragraph 3

Amendment 309 #

Proposal for a regulation
Article 11 – paragraph 4

4. The work programme shall set out the ~~funding priorities in line with the needs referred to in Article 3 paragraph 2~~overall amount of Union contribution for each funding priority and a precise description of the milestones needed to measure progress in implementing the respective action or results as well as the associated amounts for disbursement.

Amendment 310 #

Proposal for a regulation
Article 11 – paragraph 4 – point 1 (new)

(1) The Commission, assisted by the European Defence Agency, shall endeavour to identify those components of non EU origin for which no alternative exists in the Union and take appropriate measures to foster their development in the Union, including through research and development, and in particular, through the European Defence Fund.

Amendment 311 #

Sara SKYTTEDAL, Christian EHLER, Marian-Jean MARINESCU, Tomas TOBÉ, Ivan ŠTEFANEC, François-Xavier BELLAMY

Proposal for a regulation
Article 11 – paragraph 4 a (new)

4a. In order to increase the strategic autonomy of the European Union, Member States will identify and provide the Commission with the list of non- European origin components for which no alternative exists in the European Union, and take appropriate measures to ensure their development in the Union, including through research and development, and in particular, through the European Defence Fund.

Amendment 312 #

Proposal for a regulation
Article 11 – paragraph 4 a (new)

4a. In line with Article 8 (9), the Commission, assisted by the European Defence Agency, shall endeavour to identify components of non-EU origin for which no alternative exists in the Union and take appropriate measures to foster their development in the Union, including through research and development, and in particular, through the European Defence Fund.

Amendment 313 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Article 11 a (new)

Article 11 a Application of the rules on classified and sensitive information 1. Within the scope of this Regulation : (a) each Member State shall ensure that it offers a degree of protection of EU classified information equivalent to that provided by the security rules of the Council set out in Council Decision 2013/488/EU (28); (b) the Commission shall protect classified information in accordance with the security rules set out in Decision (EU, Euratom) 2015/444; 2. The use and disclosure of sensitive information should be governed by relevant Union and national law and subjected to authorizition of the Member States.

Amendment 314 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Giuliano PISAPIA, Carlos ZORRINHO

Proposal for a regulation
Article 12 – paragraph 1

1. The Commission shall draw up an mid-term/interim evaluation report for the Instrument not later than 31 December 202~~4 and~~3, followed by a full evaluation report not later than 31 December 2024, to be submit itted to the European Parliament and to the Council. The report shall evaluate the impact and effectiveness of the actions taken under the Instrument. Furthermore, it will present the findings of the monitoring and disbursement process set out in the work programme.

Amendment 315 #

Proposal for a regulation
Article 12 – paragraph 1 – point 1 (new)

(1) Furthermore, the report should in cooperation with the European Defence Agency, incorporate findings and recommendations pertaining to the use of raw materials, components and production capacities from third countries within the various actions for which there was no European substitute.

Amendment 316 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 12 – paragraph 2

2. The report shall build on consultations of Member States and key stakeholders and shall, in particular, assess the progress made towards the achievement of the objectives set out in Article 3. , and shall, in particular, evaluate the contribution of the Instrument to the: (a) creation of new cross-border cooperation between Member States, candidate countries, or associated countries; (b) increased interoperability among EU Member States armed forces; (c) participation of SMEs and mid-caps in the action, as contractors or subcontractors in the supply chain; (d) strengthening of the EDTIB throughout the Union and ensuring a level-playing field for suppliers from all the Member States; (e) replenishment of stockpiles that have been depleted, including as a result of the response to the unprovoked and unjustified military aggression against Ukraine; (f) replacement of obsolete systems, including Soviet era defence legacy systems still in use with Union solutions.

Amendment 317 #

Proposal for a regulation
Article 12 – paragraph 2

2. The report shall build on consultations of Member States and key stakeholders and shall, in particular, assess the progress made towards the achievement of the objectives set out in Article 3 and evaluate the Instrument contribution to the following: a) participation of SMEs, start-ups and mid-caps in the action as contractors and subcontractors involved in the common procurement; b) reinforcement of the EDTIB throughout the Union; c) identification of the involvement of each Member States.

Amendment 318 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 12 – paragraph 2

2. The report shall build on consultations of Member States and key stakeholders and shall, in particular, assess the progress made towards the achievement of the objectives set out in Article 3 and be based on a set of key performance indicators that the Commission must adopt by delegated act, no later than 3 months after the entry into force of this Regulation .

Amendment 319 #

Proposal for a regulation
Article 12 – paragraph 2

Amendment 320 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 12 – paragraph 2 – point a (new)

(a) creating new cross-border cooperation between Member States;

Amendment 321 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 12 – paragraph 2 – point b (new)

(b) developing new industrial synergies within the European Defence Industry;

Amendment 322 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 12 – paragraph 2 – point c (new)

Amendment 323 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Article 12 – paragraph 2 – point d (new)

(d) incorporating a broad share of companies from across the EU;

Amendment 324 #

Sara SKYTTEDAL, Christian EHLER, François-Xavier BELLAMY, Tomas TOBÉ, Marian-Jean MARINESCU, Ivan ŠTEFANEC

Proposal for a regulation
Article 12 – paragraph 2 a (new)

2a. For each grant, the Commission in consultation with the consortium of Member States and associated countries concerned, shall appoint a monitoring officer who shall be assigned to the procurement agent with a view to the regular monitoring of the implementation of the common procurement, and for preparing the report referred to in paragraph 1. Every three month the monitoring officer shall send a respective progress report to the Commission.

Amendment 325 #

Proposal for a regulation
Article 12 – paragraph 2 a (new)

2a. In addition and in line with Article 8 (9), the report shall identify, based on considerations of the Union's essential defence capability needs, the most critical components of non-EU origin, including an assessment of the possibilities for the development of alternative components within the Union.

Amendment 326 #

Tomas TOBÉ, Henna VIRKKUNEN

Proposal for a regulation
Article 12 – paragraph 2 a (new)

2 a. The implementation of EDIRPA and the subsequent use of jointly acquired military equipment shall be subject to strict transparency full control and scrutiny rights by all relevant EU bodies, in particular the European parliament;

Amendment 327 #

Proposal for a regulation
Article 12 – paragraph 2 a (new)

2a. The report shall evaluate potential bottlenecks in the functioning of this instrument.

Amendment 328 #

Proposal for a regulation
Article 12 – paragraph 2 b (new)

2b. The monitoring officers shall be involved in briefing the European Parliament. Such briefings at the request of the European Parliament shall be held at the level of EU Restricted.

Amendment 329 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Article 12 – paragraph 2 c (new)

2c. When briefing the European Parliament, the Commission shall ensure that the necessary conditions for the protection of EU classified information are met.

