european defence fund

It will launch for the first time within the next Multiannual Financial Framework (MFF) from 2021 to 2027 and will integrate the current Preparatory Action on Defence Research (PADR) and European Defence Industrial Development Programme (EDIDP) programmes that focus on defence research and capability development respectively. Whereas the CDP, OSRA, CARD and PESCO are up and running, the EDF still awaits final approval of its implementing regulation (proposed by the Commission in June 2018) by the EU’s two legislative branches, the Council and the European Parliament. What exact role the Agency will have vis-à-vis the EDF remains to be determined. Europe’s citizens are looking to the European Union for protection, with 3 out of 4 in favour of a Common Security and Defence Policy among EU Member States (Eurobarometer, April 2017). Given its scale, that will be a challenge for the EDF,” added Mr Ripoche. Concretely, the marketplace intents to stimulate cooperative projects to meet Member States’ needs addressing the 2018 EU Capability Development Priorities, through clarification of projects’ content and building common understanding of Member States’ interest in the different proposals. “Above all, for successful implementation in defence you have to follow very closely the work of a given consortium, which is where EDA has long experience. Examples are the 100% EU funding support for research actions, the use of ‘Special Reports’ to inform Member States in detail about the results of defence research projects, or the specific IPR rules that allow Member States that commit to a follow-up research project to get access to research results under certain conditions. We had similar positive and encouraging results from the first round of calls for proposals published under the EDIDP. The EDF will complement all these tools insofar it is meant to (co-)finance collaborative defence capability development and research projects. Currently divided into 12 different CapTech groups, each brings together Ministry officials and representatives from industry and academia to define the best kind of projects worth pursuing. The Fund is being set up to support European industries in being more innovative and competitive, boost cross-border integration within the EU and specifically support SMEs and MidCaps in the defence sector. For example, in March 2018 the first major PADR research project known as OCEAN2020 was launched. It therefore complements the Horizon Europe programme (currently Horizon 2020), which is available for the civilian sector with the same purpose. The experience with the precursor programmes of the EDF show that this process works. ". High Level Group on Joint Programming (GPC), Strategic Forum for International S&T Cooperation, European Strategy Forum on Research Infrastructures, Standing Working Group on Human Resources and Mobility. There were four or five member states with strong arms industries and the aim was to widen the pool of interest in investment. A European patrol corvette was one of the projects which has attracted backing from France, Greece, Italy, and Spain, with Italy taking the lead role. The report was written at a time when the then president Barack Obama had called for increased European spending, which president Donald Trump had continued “in his own way,” he said. “What we have now is the tool, for first time in our history,” he said. The grant-agreement process for the 2017 and 2018 calls took more time than expected, for example, while it was needed to adapt to the way the Commission deals with classified information and security-cleared facilities. Negotiations on the current European Commission (EC) proposal of 13 June 2018 have started during the Austrian EU Council Presidency and are currently dealt with within a “Friends of the Presidency” group in Brussels. Those projects included work on drones, space technology and unmanned ground vehicles, the commission said. There were 24 member states backing 16 programs, he said. Furthermore, the EDF will include the "Financial Toolbox", a set of standardised instruments supporting collaborative procurement projects of the Member States. The European Defence Fund (EDF) is an unprecedented, comprehensive instrument covering funding for the whole defence industrial cycle to support European strategic autonomy. Breton taught at the Lycée Français school in New York when he was sent abroad under the civil alternative to French military conscription. There was much in history and geography which explained why nations in the north and east of Europe had felt “more comfortable” in relying on the U.S., he said. OCEAN2020 gave its first live demonstration in the Mediterranean Sea on 20/21 November 2019, and another demonstration will follow in the Baltic Sea in summer 2020. Breton, speaking from Brussels, said the prospective total funding was more than the €30 billion he had expected to raise. Breton said he had drafted the report when he was a company chief executive, and had seen the need for higher defense spending in Europe. The European Union could raise a total of €30-€40 billion ($35-$47 billion) to finance work on defense and security projects, drawing on the €7 billion budget due to be pledged to the European Defense Fund, Thierry Breton, European commissioner for internal market, said Nov. 13. “Basically, with the marketplace, Member States have the possibility to freely and informally exchange views on their projects and look for feedback from other Member States as well as EDA’s view on the project against the background of the European capability landscape.” explained Mr Desit. The European Defence Fund (EDF) will blaze a politically once-unthinkable path when, from 2021 onwards, it will (co-)finance multinational defence projects. The EC’s proposal for the MFF of 2 May 2018 includes a budget of €13 bn. European Defence Industrial Development Programme: calls for 2020. On the shelves behind Breton’s desk, there was a model of a Dassault Rafale fighter jet, Galileo navigation satellite — the European alternative to the U.S. GPS system, and a trilobite fossil, which he said was 460 million years old. They are the precursor programmes of the fully-fledged European Defence Fund, which will foster an innovative and competitive defence industrial base and contribute to the EU’s strategic autonomy. annual European defence R&D budget. “While we are ready and willing to provide support and avoid structure duplication, taking