20 European Defence Agency
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8707/10
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| Head of the European Defence Agency's Report to the Council
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| Legal base | —
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| Date originated | 26 April 2010
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| Deposited in Parliament | 25 May 2010
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| Department | Defence
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| Basis of consideration | EM of 27 July 2010
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| Previous Committee Report | None; but see HC 5-iv (2009-10), chapter 3 (15 December 2009); (30175) —; (30176) 15442/08; and (30212) —: HC 19-ii (2008-09), chapter 10 (17 December 2009); also see (29701) HC 16-xxv (2007-08), chapter 15 (25 June 2008) ; and (28212) and (29268) HC16-xi (2007-08), chapter 1 and (29341-3) HC16-xi (2007-08), chapter 2 (6 February 2008)
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| Discussed in Council | 26 April 2010 Foreign Affairs Council
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
20.1 The European Defence Agency was established under 2004/551/CFSP
on 12 July 2004, "to support the Member States and the Council
in their effort to improve European defence capabilities in the
field of crisis management and to sustain the European Security
and Defence Policy as it stands now and develops in the future".
FUNCTIONS AND TASKS
20.2 It has four functions, covering:
— developing
defence capabilities;
— promoting Defence Research and Technology
(R&T);
— promoting armaments co-operation;
— creating a competitive European Defence
Equipment Market and strengthening the European Defence, Technological
and Industrial Base.
20.3 According to its website, these functions all
relate to improving Europe's defence performance, by promoting
coherence: "a more integrated approach to capability development
will contribute to better-defined future requirements on which
collaborations — in armaments or R&T or the operational
domain — can be built. More collaboration will, in turn,
provide opportunities for industrial restructuring and progress
towards the continental-scale demand and market, which industry
needs."
20.4 On this basis, the Agency's tasks include:
— to
work for a more comprehensive and systematic approach to defining
and meeting the capability needs of the European Security and
Defence Policy (ESDP);
— to promote European defence-relevant
R&T, as vital both to a healthy defence technological and
industrial base and to defining and satisfying future capability
requirements. This will involve pursuing collaborative use of
national defence R&T funds, in the context of a European Defence
R&T Strategy which identifies priorities;
— to promote European cooperation on defence
equipment, both to contribute to defence capabilities and as a
catalyst for further restructuring the European defence industry;
— to work, in close cooperation with the
Commission, on steps towards an internationally competitive market
for defence equipment in Europe.
20.5 The EDA says that its "comparative advantage"
should be "its ability to comprehend all these agendas, and
relate them so as to realise their synergies. Its special position
should allow it to develop uniquely cogent analyses and proposals
across the range of its activities."
STRUCTURE
20.6 The EDA is an Agency of the European Union.
The High Representative, Baroness Ashton of Upholland, is Head
of the Agency and chairs its decision-making body, the Steering
Board, which is composed of Defence Ministers of the 26 participating
Member States (all EU Member States, except Denmark) and the European
Commission. In addition, the Steering Board meets regularly at
sub-ministerial levels, such as National Armaments Directors or
Capability Directors.
20.7 The Steering Board acts under the Council's
Authority and within the framework of guidelines issued by the
Council, and meets twice yearly — in May and November.
20.8 Unanimity is required for decisions on role,
goals and targets; QMV for internal operations.
WAY OF WORKING
20.9 The EDA's website explains:
"the Agency faces outwards. Its main 'shareholders'
are the Member States participating in the Agency; key stakeholders
include the Council and the Commission as well as third parties
such as OCCAR (fr. Organisation Conjointe de Coopération
en matière d'ARmement),[84]
LoI (Letter of Intent) and NATO. The Agency has a special relationship
with Norway (through an 'Administrative Arrangement')."[85]
20.10 The Committee was fully engaged in the development
of the EDA, culminating in a debate in June 2004 in European Scrutiny
Committee B.[86] There,
the then Secretary of State stated that its principal purpose
would be to improve Member States' military capabilities.
20.11 Most recently, on 15 December 2009, the previous
Committee considered three documents that were adopted by the
Council, "in Minister of Defence composition", on 17
November 2009. They were well explained and commented upon by
the then Minister for International Defence and Security (Baroness
Ann Taylor) in three separate Explanatory Memoranda, the first
of which contained what little information there was on the 2010
budget, and the second and third of which looked at future activity
and what the Agency had concentrated on in 2009.
