European Council Agrees to General Approach to Strengthen Common Procurement for Defense Industry
The European Council on Dec. 1 agreed to a "general approach" to a proposed piece of regulation that would set up the European Defence Industry Reinforcement through common Procurement Act (EDIRPA), the council announced. The approach means the council has a political agreement from which it can start negotiations with the European Parliament, the council said. The council confirmed the European Commission's proposal to commit over $524 million from the EU budget to "incentivise actions addressing the most urgent and critical defence product needs," though these actions must be carried out by at least three member states.
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The general approach makes sure that EU funds will go only toward actions of common procurement where the cost of components stemming from the EU and its associated countries is at least 70%, the council said. The council's move also sets conditions for contracts, subcontractors and defense products to be eligible.
"A strong and competitive defence industry is the backbone of any nation's defence capacity," Czech Minister of Defense Jana Cernochova said. EDIRPA "is one of the tools that can help companies better anticipate production capacity in order to secure essential supplies for the armed forces. The ongoing Russian aggression against Ukraine proves that only a well-armed and well-equipped army can survive in the current dynamic security environment. I am glad that the member states have reached an agreement on this."