Sittings · Document

OPINION (COM(2024)0150 – C100005/2024 – 2024/0061(COD)) 2025-04-15

On the proposal for a regulation of the European Parliament and of the Council establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products (‘EDIP’)

Committee on Foreign Affairs · Rapporteur: Hilde Vautmans

AMENDMENTS

The Committee on Foreign Affairs submits the following to the Committee on Security and Defence and the Committee on Industry, Research and Energy, as the committees responsible:

Amendment 1

Proposal for a regulation

Recital 7

Text proposed by the CommissionAmendment
(7) The damage from Russia’s war of aggression to the Ukrainian economy, society and infrastructure, and in particular damage caused to the Ukraine defence technological and industrial base (Ukrainian DTIB) require comprehensive support to rebuild the latter. This is essential in order to provide the capacity to the Ukrainian State to maintain its essential functions and allow the fast recovery, reconstruction and modernisation of the country and foster its integration into the European Defence Equipment Market. A strong Ukrainian DTIB is vital for Ukraine’s long-term security as well as its reconstruction.(7) The damage from Russia’s war of aggression to the Ukrainian economy, society and infrastructure, and in particular damage caused to the Ukraine defence technological and industrial base (Ukrainian DTIB) require comprehensive support to rebuild the latter. This is essential in order to provide the capacity to the Ukrainian State to maintain its essential functions and allow the fast recovery, reconstruction and modernisation of the country and foster its integration into the European Defence Equipment Market. A strong Ukrainian DTIB is vital for Ukraine’s long-term security as well as its reconstruction. By delivering for more than three years critical capabilities to support Ukraine’s defence against Russia’s war of aggression, the Ukrainian DTIB has already proven to be extremely innovative and resilient. According to the Ukrainian ministry of defence, its production capacities are currently significantly underutilised. This instrument should hence incentivise Member States to seek active cooperation with the Ukrainian DTIB not only to ramp up the support to Ukraine, but also to cooperate in defence planning for the joint future ahead.

Amendment 2

Proposal for a regulation

Recital 9

Text proposed by the CommissionAmendment
(9) Russia must be held fully accountable and pay for the massive damage caused by its war of aggression against Ukraine, which constitutes a blatant violation of the Charter of the United Nations. The Union and its Member States should, in close cooperation with other international partners, continue to work towards this goal, in accordance with Union and international law, taking into account Russia’s serious breach of the prohibition on the use of force enshrined in Article 2(4) of the Charter of the United Nations and the principle of State responsibility for internationally wrongful acts, including the obligation to compensate for the financially assessable damage caused. It is important that, inter alia, progress is made, in coordination with international partners, on how extraordinary revenues held by private entities stemming directly from immobilised Russian assets could be directed to support Ukraine, including its defence technological and industrial base, in a manner that is consistent with applicable contractual obligations and in accordance with Union and international law. If the Council were to adopt a CFSP decision under Article 29 TEU upon a proposal by the High Representative to transfer to the Union extraordinary cash balances of central securities depositories arising from the unexpected and extraordinary revenues from Russia’s immobilised sovereign assets, such additional support could be drawn from these revenues, in line with the objectives of the Union’s Common Foreign and Security Policy.(9) Russia must be held fully accountable and pay for the massive damage caused by its war of aggression against Ukraine, which constitutes a blatant violation of the Charter of the United Nations. The Union and its Member States should, in close cooperation with other international partners, continue to work towards this goal, in accordance with Union and international law, taking into account Russia’s serious breach of the prohibition on the use of force enshrined in Article 2(4) of the Charter of the United Nations and the principle of State responsibility for internationally wrongful acts, including the obligation to compensate for the financially assessable damage caused. It is important that, inter alia, progress is made, in coordination with international partners, on how extraordinary revenues held by private entities stemming directly from immobilised Russian assets could be directed to support Ukraine, including its defence technological and industrial base, in a manner that is consistent with applicable contractual obligations and in accordance with Union and international law. If the Council were to adopt a CFSP decision under Article 29 TEU upon a proposal by the High Representative to transfer to the Union extraordinary cash balances of central securities depositories arising from the unexpected and extraordinary revenues from Russia’s immobilised sovereign assets, such additional support should be drawn from these revenues, in line with the objectives of the Union’s Common Foreign and Security Policy. Furthermore, legal pathways to use Russian immobilised sovereign assets for the reinforcement of Ukraine and its DTIB should be urgently assessed and wherever possible used.

