Paris, 4 June 2008 – The Assembly said on Wednesday that the European Defence Agency (EDA) should strive to have limitations and restrictions with regard to European access to the American defence market removed and recommended taking active measures to ensure the eventual dismantling of the barriers that still exist among European states in terms of the transparency of defence equipment procurement and technology transfer.
A report submitted to the Assembly by Edward O’Hara (United Kingdom, Socialist Group), Chairman of the Technological and Aerospace Committee, also said the EDA should establish a formal working relationship with OCCAR and relevant NATO bodies. It stressed the importance of implementing defence programmes to the full and on time so as to avoid extra burdens for companies and cost overruns. The report, entitled “Defence equipment procurement in Europe”, states that these overruns undermine export prospects for European defence equipment.

According to the report the European Defence Equipment Market (EDEM) is now divided and fragmented, and suffers from duplication, especially in the maritime and land sectors. Meanwhile, European equipment manufacturers have a central role to play bolstering the European Defence Technological and Industrial base (EDTIB). What is needed is a common European approach vis-à-vis the United States with respect to transfers of technology and intellectual property rights, possibly under European Defence Agency auspices.

The report details the discussions and conclusions of a seminar on defence procurement in Europe that was held in Liverpool, the United Kingdom, from 7-9 April last.

Speaking from the floor, Nigel Evans (United Kingdom, Federated Group) pointed to the huge disparity in defence spending between the United States and the EU. The EU spends only 193 billion euros a year, compared to 580 billion euros for the US. “The reason that [their defence industry] is doing so well is that they [the US] put their money where their mouths are”. This included backing for R&D as well as procurement, he noted. “We are simply not doing it in Europe”. The EU should collaborate closely with the US on technology transfers, he said. “It should not be just one way from the EU, if we are to have full operational sovereignty over the kits we buy”.

Reijo Kallio (Finland) said that opening up the defence market must be done “on the basis of true reciprocity”. European procurement on domestic markets averages 85%, whereas in Finland this figure is only 52%. “Openness varies between countries”, he added.

Claire Curtis-Thomas (United Kingdom, Socialist Group), who attended the Liverpool seminar, said there was a need to maintain a balance in technological capacity among nations and to ensure a level playing field in the EU, not only to maintain existing companies but also to help them grow.