Amendment 330 #

Proposal for a regulation
Article 12 a (new)

Article 12 a Application of the rules on classified information 1. Member States and associated countries participating in a common procurement shall determine among themselves the arrangements applicable to the protection of classified information for the purposes of the common procurement, in accordance with national laws and regulations. 2. The Commission shall protect EU classified information received in relation to the Instrument in accordance with the security rules set out in Decision (EU, Euratom) 2015/444. 3. The Commission shall set up a secured exchange system in order to facilitate the exchange of sensitive and classified information between the Commission and the Member States and associated countries and, where appropriate, with the applicants and the recipients. That system shall take into account the Member States’ national security regulations.

Amendment 331 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Article 13 – paragraph 2 a (new)

2a. The Commission shall provide, in particular, SMEs and mid-caps the information needed to allow and facilitate their participation in the common procurement process, including supporting instruments to reduce administrative burdens.

Amendment 332 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Stéphanie YON-COURTIN, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA

Proposal for a regulation
Article 13 a (new)

Article 13 a Exercise of Delegation 1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. The power to adopt delegated acts referred to in Articles 11 and 12 shall be conferred on the Commission for a period of two years from [date of entry into force]. 3. The delegation of power referred to in Articles 11 and 12 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

Amendment 333 #

Proposal for a regulation
Article 14 – paragraph 2

2. The European Defence Agency together with the European External Action Service shall be invited to provide its views and expertise to the committee as an observer. ~~The European External Action Service~~NATO shall also be invited to assist in the committee.

Amendment 35 #

Francesca DONATO

Proposal for a regulation
–

The European Parliament rejects the Commission proposal.

Amendment 36 #

Proposal for a regulation
–

The European Parliament rejects the Commission proposal.

Amendment 37 #

Draft legislative resolution
Citation 4 a (new)

— having regard to the Joint Declaration on EU-NATO Cooperation, signed in Warsaw on 8 July 2016 by the Presidents of the European Council and the European Commission, and the Secretary-General of NATO,

Amendment 38 #

Draft legislative resolution
Citation 4 b (new)

— having regard to the Joint Declaration on EU-NATO Cooperation, signed in Brussels on 10 July 2018 by the Presidents of the European Council and the European Commission, and the Secretary-General of NATO,

Amendment 39 #

Francesca DONATO

Draft legislative resolution
Citation 7 a (new)

— having regard to the need to spend European citizens' money more wisely,

Amendment 40 #

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the ~~European defence industry Reinforcement~~instrument for the strengthening of the Defence Technological and Industrial Base (EDTIB) through common Pprocurement ~~Act~~

Amendment 41 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Recital 1

(1) The EU Heads of State or Government, meeting in Versailles on 11 March, committed to “bolster European defence capabilities” in light of the Russian military aggression against Ukraine. They agreed to increase defence expenditures, step up cooperation through joint projects, and common procurement of defence capabilities, close shortfalls, boost innovation and strengthen and develop the EU defence industry, pursuing a strategic course of action to increase the capacity of the Union to act autonomously in the field of defence, in complementarity with the North Atlantic Treaty Organisation (NATO).

Amendment 42 #

Proposal for a regulation
Recital 1

(1) The EU Heads of State or Government, meeting in Versailles on 11 March, committed to “bolster European defence capabilities” in light of the Russian military aggression against Ukraine. They agreed to increase defence expenditures, step up cooperation through joint projects, and common procurement of defence capabilities, close shortfalls, boost innovation and strengthen and develop the EU defence industry, which is a key player that should positively contribute to the security of Member States by providing effective new capabilities in a timely manner.

Amendment 43 #

Sara SKYTTEDAL, Christian EHLER, Marian-Jean MARINESCU, Tomas TOBÉ, Henna VIRKKUNEN, Ivan ŠTEFANEC, François-Xavier BELLAMY

Proposal for a regulation
Recital 1

(1) The EU Heads of State or Government, meeting in Versailles on 11 March, committed to “bolster European defence capabilities” in light of the Russian military aggression against Ukraine. They agreed to increase defence expenditures, step up cooperation through joint projects, and common procurement of defence capabilities, close shortfalls, boost innovation and strengthen and develop the EU defence industry, including small and medium-sized enterprises (SMEs).

Amendment 44 #

Proposal for a regulation
Recital 1

Amendment 45 #

Proposal for a regulation
Recital 1 a (new)

(1a) Pursuant to Article 41(2) of the Treaty on European Union, expenditure arising from operations having military or defence implications shall not be charged to the Union budget;

Amendment 46 #

Proposal for a regulation
Recital 1 b (new)

(1b) Considering that he EDF precursors programmes (PADR & EDIDP) have been profiting mostly to the big four military powers (France, Italy, Germany and Spain getting 65% of the funding allocated in 2017-2020) and to 15 major arms companies and research centres (getting 51,3% of the funding); warns that many of these arms dealers are involved in controversial arms exports and/or are subject to serious allegations of corruption;

Amendment 47 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Recital 2

(2) The unjustified invasion of Ukraine by the Russian Federation on 24 February 2022 and the ongoing armed conflict in Ukraine has made it clear that it is critical to act now to address the existing shortfalls It has led to the return of high-intensity warfare and territorial conflict in Europe, requiring 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. Russia's military aggression against Ukraine has dramatically underlined the need to adapt the European defence industrial and technological base (EDTIB) to structural changes and to strengthen cooperation between Member States in the framework of procurement in the field of defence.

Amendment 48 #

Proposal for a regulation
Recital 2

(2) The unjustified invasion of Ukraine by the Russian Federation on 24 February 2022 and the ongoing armed conflict in Ukraine has made it clear that it is critical to act now to address the existing shortfalls It has led to the return of high-intensity warfare and territorial conflict in Europe~~, requiring~~ to the detriment of All European citizens and Member States. As a result the situation requires a significant increase in the capacity of Member States to fill the most urgent and critical gaps, especially those exacerbated by the transfer of defence products to Ukraine.

Amendment 49 #

Proposal for a regulation
Recital 2

(2) The unjustified invasion of Ukraine by the Russian Federation on 24 February 2022 and the ongoing armed conflict in Ukraine has made it clear that it is critical to act ~~now~~urgently to address the existing shortfalls It has led to the return of high- intensity warfare and territorial conflict in Europe,. It requir~~ing~~es a significant increase in the capacity of Member States to fill ~~the most~~ urgent and critical gaps, especially those exacerbated by the transfer of defence products to Ukraine, in particular in the Member States in its close neighbourhood.

Amendment 50 #

Proposal for a regulation
Recital 2

(2) The unjustified invasion of Ukraine by the Russian Federation on 24 February 2022 and the ongoing armed conflict in Ukraine has made it clear that it is critical to act now to address the existing shortfalls It has led to the return of high- intensity warfare and territorial conflict in Europe, requiring 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 Ukraineeradicate and prevent the root causes of current and future conflicts by investing in diplomatic, political and civilian approaches involving multilateral fora, thus achieving greater collective security and an overall reduction of costs for defence .

