Defense`s Feeds

The NATO Support and Procurement Agency (NSPA), the European Defence Agency (EDA), and the Organisation for Joint Armament Cooperation (OCCAR) converged in Luxembourg for a trilateral meeting on 12 December. 

Hosted by Ms Stacy Cummings, NSPA General Manager, the gathering focused on navigating the evolving security landscape and fortifying joint initiatives to optimise use of resources and enhance complementarity.

With a candid exchange on the impact of the current security environment on their respective roles and missions, the organisations delved into strategic discussions aimed at identifying synergies and areas of collaboration. The emphasis lay on identifying common challenges and unlocking opportunities for strengthened cooperation.

Key areas of focus included brainstorming pathways to bolster collaboration and coordination, addressing concerns regarding potential competition and overlapping capabilities, and identifying objectives for unified messaging when engaging with common stakeholders.

"The current security environment challenges us to be more efficient, effective and responsive. We are stronger together, as partners. By leveraging their synergies, NSPA, EDA and OCCAR are building collective strength," stated Ms Cummings. "This meeting is a step forward as we leverage past successes and continue to join forces towards enhanced cooperation, reinforcing our commitment to enabling and supporting nations across Europe and the NATO alliance.

EDA Chief Executive, Mr Jiří Šedivý, said: “Sharing views trilaterally and identifying areas for greater synergies at this precise moment in time is much helpful and necessary. We did it in the past already, delivering tangible achievements together with the multinational multirole tanker and transport (MRTT) fleet, which was conceived in EDA, managed by the NSPA on behalf of the participating countries and supported by OCCAR in the acquisition phase.”

“While our organisations have different mandates, scope of activities, and membership, we are aiming to support our respective member states so that they can best cope with the fast-changing security environment and new capability needs”, he added.

OCCAR-EA Director, Mr Joachim Sucker confirmed: “At a time when our world is ever more disconnected, we need to work hard to find ways to connect and cooperate to achieve our common goal to provide options to deliver defence capabilities to the Nations. I am very thankful to NSPA General Manager, Ms Stacey Cummings for bringing myself and Chief Executive of the European Defence Agency (EDA) Jiří Šedivý together for the first time, trilaterally, to further develop and strengthen our joint efforts to collaborate effectively and efficiently with our individual organizations ‘strengths and capabilities.”

The outcome of this trilateral meeting shows commitment to fostering an environment of collaboration and to addressing pressing security challenges.

The NATO Support and Procurement Agency (NSPA) is NATO’s lead organisation for multinational acquisition, support and sustainment in all domains.

The European Defence Agency (EDA) is an inter-governmental organisation of the European Union (EU). Created in 2004 to support and facilitate defence cooperation in the EU, it enhances European defence capabilities through collaborative projects and initiatives.

The Organisation for Joint Armament Cooperation (OCCAR) is an independent International Organization for the management of complex, cooperative armament programmes

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Since 2018, the European Defence Agency (EDA) Defence Innovation Prize has been rewarding companies and research entities that come up with technologies, products, processes or services applicable to the defence domain. The prize promotes defence innovation in Europe and provides civilian industries, small and medium sized enterprises (SMEs), research organisations and universities with an opportunity to showcase their know-how.

This year, the prize focused on two categories: 

• Technologies for situational awareness Innovative solutions and technologies for immersive training, battlefield situational awareness and other defence applications.

• Technologies for communication and information systems Innovative solutions and technologies for implementing Zero Trust Architecture in tactical defence communication and information systems.

The award for Technologies for situational awareness goes to the Royal Netherlands Aerospace Centre, and its concept ‘Tactical Environment Model for Battlefield  Awareness (TEMBA)’.  The award for Technologies for communication and information systems goes to Cyber Noesis, and its concept paper for ‘AI-assisted dynamic risk management for context-aware access control in Zero Trust Architecture.

For a full article see: European Defence Matters Issue 26

The prize winners are given access to EDA’s network of experts, having the opportunity to form valuable partnerships to leverage some of the EDA and EU funding opportunities.

Proposals judged to be at a high level by the evaluation committee, including the winners, will be presented to EDA’s Capability Technology groups, known as CapTechs, in a dedicated workshop to explore ways to apply them within the CapTechs’ areas of responsibility.

 

 

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Europe should consider Ukraine as the "arsenal of the free world" and learn lessons from the conflict with Russia, Oleksandr Kamyshin, Ukrainian Minister of Strategic Industries, told the European Defence Agency's annual conference.

