The European Commission formally initiated work with Member States to finance joint industrial projects in the field of defence.
Once the Commission adopts the work programme for the European Defence Industrial Development Programme, it will launch calls for proposals under the EU budget for 2019-2020. This will help pave the way for the future European Defence Fund for the period 2021-2027.
In a world of increasing instability and cross-border threats to our security, no country can succeed alone. That is why the Juncker Commission is making an unprecedented effort to protect and defend Europeans. It has already taken first steps to boost cooperation between Member States in the field of defence research and defence industry development, with more to follow in 2019-2020. In June 2018, the Commission also proposed a fully-fledged €13 billion European Defence Fund for 2021-2027, which is now under discussion by the European Parliament and Council.
Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “Defence cooperation in Europe helps Member States spend taxpayer money more efficiently, reduce duplications in spending, and get better value for money. Defence cooperation promotes a strong and innovative defence industry and raises the EU’s autonomy and technological leadership in defence. Unthinkable only a few years ago, defence cooperation is becoming a reality today.”
Commissioner Elżbieta Bieńkowska, responsible for Internal Market, Industry, Entrepreneurship and SMEs, added: “To protect our citizens, Europe needs cutting-edge, interoperable defence technology and equipment in novel areas like artificial intelligence, encrypted software, drone technology or satellite communication. Thanks to the European Defence Fund, we are making this happen. We are ensuring Europe becomes a stronger security provider.”
The European Commission, under the steer of President Juncker and with the support of Member States, is taking the following steps:
For the 2017-2020 EU budget period:
For the first time in European history, the EU is incentivising European defence cooperation with a budget envelope of €590 million (€90 million for research over 2017-2019 and €500 million for developing equipment and technology during 2019-2020).
- Defence research cooperation is already materialising. First EU grant agreements under the 2017 budget included the research project Ocean2020, which brings together 42 partners from 15 EU countries and supports maritime surveillance missions at sea and to that end will integrate drones and unmanned submarines into fleet operations. In the coming weeks the Commission will announce further collaborative defence research projects under the 2018 budget and present the work programme and final call for proposals under the remaining budget tranche for 2019.
- Following the views of Member States, in a few weeks, the Commission will adopt the first ever Work Programme to co-finance joint industrial projects in the field of defence under the EU budget for 2019-2020. The projects for which calls for proposals under the European Defence Industrial Development Programme (EDIDP) will be launched will be consistent with the priorities identified in the context of the Permanent Structured Cooperation (PESCO), the Capability Development Plan (CDP) and NATO.
For the 2021-2027 EU budget period:
On the basis of these two “pilot” programmes, the Commission proposed in June 2018 a fully-fledged European Defence Fund worth €13 billion under the next EU long-term budget to cover both the research and capability strands. Following positive votes in the European Parliament and Council, the proposal is now being discussed by the co-legislators in the final so-called trilogue negotiations.
In his political guidelines in June 2014, President Juncker made strengthening European citizens’ security a priority. He announced the creation of a European Defence Fund in his 2016 State of the Union address.
The European Commission presented a first set of actions in June 2017 in order to allow defence cooperation at EU level to be tested by means of the Preparatory Action on Defence Research (PADR) for 2017-2019, as well as through the European Defence Industrial Development Programme (EDIDP) for 2019-2020.
The implementation of EDIDP requires that the Commission adopts a work programme to define the categories of projects which will be supported following open calls for proposals. The work programme will be adopted in the coming weeks after consultation with the Member States and a positive opinion to be adopted by qualified majority.
In June 2018, the Commission proposed a fully-fledged European Defence Fund delivering on the commitment made in June 2017 to scale up initial funding for the period 2021-2027.
The new €13 billion European Defence Fund will provide €4.1 billion to directly finance competitive and collaborative research projects, in particular through grants. Beyond the research phase, €8.9 billion will be available to complement Member States’ investment by co-financing the costs for prototype development and the ensuing certification and testing requirements. The Fund will place the EU among the top 4 defence research and technology investors in Europe, and act as a catalyst for an innovative and competitive industrial and scientific base. PESCO projects may, if eligible, receive an additional co-financing bonus of 10%, but funding is not automatic.
The European Defence Fund will complement other EU programmes, in particular the budget of €6.5 billion earmarked for the Connecting Europe Facility to enhance the EU’s strategic transport infrastructures to make them fit for military mobility, and the new €100 billion research and innovation programme Horizon Europe.