Amendment 51 #

Proposal for a regulation
Recital 2 a (new)

(2a) Furthermore, the Russian military aggression against Ukraine has placed some Member States in the direct neighbourhood of a war zone, with all the difficulties that the proximity to the war front implies, including accidental civilian casualties in the border area, massive movement of people fleeing the war, organisation of shipment of military and humanitarian aid; at the same time, Southern European Member States are particularly exposed to multifaceted threats and the immediate and long-term negative impacts of instability in the EU’s immediate neighbourhood;

Amendment 52 #

Proposal for a regulation
Recital 2 a (new)

(2a) The Russian invasion of Ukraine is a wake-up call for the European Union, which still has Soviet-era military equipment, barely functioning or no longer relevant in the context of technological developments. The defence budget has been neglected critically in many Member States, while both our partners and other third countries have invested massively in modernizing their military capabilities. Ramping up our military R&D, our defence industry, and our military capabilities would make the EU a relevant global player, which is both adequate and necessary for the current geopolitical landscape.

Amendment 53 #

Proposal for a regulation
Recital 2 a (new)

(2a) The new European defence doctrine enshrined in the Strategic Compass is the EU Member States’ compelling response to the asymmetric assault on democracy and the rule of law. Therefore, the Member States need to be able to protect their citizens, interests, principles and values at EU level. The Union has the duty to facilitate and incentivise realistic opportunities for joint procurement in the defence sector, moving forward towards a more integrated, effective and capable EU that serves as a peace and security provider worldwide.

Amendment 54 #

Proposal for a regulation
Recital 2 a (new)

(2a) The security situation in Europe requires urgent reflection on how to prevent further fragmentation of the defence sector via stand-alone EU initiatives and how to strategically link existing and future instruments.

Amendment 55 #

Proposal for a regulation
Recital 2 b (new)

(2b) It would be short-sighted not to consider Russia an adversary that poses transnational, hybrid and asymmetric threats to the EU Member States in the broader Middle East and North Africa regions, the Sahel and West Africa. Security deterioration trends that affect those regions pose unprecedented challenges to the EU’s borders and interests; the grim reality is that multiple geopolitical shocks are affecting all the world regions and fronts that are of strategic interest to the EU, NATO allies and like-minded partners, and these shocks both predate and are now concomitant with Russia’s attack on the territorial integrity of Ukraine.

Amendment 56 #

Proposal for a regulation
Recital 2 b (new)

(2b) Data shows that Member States are not meeting the 35% European collaborative defence equipment procurement benchmark. Despite incentives that use EU budget co-funding such as PADR, EDIDP (2019-2020) and EDF (since 2021), rates of collaborative investments have not changed significantly from 13% in 2019, to 11% in 2020 and 18% in 2021 which suggests that EU budget co-funding had no strong impact on the mobilisation of political will in Member States in the past.

Amendment 57 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Recital 2 c (new)

(2c) In response to this situation and in light of the positive experience with the new European Peace Facility, the European Parliament, in its resolution of 8 June 2022 on ‘The EU’s Foreign, Security and Defence Policy after the Russian war of aggression against Ukraine’, called to urgently launch a discussion with a view to establishing another off-budget financial facility which would address the entire life-cycle of military capabilities at EU level from collaborative R&D and joint procurement, to joint maintenance, training and security of supply.

Amendment 58 #

Proposal for a regulation
Recital 3

(3) The Commission and the High Representative presented a Joint Communication on “The Defence Investment Gaps Analysis and Way Forward” on 18 May 2022. The Communication highlighted the existence, within the EU, of defence financial, industrial and capability gaps, caused by years of defence underspending, reduced industrial production capacity and limited joint procurement and collaboration.

Amendment 59 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ, Karen MELCHIOR

Proposal for a regulation
Recital 4

Amendment 60 #

Proposal for a regulation
Recital 4

Amendment 61 #

Proposal for a regulation
Recital 4

Amendment 62 #

Proposal for a regulation
Recital 5

(5) Such a new exceptional and temporary instrument will contribute to reinforce common defence procurement and, through the associated Union financing, to strengthen EU defence industrial capabilities. This instrument, which Member States may use on a completely optional basis, should not have a detrimental effect on the specific nature of Member States’ security and defence policies, nor should it compromise national choices concerning investment in the relevant sector. In that regard, it may under no circumstances be used to exert strategic, political or economic pressure on one of the state sponsors.

Amendment 63 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

(5) Such a new instrument will contribute to reinforce common defence procurement and, through the associated Union financing, to strengthen EU defence industrial capabilities. It is critical for the security of Europe to rely on a strong and autonomous European defence industry pillar.

Amendment 64 #

Proposal for a regulation
Recital 5

(5) Such a new instrument will contribute to reinforce common defence procurement in alignment with Member States' goal of 35% collaborative procurement for defence equipment and, through the associated Union financing, to strengthen EU defence industrial capabilities.

Amendment 65 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 5

(5) Such a new instrument will contribute to reinforce common defence procurement and, through the associated Union financing, to strengthen and improve EU defence industrial capabilities.

Amendment 66 #

Proposal for a regulation
Recital 5 a (new)

(5a) This instrument should be viewed as a first step towards more coordination in the field of security and defence, and, together with future measures, paves the way towards a European defence single market and a European Defence Union. European unity and interoperability are key for the future of the European security architecture.

Amendment 67 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Recital 5 a (new)

(5a) This new instrument will be an important step towards to the creation of the EU Defence Union and shall contribute to enhance the Union’s open strategic autonomy, to strengthen its ability to protect its citizens and to reinforce the EU’s global position in the context of increasing security threats at the international level.

Amendment 68 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Recital 5 b (new)

(5b) The Instrument should also contribute to drive transformational change in the European Defence Technological and Industrial Base, simultaneous to improving security in the European Union. These changes include building more resilient supply chains, growing the advanced manufacturing sector and exports, and enhancing technological innovation.

Amendment 69 #

Proposal for a regulation
Recital 6

(6) Reinforcing the European Defence Technological and Industrial Base ~~should~~must therefore be at the core of those efforts. Indeed difficulties and gaps still exist and the European defence industrial base remains highly fragmented, lacking sufficient collaborative action and inter- operability of products. However, the equipment needs of the European armed forces in the short term can be efficiently met by the know-how and skills of the EDTIB. The Short Term Instrument allows the ramp-up of the quantities produced, and mobilises the strong potential of European companies through the support of joint procurements.

Amendment 70 #

Proposal for a regulation
Recital 6

(6) Reinforcing the European Defence Technological and Industrial Base, the military potential of the Member States, and the independence and readiness of the European Defence capabilities should therefore be at the core of those efforts. Indeed difficulties and gaps still exist and the European defence industrial base remains highly fragmented, lacking sufficient collaborative action and interoperability of products, so the measures taken to reinforce the European defence industry must ensure that the development of defence capabilities does not generate tensions, or asymmetries among the Member States.

