- “The Cohesion Funds. Still, there is no obligation on the Member States to appropriate that that ambition. As you know, the cohesion funds are managed by regional authorities and we are mainly singling out and actually drawing the attention to the importance of defence industry and military mobility and for member states and their regions, of course, to make decisions. They remain a driving seat. Now, with this new proposal, the one that I'm presenting today, we are ensuring that the different union programmes can also support that endeavour. More investment in defence. So our objective is set as a simple principle and message. Defence is now a top priority of the Commission and it must be supported across the board, throughout all the programmes, in all possible ways and means. And actually this mini omnibus is the way to enable that. Now this is in more detail the contents of the so-called mini omnibus. What do we have in in there? First on step, the step regulation, the scope of the instrument is extended to cover all defence related technologies and products. And this is meant to ensure that steps support the development of cutting edge, cutting edge technologies across the board whenever they are essential for defence readiness in the Union. In line with the letter of the president to the European Council on 6th of March, we think that it is the best instrument to mobilise in a coordinated and synergistic manner all the investments possible towards a, you know, and from rather different union programmes.”
Defence spending · EU competences on defence
- “You will remember, of course, that we adopted two emergency instruments to foster a joint procurement, but ASAP also to actually ramp up our capacities of production in the field of ammunition. Notably, we came up one year ago with the European Defence Strategy. We came up also with that new proposal of European Defence Industry Programme. The Parliament now has well advanced. And so this is the backdrop now of course, a very important novel development was on the 19th of March, the adoption of white paper and the presentation by president of the Rearm Europe Plan Readiness 2030, again, to really mark a step change in the ambition to mobilise finance, support of reinvestment in defence, to get to achieve readiness. You will recall that the rearm plan revolves around five pillars safety, security action for Europe. Proposed regulation 100, article 122 currently negotiated in Council. The activation second of the national escape clauses under the Stability and Growth Pact. Third, the mobilisation of private capital, notably via the Savings and Investment Union. Fourth, increased contribution by the EIB and the EIF. And finally, and that's the discussion of today, the incentivisation of defence investment through the EU budget. And in that fifth and last respect, the Commission has proposed the mid-term review of the cohesion policy on the 1st of April. As you know very well, this in this mid-term review, we are suggesting to add two explicit new policy objectives to support the Union defence, industry and military mobility within the scope of Cohesion Policy.”
Defence spending · EU competences on defence
- “The for the EDF, we are also using the opportunity to provide additional flexibility in the evaluation of disruptive technology, calls this for more agility and faster delivery of outcomes on that that front and for ASAP. We are also extending the duration of the program until the end of 2026 as we know this instrument is expiring at the end of the month of June this year. Now, along the same logic, we are also suggesting the to facilitate transfer from, uh, from the cohesion funding to the Connecting Europe facility, CEF in support of military mobility. The digital window of the CEF will be open also to cloud, AI, 5G, essential priorities for the White Paper, and to achieve defence readiness. And finally, last but not least, the the Digital Europe programme will also be extended and expanded to support dual use applications in fields like AI Gigafactories. So defence is again singled out as a sector of public interest which will become a priority. Now, final slide on the next steps we are delivering a via that That's a novel initiative on the implement of the Rearm Europe plan. The Commission is consistently opening its programmes for defence. It is not merely a list of amendments, but also a political statement and a political message. Defence is a priority across the board and we cannot afford the, you know, the old thinking to to actually continue to match where the union's budget is channelled towards programmes which are by design, exclude defence.”
Artificial Intelligence for military purposes · EU competences on defence
- “So we are sending that very clear message. We can actually achieve defence readiness through the use of all the programmes that are in existence, to maximise the impact of this proposal, and also to ensure it complements the mid-term review of cohesion policy. We should very much and I said it, so I'm insisting on that. We should try to align the omnibus timeline with the cohesion policy. Mid-term review. And in saying that, I am mindful that this Parliament has voted the urgency on the review. So we will kindly invite the Parliament and Council to consider any possible expedited treatment of that file to ensure that we can deliver swiftly, as can be on the commission side. We will work together with all relevant services to ensure that the proposed amendments are reflected in all the work programmes of the different instruments. So as as soon as those instruments have been made compatible with the defence ambition, we will have to make sure that the programming really follows suits and actually delivers on that new signal. This is a key step, and we are, of course, available to answer any clarification that you may need on any of the points that I quickly go through. Thank you very much for your attention.”
