Market-related activities
Credit: European Union The Agency has important agendas related to the European Defence Equipment Market (EDEM).
As recognised in the EDTIB strategy European defence industries will need to be competitive. That means competitive on a global scale, but also in Europe itself. However, traditionally the defence market in Europe has been characterised by lack of transparency and lack of competition, as Member States in general have relied on the ‘national security’ clause in Article 296 of the Treaty establishing the European Community. In essence Art. 296 has allowed Member States to make the bulk of their defence purchases on a national basis.
To create openness on defence contract opportunities and to allow for cross-border bidding the EDA launched the ‘Intergovernmental Regime to Increase Competition in the European Defence Equipment’. In November 2005 the Ministerial Steering Board agreed the Code of Conduct on Defence Procurement. Though voluntary and politically binding, 25 Member States plus Norway have subscribed to the Code, covering the territory where the overwhelming majority of European defence industries are located.
The Code covers defence equipment purchases (with a value over € 1m) where the provision of Art. 296 of the EC Treaty are applicable. The contracts are placed on the Agency’s Electronic Bulletin Board (EBB), accessible to any visitor at EDA’s website.
Implementation of the Code started on 1 July 2006. The future will tell if this percentage will further increase – it is yet too early to conclude. In any case, the Code of Conduct on Defence Procurement is a breakthrough. It has opened up a hidden segment of the market, the last bastion of national economic protection.
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