20.12 As the previous Committee's report notes, a
recurrent feature of the Agency's history thus far had been a
failure by the participating Member States to reach agreement
on the level of growth in the financial framework, with the UK
favouring annual budgets rather than a three year framework; while
others continued to hanker after a more expansive approach, the
then Government had pursued a pragmatic approach of broad, active
engagement, participation in some projects but not all, maintaining
budgetary discipline and encouraging the Agency to focus on where
the then Government judged that the Agency could best add value.
20.13 The previous Committee again reported these
developments to the House because of the widespread interest in
the development of a European defence industry and strategy and
in ESDP generally, and again drew it to the attention of the Defence
Committee, as it is best placed over the longer term to assess
the UK involvement.
20.14 They also noted that the kaleidoscope had been
given a significant shake by the Lisbon Treaty, as a result of
which the European Defence Agency — through the provisions
on Common Security and Defence Policy in Articles 42 to 46 —
had been formally incorporated into the EU Treaty; and that there
were also changes to the way in which European Security and Defence
Policy would be managed — not the least of which being that
the EDA chair would now also chair the Foreign Affairs Council.
This was why the previous Committee also judged that a further
debate would be timely, to allow a more thorough examination of
the way in which the then Government and interested members saw
the EDA now developing. That debate took place in the European
Committee on 1 March 2010, at the conclusion of which the Committee
took note of an unnumbered Explanatory Memorandum dated 10 December
2009, Report by the Head of the European Defence Agency to the
Council on activities in 2009, and European Union Documents No.
16275/09, European Defence Agency document on three year financial
framework 2010-2012, postponement and 2010 Budget adoption and
No. 16462/09, European Defence Agency Guidelines for the Agency's
work in 2010; and supported "the Government's aim of ensuring
that the EDA is used to deliver enhanced military capability across
the EU".[87]
The Head of the Agency's Report
20.15 As before, this latest report describes progress
on the Agency's main output areas and provides an overview of
certain capability development programmes, including Helicopter
Training, Third Party Logistic Support, the Pooling and
Sharing of Capabilities; the European Framework Co-operation
for defence research and technology; and the next steps for
long term strategies relating to defence industrial base, such
as the European Defence Equipment Market (EDEM), Code
of Conduct on Defence Procurement (CoC) and components of
the European Defence Technological and Industrial Base (EDTIB).
20.16 The report also notes that preparatory work
by the Agency is underway to replace, later this year, the Council
Joint Action of 2004 establishing the EDA with a new Council Decision
on the Agency's statute, seat and operational rules in accordance
with the provisions of the amended EU Treaty.
The Government's view
20.17 In his Explanatory Memorandum of 27 July 2010,
the Minister for International Security Strategy at the Ministry
of Defence (Gerald Howarth) says that:
"For the time being we will continue to participate
in the European Defence Agency but, as part of the work on the
Strategic Defence and Security Review (SDSR), we are reviewing
all aspects of our defence engagement with international institutions,
including the EDA, to ensure that it matches the UK's priorities
and interests."
Conclusion
20.18 As before, we again report these developments
to the House because of the widespread interest in the development
of a European defence industry and strategy and in ESDP, and draw
this chapter of our Report to the attention of the Defence Committee.
20.19 We look forward to scrutinising the Council
Decision in due course. In the meantime, we clear the Head of
Agency's Report.
84 The Organisation Conjointe de Coopération
en matière d'ARmement was established by an Administrative
Arrangement on 12th November 1996 by the Defence Ministers of
France, Germany, Italy and the UK. Its aim is to provide more
effective and efficient arrangements for the management of certain
existing and future collaborative armament programmes. The four
founding Nations went on to sign a Treaty, the "OCCAR Convention",
which came into force on the 28th January 2001. Belgium and Spain
joined OCCAR in 2003 and 2005 respectively. The Netherlands, Luxembourg
and Turkey are also participating in a programme, without being
members of the organisation. For further information on OCCAR,
see http://www.occar-ea.org/ . Back
85
For full background on the EDA and its activities, see http://www.eda.europa.eu.
Back
86
Stg Co Deb, European Standing
Committee B, 22 June 2004, cols. 3-24. Back
87
See http://www.publications.parliament.uk/pa/cm200910/cmgeneral/euro/100301/100301s01.htm
for the record of that debate. Back
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