Amendment 71 #

Henna VIRKKUNEN, Tomas TOBÉ, Sara SKYTTEDAL

Proposal for a regulation
Recital 6

(6) Reinforcing the European Defence Technological and Industrial Base should therefore be at the core of those efforts. Indeed difficulties and gaps still exist and the European defence industrial base remains highly fragmented~~, lacking sufficient~~; this, in turn, causes inefficiencies in the use of taxpayers money, undermined possibilities to lunch collaborative actions, and reduced inter- operability of products.

Amendment 72 #

Proposal for a regulation
Recital 6

(6) Reinforcing the European Defence Technological and Industrial Base through proper functioning of the European Single Market should therefore be at the core of those efforts. Indeed difficulties and gaps still exist and the European defence industrial base remains highly fragmented, lacking sufficient collaborative action and inter- operability of products.

Amendment 73 #

Zdzisław KRASNODĘBSKI, Elżbieta KRUK, Izabela-Helena KLOC, Witold Jan WASZCZYKOWSKI, Alexandr VONDRA

Proposal for a regulation
Recital 6

(6) Reinforcing the European Defence Technological and Industrial Base should therefore be at the core of those efforts~~. Indeed difficulties and gaps still exist and the European defence industrial base remains highly fragmented, lacking sufficient collaborative action and inter- operability of product~~, while avoiding merging European defence industries together, which would lead to a loss of know-how and sovereignty for Member States.

Amendment 74 #

Proposal for a regulation
Recital 6

(6) Reinforcing the European Defence Technological and Industrial Base (EDTIB) throughout the Union should therefore be at the core of those efforts. Indeed difficulties and gaps still exist and the European defence ~~industrial base remains highly~~capabilities remain fragmented, lacking sufficient collaborative action and inter- operability of products.

Amendment 75 #

Sara SKYTTEDAL, Christian EHLER, Michael GAHLER, Marian-Jean MARINESCU, Tomas TOBÉ, François-Xavier BELLAMY, Ivan ŠTEFANEC

Proposal for a regulation
Recital 6

Amendment 76 #

Proposal for a regulation
Recital 6 a (new)

(6a) In addition, given that the EDTIB requires favourable long-term conditions, it is of utmost importance that access to finance for defence companies is assured, as laid out in the Strategic Compass. Lacking an explicit classification of being sustainable within the EU's taxonomy, EU defence companies are faced with substantial difficulties to secure financing and thus to increase their production capacity rendering relocation of production outside of the EU's common market more attractive to defence companies. By not defining all defence companies as sustainable, EU is actively undermining an industry that is vital to protect our societies and in the long run, this approach could pose a threat to sustainable development. Furthermore, the EU Member States should take a first step in that regard and send a positive signal to European defence companies and the financial sector by adapting the statute of the European Investment Bank in order to allow for financing of defence investments.

Amendment 77 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Elena YONCHEVA, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Recital 6 a (new)

(6a) National regulations and increasing administrative burden in the defence sector of the Member States contributed to hindering competition and reducing economies of scale in the European defence industrial base.

Amendment 78 #

Zdzisław KRASNODĘBSKI, Elżbieta KRUK, Izabela-Helena KLOC, Witold Jan WASZCZYKOWSKI, Alexandr VONDRA

Proposal for a regulation
Recital 7

(7) In the current defence market context, marked by an increased security threat and the realistic perspective of a high intensity conflict, Member States are rapidly increasing their defence budgets and aiming at similar purchases. This results in an amount of demand which exceeds European Defence Technological and Industrial Base manufacturing capacities, currently tailored for peace time. The lack of coordination and cooperation regarding procurement risks contributing to rising prices, which could have the effect that increasing national defence budgets would not lead to stronger military capabilities.

Amendment 79 #

Proposal for a regulation
Recital 8 a (new)

(8a) The current geopolitical situation in the Eastern neighbourhood of the Union has shown that, whereas the duplication of efforts should be avoided, a diversified defence market can contribute to the variety of products immediately available on the market and can therefore be beneficial to an adequate satisfaction of Member States’ urgent needs.

Amendment 80 #

Zdzisław KRASNODĘBSKI, Elżbieta KRUK, Izabela-Helena KLOC, Witold Jan WASZCZYKOWSKI, Alexandr VONDRA

Proposal for a regulation
Recital 9

(9) ~~Furthermore~~Nevertheless, efforts should be made so that the increased spending results in a much stronger E~~uropean Defence Technological and Industrial Base. Indeed, without coordination and~~DTIB throughout the Union. Closer cooperation, together withe increased national investments, are likely to ~~deepen the fragmentation of the European defence industry~~strengthen the European defence capabilities as well as increase global competitiveness and efficiency of the defence industry across the Union.

Amendment 81 #

Nathalie LOISEAU, Stéphanie YON-COURTIN, Dominique RIQUET, Bernard GUETTA, Javier NART, Dragoş TUDORACHE, Petras AUŠTREVIČIUS, Frédérique RIES, Klemen GROŠELJ, Christophe GRUDLER

Proposal for a regulation
Recital 9 a (new)

(9a) Underlines the importance of security of supply arrangements for the development of long-term planning and cooperation, and for the functioning of the European defence equipment market. The European Council, already in 2013, called on the Commission to develop a roadmap for a comprehensive EU-wide security of supply regime which has, unfortunately, never been presented.

Amendment 82 #

Proposal for a regulation
Recital 10

(10) In the light of the above challenges and the related structural changes in the EU Defence industry, and in accordance with Article 173 of the Treaty on the Functioning of the European Union where the Union and the Member States aim at ensuring that the competitiveness of the Union’s industry exist, it appears necessary to speed up the adjustment of the European Defence Technological and Industrial Base, enhance its competitiveness and efficiency, and thereby contribute to strengthening and reforming Member States’ defence industrial capabilities. Addressing industrial shortfalls should include promptly tackling the most urgent gaps.

Amendment 83 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Nathalie LOISEAU

Proposal for a regulation
Recital 10

Amendment 84 #

Dominique RIQUET, Dragoş TUDORACHE, Nathalie LOISEAU, Martin HOJSÍK, Stéphanie YON-COURTIN, Christophe GRUDLER, Klemen GROŠELJ

Proposal for a regulation
Recital 10

(10) In the light of the above challenges and the related structural changes in the EU Defence industry, and in accordance with Article 173 of the Treaty on the Functioning of the European Union, it appears necessary to speed up the adjustment of the European Defence Technological and Industrial Base, enhance its competitiveness and efficiency, and thereby contribute to strengthening and reforming Member States’ defence industrial capabilities. Addressing industrial shortfalls should include promptly tackling the most urgent gaps.