"We are paying a terrible price but (the war) allows us to guarantee the quality of our defence products," Kamyshin told the 300 delegates gathered in Brussels, who included Ministers of Defence, EU lawmakers, members of Europe’s armed forces, defence industry representatives and experts.

"We offer you a chance to get ready, we ask you not to miss it. We didn’t choose this way, we have been a peaceful country But this world pushes us to build an arsenal, the arsenal of the free world, let’s build it together," Kamyshin said.

He added that the 'innovation cycle' in Ukraine during wartime was as short as two weeks: from the moment the military sees something is not working to its reestablishment as a reliable asset. 

Speaking on a panel dedicated to supporting the European Defence Technological Industrial Base (EDTIB), Timo Pesonen, Director General, DG DEFIS, European Commission, said that the Commission, EDA and NATO were working together to develop industry.

Wendy Gilmour, Assistant Secretary General for Defence Investment at NATO, recalled that collective defence, planning and setting standards have allowed the transatlantic alliance to deliver interoperable capabilities. She said EDA, OCCAR and NSPA worked together to deliver on European goals, citing the Multinational Multi Role Tanker Transport Fleet (MMF).

"A more effective European defence industrial base will make NATO stronger," Gilmour said, urging European cooperation with Turkey, Britain and the United States. Gilmour said that Ukraine was firing 15,000 rounds a day of large calibre ammunition, showing the challenge for Western production facilities to help meet the demand.

Radka Konderlova, Director-General for Industrial Cooperation, Ministry of Defence, Czechia, said there must be better access to financing for defence companies. She said Czechia was trying to address the issue with banks. "The devil is sometimes in the details," she added.

'European preference'

Antoine Bouvier, Head of Strategy, Mergers and Acquisitions at Airbus, said volume and performance were both crucial to a successful defence industry in Europe. "You can get volumes through inventories ... but this is not sustainable. It is sustainable to invest. It means you have to take a political decision from governments and a business decision from industry." 

Bouvier called for a "European preference" when it came to Member States buying military assets and equipment, saying it would give more predictability to industry. He also said it was important to attract young people to work in European defence companies. "Funding, predictability yes. But if we are missing human resources, we will be prevented from doing our job," he said. 

The European Union should strive towards a fully-fledged ‘European Defence Union’, the President of the European Commission Ursula von der Leyen told the European Defence Agency’s annual conference.

Warning Member States against buying too many assets and too much equipment without coordination, and from abroad, President von der Leyen said the Commission was preparing a new ‘European Defence Industrial Strategy’ for early in 2024. 

“We have made tangible progress towards a European Defence Union, but the strategic challenges we face have grown even faster,” von der Leyen told the 300 delegates gathered in Brussels, who included Ministers of Defence, EU lawmakers, members of Europe’s armed forces, defence industry representatives and experts. “The next chapter is a fully-fledged European Defence Union.”

Forged out of the ashes of the Second World War, the EU has always seen itself as a peace project. Von der Leyen urged Europeans to now think of the EU as a security project. “Peace needs security,” she said.

The EU should also include Ukraine's military needs as the Union designs the future strategy of Europe's defence industry, von der Leyen said.

"Our strategy can only be complete if it also takes into account Ukraine's needs and Ukraine's industrial capacity," von der Leyen said

Josep Borrell, EDA’s Head of Agency and EU High Representative, welcomed a €70 billion increase in defence spending, following what he called a “silent process of disarmament” in Europe in previous decades.

Borrell reiterated his view that the EU continues to lack critical capabilities. Presenting EDA’s 2022 defence data, Borrell said that, at a record €240 billion, 2022 European defence spending again increased by 6% on the previous year, marking the eighth year of consecutive growth. 

“We have to increase the level of our ambition,” Borrell said of European cooperative military projects. “This is an opportunity to think bigger.” He also called for more joint spending in research and technology (R&T), after a 6% fall in 2022. "This, we cannot afford."

  European Defence Industry Programme

Building on EDA’s work in military collaboration, von der Leyen said the Commission’s strategy would seek to deepen further defence cooperation in the EU. “We need a strategic planning function that ties together national and EU-level planning. This will give predictability and reduce fragmentation,” she said. “We need simpler and more efficient rules … We can use our regulatory framework.”

In her policy speech, von der Leyen told the EDA annual conference that the Commission will first consult with industry. In addition to a White Paper on dual use research, the EU executive will “explore all possible ways to reward, incentivise and compensate the costs of cooperation and industrial competitiveness,” von der Leyen said.