EU competences on defence · Cohesion and rural funding · EU research funding
- “Thank you. Thank you very much for for your questions. I will try to to reply as comprehensively as can be. But Carolyn of course will have taken for yourself a few questions on steps. So she will of course complement me. So, uh, to to Miss Lakos on the first question, he did a transfer, uh, so by the member states at their own, let's say, decision from cohesion to to certain programs, this is indeed a voluntary, uh, that's that's very clear. Uh, so it's we are here basically providing an enabler. And it is for, for member states to decide what they what they see as, uh, you know, their, their best decision. And indeed, to the extent, I mean, of course, nobody is obliged to actually, let's say, privatize the benefit of those transfers. But indeed, I want to be very clear on the fact that there is a possibility for member states to actually make sure that indeed that will play in their benefit in a, in a given program. So it has sometimes it has to be, you know, carefully calibrated. Because of course, we have programs like the EDF or that that function under a different logic. But there are ways and we have been already thinking on ways to actually navigate that. So indeed, my answer is positive to, to to your question, um, on the hybrid. Well, we want really to be, uh, let's say covering all the different technologies and capabilities. Uh, so I will say that, of course, hybrid is, um, I mean, is one part of the spectrum.”
State Aid · Cohesion and rural funding
- “Do we reward those who have done the least? Well, you know, honestly, I don't think that. And we are extremely always in a design of our policy initiative, mindful of the the need to to to avoid any kind of discrimination, you know, of any member states. Um, I don't think that we are basically now, let's say, privileging those who have been late. I think we saw, you know, also in the, for instance, in in relation to the activation of the national escape clauses that we are very keen on non-discriminating those who had already scrambled to actually, you know, increase their defence spending. So I fail to see why if you go to the mechanics, this would really, let's say, enable those who were late to acknowledge the need for defence readiness to, to benefit from from that. So not necessarily an absolute game changer, but a very significant enabler of more spending in support of defence. Defence readiness. Uh, that's, uh, that's what we need as a matter of urgency. And of course, the next MFF will be, will be another, uh, another discussion, which is not the one we have today. Um, Mr. blouse from the Greens. No new money, I think I tried to to answer whether we are running the risk of over burdening the different instruments and notably, uh, step again. I think Carolyn Will will answer in more detail on that. I think here again, the idea is to give more, uh, freedom of action in terms of the smart allocation of resources, where, uh, member states see them as the most the most relevant.”
Defence spending · Size of EU budget · EU competences on defence
- “Um, but but it is very much part of, uh, defense capabilities to a certain extent. But it's really a case by case analysis. So I can't give you, you know, a kind of, uh, principle answers. But, you know, there there are domains like, uh, like, for instance, cyber where, you know, it's very it's a blurred line. So I would say that, uh, I, I don't think I would say that anything that is relevant for counter hybrid is ipso facto eligible. Uh, under what, what we propose here. But I will say that a very significant part will will be and this will have to be seen also in the context of each single instrument, because I didn't insist too much on that. But, you know, the follow up, the implementation will follow the governance of the different programs. So, um, it's uh, it's also something that that is important on, on Horizon Europe. Uh, but Caroline may also complement, you know, we cannot prejudge in any way what what pertains to the future of the, you know, of the research framework programme and the next MFF. But but indeed, I mean, well, in any case, um, we see that we have an urgent need to tap much more freely than before. The potential of dual use and dual use doesn't mean defence, pure defence, it means dual use. But we know that there are many technologies that have a dual use potential. So now our duty, let's say to to make the most out of that.”