Amendment 3

Proposal for a regulation

Recital 54 a (new)

Text proposed by the CommissionAmendment
(54a) As part of the objective to ensure security of supply, the Programme should take into account the need for a stronger cooperation with Western Balkan countries in the area of defence industries and should include procurement of military equipment from Western Balkan countries, thus enabling access to high-quality defence equipment.

Amendment 4

Proposal for a regulation

Recital 54 b (new)

Text proposed by the CommissionAmendment
(54b) It is appropriate that representatives of the Ukrainian Defence Ministry will be invited as observers in relevant Council and Committee meetings concerning the implementation of the Ukraine Support Instrument. This should ensure alignment with Ukraine’s defence needs and the Union’s strategic priorities. Where appropriate, the Verkhovna Rada should be informed at the same level as the European Parliament.

Amendment 5

Proposal for a regulation

Recital 54 c (new)

Text proposed by the CommissionAmendment
(54c) Upon the signature of the appropriate framework agreements, the Programme should include the United Kingdom, Moldova and the Western Balkan countries since the security of the Union depends on the security of its closest neighbourhood. Moreover, an inclusion of those countries in the Programme would strengthen their alignment with the CSDP.

Amendment 6

Proposal for a regulation

Article 1 – paragraph 1 – introductory part

Text proposed by the CommissionAmendment
This Regulation establishes a budget and lays down a set of measures aimed at supporting defence industry readiness of the Union and its Member States through the strengthening of the competitiveness, responsiveness and ability of the European Defence Technological and Industrial Base (EDTIB) to ensure the timely availability and supply of defence products and at contributing to the recovery, reconstruction and modernisation of the Ukraine Defence Technological and Industrial Base (Ukrainian DTIB), in particular by means of the following:This Regulation establishes a budget and lays down a set of measures aimed at supporting defence industry readiness of the Union and its Member States through the strengthening of the competitiveness, responsiveness and ability of the European Defence Technological and Industrial Base (EDTIB) to ensure the timely availability and supply of defence products and at contributing to the recovery, reconstruction, modernisation of and mutually beneficial development of technologies with the Ukraine Defence Technological and Industrial Base (Ukrainian DTIB), in particular by means of the following:

Amendment 7

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Text proposed by the CommissionAmendment
(2) the establishment of a cooperation programme with Ukraine with a view to the recovery, reconstruction and modernisation of the Ukraine Defence Technological and Industrial Base (the ‘Ukraine Support Instrument’);(2) the establishment of a cooperation programme with Ukraine with a view to the recovery, reconstruction and modernisation of the Ukraine Defence Technological and Industrial Base (the ‘Ukraine Support Instrument’) and the mutual transfer of competence and technologies;

Amendment 8

Proposal for a regulation

Article 2 – paragraph 1 – point 23 a (new)

Text proposed by the CommissionAmendment
(23a) ‘regional cluster’ means structured cooperation framework formed by at least four eligible countries (member states, candidate countries and potential candidate countries), including at least three member states, with a common geographical proximity, jointly specialising in a specific defence industrial production, and established with the objective of achieving economies of scale, reducing thereby redundant national expenditures, fostering knowledge sharing and cross-border industrial synergies;