She said the Commission will propose a European Defence Industry Programme early next year. This will integrate the experience of recent EU legislation, ASAP and EDIRPA.

ASAP stands for Act in Support of Ammunition Production.  It aims to facilitate the ramp-up of ammunition production capacity in the European defence industry. ASAP has a budget of €500 million over 2023-2025. EDIRPA stands for European defence industry reinforcement through common procurement act.  EDIRPA has a budget of €300 million.

Von der Leyen also said the Commission was working closely with EDA on VAT exemption to support joint procurement, as well as joint ownership of defence capabilities. The Commission will also look at how a government’s defence investments might be taken into account under EU fiscal governance rules.

Von der Leyen said it could be a “relevant factor when we assess if Member States have an excessive deficit.”

The European Union should consider ‘European defence bonds’ to fund investment in European defence and security as part of a new push for deeper military coordination, the President of the European Council Charles Michel told the European Defence Agency’s annual conference.

Member states should pool what could amount to €600 billion in defence investment over the next 10 years, Michel told the conference, urging for better coordination of how it is to be spent. He also proposed a European cyber force equipped with offensive capabilities to counter attacks through computer networks.

“We must fortify our European continent. We must beef up our European defence,” Michel told the 300 delegates gathered in Brussels, who included European Ministers of Defence, EU lawmakers, members of Europe’s armed forces, defence industry representatives and experts.

Michel said European defence bonds would be an attractive asset class, including for retail investors. Michel also said the time was ripe to channel more military investment and activities into a combined European effort to defend the EU’s values of liberal democracy.

“The idea of EU defence is not new,” Michel said. “Russia’s invasion have injected a new urgency. Our ambition must match the urgency (of the moment).”

No more ‘peace dividend’

Belgium’s Minister of Defence Ludivine Dedonder warned that, given that the war in Ukraine was likely to last for some time, the EU must strengthen its industrial base.

“We must consider that our security needs real investment in a defence capability that is sufficiently robust to act as a deterrent and sufficiently resilient to support a war effort if required," she told the conference. Belgium will take over the EU Presidency of the Council of the European Union in January.

“Our major challenge will be continue to rebuild our defence capabilities.” Minister Dedonder outlined how she took over a defence ministry that had been badly underfunded, but that was now changing.

Cyprus Minister of Defence Michalis Giorgallas said: "In recent years, Cyprus' defence SMEs have specialized in cutting-edge technologies such as cyber-defence, tactical to strategic communications, maritime surveillance, intelligence, and unmanned vehicles."

Both ministers said the EU should be more independent. Eric Beranger, Chief Executive Officer, MBDA Missile Systems, highlighted that more than 70% of European orders for military assets and equipment are made outside of Europe. Only about 30% are procured inside Europe, he said. "Europe will become more autonomous when this ratio is reversed. This is what will break the vicious circle."

EDA’s Chief Executive Jiří Šedivý underscored the work that EU Member States already engage in, but called for deeper integration. He also argued for sharper, higher-end, full-spectrum capabilities along the lines of the Agency’s newly agreed Capability Development Priorities.

“If I have one message for you today, it is that we cannot continue in EU defence as we did before, with the mentality of peace time. We have lived too long on the peace dividend,”  Šedivý told the conference. “Never before have we had such a convergence with the NATO priorities,” he added.

‘Different planets’

During the conference’s first panel, Nathalie Loiseau, Chairwoman of the European Parliament Subcommittee on Security and Defence, shared President Michel’s urgency. She called for the EU to move closer to something resembling a war footing in its support for Ukraine. She also urged EU Member States to dedicate more shared funds to defence.

“We do need to increase the money for the European Defence Fund,” she said, noting that the €8 billion in the EDF for the 2021-2027 period is less than the €13 billion originally proposed. She said that the European budget for defence amounted to €4 a year per European citizen.

Christian Molling, Deputy Director, German Council on Foreign Relations, told the conference that there were still big issues to address. He said that over the past two decades, EU institutions, defence companies and governments were on “different planets” and that their goals were not aligned.

He said EDA was trying to bridge the gaps, also with NATO. “Future conflict is not 2024. Future conflict is tomorrow and preparation is today,” he warned.

Reacting to Michel’s prediction of the €600 billion in future defence investment, Molling said: “The demand in Europe is tremendous. Take the economic risk now to evade the military risk later.”