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28 août 2015 5 28 /08 /août /2015 16:50
Industry consultation on the European Transfers Directive


Brussels - 17 August, 2015 EU Defence Agency
 

An evaluation of the implementation of the Directive on intra-EU-transfers of defence-related products has been launched by the European Commission. The European Defence Agency, under its role as an interface to wider EU policies impacting defence, is coordinating with the Commission in order to raise awareness and increase the input of Member States Ministries of Defence as well as defence industry, on issues related to the implementation of Directive 2009/43/EC.

 

Also known as the Directive on intra-EU-transfers of defence-related products, it aims to simplify terms and conditions of transfers of defence-related products within the Community. The Directive entered into force in 2009 and was transposed into national legislation across all Member States and EEA countries by 2012.

The Commission has recently launched an evaluation of the implementation of the ICT Directive, in view of preparing a report to the European Parliament and Council by June 2016. It has contracted the independent consultancy Technopolis Group to evaluate the implementation, uptake and impact of the Directive, and to provide recommendations to address any identified problems, in view of supporting the Commission in the preparation of its report.

A central aspect of the evaluation is a survey-based consultation with European defence industry. The online survey can be accessed at this link. The consultation is due to close on Friday 18th September 2015.

According to Technopolis, all responses obtained through the consultation will be treated in the strictest confidence, in line with EU legislation on data protection, and access to the data will be restricted to a small team within Technopolis. Information will only be passed to the Commission and published in aggregated and non-attributable form.

 

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  • For further information or clarifications regarding the study or the consultation, industry can contact Technopolis / Mr. Neil Brown directly at: defence@technopolis-group.com

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30 juin 2015 2 30 /06 /juin /2015 17:50
The Impact of the 'Defence Package' Directives on European Defence


19.06.2015 source SEDE
 

In its conclusions on the Common Security and Defence Policy, the December 2013 European Council stressed the importance of ensuring the full and correct implementation and application of the two defence Directives of 2009. The present study intends to provide the Parliament with an initial perspective regarding the state of implementation of the Directive 2009/81/EC on defence and security procurement (Part.1) and the Directive 2009/43/EC on intra-European Union transfers of defencerelated products (Part.2). It undertakes a first assessment of national practices, through qualitative and statistical analysis. It identifies the complex points and obstacles, which, if not overcome, may well call into question the Directives’ expected beneficial effects.

 

Executive summary

 

The directive 2009/81/EC on defence and security Procurement under scrutiny

In order to understand the evolution of Member States’ acquisition practices since the entry into force of the Directive, the first part of the study is structured around three main sections : (1) the situation before the Directive’s entry into force, an overview of the major principles introduced by the Directive and their implications for actors in the European defence sector, along with the process of transposition into national law; (2) An initial evaluation of national practices through qualitative analysis and statistical analysis (based on reprocessed data from the TED database, during the period from the 21st August 2011 to the 31st December 2014, covering all EU Member States) ; (3) An identification of the complex points and obstacles, which, if not overcome, may well call into question the Directives’ expected beneficial effects.

The Directive 2009/81/EC intends to provide procurement rules tailor-made for defence and security markets and is supposed to lead to more transparency and competition. Most importantly, it should limit the use of the exception clause of Article 346.

While the number of documents published on TED over these past two years has been increasing, this increase is not as significant as expected, and above all it is due to a small group of Member States (France, Germany, and the United Kingdom). This initial survey demonstrates an important disparity in the Member States’ publication practices (contract notices and contract awards). This poses the question of reciprocity. In value, contract awards notified between the 21st August 2011 and the 31st December 2014 represent around €10.53 billion. The year 2014 accounts for around 65% of the total, due to significant contracts notified by the United Kingdom in the field of services and facilities management, and by France on the segments covering Repair and maintenance services of military aircrafts.

The Directive 2009/81/EC is today favoured for contracts dealing with services, the acquisition of equipment deemed to be of a low strategic value, and sub-systems. Over the past three years, all of the major military equipment contracts, thus those that have had a structural effect on the DTIB, were notified without going via the Directive. Previous practices have continued, notably the use of Article 346.

When the contracting authorities/entities provide the name and address of the successful economic operators, in 84% of cases, the selected supplier is based on national territory. An analysis focused on the Member States that have published the most contract award notices (and if we consider non-specified addresses as national, as the European Commission does) demonstrates that the proportion of selected suppliers located on national territory reaches 98% for Germany, 97% for France, 96% for Italy, 96% for Poland, 92% for the United Kingdom, 90% for Romania, and 64% for Finland.