Amendment 9

Proposal for a regulation

Article 3 – paragraph 2 – point b

Text proposed by the CommissionAmendment
(b) the characteristics of the cooperation which are likely to give rise to greater interoperability outcomes and long-term investment signals to industry, in particular where the common procurement covers activities that would be eligible for funding from the Union budget, e.g. research and development, testing and certification, initial production or in-service support activities;(b) the characteristics of the cooperation which are likely to give rise to the creation of regional clusters, greater interoperability outcomes and long-term investment signals to industry, in particular where the common procurement covers activities that would be eligible for funding from the Union budget, e.g. research and development, testing and certification, initial production or in-service support activities;

Amendment 10

Proposal for a regulation

Article 4 – paragraph 1 – point a

Text proposed by the CommissionAmendment
(a) initiating and speeding up the adjustment of industry to structural changes, including through the creation and ramp-up of its manufacturing capacities and the opening of the supply chains for cross-border cooperation and effective availability and supply throughout the Union, involving in particular, to a significant extent, SMEs, small mid-caps and other mid-caps;(a) initiating and speeding up the adjustment of industry to structural changes, including through the creation of regional clusters, the creation and ramp-up of its manufacturing capacities and the opening of the supply chains for cross-border cooperation and effective availability and supply throughout the Union, involving in particular, to a significant extent, SMEs, small mid-caps and other mid-caps;

Amendment 11

Proposal for a regulation

Article 4 – paragraph 1 – point b a (new)

Text proposed by the CommissionAmendment
(ba) support Ukraine in increasing the manufacturing of most relevant and urgent defence products ensuring rapid and targeted assistance in response to the ongoing crisis to support Ukraine as long as the war persists on its territory;

Amendment 12

Proposal for a regulation

Article 5 – paragraph 1 – point b

Text proposed by the CommissionAmendment
(b) for actions reinforcing the Ukrainian DTIB: the amount of the additional contributions in accordance with Article 6 to the extent earmarked, subject to the conclusion of the agreement referred to in Article 57.(b) for actions reinforcing the Ukrainian DTIB by providing:
i. an extra EUR 1 billion in current prices for the period until 31 December 2027 from the Union budget, and
ii. EUR 16,95 billion in current prices as grants from the Union to Ukraine, derived from the overall budget of the European Commission’s proposal for a Council Regulation establishing the Security Action for Europe (SAFE) through the reinforcement of European defence industry Instrument, accounting for 11,3% of its overall budget, for the period from [… - insert a specific date] until 31 December 2027 in accordance with Article 6 to the extent earmarked, subject to the conclusion of the agreement referred to in Article 57.

Amendment 13

Proposal for a regulation

Article 10 – paragraph 3

Text proposed by the CommissionAmendment
3. The infrastructure, facilities, assets and resources of the recipients which are used for the purposes of the action shall be located on the territory of a Member State or of an associated country. Where recipients have no readily available alternatives or relevant infrastructure, facilities, assets and resources in the Union or in an associated country, they may use their infrastructure, facilities, assets and resources which are located or held outside the territory of the Member States or of the associated countries, provided that such use does not contravene the security and defence interests of the Union and the Member States and is consistent with the objectives set out in Article 4.3. The infrastructure, facilities, assets and resources of the recipients which are used for the purposes of the action shall be located on the territory of a Member State or of an associated country. Where recipients have no readily available alternatives or relevant infrastructure, facilities, assets and resources in the Union or in an associated country, they may use their infrastructure, facilities, assets and resources which are located or held outside the territory of the Member States or of the associated countries, provided that such use does not contravene the security and defence interests of the Union and the Member States and respects the principle of good neighbourly relations, and is consistent with the objectives set out in Article 4.

Amendment 14

Proposal for a regulation

Article 12 – paragraph 7 – subparagraph 1

Text proposed by the CommissionAmendment
The common procurement contract shall include provisions governing the purchase of additional quantities of defence products for other Member States, associated countries or Ukraine.The common procurement contract shall include provisions governing the purchase of additional quantities of defence products for other Member States, associated countries, Moldova, the Western Balkan countries, the United Kingdom or Ukraine if and once the necessary framework agreements have been signed.

