- EU’s defence “strategic autonomy” to be achieved by fostering
efficiency and innovation
- €500 million to develop defence products and technologies
- Excellence, innovation and competitiveness as key contract
award criteria
The new European Defence Industrial Development Programme, with a
€500 million budget for 2019-2020, has been informally agreed by
MEPs and Council.
EU financial aid will help fund the development of new and
upgraded products and technologies to make the EU more
independent, make budget spending more efficient and spur
innovation in defence.
Who can apply?
To be eligible for funding:
companies need to be part of a consortium of at least three
public or private companies, established in at least three
different EU member states,
at least three of the eligible companies, established in at least
two different member states, must not be controlled, directly or
indirectly, by the same entity or by each other,
beneficiaries and their subcontractors must be public or private
companies established in the EU, and
their infrastructure, facilities, assets and resources, including
their executive management structures, used for the funded
actions will have to be located in the EU throughout duration of
the action and must also be established in the EU.
What can be funded?
The European Defence Industrial Development Programme will fund
the development phase (between research and production) of new
and upgraded defence products and technologies in the EU, from
studies, to design, testing and up to certification and
development phases.
Selection and work programme
To win contracts, project backers will need to prove their
contribution to excellence, innovation and competitiveness.
The EU Commission would adopt a two-year work programme detailing
the procedures for selecting actions for EU support, the type of
financing and the budget allocated, as well as the categories of
projects that can be funded, including projects specifically
dedicated to SMEs.
Experts
Independent experts, whose credentials need to be validated by
member states, will assist the Commission in the award procedure.
These experts will be EU nationals from as broad a range of EU
countries as possible. The Commission will assure a balanced
composition and an appropriate rotation.
Quote
Rapporteur Françoise Grossetête (EPP, FR) said: “This first
European programme specifically dedicated to defence industrial
projects will increase cooperation and strengthen the
competitiveness of the EU defence industry. The all-European
defence technological and industrial base, in particular our
SMEs, will benefit from this programme in order to strengthen our
strategic autonomy. Excellence and innovation will be key to
selecting projects.”
Next steps
The provisional deal will be presented to EU ambassadors for
their endorsement on 29 May, after which it needs to be approved
by Parliament’s Industry Committee before being put to a vote by
Parliament as a whole. Once the full House and Council have
formally approved the regulation, it will enter into force upon
publication in the EU Official Journal.