Amendment 85 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Recital 10

Amendment 86 #

Proposal for a regulation
Recital 10

Amendment 87 #

Zdzisław KRASNODĘBSKI, Elżbieta KRUK, Izabela-Helena KLOC, Witold Jan WASZCZYKOWSKI, Alexandr VONDRA

Proposal for a regulation
Recital 10

(10) In the light of the above challenges and the related structural changes in the EU Defence industry, it appears necessary to speed up the adjustment of the E~~uropean Defence Technological and Industrial Base~~DTIB, enhance its competitiveness and efficiency, and thereby contribute to strengthening and reforming Member States’ defence industrial capabilities. Addressing industrial shortfalls throughout the Union should include promptly tackling the most urgent gaps.

Amendment 88 #

Proposal for a regulation
Recital 10 a (new)

(10a) The European Defence Industry Reinforcement through common Procurement Act (EDIRPA), in combination with PESCO, the EDTIB strategy, CARD and the EDF, will encourage the European defence industry and community to become more efficient and competitive. Joint procurement means that the Member States are better equipped to supply the demand, support industrial synergies and invest more in research, enabling a mix of the European spirit and tools designed to achieve strategic autonomy in collaboration with NATO.

Amendment 89 #

Zdzisław KRASNODĘBSKI, Elżbieta KRUK, Izabela-Helena KLOC, Witold Jan WASZCZYKOWSKI, Alexandr VONDRA

Proposal for a regulation
Recital 11

(11) Common investment and defence procurement and the active participation of European SMEs, specifically small business owners, should in particular be incentivised, as such collaborative actions would ensure the competitiveness of the European defence industry, and that the necessary changes in the EU industrial base takes place in a collaborative manner, avoiding further fragmentation of the industry.

Amendment 90 #

Proposal for a regulation
Recital 11

Amendment 91 #

Proposal for a regulation
Recital 11

Amendment 92 #

Nicola DANTI, Giuseppe FERRANDINO, Klemen GROŠELJ, Ivars IJABS

Proposal for a regulation
Recital 12

(12) To that end a Short Term Instrument for increasing the collaboration of the Member States in the defence procurement phase (the ‘Instrument’) should be established. 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 should be seen as an emergency mechanism necessary to deal with the current emergency situation, and its structure and eligibility conditions should be without prejudice to the upcoming European Defence Investment Programme (EDIP).

Amendment 93 #

Proposal for a regulation
Recital 12

Amendment 94 #

Arnaud DANJEAN, François-Xavier BELLAMY

Proposal for a regulation
Recital 13

(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions while allowing economies of scale in the actions undertaken by Member States to reinforce and modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. Incentivizsing common procurement would also result into diminished costs in terms of exploitation, maintenance and withdrawal of the systems; the instrument should ensure the participation of suppliers from all Member States and all type of companies independently from their size, thus guaranteeing a level-playing-field and exploiting the benefits of economies of scale, as well as supporting technological innovation and efficiency in the whole cycle of production of defence equipment.

Amendment 95 #

Dragoş TUDORACHE, Nicolae ŞTEFĂNUȚĂ, Hilde VAUTMANS, Petras AUŠTREVIČIUS, Dominique RIQUET, Javier NART, Alin MITUȚA, Klemen GROŠELJ, Michal ŠIMEČKA, Olivier CHASTEL, Ivars IJABS

Proposal for a regulation
Recital 13

(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions while allowing economies of scale in the actions undertaken by Member States to reinforce and modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. Incentivizing common procurement would also result into diminished costs in terms of exploitation, maintenance and withdrawal of the systems. The instrument should be accompanied by efforts to preserve a level playing field for suppliers from all Member States and to create incentives for the expansion of the EDTIB to more Member States.

Amendment 96 #

Proposal for a regulation
Recital 13

(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions while allowing economies of scale in the actions undertaken by Member States to reinforce and modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. In that context, the content of the defence product originating from the EU, for all its components, shall represent at least 80% of the value of the defence product commonly procured. Incentivizing common procurement would also result into diminished costs in terms of exploitation, maintenance and withdrawal of the systems.

Amendment 97 #

Elena YONCHEVA, Sven MIKSER, Attila ARA-KOVÁCS, Carlos ZORRINHO

Proposal for a regulation
Recital 13

(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions while allowing economies of scale in the actions undertaken by Member States to reinforce and modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. Incentivizing common procurement would also result into diminished costs in terms of exploitation, maintenance and withdrawal of the systems. Efforts to utilise economies of scale must be accompanied by measures aimed at ensuring a level-playing field for suppliers form all Member States.

Amendment 98 #

Carlos ZORRINHO, Robert HAJŠEL, Miapetra KUMPULA-NATRI, Romana JERKOVIĆ, Patrizia TOIA, Elena YONCHEVA, Jens GEIER, Beatrice COVASSI, Sven MIKSER

Proposal for a regulation
Recital 13

(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions, including common procurement, while allowing economies of scale in the actions undertaken by Member States to reinforce and modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. Incentivizing common procurement would also result into diminished costs in terms of administrative burdens, exploitation, maintenance and withdrawal of the systems.

Amendment 99 #

Proposal for a regulation
Recital 13

(13) The ~~Short Term~~ Instrument should offset the complexity and risks associated with such joint actions while allowing economies of scale in the actions undertaken by Member States to reinforce and, inter alia, modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. Incentivizing common procurement would also result into diminished costs in terms of exploitation, maintenance and withdrawal of the systems.

source: 742.484

2023/02/16 BUDG 40 amendments...

Amendment 10 #

Proposal for a regulation
Recital 2

(2) The unjustified invasion of Ukraine by the Russian Federation on 24 February 2022 and the ongoing armed conflict in Ukraine has made it clear that it is critical to act now to address the existing shortfalls It has led to the return of high-intensity warfare and territorial conflict in Europe, requiring 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 context of the ongoing armed conflict in Ukraine generates serious security threats for Member States bordering Ukraine, resulting also in the necessity for increased budgetary allocations to strengthen defence capacities;

Amendment 11 #

Proposal for a regulation
Recital 2 a (new)

(2 a) Data shows that Member States are not meeting the 35% European collaborative defence equipment procurement benchmark. Despite incentives that use EU budget co-funding such as PADR, EDIDP (2019-2020) and EDF (since 2021), rates of collaborative investments have not changed significantly from 13% in 2019, to 11% in 2020 and 18% in 2021 which suggests that EU budget co-funding had no strong impact on the mobilisation of political will in Member States in the past.

Amendment 12 #

Proposal for a regulation
Recital 2 b (new)

(2 b) In response to this situation and in light of the positive experience with the new European Peace Facility, the European Parliament, in its resolution of 8 June 2022 on ‘The EU’s Foreign, Security and Defence Policy after the Russian war of aggression against Ukraine’, called to urgently launch a discussion with a view to establishing another off-budget financial facility which would address the entire life-cycle of military capabilities at EU level from collaborative R&D and joint procurement, to joint maintenance, training and security of supply.

Amendment 13 #

Proposal for a regulation
Recital 5

(5) Such a new instrument will contribute to reinforce common defence procurement and, through the associated Union financing through sufficient funding, however without cuts from other Union programmes, to strengthen the EU defence industrial capabilities and cooperation in procurement operations.

