12 European Defence Agency
| (a)
(32552)
18043/10
—
(b)
(32553)
17514/10
—
(c)
(32554)
17373/10
—
|
EDA draft budget 2011
Council Guidelines for the Agency's work in 2011
Head of Agency's Report to the Council
|
| Legal base | —
|
| Deposited in Parliament | 15 March 2011
|
| Department | Defence
|
| Basis of consideration | EMs of 23 February 2011
|
| Previous Committee Reports | HC 428-iii (2010-11), chapter 20 (13 October 2010); also 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) HC 16-xi (2007-08), chapter 1 and (29341-3) HC 16-xi (2007-08), chapter 2 (6 February 2008)
|
| Discussed in Council | 9 November 2010 Foreign Affairs Council
|
| Committee's assessment | Politically important
|
| Committee's decision | Cleared
|
Background
12.1 The European Defence Agency (EDA) 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
12.2 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.
12.3 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."
12.4 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.
12.5 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
12.6 The EDA is an Agency of the European Union. The High
Representative of the Union for Foreign Affairs and Security Policy
(HR; Baroness Ashton) 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.
12.7 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.
12.8 Unanimity is required for decisions on role, goals and
targets; QMV for internal operations.
WAY OF WORKING
12.9 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),[69] LoI
(Letter of Intent) and NATO. The Agency has a special relationship
with Norway (through an 'Administrative Arrangement')."[70]
12.10 The Committee was fully engaged in the development of
the EDA, culminating in a debate in June 2004 in European Standing
Committee B.[71] There,
the then Secretary of State stated that its principal purpose
would be to improve Member States' military capabilities.
12.11 The then Government agreed that it would deposit the
Agency reports to the Council referred to in Article 4 of the
EDA Joint Action — its May report on activities during the
previous and current year and its November report on current year
activity and "draft elements" of the work programme
and budgets for the following year — and the Council's annual
guidelines to the Agency that set the framework for its work programme.
Also, initiated by the then Secretary of State (Dr John Reid),
the Secretary of State writes before and after EDA Steering Board
meetings (not only to this Committee but also to the Defence Select
Committee). The House has thus been kept well-informed of developments
during the EDA's formative years.
12.12 As previous reports note, a recurrent feature of the
Agency's history thus far has 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 UK has 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 Agency could best add value.
The Agency's Financial Framework 2011-2013 and the Agency's
2011 budget
12.13 The document notes that the Foreign Affairs Council
in Defence Ministers' composition decided on 9 November 2010 to
postpone by one year the decision to adopt a three year financial
framework for the Agency and agreed instead to a one-year budget
for 2011; that budget to be the same as in 2010, of €30.5
million.
The Government's view
12.14 In his Explanatory Memorandum of 23 February 2011,
the Minister for International Security Strategy at the Ministry
of Defence (Mr Gerald Howarth) says that no new policy implications
arise from this document, and continues as follows:
"The EDA's budget for 2011 came as a result of the decision
by the EDA not to pursue a three-year financial framework for
agreement. Although the adoption of a three-year financial framework
has never been achieved for the Agency, participating Member States
will look to agree a financial framework for 2012-2014. In the
interim, a one-year budget has been agreed for 2011. The UK was
successful in achieving a budget freeze for the EDA for 2011 of
€30.5m, the same as for 2010. The precise breakdown of the
budget is still to be determined by the Council. The EDA's current
proposal is that the functional budget (running costs) should
be set at €22m, which includes the establishment of three
key new posts to help deliver priority projects such as Helicopter
Training. This is €100k less than for 2010 and would leave
€8.5m for the operational budget (project preparations; feasibility
studies).
"Throughout negotiations, the UK consistently argued that
the EDA had to be realistic about its budget requirements, particularly
in light of the financial challenges on defence spending
that were faced by many of the participating Member States.
We considered the Agency's proposal for a budget increase of around
4% to be unreasonable. We could only accept freezing of the 2011
at 2010 levels (€30.5 million). We were successful in achieving
this objective. We will continue to work towards agreeing a three-year
work programme and budget for the Agency starting with the period
2012-2014."
Council Guidelines for the Agency's work in 2011
12.15 The Foreign Affairs Council in Defence Ministers' composition
welcomes the results achieved by the EDA in 2010 and "progress
made in generating tangible defence capabilities"; acknowledges
the Agency's important role in capability development in the promotion
of defence cooperation "under the current constraints on
defence budgets"; and, in laying down these guidelines, makes
a variety of recommendations about the focus and direction of
the Agency's work for 2011.