Towards a stronger and more resilient Schengen area
The first ever Schengen Forum, convened today by the Commission, allowed for constructive exchanges towards building a stronger and more resilient Schengen area. The videoconference gathered Members of the European Parliament and Home Affairs Ministers with the aim of fostering cooperation and political dialogue and rebuilding trust.
Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: “Today’s discussions showed a strong collective commitment to preserve and strengthen Schengen. For the last 35 years, we have built an entire Schengen architecture to better protect the area without controls at internal borders. And we must continue to build on and improve that architecture going forward.”
Commissioner for Home Affairs, Ylva Johansson, said: “The coronavirus pandemic has shown how much we need Schengen. Moving freely within the EU is a daily necessity for millions of Europeans for work or school for instance. It’s also crucial for companies transporting goods around Europe. Schengen can be our lifeline when it comes to Europe’s economic recovery post-coronavirus. That is why our discussions today on building a more resilient Schengen are so important.”
The discussions focused on:
Improving the mechanism to evaluate the implementation of the Schengen rules: Options for operational improvements as well as legislative changes to the mechanism were discussed for better monitoring, quicker and more efficient identification of possible deficiencies and effective follow up.
Finding a way forward on the revision of the Schengen Borders Code: Participants discussed possible ways forward to improve the current Schengen rules, with the shared objective of overcoming existing internal border controls and ensuring that any possible reintroduction of controls at internal borders in the future is proportionate, used as a measure of last resort and for a limited period of time.
Better managing the EU’s external borders: Participants stressed the need for quickly putting in place the Entry/Exit System (EES) and the European Traveller Information and Authorisation System (ETIAS). These systems complement existing databases such as the Schengen Information System or the Visa Information System, which need to be used in full. The ongoing work towards ensuring that information systems for migration, border management and security become interoperable by 2023 was highlighted as crucial to give border guards the information they need to know who is crossing the EU’s borders. The deployment of the European Border and Coast Guard standing corps starting from January 2021 will also provide increased support to Member States’ border guards whenever and wherever needed.
Enhancing police cooperation and information exchange: Common and coordinated European action, for instance through increased police cooperation, better information exchange and better use of new technologies, is crucial to guarantee security within the Schengen area. Police checks can also constitute an effective alternative to the reintroduction of border controls. Measures such as joint patrols, joint investigation teams, cross-border hot pursuits or joint threat analysis were discussed as being alternatives to effectively address threats to security.
Strengthening the governance of the Schengen area: Regular meetings of the Schengen Forum, based on reports provided by the Commission, will help ensure the political involvement of all relevant players.
Today’s discussions are the first step in an inclusive political debate towards building a stronger Schengen area based on mutual trust. They will feed into the Schengen Strategy that the Commission intends to present in mid-2021.
Following today’s first videoconference, the Schengen Forum will continue to meet regularly both at political or technical levels. The next meeting of the Forum at political level will take place in spring 2021, ahead of the presentation of the Strategy for a stronger Schengen area. Targeted consultations at technical level will also take place with representatives from the European Parliament and national authorities over the next months.
35 years ago, 5 Member States agreed to remove border controls between themselves. Today, the Schengen area encompasses 26 European States with over 400 million citizens and it is a key policy of the European Union. It underpins the seamless functioning of the EU internal market in goods and services and has allowed Europeans to organise their private and professional lives around unfettered travel around Europe.
Schengen rules require an update to adapt them to evolving challenges. The pandemic, security concerns, and migration management issues have led Member States to reintroduce internal border checks. To address these challenges and build a more resilient Schengen area, the Commission announced in September this year the creation of a Schengen Forum to foster operational cooperation and stronger confidence in the rules.
MEPs condemn Turkey’s activities in Varosha, Cyprus, and call for sanctions
Turkey’s decision to “open” the sealed-off suburb of Varosha undermines prospects of a comprehensive solution to the Cyprus problem, warn MEPs.
In a resolution adopted by 631 votes in favour, 3 against and 59 abstentions, MEPs condemn Turkey’s illegal activities in the Varosha suburb of the city of Famagusta and warn that its partial “opening” weakens prospects of a comprehensive solution to the Cyprus problem, exacerbating divisions and entrenching the permanent partition of the island.
MEPs call on Turkey to transfer Varosha to its lawful inhabitants under the temporary administration of the UN (in accordance with UN Security Council Resolution 550 (1984)) and to refrain from any actions that alter the demographic balance on the island through a policy of illegal settlement.
