Remarks At The European Parliament On Defence Policy And Industry
 
(Source: European Union Online; issued Apr. 9, 2002)
 
 
 Remarks by Mr Erkki Liikanen
Member of the European Commission, responsible for Enterprise and the Information Society
during the April 9, 2002 Debate On European Defense Polocy


As mentioned earlier, the Commission Communication of December 1997 implementing the strategy of the Union on defense related industries" recommended an ambitious overall approach.

It contained a draft Council common position relating to the development of a European armament policy and an action plan of 14 points for the defense related industries.

Among the 14 items of the Action Plan, some of these measures require legislation while others could be carried out using instruments already available to the Union. A good deal of progress has been made, with regard to most of the actions, 11 out of a total of 14.

We must say that, in general, until recently the Council discussions have been characterized by differences of opinion between the Member States preventing the adoption of a common position on the framing of a European armament policy.

This has made progress especially difficult with regard to measures requiring legislative action such as the Action Plan items on customs duties and intra-Community transfers.

I would like to underline that the Commission has begun infringement proceedings against 10 Member States on the question of the proper application of the common customs tariff on military and non-military goods. This action may serve to reactivate discussions on this issue. Furthermore, as regards intra-Community transfers of these goods, work on trying to find appropriate technical solutions continues and some progress has been made.

Despite the difficulties in moving forward on some of these issues as rapidly as we had hoped, I would like to stress that the analysis, advocating a need for restructuring the European defense industry and for creating a single market for defense products, is still valid.

Indeed, it is even more pertinent for at least two reasons :

--The development of the ESDP- European Security and Defense Policy, and;
--The constitution of transnational defense companies.

The competitiveness of the European defense industry is vital to the credibility of the nascent European Security and Defense Policy. Thus, the Commission expects that governments may recognize increasingly the urgency for a change in attitudes in order to end policies and practices that prevent European defense companies from working together more efficiently.

Such a change in the position of Member States might allow the Commission to contribute more effectively to the creation of the European defense equipment market through exercising its competence under Community policies such as the creation of the single market in defense, external trade, etc. Thus, the Commission intends to re-examine and update the Action Plan in order to take account of any new developments.

In addition, the Commission is pursuing the objective of promoting the greater competitiveness of Europe's defense industry in close co-operation with national authorities and industry representatives.

One important initiative in this context is our efforts aimed at promoting awareness of the importance of standardization issues for the efficiency and competitiveness of the European defense industries, and to investigate options and possible start-up actions for defense standards reform.

On this occasion the European Standardization Organization CEN was identified as the ideal forum to implement this effort in the form of a Handbook of Defense Standards and Procedures which, when in place, will offer more transparency improving interoperability, harmonization of requirements and cost efficiency in procurement.

In the foreseeable future, two on-going processes make us feel confident that efficient solutions may soon be within reach :

--Progress on ESDP paving the way for harmonizing the demand in Europe for defense equipment and in parallel and

--The gradual recognition of the need to harmonize the rules and regulations, which affect the competitiveness of the industries, once restructured.

These developments are acknowledged in the STAR 21 initiative, the Strategic Aerospace Review for the 21st century currently in progress. STAR 21 aims to broaden the understanding of aerospace-related issues in Europe and trigger the action, which will ensure that Europe's aerospace industry can play its full part in Europe's future. This initiative brings together senior representatives from Industry with the Commission, the Council, and obviously the European Parliament.

This group will deliver its final report this July. Defense issues play an important part in the report and it is expected that the views presented will contribute to paving the way for the implementation of efficient measures valid not only for aerospace defense but for all defense related industries. (ends)
European Parliament: April 9 Motion for Resolution on Defence Policy
 
(Source : European Parliament; issued April 9, 2002)
 
 
   Parliament adopted a resolution on the present state of the European Security and Defence Policy (ESDP) and EU-NATO relations, in which it welcomes the progress made so far on the establishment of EU crisis management structures and procedures, as well as the commitments by Member States on military and civilian capabilities.
    
     It supports the Council's decision to set up an EU police mission (EUPM) in Bosnia-Herzegovina but stresses that while funding should be provided through the CFSP budget, there must be proper consultation of the European Parliament through the budgetary procedure.
    
     It also backs the Barcelona's Summit's declaration of intent to deploy the EU Rapid Reaction Force for its first peace-keeping mission in the Former Yugoslav Republic of Macedonia by taking over NATO' s operation 'Amber Fox'.
    
     It says that the first attempt to reach an agreement with Turkey has been made outside the EU decision-making procedures, and expects that an overall EU-NATO agreement on the use of NATO assets and capabilities will not undermine the decision-making autonomy of the Union.
    
     MEPs urge the governments of Member States to give absolute priority in their defence procurement to fulfilling the requirements of the Rapid Reaction Force. They welcome the creation of 14 multi-disciplinary working groups under the Spanish Presidency to examine the most crucial shortfalls in the 40 areas where deficiencies in military equipment have been identified.
    
     However, they are of the opinion that improving military capacities is not only a question of adequate defence budgets but can primarily be achieved by rationalising defence efforts. In this context, a strong, efficient and viable European armament industry, including research and development capacities, and an effective procurement policy are vital to the development of the ESDP. Defence standardisation is imperative and MEPs call on the governments of the Member States to assign higher priority to the creation of a European Armament Agency.
    
     The resolution adds that the control of arms exports and in particular of small arms should be considered an integral part of the ESDP and the EU's trade policy.
    
     Lastly, it notes that military expenditure and the deployment of national armed forces remains a matter for national parliaments but that the running costs of EU joint actions for crisis management should be covered by the Community budget and hence controlled by the European Parliament. It therefore calls for closer relations and an intensified exchange of information between the European Parliament and national parliaments on the CFSP and European Security and Defence Policy. (ends)
    
European Parliament: April 9 Motion On Europe and Defence-Related Industries
 
(Source : European Parliament; issued April 9, 2002)
 
 
   Following on from the resolution on defence policy, Parliament adopted a resolution on European defence industries, in which it again underlines the importance of procurement policy, rationalisation and standardisation to improve Europe's return on its defence expenditure.
    
     It expresses regret that not all governments are involved in the EU defence industries programme.
    
     In particular, the resolution reiterates support for the Commission's 1997 Action Plan, regrets that so little progress has been made in implementing it and calls on the Commission to develop an updated version to consider matters such as the extent to which the EU's common commercial policy and the discipline of the Single Market should be applied to the defence industries, how European research in the defence field can be better pooled and coordinated and what further measures are needed to promote the emergence of transnational defence companies.
    
     -ends-
    
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