Concretely today acquisition practices seem to show an incomplete and incorrect application of the Directive, with de facto a limited or even non-existent impact on the DTIB. It is indeed too hasty and premature to draw conclusions from such a short period, all the more so given that it generally takes 5 to 10 years for a directive to be fully applied, and this is referring to the civilian sector. Although this new regime is not yet functioning satisfactorily at the present time, the Directive represents an important step in a sector such as defence, which is marked by a significant degree of opacity in acquisition practices.

 

The State of implementation of the Directive 2009/43/EC on Intra-EU transfers of defence- related products

In order to assess in details the current state of implementation o the Directive 2009/43/EC, the second part of the report proceeds in 3 steps and considers, first, the principles of the ICT Directive regarding the general licences, second, the state of the certification process and third the eventual impact of the Directive on the actors focusing specifically to topic of the end-use/end-user control.

The use of general licences appears to be quite limited considering its potential. This can be partially explained by the fact that the implementation of the new regulations is still in a transitional phase. However study reveals that the entire licensing process established by the EC suffers from major problems threatening the objective of simplification and harmonization. First, the report identifies a lack of availability of the relevant documents. Second, the general licences are too diversified in terms of scope and structure of the documents and conditions attached. Third Member states adopt different definitions of what sensitive products are, which is a corollary of the multiplicity of the defence-related product lists attached to the general licences.

To date, only 36 defence companies are registered on CERTIDER. The pace of certification is impacted by the relative complexity and diversity of the general licences, but there is obviously is some skepticism about the practical benefits of the enlisting process. It may not be considered worth the effort for the defence companies. The observation is even more valid for Small and Medium Enterprise.

Because of the slow pace on implementation of the Directive 2009/43/EC it is hazardous to analyze its effect on the European defence market. However, the actual trends allows the formulation of hypotheses notably on the eventual adaptation of the en use/end user control processes within the EU. States remain attached to their monitoring systems. It is an international or regional obligation for them but they also want to stay aware of any eventual re-export within the UE and of course, outside.

The benefits of the ICT Directive will not be felt similarly by all Member States, national authorities and defence companies. Their effects will certainly be different among Member States depending on the structure of their national defence sector and its reliance on exports. National factors and realities of the defence industry, as well as diverse perceptions of arms trade controls in Europe, can explain the current unequal level of implementation of the Directive and limit the overall benefits of the new regulatory system put in place by the Directive.

 

Download The Impact of the 'Defence Package' Directives on European Defence

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12 juin 2014 4 12 /06 /juin /2014 16:50
EDA Framework Arrangement for Security of Supply – Implementation progressing


 

Brussels - 04 June, 2014 European Defence Agency
 
 

To enhance their mutual support and assistance on Security of Supply the EDA Member States adopted on 19 November 2013 an updated “Framework Arrangement for Security of Supply”. The updated Framework Arrangement has broad applicability, covering both peacetime and times of crisis and all kinds of acquisitions. Hence, differing from its predecessor it is not limited any more to operational urgency nor to acquisitions conducted under Article 346 TFEU. The Framework Arrangement is also fully adapted to the new legal framework of the Defence and Security Procurement Directive 2009/81/EC and the Intra-Community Transfers Directive 2009/43/EC.

 

All 27 EDA participating Member States, as well as Norway, have now decided to subscribe to and therefore participate in the implementation of the Framework Arrangement, highlighting the importance of Security of Supply. In coming years the EDA will act as a facilitator to support national implementation and application of the Framework Arrangement.

 

In addition, the May 2014 Steering Board adopted a voluntary Code of Conduct on Prioritisation, associated with the Framework Arrangement, as a means to involve industry in the EDA Security of Supply framework, by establishing a way for industry to demonstrate its commitment to meet Member States enhanced Security of Supply requirements in defence procurement. The Code of Conduct is now open for subscription to the states participating in the Framework Arrangement. 

 

Subject to the national subscription to the Code of Conduct, defence industry can sign up to this voluntary Code on a case-by-case basis. Whilst doing so industry will accept a set of principles to ensure delivery and provision of defence equipment and services to the Member States.

 

Both the Framework Arrangement and the Code of Conduct on Prioritisation are considered as substantial steps contributing towards the establishment of a comprehensive EU-wide Security of Supply Regime, as requested in the December 2013 European Council conclusions.

 

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