Tough sanctions against Turkey
A sustainable solution to reunify the island of Cyprus and its people can only be found through dialogue, diplomacy, and negotiations, MEPs stress. They call on the European Council to maintain its unified position on Turkey’s illegal actions and impose tough sanctions in response.
MEPS regret that the Turkish authorities have endorsed the two-state solution for Cyprus and reiterate their support for a fair, comprehensive and viable settlement on the basis of a bi-communal, bi-zonal federation with a single international legal status. They also call on the EU to play a more active role in bringing the negotiations under UN auspices to a successful conclusion.
Tense EU-Turkey relations
As Turkey distances itself more and more from European values and standards, EU-Turkey relations are at a historic low, warns Parliament. Its illegal and unilateral military actions in the Eastern Mediterranean infringe on the sovereignty of EU member states Greece and Cyprus. MEPs also point out Turkey’s direct support of Azerbaijan in the Nagorno-Karabakh conflict as well as its actions in Libya and Syria.
The Turkish army fenced off Varosha immediately after the invasion of Cyprus in 1974. The Greek Cypriots who fled from Varosha were not allowed to return and with public entry prohibited, Varosha has effectively become a ghost town.
Commission and EBRD promote innovative use of data in public procurement involving EU funds
The European Commission, the European Bank for Reconstruction and Development (EBRD) and the Open Contracting Partnership are joining forces to improve the quality and transparency of public tenders co-funded by EU funds in Greece and Poland. Thanks to their support, two pilot projects will provide expertise and hands-on support to public authorities in both countries, with a focus on digital innovation.
By promoting the smart use of innovation and open data, the two pilots will help public administrations to better plan, implement and monitor the procurement of works, goods and services. This will improve the use of public resources and increase opportunities for businesses, especially for small and medium companies (SMEs). Moreover, thanks to a cooperation with local civil society organisations, this initiative will also favour transparency of public spending and stimulate citizens’ participation in the monitoring of investments with a direct impact on the community, such as investments in sustainability, local development and social inclusion.
The two pilot projects
- In Greece, the project will aim at consolidating and integrating all databases into a single smart public contract register. This will enable online access for bidders and citizens, improve quality of data and facilitate the use of data-driven analytical tools for monitoring the procurement process.
- In Poland, the initiative will support Polish national and local authorities to introduce open data in public procurement and promote automated collection, standardisation, and consolidation of procurement data on all tenders.
The two pilots will run until the end of 2021 and their results will be disseminated in order to ensure a successful roll out in other Member States.
Commissioner for Cohesion and Reforms, Elisa Ferreira, said: “In the programming period 2021-2027, Cohesion policy will continue to support Member States and regions in their economic recovery following the coronavirus pandemic, as well as boosting competitiveness through new investments in research and innovation, digital transition and the implementation of the European Green Deal agenda. Through the use of new technologies, national and local public authorities managing EU funds will be able to spend public money more effectively ensuring the best possible results for citizens and businesses”.
Commissioner for Internal Market, Thierry Breton, added: “Transparency in public procurement is essential to ensure efficiency of public investments, in line with the EU strategic policy goals aiming at a greener, digital and more resilient Europe. Public authorities can rely on the EU’s public procurement framework, tools like the electronic procurement systems and open data for an efficient use of public funds.”
The EBRD Vice-President, Pierre Heilbronn commented: “The EBRD is committed to support legal and institutional reforms aimed at ensuring that procurement laws and practices are modern, in line with international standards and can swiftly respond to emerging challenges. Together with Open Contracting Partnership, we are sharing the experience of successful civil society procurement monitoring based on open data. Our joint efforts aim to create a framework for enlisting civil society organisations to support public procurement reforms and use open data to monitor procurement.”
In the context of the next long-term EU budget, more than €370 billion from Cohesion policy funds will be invested to support the digital and green transitions of the Member States. Every year, public authorities in the EU spend around 14% of GDP on public procurement, amounting to more than €1.9 trillion. Almost half of Cohesion policy funding is channelled through public procurement. The Commission has promoted a series of initiatives aimed at helping Member States to improve the way administrations and beneficiaries use public procurement for EU investments. These include the Integrity Pacts to ensure more efficient and transparent tenders and safeguarding EU taxpayers’ money. The Commission also took action to facilitate citizen engagement for better governance and effective Cohesion policy investments.
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