Amendment 14 #

Proposal for a regulation
Recital 5

(5) Such a new instrument will contribute to reinforce common defence procurement and, through the associated Union financing, to strengthen EU defence industrial capabilities. and contribute to achieving the Union’s objectives for strategic autonomy

Amendment 15 #

Proposal for a regulation
Recital 7

Amendment 16 #

Proposal for a regulation
Recital 8

Amendment 17 #

Proposal for a regulation
Recital 9

(9) Furthermore, efforts should be made so that the increased spending results in a much stronger, coordinated and interoperable European Defence Technological and Industrial Base. Indeed, without coordination and cooperation, the increased national investments are likely to deepen the fragmentation of the European defence industry exposing the EU further to external dependencies.

Amendment 18 #

Proposal for a regulation
Recital 11

(11) Common investment and defence procurement should in particular be incentivised, as such collaborative actions would ensure that the necessary changes in the EU industrial base takes place in a collaborative manner, avoiding further fragmentation of the industry. Moreover, common investments should be focused also on building common defence production capacities, aimed at consolidating the EU industrial base, addressing the most critical needs, ensuring interoperability, and providing a long term perspective for the European industry’s competitiveness.

Amendment 19 #

Proposal for a regulation
Recital 11

Amendment 20 #

Proposal for a regulation
Recital 11 a (new)

(11 a) In consideration of the ongoing armed conflict in Ukraine, common defence production capacities should be prioritized in those Member States bordering Ukraine, given their proximity to the conflict area requiring urgent measures of reinforcing defence capacities, as well as their potential deterrence role.

Amendment 21 #

Proposal for a regulation
Recital 12 a (new)

(12 a) In view of the rapidly evolving security dynamics in the context of the war in Ukraine, the Instrument should allow for the participation of third countries having EU candidate status, for example the Republic of Moldova, in common defence procurement, as their participation would strengthen defence capacities and ultimately contribute to European defence preparedness.

Amendment 22 #

Proposal for a regulation
Recital 17

(17) In certain circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third-country entities. In that context, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled and that the participation doesn´t endanger the strategic autonomy of the Union and its Member States.

Amendment 23 #

Proposal for a regulation
Recital 18

Amendment 24 #

Proposal for a regulation
Recital 19

(19) Grants under the Instrument may take the form of financing not linked to cost based on the achievement of results by reference to work packages, milestones or targets of the common procurement process, in order to create the necessary incentive effect. provided that the Union does not co-finance the defence product itself which would be non-compliant with the Instrument’s legal base and primary law.

Amendment 25 #

Proposal for a regulation
Recital 19

(19) Grants under the Instrument may take the form of financing not linked to cost based on the achievement of results by clearly defined reference to work packages, milestones or targets of the common procurement process, in order to create the necessary incentive effect.

Amendment 26 #

Proposal for a regulation
Recital 23

(23) In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, financial contribution should not cover a period prior to the date of submission of the grant application, except in duly justified exceptional cases. In order to avoid any disruption in Union support which could be prejudicial to the interests of the Union, it should be possible to provide in the financing decision for financial contributions to actions that cover a period from the 24 February 2022, even if they have started before the grant application was submitted and as long as it can be demonstrated that the prospect of EU funding incentivised cooperation between the Member States concerned. Such retroactive elegibility is justified by Russia's war of aggression against Ukraine and should not be extended to other programmes.

Amendment 27 #

Proposal for a regulation
Recital 23

(23) In accordance with Article 193(2) of the Financial Regulation, a grant may be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, financial contribution should not cover a period prior to the date of submission of the grant application, except in duly justified exceptional cases. In order to avoid any disruption in Union support which could be prejudicial to the interests of the Union, it should exceptionally be possible to provide in the financing decision for financial contributions to actions ~~that cover a period from~~within the scope of this programme that cover a period from the beginning of the unjustified Russian invasion of Ukraine that started on the 24 February 2022, even if they have started before the grant application was submitted.

Amendment 28 #

Proposal for a regulation
Recital 24

(24) Regulation (EU, Euratom) No 2018/1046 (the ‘Financial Regulation’) applies to this Programme. It lays down clearly definied rules on the implementation of the Union budget, including the rules on grants.

Amendment 29 #

Proposal for a regulation
Recital 25 a (new)

(25 a) In the current context of Russia's illegal aggression of Ukraine, any consideration to further reinforce budgetary appropriations of this Instrument and extend its duration, based on documented reporting of its implementation rate, should be envisaged in the context of the 2021-2027 Multiannual Financial Framework revision.

Amendment 30 #

Proposal for a regulation
Recital 27 a (new)

(27 a) Deepening cooperation among Member States at Union level in defence- related areas should go hand-in-hand with the strengthening of parliamentary oversight and control by both the European Parliament and national parliaments.

Amendment 31 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) to foster the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB) for a more resilient Union, in particular by speeding up, in a collaborative manner, the adjustment of industry to structural changes, including ramp-up of its manufacturing capacities and the opening of the supply chains throughout the Union;

Amendment 32 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) to foster cooperation in defence procurement process between participating Member States contributing to solidarity, interoperability, prevention of crowding- out effects, avoiding fragmentation and increasing the effectiveness of public spending in the Union and its Member States.

Amendment 33 #

Bogdan RZOŃCA, Zdzisław KRASNODĘBSKI

Proposal for a regulation
Article 4 – paragraph 1

1. The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 shall be EUR 500 million in current prices, from unallocated funds without cuts from ongoing programmes.

Amendment 34 #

Proposal for a regulation
Article 4 – paragraph 1

1. The financial envelope for the implementation of the Instrument for the period from the entry into force of this Regulation to 31 December 2024 shall be EUR ~~500 m~~1.5 billion in current prices.

Amendment 35 #

Nils TORVALDS, Mauri PEKKARINEN

2. The amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the Instrument, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems, without exceeding 25% of the estimated value of the procurement contract.

Amendment 36 #

Proposal for a regulation
Article 4 – paragraph 2 a (new)

2 a. The amount referred to in paragraph 1 shall not be used to co- finance the defence product.

Amendment 37 #

Proposal for a regulation
Article 5 a (new)

Article 5 a The Instrument shall also be open to countries that have the status of EU candidate conferred, such as the Republic of Moldova, to participate in common defence procurement, in cooperation with a Member State, and in accordance with the provisions of this Regulation.

Amendment 38 #

Proposal for a regulation
Article 6 – paragraph 2

2. The EU funding shall incentivize the cooperation between Member States ~~to fulfil the objectives referred to in Article 3~~and between Member States and third countries mentioned at Article 5 herein to fulfil the objectives referred to in Article 3 and shall contribute to the modernization of the European defence industry. The financial contribution shall be set up taking into consideration the collaborative nature of the common procurement plus an appropriate amount to create the incentive effect necessary to induce cooperation.

