Defence Market

  • May 18, 2017

ASD advocates for the need to strengthen the Internal Market for Defence and Security, in particular better implementation of the two Defence Directives on procurement and transfers, as well as the recast of the dual-use export control Regulation.

The review of the Directive 2009/81 on Defence and Security Procurement reached the conclusion that while the text of the Directive may not need to be updated, there is still a lack of clarity on certain provisions and consequently of harmonized implementation by the Member States. The findings of the EC Advisory Group on Cross-border Supply Chains also identified several weaknesses that hamper the access of European Small and Medium Size Enterprises (SMEs) to the defence market in other EU Member States.   ASD is actively monitoring the development of some possible additional guidelines on cooperative procurement, procurement via international organisations as well as the sub-contracting provisions. The Task Force on Procurement (TF PROC) is responsible for this topic.

The review of the Transfers Directive 2009/43 revealed the poor use of the provisions allowing for simplification of defence transfers between Member States, and the need to produce more incentives for both companies and governments to make use of the Directive’s certification process. While progress has been achieved through the identification of common lists of items allowed for General Transfers Licenses in two Commission’s Recommendations, General Transfer Licence for armed forces and General Transfer Licences for Certified Recipients their restricted scope ought to be enlarged to include more technologies to be truly beneficial. More synergies need to be achieved in the area of convergence with customs’ regulations in order to ease the administrative burden on companies. The Export Control Committee (ECC) is responsible for this topic.

Concerning the legislative proposal revising the Dual-Use Export Control Regulation 2009/428, ASD underlines the important role of the multilateral export control regimes in a global context.  Changes to EU export control lists should ensure that EU industry is not disadvantaged in the global market.  ASD supports the objectives of more simplification and greater harmonization of procedures in Member States, for example by providing guidelines on Internal Compliance Programs, and support additional EU General Export Authorisations. 

The ASD Export Control Committee (ECC) is responsible for this topic.

More Information
Isabelle Maelcamp
Senior Defence Adviser
Alessandro Riccardo Ungaro
Defence Manager
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