- “So here different elements. So the purpose is really to mainstream defense as much as we can in different EU policies. So one is related to defense and EU sustainable financial framework. We we will we've done a guidance explaining the compliance of defense with the financial framework. This guidance will be issued very soon. Normally it should be it should be done for mid June together with the defense omnibus package. So that's number one. Number two the European Investment Bank. You're all aware that we've worked very closely with the EIB European Investment Bank that we've we've seen lots of good progress when it comes to the EIB. That has changed or adjusted its lending policy to have more flexibility when it comes to defense. And we see indeed, uh, some a pipeline of defense related projects that the EIB could now finance. So two exceptions, of course, ammunitions and weapons. But beyond that the EIB can do much more and is is implementing these new lending policies. So that's very encouraging. Uh, and then we have as well a work strands that relates to, uh, workforce mobility and cooperation with education, um providers. We've done reports on the perception and experience of the defense industry. Um, and we we want as well to assess the factors influencing mobility in 2025. The last, uh, The party was related to partnership. And here I'd like to give the floor to my colleague from the ES.”
Defence spending · EU competences on defence
- “Thank you very much, Madam Chair. It's a pleasure and honor to be here with you this afternoon to give you an update on the European defence industry strategy. As you reminded, I mean, a lot has been ongoing in the meantime, with the presentation by the Commission and the High Representative of the rearm plan and the White Paper on European Defence Readiness 2030. And, of course, I mean, we have now lots of efforts about the implementation of that of that plan. Um, when it comes to UDS, you remember the context, the context, and that at that point of time was we we had to act in a very swift and urgent manner when it comes to ammunitions with ASAP. When it comes to support to common procurement with so two short term regulations and we just wanted with the European Defence Industry Strategy to put the focus on a more structured and long term approach. So that was very much the purpose of the European Defence industry strategy that we issued together with, as you said, with the European defence industry programme, EDP, that is still under negotiation. So we uh, we issued together with the High Representative a joint communication.”
Defence spending · EU competences on defence
- “This was a joint communication with basically four main priorities. One, focusing on on the demand side, how can we support Member States cooperation a second priority focusing on the industry, the supply side in support of the transformation of the EIB. A third priority, focusing on how can we mainstream European defence readiness across EU policies and across the society, and a fourth priority related to partnership. Um, of course, I mean, a number of measures were outlined in this strategy. 34 but of course, we've we've we've generated lots of very positive outcome. And just mentioning a few, um, out of them. So the EU Ukraine Industry Forum, we had the second edition no later than, than this week. Um, the opening of the EU Defence Innovation Office in in Kiev. Uh, organization of EU defence hackathons. Um, initiation of a new dialogue. Structured dialogue with NATO on industrial matters. And of course, high level dialogue with financial sectors. Uh, that that is now in the making. Without further ado, I'd like to pass the floor to, uh, EDA, my dear colleagues.”
Relations with NATO · EU competences on defence
- “The objective here was to respond urgently in a context that was disintegrating and to provide assistance rapidly by using article 122. With, of course, a clear objective, which is to proceed to a swift rearmament of the Member States, and that needed to be negotiated very quickly with the Council, with the hope that negotiations would be coming to an end very quickly. When we talk about space and sovereignty, this is the Commission's ambition To have greater autonomy in space. Also, by benefiting from financial instruments for defense and the space is a priority aspect that has been flagged as a priority instrument and it's part of safe.”
Defence spending · EU competences on defence · EU competences on space policy
- “They have a very deep pipeline of investors that they are scouting. So we see that positive trends now in Europe, that Europe is getting very attractive for investors when it comes to defense. Um, Miss Neumann, when it comes to benchmark, there are quite recent. So I think the intention is really to kind of deploy the different instruments that we have, and then to really assess where we stand when it comes to those benchmarks. I'm not going to hide that. It's not always easy to to do this, this kind of monitoring of benchmarks. And here we very much rely as well on the European Defence Agency that that usually has done lots of monitoring of benchmarks, but that's something we'll. Certainly we certainly need to to activate European Rearmament Bank. One we're very I mean, it's good to see that member states are highly interested in exploring different options on how we can finance defence. But our line is let's use to the maximum what commission has put on the table safe loans we have now EIB that is able to do much more. Um, so we have ADP so the NEC as well. So let's let's make full use of those instruments. Let's see where there are gaps. And then let's see whether we can fill those gaps. But it's clear that for the time being we don't see what's the the value added of the European, uh, rearmament bank compared to what we've put on the table.”