Amendment 39 #

Proposal for a regulation
Article 6 – paragraph 2

Amendment 40 #

Bogdan RZOŃCA, Zdzisław KRASNODĘBSKI

Proposal for a regulation
Article 6 – paragraph 4

4. Grants implemented under direct management shall be awarded and thoroughly managed in accordance with Title VIII of the Financial Regulation.

Amendment 41 #

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established and have their executive management structures in the Union. They shall not be subject to control by a non- associated third country or by a non- associated third country entity. An unaffiliated third country may not control significant holdings of shares, or any other form of shares in the contractor or subcontractor that enable it to influence the operations of the contractor or subcontractor.

Amendment 42 #

Bogdan RZOŃCA, Zdzisław KRASNODĘBSKI

Proposal for a regulation
Article 8 – paragraph 4

4. Contractors and subcontractors involved in the common procurement shall be established, evaluated and have their executive management structures in the Union. They shall not be subject to control by a non- associated third country or by a non- associated third country entity.

Amendment 43 #

Proposal for a regulation
Article 8 – paragraph 10 a (new)

10 a. The contractor or subcontractor must not be linked to the Russian Federation in any way;

Amendment 44 #

Proposal for a regulation
Article 11 – paragraph 2

2. The Commission shall, by means of a~~n implemen~~ delegating act, adopt the work programme referred to in paragraph 1. The ~~implemen~~delegating act shall be adopted in accordance with the examination procedure referred to in Article 1~~4 paragraph~~ 3a.

Amendment 45 #

Proposal for a regulation
Article 11 – paragraph 3

Amendment 46 #

Proposal for a regulation
Article 11 – paragraph 4 a (new)

4 a. The work programme shall set out the overall amount of Union contribution for each funding, precise description of milestones needed to measure progress in implementing the respective action or results as well as associated amounts for disbursement, procedure for evaluation and selection of the proposals and the arrangements for the verification of milestones and disbursement process throughout the implementation of the respective action.

Amendment 47 #

Proposal for a regulation
Article 12 – paragraph 2

2. The report shall build on consultations of Member States and key stakeholders and shall, in particular, assess the progress made towards the achievement of the objectives set out in Article 3 and be based on a set of key performance indicators that the Commission must adopt by delegated act, no later than 3 months after the entry into force of this Regulation.

Amendment 48 #

Proposal for a regulation
Article 13 a (new)

Amendment 9 #

Proposal for a regulation
Title 1

Proposal for aREGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILon establishing the ~~European defence industry Reinforcement~~instrument for the strengthening of the Defence Technological and Industrial Base (EDTIB) through common Pprocurement ~~Act~~

source: 742.512

2023/03/02 CONT 29 amendments...

Amendment 18 #

Proposal for a regulation
Recital 1

(1) The EU Heads of State or Government, meeting in Versailles on 11 March, committed to “bolster European defence capabilities” in light of the Russian military aggression against Ukraine. They agreed to increase defence expenditures, step up cooperation through joint projects, and common procurement of defence capabilities, close shortfalls, boost innovation and strengthen and develop the EU defence industry, including small and medium-sized enterprises (SMEs).

Amendment 19 #

Proposal for a regulation
Recital 4

(4) A dedicated short-term instrument, designed in a spirit of solidarity, was indicated as a tool to incentivise Member States, on a voluntary basis, to pursue common procurement to fill the most urgent and critical gaps, especially those created by the response to the current Russia’s aggression, in a collaborative way; acknowledges that critical and urgent acquisitions are directed at increasing the quantity of defence material already in possession, which might restrict joint procurement opportunities made under the instrument.

Amendment 20 #

Proposal for a regulation
Recital 6

(6) Reinforcing the European Defence Technological and Industrial Base should therefore be at the core of those efforts. Indeed difficulties and gaps still exist and the European defence industrial base remains highly fragmented, lacking sufficient collaborative action and inter- operability of products. In view of the current situation in Europe arising from the threat to its security, it is essential to earmark European funding for the relaunching of defence contractors in all EU Member States in order to sustain and increase EU defence capability, while ensuring that the allocated funding is spent efficiently and effectively.

Amendment 21 #

Proposal for a regulation
Recital 6 a (new)

(6 a) In addition, given that the EDTIB requires favourable long-term conditions, it is of utmost importance that access to finance for defence companies is assured, as laid out in the Strategic Compass. Lacking an explicit classification of being sustainable within the EU's taxonomy, EU defence companies are faced with substantial difficulties to secure financing and thus to increase their production capacity rendering relocation of production outside of the EU's common market more attractive to defence companies. Furthermore, the EU Member States should take a first step in that regard and send a positive signal to European defence companies and the financial sector by adapting the statute of the European Investment Bank in order to allow for financing of defence investments.

Amendment 22 #

Proposal for a regulation
Recital 7

(7) In the current defence market context, marked by an increased security threat and the realistic perspective of a high intensity conflict, Member States are rapidly increasing their defence budgets and aiming at similar purchases. This results in an amount of demand which exceeds European Defence Technological and Industrial Base manufacturing capacities, currently tailored for peace time; in addition, it should be noted that some Member States have already increased their defence material procurement budget and already launched national procurement processes; notes that the instruments means increasing commitments to some Member States in the period 2022-2024 when compared to a situation where funding would not be mobilised.

Amendment 23 #

Proposal for a regulation
Recital 7

(7) In the current defence market context, marked by an increased security threat and the realistic perspective of a high intensity conflict, Member States are rapidly increasing their defence budgets and aiming at similar purchases. This results in an amount of demand which exceeds European Defence Technological and Industrial Base manufacturing capacities, currently tailored for peace time, necessitating the use of cutting-edge technologies to produce high- performance military and security capacity designed to place the EU as far ahead as possible in strategic terms.

Amendment 24 #

Proposal for a regulation
Recital 8

(8) As a result, strong price inflation can be anticipated, as well as longer delays in delivery time, potentially harming the security of the Union and its Member States. Defence industries need to secure the production capacity necessary to process orders, as well as critical raw materials and sub-components. In this context producers might privilege major orders, potentially leaving exposed the most vulnerable countries, lacking the critical size and financial means to ensure large orders; recalls that the Union should be fully independent of third countries with regard to critical raw materials; notes that providing additional funding to the defence equipment market in a situation where the most important challenge is the availability of components and raw materials may distort and further overheat the markets.

Amendment 25 #

Proposal for a regulation
Recital 8

(8) As a result, strong price inflation can be anticipated, as well as longer delays in delivery time, potentially harming the security of the Union and its Member States. Defence industries need to secure the production capacity necessary to process orders, as well as critical raw materials and sub-components. In this context producers might privilege major orders, potentially leaving exposed the most vulnerable countries, lacking the critical size and financial means to ensure large orders. It is therefore necessary to establish clear criteria for the allocation of European funding as effectively as possible.