The Government's view
12.16 In his further Explanatory Memorandum of 23 February
2011, the Minister for International Security Strategy at the
Ministry of Defence (Mr Gerald Howarth) draws attention to the
concentration in the Council guidelines on the EDA strategic framework:
- the Capability Development Plan (CDP) and its critical capability
priorities;
- the Agency's three endorsed strategies: European Defence Research
and Technology (EDRT), European Armaments Co-operation (EAC) and
the European Defence Technological and Industrial Base (EDTIB);
and what he describes as other important initiatives and programmes,
such as the European Defence Equipment Market, Pooling and Sharing,
the Single European Sky, Radio Spectrum, exploring synergies between
military and civilian capability development and dual-use technologies,
dialogue and improving co-ordination and co-operation with stakeholders.
12.17 The Minister says that "he is content that the
Council has set the right focus and direction for the Agency's
work in 2011."
Head of Agency's Report
12.18 The report highlights the progress made on the EDA's
major initiatives and programmes during 2010, including European
Defence Technological and Industrial Base (EDTIB), European Defence
Research and Technology (EDRT), European Armaments Co-operation
(EAC), the Capability Development Plan (CDP) and certain capability
development projects and programmes, such as work on Counter-Improvised
Explosive Devices (C-IED), the Helicopter Training Programme (HTP)
and Maritime Surveillance (MARSUR). The report also provides an
update on the Agency's interaction with other international organisations.
The Government's view
12.19 In his third Explanatory Memorandum of 23 February
2011, the Minister for International Security Strategy at the
Ministry of Defence (Mr Gerald Howarth) says that the Secretary
of State for Defence has recently agreed that the UK will remain
in the EDA for a period of two years; the Government will "then
review the status of our membership"; and "will work
closely with our key Allies to improve the EDA's effectiveness
and performance."
12.20 The Minister then comments on aspects of the Report
as follows:
EUROPEAN DEFENCE TECHNOLOGICAL AND INDUSTRIAL BASE (EDTIB)
"The European Defence Technological and Industrial Base strategy
sets out important policy objectives and enablers to consolidate
demand, increase investment and improve competitiveness. Work
has continued on Future Air Systems and on the Ammunition sector
as two pilot cases for the Agency and its Member States. The UK
supports the EDA's work to develop a rationalised, more efficient
and responsive EDTIB, and improved transparency and competition
in the European Defence Equipment Market (EDEM).
EUROPEAN DEFENCE RESEARCH AND TECHNOLOGY (EDRT)
"The EDA is working to improve synergies between the Agency's
and Commission's work on R&T, with the aim of developing the
European Defence Technological and Industrial Base (EDTIB) and
improving European competitiveness.
EUROPEAN ARMAMENTS CO-OPERATION (EAC)
"The EDA's participating Member States have made previous
agreements on: a best practice guide to help in the early stages
of co-operation projects undertaken in the Agency; an online tool
for matchmaking national projects as co-operative opportunities;
and a common skills framework for European armaments staff. The
EDA has begun to apply these agreements to its work during 2010.
There has, however, been minimal progress towards achieving an
Administrative Agreement between the EDA and OCCAR. An agreement
would enable EDA projects to be transferred to OCCAR for management
and delivery. The UK remains supportive of such an agreement being
established.
CAPABILITY DEVELOPMENT PLAN (CDP)
"The CDP is designed to align future capability trends with
current shortfalls based on European Defence Planning Process
outcomes. The CDP brings together the plans and programmes of
Member States and lessons from operations to produce a product
that helps inform them on the critical capability shortfalls.
Following the establishment of the top 12[72]
capability development priorities in June 2008, the CDP has continued
to guide the EDA's work programme. The EDA's work with the EUMC/EUMS
and participating Member States on updating the CDP started in
2010 and will finish in 2011. The UK supports the work of the
Agency on the CDP process and is content for it to be reviewed
regularly to ensure that it remains an effective tool to guide
the EDA's activities.
COUNTER-IMPROVISED EXPLOSIVE DEVICES (C-IED)
"In April 2009, the EDA Steering Board in Defence Ministers
formation approved the launch of the C-IED Level 2 Exploitation
Capability project. A level 2 capability is the ability to conduct
forensic analysis in a forward operating base. Implementation
of the project is progressing, which will see a level 2 capability
demonstrator deployed to Afghanistan in mid-2011. We are content
with the project and its progress, which should improve the C-IED
capability of other Member States, thereby improving the possibility
for greater burden sharing on operations.
