European Defence Agency

Code of Conduct on Offsets

Bringing transparency into European Defence Equipment Market

The Code of Conduct on Offsets has been launched on 1 July, with the participation of 26 countries - 25 EDA participating Member States (all except Romania) and Norway.

This landmark achievement not only paves new ways for addressing offsets but also it heralds another fundamental change in how we manage the “business of defence”.

First of all, the Code introduces much needed transparency to offset agreements, which up until now has often been lacking. That is why this offset portal has been launched on the EDA’s website, where for the first time ever, 26 countries that signed up to the Code, publish information on their national offset policies and practices, including national regulations and guidelines, offset requirements criteria and modalities.

Second, the Code provides for the evolving use of offsets to help develop industrial capabilities fully consistent with the objectives of the EDTIB Strategy; namely an industrial base that is capability driven, competent and competitive. As a result, offsets will help shape Europe’s defence technological and industrial base, notably by facilitating the development of globally competitive Centres of Excellence and avoiding unnecessary duplication.

Last but not least, the Code introduces a 100% cap on offsets. Consequently, subscribing governments will neither request nor accept offsets exceeding the value of the procurement contract. This is a crucial enabler in the process to reduce reliance on offsets. Similarly the Code’s provision for mutual abatements will help cut down reciprocal offset obligations.

In order to ensure successful implementation of the Code, the participating Member States have set up a Reporting and Monitoring System. It guarantees reciprocal visibility and reassurance on the equal and uniform application of the Code.

The 26 subscribing countries are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom and Norway.

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