on responsibility for EUR 500 million worth just for the research dimension each year would probably be a huge scaleup for the Agency. The current proposal foresees additional funding for those undertakings with relevance to the Permanent Structured Cooperation (PESCO) (+10%) and in the field of disruptive technologies (+5%). for the period 2021 to 2027, with €4.1 billion earmarked for research and € 8.9 billion for development. Meanwhile, preparations for the fully-fledged EDF are well on track on both dimensions: defence research and capability development. “I played a little role in this,” he said. The Fund should notably incentivize cooperation between companies and between Member States in the research and development of defence products and technologies. The EU’s first real excursion into self-funded defence R&T began with a Pilot Project (2015-2018) followed by the Preparatory Action for Defence Research (PADR) in 2017 which was granted a budget of EUR 90 million over three years to test the political and technical feasibility of using – for the first time – EU money to support defence research. In addition, upon request by Member States, EDA can provide support in its upstream role and conduct an assessment of the expected impact of specific projects,” said Franck Desit, the Deputy Director of EDA’s Capability, Armament and Planning Department. EDA is also involved in the EDF’s other preliminary programme known as the European Defence Industrial Development Programme (EDIDP), designed to support competitiveness and innovation across Europe’s defence sector. In March 2019, the Commission published nine calls for proposals for 2019, with 12 further calls expected to follow in 2020. On the research side of the equation, Mr Ripoche reckons there will not be a global delegation agreement similar to the PADR arrangement EDA signed with the Commission in 2017. Meeting three or four times a year, the groups rely on some 140 technology building blocks to guide their work, all of which links technological domains to the priorities of the Capability Development Plan. Launched in 2019, the marketplace is implemented through a test phase approach focused on the second year of EDIDP and the first year of EDF. Innovations included the European Defense Fund (EDF), which seeks to “foster an innovative and competitive defence industrial base,” and the creation of a Directorate General for Defense Industry and Space (DG DEFIS) in the European Commission, the EU’s executive. We’ve helped them to do that with the PADR projects, and this kind of things will grow in importance as the EDF gets underway,” said Mr Ripoche. The European Defence Fund (EDF) will blaze a politically once-unthinkable path when, from 2021 onwards, it will (co-)finance multinational defence projects. Military procurement in Europe faces high levels of inefficiency due to separate national acquisition policies. Yet some question marks remain. The EDA’s prioritisation tools will inform the identification of EDF funding priorities reflected in its annual work programmes where the Commission defines the categories of actions and topics to be supported by the Fund. “We think the EDF’s rules of participation – and the money that will be available for them – will compel project leaders to reach across borders and find small and unconventional players. “One lesson we’ve learnt from the Preparatory Action is that the better-structured projects are those where the requirements are tailored to Members States’ needs and benefits and the selection of proposals is based on the quality and expertise while looking for cross-border cooperation. The European Defense Fund will finance research and development, inviting member states to invest in industrial projects proposed by small and medium companies, as well as prime contractors. We have ensured that categories of projects identified as funding priorities in the European Defence Industrial Programme (EDIDP) and the research topics defined to be supported by Preparatory Action on Defence Research (PADR) are fully consistent with those of the Capability Development Plan. European Defence Fund. Featured Photo: European Commissioner for Internal Market Thierry Breton. Whether it’s for research or capability development, however, a successful EU-funded defence project ultimately depends on the quality of its proposal and, just as important, the quality of its consortium – and there EDA has a couple of aces up its sleeve. Breton, in the video conference, got up from his desk to find and show a June 2016 report on a European Security and Defense Fund. Another challenge will be to bring in a sufficient number of smaller companies and also to get the expected outcome from the projects. First experiences from the Preparatory Action have been influential in shaping the specific rules on defence research of the proposed EDF Regulation. [EPA-EFE/FRANCISCO SECO]. Paris. The European Commission is proposing a European Defence Fund as part the next multiannual financial framework (MFF) 2021–2027. Some of the practices applied for PADR research actions were different from the civil research programme Horizon2020 and seemed well adapted to defence research. As regards the research dimension of the Fund, to what extent will the EDF build on the experience acquired and lessons learned from the implementation of the Preparatory Action? The EDF’s primary purpose is therefore not only to strengthen the European Defence Technological and Industrial Base (EDTIB), but also to enable Member States to gain better value from their defence spending. “We all have our history in defense,” he said. “With 7 billion in equity, we can leverage 30-40 billion,” with backing from participants, he said in a video press conference with the Anglo-American Press Association of Paris. Breton was CEO of Atos, an information technology company, when he drafted the report. The Council agreed on a partial general approach on the Commission’s proposal in November 2018, but some matters, including funding, will depend on the overall agreement on the MFF. And when a Member State wants to involve its industry or academia in defence R&T to a larger scale, we always tell them: join the CapTechs! "If everyone is thinking alike, someone isn’t thinking. The partially agreed EDF Regulation refers to EDA’s prioritisation tools which should inform and guide the Fund to make sure it is output-oriented and focused on real capability needs. EDA’s expertise will therefore be a key asset. This demonstrates that these programmes actually contribute to better cooperation between Member States. In an effort to be in compliance with GDPR we are providing you with the latest documentation about how we collect, use, share and secure your information, we want to make you aware of our updated privacy policy here. On the basis of the experience acquired with the Preparatory Action and EDIDP and the cooperation of all actors involved - Member States, EDA and EEAS - we are confident that EDF will be a success. Noting that the CapTechs teams have been around for years, Mr Ripoche said “this sort of thing is not built up quickly, but it is crucial because you ensure that way coherence between national and EU level. The EDF will not be a stand-alone instrument, however. “The CDP and the EU Capability Priorities, after all, are the compass for EU-level defence initiatives.”