HELICOPTER TRAINING PROGRAMME (HTP)
"The UK is the lead framework nation for the synthetic training
programme, which will provide mission-essential tactics, training
and deliver 50+ aircrews over the next two years, trained to the
standards needed to cope with high threat and extreme environmental
conditions. The project has clear benefits for operations in Afghanistan
and elsewhere.
MARITIME SURVEILLANCE (MARSUR)
"The Wise Pen (five retired Admirals) report has highlighted
the importance of a comprehensive approach to Maritime Surveillance.
Participating Member States identified that the work on Maritime
Surveillance would require greater co-ordination with EU and Commission
activities to provide greater clarity and coherence. The report
has been a catalyst for promoting co-operation and efficiencies
in the maritime domain and for developing synergies between all
relevant stakeholders.
REPLACEMENT OF THE COUNCIL JOINT ACTION (2004/551/CFSP)
"Throughout 2010 the EDA and participating Member States
have been preparing a replacement for the Council Joint Action
of 2004 on the Agency's statute, seat and operational rules. The
change is necessary in accordance with the provisions of the amended
Treaty on European Union (TEU) and as a planned periodic review
of the document. The UK's position has been for the replacement
document to retain the existing agreed Joint Action text as far
as practicable on the basis that it is acceptable to Member States
and has so far proved fit for purpose. The Agency remains hopeful
of submitting a draft Decision to Council for endorsement soon.
RELATIONS WITH THIRD PARTIES
"The Agency has continued to explore and develop relations
with third parties, including with the European Commission, the
European Space Agency, NATO, the LOI group and with the US and
Switzerland. The UK encourages the EDA to explore potential synergies
between civil and military capability development and to improve
co-operation and co-ordination of activities with other organisations
— with particular emphasis on recognising work already being
undertaken by NATO — to avoid the duplication of effort."
Conclusion
12.21 We consider the previous Head of Agency report elsewhere
in this Report, on the basis of a Supplementary Explanatory Memorandum
from the Minister containing the substantial commentary that,
with the Government's Strategic Defence Review then underway,
he felt unable to provide last July.[73]
At that time, all that he was able to say was that for the time
being the Government would continue to participate in the Agency
but, as part of the work on the Strategic Defence and Security
Review, was reviewing all aspects of UK defence engagement with
international institutions, including the EDA, to ensure that
it matched the UK's priorities and interests. We accordingly note
that, for the time being at least, the Government has concluded
that the Agency and the UK's priorities and interests are synchronised,
and look forward to scrutinising in good time the Council Decision
that will replace the "founding" Council Joint Action
of 2004.
12.22 We use the words "in good time" deliberately.
In the case of these three documents, we received the Minister's
EM three weeks before we received the documents. The documents
themselves were adopted by the Foreign Affairs Council all of
four months ago. We do not consider that this is consistent with
the original undertaking given to the House (see paragraph 12.11
above). We therefore expect the Minister to take whatever steps
are necessary to ensure that, when the next Head of Agency Report
is produced, it is deposited in the normal way (i.e., before his
EM) and, secondly, it is deposited swiftly after the relevant
Council meeting.
12.23 In the meantime, we clear the present documents from
scrutiny.
12.24 In addition, we again draw them to the attention
of the Defence Committee.
69 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
70
For full background on the EDA and its activities, see http://www.eda.europa.eu.
Back
71
Stg Co Deb, European Standing
Committee B, 22 June 2004, cols. 4-24. Back
72
"NetworkedEnabledCapability(NEC);Counter-ImprovisedExplosiveDevices(C-IED);Increasedavailabilityofhelicopters;Intelligence,SurveillanceandReconnaissance(ISR)Architecture;Chemical,Biological,RadiologicalandNuclear(CBRN)Defence;Medicalsupport;ComputerNetworkOperations(CNO);MilitaryHumanIntelligenceandCultural/LanguageTraining;CounterManPortableAirDefenceSystems(C-MANPADS);ThirdPartyLogisticSupport(TPLS);ComprehensiveApproach-militaryimplications;MaritimeMineCounter-Measures(MMCM)."
Back
73
See chapter 11 of this Report. Back
| 