Defence spending · EU competences on defence
- “So the European Investment Bank. Yes. And I think we've been very clear in all the different communications strategies we've put on the table to put pressure on the EIB. But you said it. It's not you know, we can make we can put pressure. It's very much in the hands of member states, the board of governors, to take decisions. Now, what we saw over the past years was like EIB testing the ground. So they started with dual use. It was one way as well to test the market, to see how the market would react, whether it would have any impact on the EIB in terms of rating of EIB. No impact. So they decided to go one step further in narrowing down their exclusion policy. Um, now they will certainly see what's going to be the impact of the markets. They're going to check as well whether there is an absorption, absorption, whether there is a pipeline of projects. And certainly on that basis, it will be worth, um, putting additional pressure on the EIB to continue, uh, having the EIB stepping it, stepping up efforts in support of defence. Um, when it comes to the private investment. Indeed, we see very positive trends. So on one side we see much more financial asset managers and financial investors interested into defense. Interested in defense and willing to invest in defense. And when we do talk to the European investment funds, for instance, that that has, um, you know, that is putting in place an ecosystem of investors.”
Defence spending · EU competences on defence
- “When it comes to, um, support to Ukraine, um, and how we connect the policy intent with our, with our instruments. So here I'd like to mention three three points. One is the Ukraine support instruments. That is part of it. Here the intention is to accelerate the embedding of Ukraine industry into European defence industrial and technological base. We've mentioned the European Defence Innovation Office that is up and running, focusing very much on innovation and matchmaking between EU entrepreneurs and Ukraine entrepreneurs. And the third element I'd like to mention is safe, for instance, where we say in safe, we assimilate Ukraine to a member state when it comes to common procurement and the Ukraine industry as EU industry. So the Ukraine defence industry will be fully eligible and safe. When it comes to your second question about the the money. Of course, I mean, for many of the actions, we are still dependent on what member States provide because we have a limited budget allocated to defence. We very much hope it will. It will change and you will have your say on that when it comes to the next MFF. But we very much want to scale up the money allocated to defence as part of the next MFF. What we're doing is two things. One is playing with our budget, but then two is creating conditions for member states to invest much more. And that's why we are we've put indeed, as you said, the possibility for member states to activate the National Escape Clause and the Stability and Growth Pact for them to invest more in in defense. Mr. Tierney.”
Defence spending · EU competences on defence · Russia-Ukraine conflict (10th term)
- “So and in terms of um, in terms of implementation, that's not easy as well because you would need to recreate a bank, from scratch, and that has no reputation on the financial markets. So what's going to be the reaction of the market as well? So that's that's our line. Mr. Geller, when it comes to the European Defence Innovation Office. So as I mentioned the the very much the purpose of the European Defence. Defence Innovation Office in Ukraine is, is to organise that matchmaking between EU entrepreneurs, Ukraine entrepreneurs. But it's very much to inspire us as well. I'll give you a very concrete example. As part of the follow up to the white paper, we need to elaborate a kind of roadmap on how we can transform defence industry. You know, taking to taking into account all the new deep tech ecosystem here. Ukraine is very interesting because they can bring a lot. They can be a source of inspiration for for us. And this is where the European defence innovation in in Kiev can play a role. Certification of military products and mutual recognition. You're absolutely right. I think this is something we need to investigate. This is part of of ideas that we have. We just need to set that into motion because that would be, you know, a very basically it would generate huge savings in member states and it would accelerate as well the, you know, the deployment of certain military products.”