Amendment 15

Proposal for a regulation

Article 20 – paragraph 1 a (new)

Text proposed by the CommissionAmendment
1a. Actions supported under the Ukraine Support Instrument, in particular actions in Article 12 and 13, shall primarily aim at scaling-up direct investment into Ukraine industrial defence capacities and increasing procurement of defence capacities produced in Ukraine.

Amendment 16

Proposal for a regulation

Article 20 – paragraph 4 a (new)

Text proposed by the CommissionAmendment
4a. The Ukraine Support Instrument shall facilitate the coordinated scale-up of Ukraine’s defence industrial capacity, inspired by the Danish Model.

Amendment 17

Proposal for a regulation

Article 20 – paragraph 4 b (new)

Text proposed by the CommissionAmendment
4b. A dedicated financial allocation shall be established within the Ukraine Support Instrument to ensure sustained investment in Ukraine’s defence production capacity, including through targeted financial instruments.

Amendment 18

Proposal for a regulation

Article 20 – paragraph 4 c (new)

Text proposed by the CommissionAmendment
4c. To mitigate investment risks, the Programme shall support financial protection mechanisms, including war-risk insurance, for critical defence industrial projects in Ukraine.

Amendment 19

Proposal for a regulation

Article 20 – paragraph 4 d (new)

Text proposed by the CommissionAmendment
4d. The Programme shall ensure that the mutual transfer of knowledge in the area of R&D is mutually beneficial and is based on a special relationship between the Union and Ukraine as a candidate country. Joint projects shall primarily favour bilateral Union-Ukrainian transfer of knowledge, technologies and IP-rights over other third countries.

Amendment 20

Proposal for a regulation

Article 21 – paragraph 4

Text proposed by the CommissionAmendment
4. For the purposes of an action supported by the Ukraine Support Instrument, the recipients shall not be subject to control by a third country or by a third-country entity.4. For the purposes of an action supported by the Ukraine Support Instrument, the recipients shall not be subject to control by a third country or by a third-country entity unless it is an associated third country.

Amendment 21

Proposal for a regulation

Article 21 – paragraph 5 – subparagraph 2 – point b a (new)

Text proposed by the CommissionAmendment
(ba) ‘design authority’, at both the systems and component level, means the entity that has the legal authority and the ability to decide, without restrictions by non-associated countries or by non-associated country entities, on the definition, adaptation and evolution of the product’s design, including the legal authority to substitute or disintegrate the components subject to restriction by non-associated countries or by non-associated country entities with alternative and restriction-free components originating in the Union, while taking into account the contributions of third country entities currently integrated into the transatlantic defence technological and industrial base.

Amendment 22

Proposal for a regulation

Article 21 – paragraph 5 a (new)

Text proposed by the CommissionAmendment
5a. Recipients shall ensure that all digital infrastructure, cloud services, data processing, and cybersecurity frameworks used in actions under the Ukraine Support Instrument comply with Union security standards and be interoperable with Union defence products and systems. Recipients shall not rely on digital technologies, software, or networks that are subject to control by a third country or third-country entity, where such control may pose a risk to the security and defence interests of the Union and its Member States.

Amendment 23

Proposal for a regulation

Article 21 – paragraph 5 b (new)

Text proposed by the CommissionAmendment
5b. Any intellectual property, technology, or research and development (R&D) knowledge generated under this Programme shall primarily benefit Member States or be utilized in Ukraine to enhance its security and economic resilience. Such transfers shall not contradict Union security and defence interests nor be made available to third countries unless authorized by the Union through additional agreements or with its explicit consent.

Amendment 24

Proposal for a regulation

Article 21 – paragraph 6 – subparagraph 1

Text proposed by the CommissionAmendment
When carrying out an eligible action, recipients may also cooperate with legal entities established outside the territory of the Member States or of Ukraine, or controlled by a third country or by a third-country entity, including by using the assets, infrastructure, facilities and resources of such legal entities, provided that this does not contravene the security and defence interests of the Union and its Member States. Such cooperation shall be consistent with the objectives set out in Article 4 and comply with Article 11(8), point (c).When carrying out an eligible action, recipients may also cooperate with legal entities established outside the territory of the Member States or of Ukraine, or controlled by a third country or by a third-country entity, including by using the assets, infrastructure, facilities and resources of such legal entities, provided that this does not contravene the Union's open strategic autonomy, security and defence interests. Such cooperation shall be consistent with the objectives set out in Article 4 and comply with Article 11(8), point (c).