Artificial Intelligence for military purposes · EU competences on defence · EU research funding
- “Well, I think that I would try and respond to your argument about the extent to which we can be sure that this won't impact other projects. Well, the idea is not to try and deprioritise some other priorities. All priorities will continue to receive their support. And that were there before the 20th of April when we came up with this. And we are trying to show clearly that investments in defense capacity is a real priority. It wasn't identified as such as it should have been, but it's an imperative now. So we are extending the scope of what we consider to be a priority in terms of policy development. And after that, I'd go so far as to say that although it's very complex, we know that the European security is going to be an essential component for sustainability, seen from all sorts of different angles. It's extremely important. And finally, on European autonomy here, too, each program has its own way of balancing or defining investment priorities. Sometimes they are more or less demanding on eligibility criteria. And some have a better capacity depending on the programs and how they program things. But I think that those instruments that are strict about the European autonomy, the European Defence Fund, for instance, well, now they can transfer funds for additional research development programmes in line with eligibility criteria. From the EDF. Which will reduce the level of dependence on other programmes. But there are other programmes which have more generic technologies which can be less demanding. But they are not necessarily so crucial to our defence readiness.”
Defence spending · EU competences on defence
- “Uh, and again, all now the programs remain or are made available for defence defense spending, which is very good because it was really very much undermining our ability to invest in defense capabilities and technologies. Um, on ASAP, you also said but are we isn't that too late to prioritize ASAP? Should we invest more in Egypt? I think it's, uh, I think I concur with that statement that ADP is now really in sight, and ADP indeed, uh, encompasses the intervention logic of ASAP. Once we have, we will be able to really take bold measures to ramp up our capacity of production across Europe on the equipment that that we need. When reviewing all the different instruments, it's made a lot of sense to actually, uh, insert a landing clause in ASAP to have all the options open also to extend its validity. You know, one might consider out of urgency considerations that there might be a case to either exhaust the reserve list ASAP, or maybe to launch a new call. We wanted to keep all options open, but I fully agree that if we are optimistic that we will have an edit very soon, then probably that is the most efficient way to deliver on support through the EU budget. On the ramp up of our capacity of production now on Mr. Batangas question. Um, no money.”
Defence spending · EU competences on defence
- “So, Mr. Hansen on ASAP. So, uh, again, it's it's a bit tricky because the expiry date of the instrument is, uh, is is very soon. Uh, we, of course, reacted out of urgency considerations, uh, in, in tabling that, uh, that omnibus that follows up very directly, uh, also on the, uh, the MTA, um, cohesion, uh, proposal. Um, again, we we were very keen on having all the options on the table. So, you know, uh, there was and there is still uncertainty as to when we can hope, you know, relaying, let's say, the ambition and the interventional logic in ASAP. Uh, now, I think we can I mean, it was a very positive surprise to see the Parliament ready to engage into trilogue. So I think that that that is cause for optimism. Um, and indeed, if we happen to have a ship ready to go live soon, I think it's only logical to say that that the intervention logic, let's say that we call ASAP plus into the EDP will actually be the one that the window to to resolve to. Now, we don't know what the future holds, and we wanted to make sure that as we were actually really screening the different instruments and, and kind of activating them, we thought it would have been really a lost opportunity to deprive ourselves from the possibility to extend ASAP and to actually, um, also put money into it via the landing clause.”
State Aid · EU research funding
- “Thank you very much, chair. And thank you for this opportunity to present, uh, this this proposal, um, adopted on the 22nd of, of April. Um, I will be delivering the initial presentation. It's going to be a very short one. For the sake of time efficiency. I'll be the only one speaking. But this is very much a joint proposal in spirit. And Carolyn, besides me, whom you have presented, will of course answer the questions together with me. Um, I have just a three slides, I think, just for background and to actually, uh, enable you to to see a bit more, you know, in perspective what, what we're presenting to you to today. Um, the proposal has been tabled, of course, in the name of our ambition to incentivize in all possible ways and means, um, more defense related investments from the EU budget in implementation of the Rearm Europe plan. No need to dwell on the on the background. We we all know the situation. We all know also that even if that's still recent already in 2021, the European Commission started to mobilize. I mean, of course, thanks to the the The Corps was started to mobilize the EU budget in support of defence readiness. We didn't present it as defence readiness, but this is what we were we were after at the time. So we have the EDF we had after the Russian aggression against Ukraine.”
