Following the opening speeches by Head of Agency HR/VP Borrell and European Council President Michel (see previous news), EDA’s Annual Conference 2021 continued on 7 December with a first high-level conference panel moderated by EDA Chief Executive Jiří Šedivý and featuring no less than three Defence Ministers: Belgium’s Ludivine Dedonder, Slovenia’s Matej Tonin, and Poland’s Marcin Ociepa (Deputy Defence Minister).
Belgian Minister Ludivine Dedonder said defence innovation should have three main characteristics: “It should be collaborative, capability-driven and, at the same time, adaptive and continuous”. Collaboration is crucial especially for countries of moderate sizes such as Belgium because for them, it is not possible to analyse, evaluate, develop and finance all new defence innovations on their own, the Minister stressed. At the same time, avoiding duplication is also imperative “because we cannot afford to finance duplicative programmes”. Innovation must remain capability-driven, she added, “as one of its goals is to deliver top-notch military capabilities in support of the security and defence policies of our nations and the EU”. And it must be constantly adapted to the changing operational needs of the Armed Forces, Ms Dedonder insisted. EDA has a pivotal role to play “as it brings together research, technology watch, innovation, capability development and wider links with industry”. Creating synergies with other actors, including NATO, is also a role the Agency can take on, avoiding unnecessary duplication, the Belgian Minister said. “Innovation is key to make our Armed Forces more robust, more resilient, more agile and more precise in their engagements. In short: to build a better European military instrument of power”, she concluded.
Slovenian Minister Matej Tonin said that for ensuring its strategic autonomy and upholding the credibility of its security and defence policy, Europe needs “fresh, cutting-edge ideas and innovative thinking” in order to be able to face today’s new threats and keep up with the technological developments that are driving both the civil and military world. “In this respect, I want to put a special emphasis on the small and medium-sized enterprises, the SME’s, which can be vehicles for development because they are able to adapt and respond rapidly to innovative ideas”, he stressed. Mr Tonin also underlined the need for Europe to cooperate also with its allies, especially NATO. He expressed Slovenia’s support and appreciation for NATO’s work, especially the recent efforts to establish a Defence Innovation Accelerator for the North Atlantic (DIANA) and a NATO innovation Fund, stressing the need of avoiding duplication with those initiatives. Creating a European Defence Innovation Hub within EDA is “a step in the right direction”, the Minister said, “but it should not create additional layers of administrative and financial burden” for Member States: “Complementarity and non-duplication between the EU and NATO are key”.
The Polish Deputy Minister, Marcin Ociepa, called on Europe and its Member States to be “open” to all types of stakeholders and innovation players, inside and outside Europe, “because the broad spectrum of threats and challenges today requires a broad-spectrum response”. “We are all witnessing today the power and unpredictability of hybrid warfare. Therefore it is crucial to enhance cooperation on developing creative and innovative defence capabilities to protect our citizens, borders and values”. In this respect, the technological independence of Europe is of great importance, Mr Ociepa pursued: “By all means, we should continue to develop the mechanisms facilitating the cooperation and protecting the European innovations and technologies. We cannot, however, curb the collaboration opportunities with other like-minded partners such the US, South Korea, Japan, Australia to just name a few (…) we all face the same challenges and threats. Defence innovation is a team game”. We also have to invest in defence innovation, “but in a smart manner”, the Deputy Minister said: “Increasing our defence budgets is not always the only answer. We have to make sure that each and every mechanism is complementary and coherent with existing EU funding instruments, namely the European Defence Fund, Horizon Europe or the European Innovation Council. We cannot afford to duplicate our efforts”. With NATO doing its work through the Defence Innovation Accelerator for the North Atlantic (DIANA) and a NATO innovation Fund, “EDA, as the potential host of the European Defence Innovation Hub, could and should facilitate EU-NATO cooperation in this domain and create interlinks between the instruments of both organisations”. And Mr Ociepa to conclude: “You can count on our support on this and on other topics”.
The European Defence Agency’s Annual Conference 2021 entitled 'Innovation in European Defence’ was opened on 7 December with speeches by the Head of the Agency, HR/VP Josep Borrell, and the President of the European Council, Charles Michel. With Covid still around, this year’s conference was held in hybrid format with a vast audience representing the whole European defence spectrum (governments, armed forces, industry, EU institutions, NATO, think tanks and media) either connected remotely or physically present to listen to speeches and panel discussions and also actively take part in debates through Q&A sessions.
