On the proposal for a regulation of the European Parliament and of the Council on the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products (‘EDIP’)
IMCO-AD-768076
Committee on the Internal Market and Consumer Protection · Rapporteur: Kamila Gasiuk-Pihowicz
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The committee opinion amends the proposed regulation on the European Defence Industry Programme (EDIP) to strengthen the internal market for defence, support SMEs and mid-caps, and ensure flexibility for urgent needs, including support to Ukraine.¶¶¶ It introduces provisions for European Defence Projects of Common Interest, regional clusters, and derogations for products under third-country restrictions, while setting funding allocation floors and ceilings.¶¶¶ It also modifies rules on SEAPs, joint procurement, and the Defence Industrial Readiness Board, enhancing transparency and parliamentary oversight.¶¶¶
Committee position. The Committee on the Internal Market and Consumer Protection proposes amendments to the Commission proposal to enhance the internal market for defence, support SMEs, and increase flexibility, while ensuring balanced access and parliamentary oversight.¶¶¶
Key points
- The Programme should foster a true Single European Market for defence products, supporting all European businesses and avoiding monopolisation.¶¶¶
- Funding should be accessible to SMEs, start-ups, and mid-caps, with at least 30% of the financial envelope allocated to industry reinforcement actions and up to 25% to other actions.¶¶¶
- Derogations allow financing of products manufactured under licence from like-minded third countries in exceptional circumstances, with conditions to reduce dependency.¶¶
- European Defence Projects of Common Interest (EDPCI) are defined, requiring at least four Member States or three Member States and Ukraine, and must be open to all Member States.¶¶¶
- SEAPs must have at least three Member States or four countries including three Member States, and may procure on behalf of members with derogations from Directive 2009/81/EC.¶¶¶
- Common procurement actions may be opened to other Member States and Ukraine, with provisions for licensing opportunities and additional quantities.¶¶¶
- The Commission may conduct joint procurement on behalf of Member States, associated countries, and Ukraine, with a negotiating mandate and exclusivity clause.¶¶¶
- The Defence Industrial Readiness Board shall include the European Parliament as an observer and may issue recommendations; a working group on cross-certification is to be set up.¶¶¶
- The Commission must inform the European Parliament about procurement procedures and grant access to contracts, protecting commercially sensitive information.¶
- Member States shall not impose additional restrictions on eligible entities except for essential security interests, with justification and notification to the Commission.¶
- The cost of components from outside the Union or associated countries shall not exceed 35% of the estimated cost of the end product, with a methodology to be developed.¶
Who is affected
- European defence industry players, including SMEs, start-ups, and mid-caps, gain access to funding and cross-border cooperation opportunities.¶¶¶
- Member States and associated countries can participate in joint procurement and SEAPs, with conditions for opening contracts to other states.¶¶¶
- Ukraine and its defence industry are integrated into the Programme, with support for recovery and modernisation.¶¶¶
- Third countries with Security and Defence Partnerships or candidate status may participate under strict conditions.¶¶
Figures and deadlines
- At least 30% of the financial envelope allocated to industry reinforcement actions; up to 25% to other actions.¶
- Cost of components from outside the Union or associated countries shall not exceed 35% of the estimated cost of the end product.¶
- SEAPs must have at least three Member States or four countries including at least three Member States.¶
- EDPCI must involve at least four Member States, or three Member States and Ukraine.¶