Amendment 25

Proposal for a regulation

Article 51 – paragraph 1

Text proposed by the CommissionAmendment
1. Where the Council activates this measure in accordance with Article 48(4) and without prejudice to Directive 2009/43/EC and Member States’ prerogatives under that Directive, Member States shall ensure that applications related to intra-EU transfers are processed in an efficient and timely manner. To that end, all national authorities concerned shall ensure that the treatment of an application does not exceed 2 working days.1. Where the Council activates this measure in accordance with Article 48(4) and without prejudice to Directive 2009/43/EC and Member States’ prerogatives under that Directive, Member States shall ensure that applications related to intra-EU transfers and transfers to Ukraine are processed in an efficient and timely manner. To that end, all national authorities concerned shall ensure that the treatment of an application does not exceed 2 working days.

Amendment 26

Proposal for a regulation

Article 51 – paragraph 3 – introductory part

Text proposed by the CommissionAmendment
3. Member States shall refrain from imposing restrictions to the transfer of defence-related products as defined in Article 2 of Directive 2009/43/EC within the Union. Where Member States impose such restrictions on grounds of security or defence, it shall be done only if those restrictions are:3. Member States shall refrain from imposing restrictions to the transfer of defence-related products as defined in Article 2 of Directive 2009/43/EC within the Union and to Ukraine. Where Member States impose such restrictions on grounds of security or defence, it shall be done only if those restrictions are:

Amendment 27

Proposal for a regulation

Article 58 – paragraph 2

Text proposed by the CommissionAmendment
2. The EDA shall be invited to provide its views and expertise to the committee as an observer. The EEAS shall also be invited to assist in the work of the committee.2. The EDA shall be invited to provide its views and expertise to the committee as an observer. The EEAS and, where relevant, Ukraine shall also be invited to assist in the work of the committee.

Amendment 28

Proposal for a regulation

Article 58 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. The European Parliament can send observers to the committee.

Amendment 29

Proposal for a regulation

Article 59 – paragraph 3 – introductory part

Text proposed by the CommissionAmendment
3. The framework agreement shall lay down the obligations of the Ukrainian authorities and bodies entrusted of budget implementation tasks to take all the necessary measures including legislative, regulatory and administrative measures to respect the principles of sound financial management, transparency and non-discrimination, to ensure the visibility of Union action when managing the Union funds, to fulfil the appropriate control and audit obligations and assume the resulting responsibilities, and to protect the financial interests of the Union, by, in particular, detailed enacting provisions concerning:3. The framework agreement shall lay down the obligations of the Ukrainian authorities and bodies entrusted of budget implementation tasks to take all the necessary measures including legislative, regulatory and administrative measures to respect the principles of sound financial management, transparency and non-discrimination, to enhance the visibility of Union action when managing the Union funds, to fulfil the appropriate control and audit obligations and assume the resulting responsibilities, and to protect the financial interests of the Union, by, in particular, detailed enacting provisions concerning:

Amendment 30

Proposal for a regulation

Article 59 – paragraph 3 – point e a (new)

Text proposed by the CommissionAmendment
(ea) other relevant rights of access and use of resources by the Union, its member states or entities acting on their behalf or in their interest on the territory of Ukraine;

Amendment 31

Proposal for a regulation

Article 64 a (new)

Text proposed by the CommissionAmendment
Article 64a
Transparency
After having selected projects to receive funding in line with Article 5 (1), point (a) and (b), the Commission shall inform the Council and the European Parliament about the decision-making basis and reasons for the selection of the funded projects.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.