Defence spending · EU competences on defence
- “When talking about the Commission's competences and the increasing role that the Commission is playing and the competences are still the same because we still are acting within the scope of the treaty. We don't see any competition with the EDA. We see rather increased complementarity between the two. And I can give you an example. Munitions with a very clear division of roles. On the one hand, you have the EDA taking stock of demand. Aggregate demand on the member state side, including identifying volumes very precisely and in terms of what the member states want to buy. And then the Commission which has been focusing on industry to ensure that industry is in a position to be able to to meet the demand and produce the volumes expected by the Member States. And this is how we're able to use our instruments to speed up the production capacity in industry. That's a very tangible example of how there is a there are complementary aspects between what each arm can do, and that's our aim to continue with that spirit and continue the implementation of Safe. One point on safe EDP and synergies in terms of eligibility, the philosophy remains the same, even if it has perhaps become slightly more nuanced in the details. The overriding philosophy is the same when it comes to European content and European design. European content for safe that would apply to all products, and then the design agency would then be required for more complex systems. That's the approach we're taking. Regarding us, the US and preferences, what has become clear is that our policy is not dependent on the United States. Our policy is based on the geopolitical context and the and the threats that we have to meet. And given that we have to meet to to deal with these threats in a more independent way and a faster way, this is the environment in which we're working. But once again, our driving force is our security.”
Defence spending · EU competences on defence
- “Uh, Mr. Terry's, when it comes to avoiding competitions and price spiraling effect. That's very true, what you said. Um, and actually, this is something where we need to be vigilant and vigilant when it comes to safe. If you put on the market 150 billion of loans, you create a demand shock. And clearly it can have it can have a kind of inflation effect on on the price when it comes to defense products. So this is why we we need to kind of organize this cooperation between member states. Um, you know, we're talking about common procurements. So we need to kind of organize that cooperation so that it we mitigate the effect it may have on the price of certain certain products. And then, um, last point, Mr. Tavares, when it comes to replacing US products and the ability to do that, um, it will take certainly some time. I think what we have in mind, the driver that we have is that we are very much outcome driven. So we want to have the possibility to fully use assets in Europe. So not to be dependent on third countries for the use of military equipment. So that's the ultimate goal of what we're doing. Of course it's about benefiting the EDT. It's about creating jobs. Um, it's about stimulating innovation. But at the end of the day, it's really about having defence products that we can use the way we want.”
"Buy European" provisions · Defence spending · EU competences on defence
- “Thank you very much, Nicola. So when it comes to the availability of defence products, I just want to zoom into a few few actions. But just outlining that the two big drivers here are agility and speed. What we want is agility. So here we really want to generate lots of new ideas. And that's why we are putting in place hackathons. So we had already two editions of hackathons and the third one is scheduled for the end of this year. So we had one on defence and space. We had one on how can we support solutions in support of Ukraine. And the third one will take place later this year. So here the purpose is really to to stimulate ideas generation young teams working on different ideas and bringing new concepts on the table. We have as well a possibility to and this is very much in the making through the European defence funds. Um, the intention is to speed up, um, everything that that relates to new um technologies, so new disruptive technologies. So we want to achieve faster funding. So to streamline the, the time to grants when it comes to disruptive technologies. So this is something that is in the making. Plus what we want to do as well is bring closer to the market disruptive technologies through um testing and validation. So we know that the if you can give the chance to new technologies to get tested and validated in a quick manner, you bring them very close to the market and basically you enhance the chance to sell those products. So that's very much about the point number two, securing the availability of defence defense products now when it comes to mainstreaming defense readiness culture.”
Artificial Intelligence for military purposes · EU competences on defence
- “Thank you so much and very, very shortly. So it was just a selection of a few actions because indeed the the strategy contains more than 30 actions. So we are just focusing on a few of them. Now a big question is what's the interrelation between this strategy and the white paper and the plan? And here I just want to mention a few points. So one is the possibility to combine instruments. So as you know we are negotiating safe the security action for Europe. This 150 billion of loans. Our intention is very much to combine safe loans about common procurements with potentially deep grants. As you know we have a European defence industry program. We want to and thanks to you, we are going to accelerate the negotiation as part of EDP, there is a possibility to support common procurement. So there is a possibility here to build synergies between Safe and Um and a second walk strand where we can build synergies is really about readiness. As you know, we want to as a follow up to the, um, the defense package, we want to submit a defense readiness defense simplification omnibus to simplify, um, the way our industry is, uh, is ramping up. Um, so that's very much related as well to the readiness agenda of the aegis. And then the last point is on partnerships we are building up. We are enhancing synergies between the two pieces here because partnership is very high as well as part of our agenda when it comes to European defence readiness 2030. It's part of the agenda when it comes to Safe. So here as well, we are building synergies and connecting the dots between the two initiatives. With that, Madam Chair, back to you.”
Defence spending · EU competences on defence