Defence spending · EU competences on defence
- “And this includes, of course, cohesion policy. It is of the Utmost importance, therefore, that the adoption of the omnibus and also the mid-term review. Cohesion package regulations are aligned to the extent possible in terms of timing and content. Now, on the horizon in Europe, we allow with this proposal the European Innovation Council accelerator to support actions more clearly with dual use potential. And the so-called accelerator scale up, which is part of the IC, will also be able to fund equity investment in SMEs and small midcaps focusing on defense. So we make very clear that equity is available to companies really with a clear defence defence focus, to note that this measure is the only one in that package for which a dedicated budget is foreseen, because we are using €210 million from the EIC pilot pilots under horizon 2020 third on the EDF fund and ASAP, you know ASAP. The program meant to ramp up our capacity of production of defence equipment. We are inserting via that proposed regulation a so-called landing clause, which allows the voluntary transfers from the cohesion funds that, uh, that I already mentioned that possibility to transfer into those programmes so that we can actually activate that that funding in support of further programming.”
EU competences on defence · Cohesion and rural funding · EU research funding
- “Now to answer. Mr.. Mr.. Coles and a number of other speakers. I mean, yes, there is no fresh money. Maybe at the exception of those 210 million that that we have in the in the accelerator. Well, yes, that was we never pretended there was fresh money. And I know it's a frustration for, for many of you, but I think it's an enabler to actually spend the money that we have, which is unfortunately limited. And we know that we wish there was more money, but we also know the very harsh constraints on the EU budget today. So it's a way to enable a smarter After spending of that money by making sure that we don't, you know, that we end up, you know, unnecessary silos between different instruments that are all their logic that we can actually, you know, pass money from one instrument to another because it is possibly more, you know, adapted to a given, let's say, a purpose. Um, also, because there are many ways to actually pursue different goals at the same time. And in that respect, I want to insist on the fact that when it comes to mobilizing cohesion funding, it's not about undoing things to do other things. It's it's also very much about doing at the same time, you know, achieving defense readiness also together with regional developments, you know, social reskilling and many other aspects. So I think and again, here, there are ways to do to do cohesion also with defense readiness in mind. And there are also ways, and that's for member states to decide to actually transfer money to potentially more immediate use in relation to to defense.”
Defence spending · Size of EU budget · Cohesion and rural funding
- “I think there was I'm not sure we reply faithfully to to Mr. Questions. So I was already starting to answer. I hope I didn't swallow it, but you said basically it was about loans and grants and two loans on a standalone basis make really a difference. My answer to that, and let's say overall would be that of course, I mean, loans can make a great difference. I mean, in terms of the magnitude of the the amount that is proposed to be made available to member states on the benefits that that they actually, you know, embody in terms of race, but also in terms of the grace period of ten years and a number of things. That I don't deal up again here. I think that it is also important to, to keep in mind that we might. Actually, I mean, what I mean, we all together, as you know, the EU, the member states and this parliament and all the stakeholders, we might be actually smart in creating the possibility to combine loans with grants. How? Through a an ambitious and smart programming of the loans via safe, but also with a quick adoption of EDP by the legislators and then we can ourselves do our part of the journey. We can actually enable a very swift proclamation of the EDP and, you know, without, uh, without any organic link, that there is not between the EDP grants and the safe, the loans, there might be a way to actually reconcile a number of objectives in a smart way. So I think we can possibly consider adding to the power of the loans, the power of the grants. If we have an idea that we are able to program very soon, and we will see the two, the two programs converging on similar ambitions. So I think this might open an opportunity that may answer to the frustration that you're expressing.”
State Aid · EU policy on sustainability criteria in public funding