Following a brief welcome word by EDA Chief Executive Jiří Šedivý, it was up to the Head of Agency, HR/VP Josep Borrell, to formally open the conference. In his opening speech, Mr Borrell expressed gratitude for this year’s choice of the conference theme because, he said, “our collective ability to innovate, both at EU and at national level, will determine the position of the EU on the global stage in the years to come”. However, the current situation leaves room for improvement as the EU and its Member States need to do “much more” in this field: “We need to do much more together and we need to do it now. We cannot wait. The choice for the EU is simple but a crucial one: either we invest in defence innovation or we will become irrelevant!”.
Mr Borrell insisted on the strategic importance of innovation, not only as an accelerator of economic competition but also as a key tool in the global competition that re-structures the international security environment. “Today, innovation is front and centre in the global strategic competition because it will restructure the international security environment (…) Those who gain a technological edge and set the standards today will dominate the future”, Mr Borrell said. This is also the case at the military level, with emerging disruptive technologies (EDTs), such as Artificial Intelligence. Often dual-natured, impacting both civilian and military domains, such technologies have the potential to alter the character of warfare, he explained: “To retain an edge over competitors and potential adversaries, we must use the potential of emerging technologies and develop high-end capabilities to equip our military forces across the full spectrum”.
“EU and Member States need to do more, together”Being at the forefront of defence innovation requires that Armed Forces and Ministries of Defence have close cooperation with the civil sector which nowadays is driving both pure technological innovations and innovative uses: “With the rapid development of new technologies in the civilian sphere and their fast weaponization, today, more than ever before, innovation is shaping the global balance of power”.
When comparing the EU and its Member States with other global actors, it is obvious Europe lags far behind in terms of investing in defence innovation, Mr Borrell said, “and the gap is widening”. For proof, “latest EDA data suggest that in 2020 EU Member States spent roughly €2.5 billion on Research & Technology – only 1,2% of the total defence expenditure, with a tendency for further decrease in the next two years, even though the related PESCO commitment sets the bar at 2% of the defence budgets”. Meanwhile, the US Department of Defence invests at least $14 billion each year in research and innovation, around 2% of the whole US defence budget, while Google spends on Research & Development almost 10 times more than what EU defence ministries spend together on Research & Technology. “We can no longer afford to sit on the side-line and watch the others doing. The EU and its Member States need to do much more on defence innovation. And they must do it more together”, he insisted.
Towards a Defence Innovation Hub within EDA“EDA, as an intergovernmental Agency, has a crucial role to play in defence innovation” as technological innovation has been part of the Agency´s DNA since its creation in 2004, the Head of Agency pursued. Furthermore, there is the idea of establishing a Defence Innovation Hub within the Agency. “This is also one of the deliverables I have put forward in the context of the Strategic Compass”, said Mr Borrell: “By creating a network of defence innovation centres around Europe, this Defence Innovation Hub would promote synergies with the industrial sector; foster an ecosystem of Research & Development in defence and get innovative solutions closer to the military user. I hope this hub will soon be in place!”.
And the Head of Agency to conclude: “Innovation in defence must be anchored in research & technology investments, but also in capability development, concepts and doctrines across all EU Member States (...) EDA is a great example of this integrated approach. Working together with the Commission and with Member States, EDA must ensure that defence innovation is not just an ambition on paper, but a reality!”.
Charles Michel: Support for Defence Innovation Hub within EDA
European Council President Charles Michel said in his keynote speech (via video message, see link above) that the EU’s strategic objective was to increase its ability “to act autonomously to safeguard our interests, uphold our values and way of life, and shape the global future”. “That’s why Europe’s strategic autonomy and our capacity to act alone, if so needed, is high on the agenda of the Heads of State and Governments. In this respect, the upcoming Strategic Compass is of utmost importance as he is meant to provide a vision for Europe’s security and defence policy in the future”, he said. Work on the Compass is progressing well, based on Mr Borrell’s initial proposal presented in November. Further input to the discussions is expected from the December European Council before EU leaders will then adopt the Strategic Compass in March when defence will again be a topic at the European Council.
Europeans have also agree to work on a third EU-NATO declaration “because NATO is the cornerstone of Europe’s security and defence”, Mr Michel stated praising the “unique and essential cooperation” between the two organisations. “We want to deepen this relationship and adapt it to today’s geo-political reality”, he said. However, Europe’s security and defence do not exist “in a vacuum” but are linked to its policies and achievements in other domains too, such as climate change or the digital transition. Through its regulatory power in those domains, Europe could strengthen its clout in the security domain too. “We could take fuller advantage of our instruments if we used them in a more coordinated manner to achieve our strategic goals, for example in trade, development, neighborhood policy, climate policy, visa policy or humanitarian aid. Greater coordination means greater impact”. “We, Europeans, must take our destiny in our own hands, cooperating with our partners when needed and acting autonomously when necessary, to be a credible and efficient global security provider and a soft geopolitical influencer”.
