5thanniversary of the launch of the Intergovernmental Regime on Defence Procurement
1 July 2011 marked the fifth anniversary of the launch of the Intergovernmental Regime on Defence Procurement, a landmark agreement of EU governments to open up to cross border competition the most sensitive share of the defence market covered by Article 346 TFEU.
Since then, the Regime has been pioneering a gradual transition from closed and fragmented national defence markets to a more open, transparent and competitive marketplace where better value for money is the key procurement priority and a critical determinant.
Over 650 contract opportunities published on the Electronic Bulletin Board operated by the Agency
Over 400 contracts awarded under competition with a total value of 5,4 bn euros
1/3 cross–border awards
Over 500 000 views
In this process, both Member States, as shareholders, and Defence Industries, as stakeholders, are critical.
Together with the European Commission’s new directive on defence procurement, it provides a solid foundation in our joint endeavours towards enhancing and strengthening the development of a genuine European Defence Market.
This twin - track approach combines community measures and intergovernmental initiatives and ensures that Member State's Armed Forces get the best possible, robust, flexible and interoperable equipment in the most cost – effective and efficient way.
Less fragmented markets mean more efficient use of resources – this is simply an imperative given constraints on European defence spending. To this end, we have to also increase our efforts to consolidate demand in order to achieve the economies of scale to maintain and develop defence capabilities in Europe.
Last month, the EDA Defence Ministers, building on the 5 – year success of the Regime, decided to take forward the development the European defence market and tasked the Agency to bring about 5 critical objectives in close consultation with the participating Member States and in cooperation with the European Commission:
1. Ensuring security of supply on a European level
2. New opportunities for more effective procurement and improved effectiveness of military expenditures through more cooperative action
3. Increased global competitiveness of the European defence industry and reciprocal market access
4. Addressing security aspects in view of the development of a wider European Defence and Security Market
5. Constructive dialogue with defence industry; incentives for more defence industrial efficiencies and innovation