British Defence Sector now enmeshed in EU single market regime
Posted, January 14, 2009 @ 18:00
British Defence Sector now enmeshed in EU single market regime
Strasbourg, 14th January 2009 -- Following a vote today in the European Parliament, the EU single market will now be expanded to include defence equipment. The new directive on 'Public contracts in the field of defence and security' will require member states to open up their defence procurement process to tendering across the EU.
The Directive will introduce more open competition across the EU for certain defence related products, but Conservatives have ensured that member states retain the right to enforce their over-riding interests in respect of national security.
Britain has a special interest in the impact of such measures. It has the largest defence industry in Europe and tops the 6 countries accounting for more than 80% of defence spending and 98% of defence R&D among the EU's 27 Members. Conservatives will now try to ensure that the implementation of the Directive offers some benefits for UK suppliers in opening "non strategic" procurements, for example in logistic services, information and provisions.
Nonetheless, British Conservatives consider that many aspects of the directive have less of an internal market motivation than the creation of a European Security and Defence Policy, which we have consistently opposed. We have strongly criticised the political skew toward EU defence.
Conservative Defence Spokesman Geoffrey Van Orden MEP, who spoke against the move in debate, commented:
"I can see that there may be marginal benefits in easier UK access to some other European countries' markets in defence-related procurement. But there is far greater advantage for them in accessing the UK market - already the most open in Europe.
"Today's Directive has less to do with free trade than the promotion of an EU defence policy. In addition, those that have carried out expensive research will see development and production contracts open to tender and have no guarantee that they will get a return on their investment. There will be no means of protecting intellectual property, jobs or export opportunities.
"An inward looking European approach will also be detrimental to Britain's very necessary and fruitful defence equipment relationships with other countries - particularly the US".
Malcolm Harbour MEP, Conservative Spokesman on the Internal Market and Consumer Protection, commented:
"I firmly support the expansion of the internal market to include some defence-related products, providing that this is fully implemented and the procedures are observed in every country."
"We shall hold the Commission to task if it allows Member States to use this Directive as a bureaucratic device and an enforcement of existing protectionist practises."