Amendment 26 #

Proposal for a regulation
Recital 9

(9) Furthermore, efforts should be made so that the increased spending results in a much stronger European Defence Technological and Industrial Base, this being essential if Europe is to be able to guarantee the safety of its citizens. Indeed, without coordination and cooperation, the increased national investments are likely to deepen the fragmentation of the European defence industry.

Amendment 27 #

Ilana CICUREL, Olivier CHASTEL, Gilles BOYER, Dominique RIQUET

Proposal for a regulation
Recital 10

(10) In the light of the above challenges and the related structural changes in the EU Defence industry, it appears necessary to speed up the adjustment of the European Defence Technological and Industrial Base, enhance its competitiveness and efficiency, and thereby contribute to strengthening and reforming Member States’ defence industrial capabilities. Addressing industrial shortfalls should include promptly tackling the most urgent gaps; the objectives of the instrument mention increasing the manufacturing capacity of defence material, but according to the instrument, funding is granted for joint procurement and for Member States, not for industry. Points out that there is a discrepancy between the objectives of the instrument and the actions to be financed and the criteria for granting the aid.

Amendment 28 #

(10) In the light of the above challenges and the related structural changes in the EU Defence industry, and in accordance with Article 173 of the Treaty on the Functioning of the European Union, it appears necessary to speed up the adjustment of the European Defence Technological and Industrial Base, enhance its competitiveness and efficiency, and thereby contribute to strengthening and reforming Member States’ defence industrial capabilities. Addressing industrial shortfalls should include promptly tackling the most urgent gaps.

Amendment 29 #

Proposal for a regulation
Recital 11

(11) Common investment and defence procurement should in particular be incentivised, as such collaborative actions would ensure that the necessary changes in the EU industrial base takes place in a collaborative manner, avoiding further fragmentation of the industry; due to the differences between Member States, potential joint acquisitions often increase the volume of individual contracts to such an extent that potentially only the largest European defence industry companies have the opportunity to participate in competitive tendering and procurement. Especially for SMEs, this is a challenge, as in some Member States the majority of the defence equipment industry companies are SMEs.

Amendment 30 #

Proposal for a regulation
Recital 13

(13) The Short Term Instrument should offset the complexity and risks associated with such joint actions while allowing economies of scale in the actions undertaken by Member States to reinforce and modernise the European Technological and Industrial Base, increasing thereby the Union’s capacity resilience and security of supply. Incentivizing common procurement would also result into diminished costs in terms of exploitation, maintenance and withdrawal of the systems and will encourage cooperation between EU Member States, leading to increased solidarity, greater interoperability and more efficient public spending.

Amendment 31 #

Ilana CICUREL, Olivier CHASTEL, Gilles BOYER, Dominique RIQUET

Proposal for a regulation
Recital 16

Amendment 32 #

Proposal for a regulation
Recital 16 a (new)

(16 a) Considering the very nature of this instrument, based on its legal basis, which aims at strengthening the European defence industry, any possible derogation shall be kept to a strict minimum.

Amendment 33 #

Sabrina PIGNEDOLI

Proposal for a regulation
Recital 22 a (new)

(22a) The clauses, guarantees and general amounts in the procurement act must be as transparent as possible so as to avoid harm to the European Union's financial interests, loss of credibility in the institutions on the part of EU citizens and the dissipation of valuable resources in the context of the war in Ukraine;

Amendment 34 #

Proposal for a regulation
Recital 26

(26) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council3, Council Regulation (Euratom, EC) No 2988/954, Council Regulation (Euratom, EC) No 2185/965and Council Regulation (EU) 2017/19396, the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. It is of the essence to counteract corruption and uphold the rule of law.In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council7. In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights. _________________ 3 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999,(OJ L248, 18.9.2013, p. 1. 4 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p.1). 5 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L292,15.11.96 , , p.2). 6 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L283, 31.10.2017, p.1). 7 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

Amendment 35 #

Proposal for a regulation
Article 2 – paragraph 1 – point 1

(1) ‘'common procurement’ means a cooperative procurement jointly conducted by at least three Member States; 'common procurement' refers to the adoption of a joint system of procurement and not procurement itself;

Amendment 36 #

Ilana CICUREL, Olivier CHASTEL, Gilles BOYER, Dominique RIQUET

Proposal for a regulation
Article 3 – paragraph 1 – point a

Amendment 37 #

Proposal for a regulation
Article 3 – paragraph 2

Amendment 38 #

Proposal for a regulation
Article 3 – paragraph 2 a (new)

2a. In pursuing these objectives, the focus shall be on making common defence procurement more efficient.

Amendment 39 #

Proposal for a regulation
Article 4 – paragraph 2

2. The amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the Instrument, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems, and specific criteria shall be established for the amount to be allocated to each of the implementing activities.

Amendment 40 #

Olivier CHASTEL, Nathalie LOISEAU, Katalin CSEH, Gilles BOYER, Ilana CICUREL

Proposal for a regulation
Article 6 – paragraph 1

1. The Instrument shall be implemented in direct management in accordance with the Financial Regulation. Grants shall take the form of financing not linked to costs referred to in Article 180(3) of the Financial Regulation.

Amendment 41 #

Olivier CHASTEL, Nathalie LOISEAU, Katalin CSEH, Gilles BOYER, Ilana CICUREL, Alin MITUȚA

Proposal for a regulation
Article 6 – paragraph 3

3. WBy way of derogation to Article 193 of the Financial Regulation, and where necessary for the implementation of an action, financial contributions may cover a ~~perio~~ctions started prior to the date of the request for financial contributions for that action, provided that these actions hasve not started prior to the ~~24 February 2022.~~ 18 May 2022 and have not been completed before the signature of the grant agreement. Retroactively eligible actions must comply with all eligibility criteria provided for in Articles 7 and 8.

Amendment 42 #

Proposal for a regulation
Article 7 – paragraph 2 – point b a (new)

(ba) A description of what is meant by lethal autonomous weapons shall be given.

Amendment 43 #

Ilana CICUREL, Olivier CHASTEL, Gilles BOYER, Dominique RIQUET

Proposal for a regulation
Article 8 – paragraph 1

Amendment 44 #

Sabrina PIGNEDOLI

Proposal for a regulation
Article 8 – paragraph 6

6. The participating Member States shall provide to the Commission a notification from the procurement agent on the guarantees provided by a contractor or subcontractor involved in the common procurement that is established in the Union or an associated third country and controlled by a non-associated third country or a non-associated third country entity. The guarantees, general amounts in the procurement act and related provisions in the procurement contract shall be made available to the Commission upon request and to all the institutions responsible for monitoring the budget and safeguarding the financial interests of the EU. The guarantees shall provide assurances that the involvement of the contractor or subcontractor involved in the common procurement does not contravene the security and defence interests of the Union and its Member States as established in the framework of the CFSP pursuant to Title V of the TEU, or the objectives set out in Article 3.

Amendment 45 #

Proposal for a regulation
Article 8 – paragraph 9

Amendment 46 #