To achieve this, Europe needs more defence innovation, and EDA has a key role to play: “The next 10 years will be crucial for our capability development, and EDA has a unique role to play combining lessons learned from missions and long term technology trends and then integrating this concrete know-how into national defence plans (…) We must continue to link innovative technologies with their possible defence applications. And I know that we can count on you, the European Defence Agency and your unique experience and expertise. Your work is key to facilitating the uptake of defence innovation by our Member States”, Mr Michel stressed.
And the President of the European Council to conclude: “We must also avoid duplication our efforts and wasting our resources. You, the EDA, can help link Member States’ national authorities with each other, and with EU institutions, agencies and bodies. You help identify defence-related technologies point to opportunities and provide a platform for cooperation. And you need a budget to fulfil your growing role. I am in favour of the creation of a European defence innovation network. I also support the creation of a European Defence Innovation Hub inside EDA”.
More informationThe European Defence Agency (EDA) will make available various IT equipment that is no longer used by the Agency (see list here) to non-profit organisations, local community centres or schools officially based in Belgium to support local activities. EDA invites interested parties to submit their application for this equipment in accordance with rules governing the donation laid down in the present invitation. A French translation of this invitation to apply is available here.
Donations of decommissioned IT equipment are made at the discretion of the EDA and decided on a case by case basis. The hard-drives and -discs of all equipment will be removed before being donated.
How to apply?The European Defence Agency is committed to the protection of personal data. Personal data collected by EDA will be processed pursuant to Regulation (EU) 2018/1725. For more details, please consult the Privacy Statement: EDA Privacy Statement Donations IT Equipment 2021.pdf
Vous préférez le Français?Today, the European Defence Agency (EDA) published its annual Defence Data report for 2019-2020, detailing defence spending by the 26 EDA Member States. In 2020, total defence spending stood at €198 billion, marking a further 5% increase on 2019, and making it the highest level ever recorded by EDA since it began collecting data in 2006. EDA’s report also finds that 19 Member States increased their overall defence spending in 2020, with 6 raising spending by over 10%.
Sustained Rise in Defence Expenditure and InvestmentAt €198 billion, total defence expenditure corresponds to 1.5 % of the 26 EDA Member States’ gross domestic product (GDP) and marks the sixth year of consecutive growth. For the second year in a row EDA has recorded a 5% rise in defence spending, despite the economic impacts of COVID-19.
EDA’s Defence Data report finds that the sustained increase in overall spending is also reflected in national numbers. In 2020, of the 19 Member States who increased spending, 13 raised spending by 5% or more. 6 Member States raised it by 10% or more. 7 Member States reduced spending, up from 3 in 2019, for a combined total reduction of €1.42 billion.
Increased spending was also recorded in a variety of areas, with defence investments in research, development and procurement of new equipment continuing to grow. Defence investments by Member States hit EDA’s high-ever recorded figure of €44 billion, representing a 5% increase on 2019.
When combined, Member States have achieved the 20% benchmark of defence investment as a percentage of total defence expenditure, with 14 Member States allocating 20% or more, while a joint EDA recorded low of only 3 states spent less than 10% in this area.
New low in collaborative European defence spendingDespite the sustained rise in total defence expenditure, collaborative defence spending has continued to trend downward. In 2020, Member States spent a total of €4.1 billion on the procurement of new equipment in cooperation with others, a fall of 13% compared to 2019. The data submitted to EDA shows a significant reduction in European collaborative defence equipment procurement since 2016. Member States conducted just 11% of their total equipment procurement in cooperation with other EU Member States in 2020, falling well short of the 35% collective benchmark, which is also a commitment under Permanent Structured Cooperation (PESCO).
European Defence Spending - 2020 Key FindingsEDA’s report, based on data voluntarily provided by Ministries of Defence, also finds that total defence expenditure represented 2.8% of total government expenditure. Additional findings include:
EDA Chief Executive, Jiří Šedivý said: “The sustained rise in European defence spending is a positive development and 2020’s figures show that the errors of deep defence cuts following the 2007-2008 financial crisis are unlikely to be repeated. I particularly welcome the record €2.5 billion allocated to defence research and technology as a positive sign for the long-term, but equally hope to see more Member States invest in this key domain for European competitiveness and autonomy.
Through EDA’s work on European defence cooperation, I remain convinced that spending better means spending together. Based on the data we received, the downward trend on European collaborative spending is particularly concerning. There are reasons to be optimistic that this trend will be reversed in the years to come as PESCO projects mature, CARD focus areas are taken forward and the European Defence Fund is launched. It is now time for Member States to firmly move European defence collaboration from process to projects.”
Uneven Investment in Defence Research & TechnologyIn 2020, defence Research and Technology (R&T) spending amounted to €2.5 billion, marking a massive 46% increase compared to 2019 and an EDA recorded high. This brings defence R&T expenditure as a percentage of total defence expenditure above 1% for the first time since 2014.
The trend of running defence projects predominantly nationally rather than collectively also applies to defence R&T. In 2020, Member States spent €143 million on defence R&T projects in cooperation with other EU states, representing 6% of Member States total defence R&T expenditure. This marks the lowest share recorded by EDA since it started collecting data in 2005 and is far below the benchmark of 20%. Uneven R&T investment is also evident here as 6 Member States – Croatia, Estonia, Italy, Poland, Portugal and Spain – do achieve the 20% benchmark, of which 3 spend more than 50% of their defence R&T expenditure with others.
BackgroundEDA collects defence data on an annual basis, and has done so since 2006, in line with the Agency’s Ministerial Steering Board Decision of November 2005. The Ministries of Defence of the Agency’s 26 Member States provide the data. EDA acts as the custodian of the data and publishes the aggregated figures in its booklets.
All data is collated (“total incorporates 26 EDA Member States”), and it has been rounded. Defence expenditure figures are provided in constant 2020 prices, to take inflation into account and allow for a comparison across years.
EDA Chief Executive, Jiří Šedivý, visited Croatia this week (2-3 December) for high-level talks with Minister of Defence Mario Banožić, Chief of Defence Vice Admiral Robert Hranj, Defence State Secretary Zdravko Jakop, as well as the country’s national policy, capability, armaments and research directors. Mr Šedivý also met with Political Director Petar Mihatov (Ministry of Foreign Affairs) and representatives of Croatian Defence Industry Competitiveness Cluster.
Discussions with Minister Banožić focused on the potential and opportunities for Croatia to grow its engagement with EDA. Mr. Šedivý took the opportunity to further present EDA’s work and projects, with a special focus on the cooperation opportunities identified in the first Coordinated Annual Review on Defence (CARD) and the state of play in the PESCO implementation where Croatia is participating in seven projects. Defence innovation, and EDA’s crucial role in it, were also raised with the minister, following up on the recent debate at EDA’s ministerial Steering Board. Several options for EDA’s future role are currently being discussed, including that of establishing a Defence Innovation Hub within the Agency. The ongoing work on the EU’s Strategic Compass was another agenda point. Mr Mr. Šedivý explained how the Agency contributes to the capability and technology dimensions (Invest chapter) of the Compass while insisting on the need for developing full spectrum, high-end capabilities by using the existing prioritisation and implementation tools such as the CARD, PESCO and the European Defence Fund (EDF).
“I am delighted to have had the opportunity to personally present EDA’s work and role to Croatia. This visit also allowed me to thank Croatia for its continuous support to the Agency and the different EU defence initiatives, including CARD and PESCO, which are crucial for bringing defence cooperation forward. I believe with the challenges that Europe is facing, cooperation remains the best and most effective way of addressing them. There is much potential in defence cooperation and the EDA for Croatia to exploit. I particularly welcome the opportunity to encourage the Croatian authorities to benefit further from collaborative opportunities in defence, especially using the Agency to their full potential”, Mr Šedivý commented.
Croatian Defence Minister Mario Banožić said: “The participation of Croatian companies in projects co-financed by the EDF opens up numerous opportunities. Certain amount of financial resources will need to be invested and this fact should also be considered when planning activities in the coming years. From the very beginning, Croatia has supported the establishment of the European Defence Fund and one of the priorities in the field of defence and security during the Croatian Presidency of the Council of the EU was to support strengthening the competitiveness of the defence industry. Therefore, Croatia supported the initial proposal of 13 billion euros for EDF and also regarding the cooperation - we supported the requirement of having minimum 3 entities from at least three Member States”.
Croatia is involved in several major EDA projects and programmes, such as Military Mobility (under which two technical arrangements for air and surface cross border movement permissions were signed by Croatia on 16 Nov.), the Chemical, Biological, Radiological Nuclear Surveillance as Service (CBRN SaaS) project where a Croatian company (Dok-Ing) is a member of the consortium implementing the project, or the Maritime Surveillance Network (MARSUR) which Croatia joined last year. Yet, the list of opportunities for additional involvement in EDA’s work is long.
The Chief Executive began his trip to Zagreb with a visit to the afore-mentioned Croatian defence company Dok-Ing where he stressed EDA’s industry engagement and the existing opportunities for industry to participate in and benefit from EDA’s activities, especially in the R&T domain.