. for European Defence Matters, publication of the European Defence, EDA is a member of the European Military Press Association. Directly linked to this is also the crucial question whether its proposed budget of EUR 13 billion will emerge intact, as the European Parliament, Commission and Council are entering difficult budgetary talks over the Union’s next 2021-2027 multiannual financial framework. In this context, EDA has an important role to play by helping Member States to increase focus in the EU priority setting on defence capability development and defence research to be addressed by the EDF. Joint research and capability development, as well as cooperation in procurement have valid potential to decrease costs and increase efficiency. “It’s a hot topic.”. This is fully in line with the objectives of the EDF that aims to support, in a single programme, research and development actions from low TRL levels, including disruptive technologies, to the prototype stage. You can’t just ‘fire-and-forget’ the project once a contract is signed”. One of the topics – disruptive technologies – has attracted a lot of interest. Whatever is eventually negotiated between the EU and the UK, in terms of the EDF (and perhaps more generally in terms of Europe’s security and defence issues) it is likely that the UK will be granted special status. These rules aim to ensure that results of defence research actions do not end up on the shelf, but are taken forward. One of the important line items in the MFF that is at stake is the European Defence Fund (EDF), which aims to foster the competitiveness of, and innovations in European defence that would contribute to the EU’s policy of strategic autonomy (European Parliament, 2019). The European Defence Industrial Development Programme (EDIDP) is part of the current European Defence Fund (Q2) and funds the second phase of military R&D*, like prototypes development, testing or feasibility studies (everything before the proper production phase), in line with the priorities of the Defence Fund. The European Union could raise a total of €30-€40 billion ($35-$47 billion) to finance work on defense and security projects, drawing on the €7 billion budget due to be pledged to the European Defense Fund, Thierry Breton, European commissioner for internal market, said Nov. 13. As a result of this process, which has in effect been hijacked by defence industry lobbyists, a European defence fund (EDF) and a financial mechanism called the European … Breton, who took up his post as European commissioner last year, was now setting up the fund, which seeks to prime the pump for R& D in military technology. With a EUR 35.5 million budget and a consortium of 42 partners from industry, academia and the military (with the support and assets coming from the navies of 10 EU nations) the project is testing the integration of above-water, surface and underwater unmanned vehicles with manned platforms to boost maritime situational awareness. Defending Europe : European Defence Fund - factsheet - European External Action Service Over the next few weeks, the book will be available on a wide range of book sellers as well but the following are offering the e-book now but the paperback on release date: SCRIBD, KOBO, ESENTRAL, and CIANDO. The CDP and other prioritisation tools play a central role in this exercise. “Hopefully, we will capitalise on one of EDA’s traditional strengths: providing expert-driven upstream advice to Member States and making sure the funding goes to projects which are in line with the agreed European capability development priorities and thus really contribute to significantly impacting the coherence of the European capability landscape,” observed Mr Desit. EDA’s other ace is its long-standing “CapTech” community, a network of some 2500 technical experts linked to the EDA’s constituent ministries of defence. The general objective of the EDF is to foster the competitiveness, efficiency and innovation capacity of the European defence industry. As such, the UK is an indispensable part of the European defence industry structure. The paperback version will be released on December 22, 2020. It will remain informal in nature with an objective to ensure transparency and sharing of information, not causing any distortion of competition. This was arranged by having the Commission delegate these responsibilities to the Agency through a delegation agreement signed in March 2017 which required some new management and budgetary techniques within the European Defence Agency (EDA) to fit with the Commission’s rules and procedures, according to Jean-François Ripoche, EDA’s Director for Research, Technology and Innovation. The armed forces within the Union currently field 178 weapon systems, compared to merely 30 systems in the armed forces of the United States. The commission has picked 16 defense industrial projects and three disruptive technology projects for €205 million of support under two pilot programs of the European Defense Fund, namely preparatory action on defense research, and European defense industrial development program, the commission said June 15. One is the Agency’s nascent tool, the so-called collaborative ‘marketplace’ whose aim is to provide Member States with a flexible, structured and transparent framework for sharing, on a voluntary basis, their ideas about potential projects in the context of EDIDP and the future EDF, and to look for mutual interests. We received a substantial number of proposals, some of which submitted by consortia composed of a large number of companies, RTOs and SMEs. In the meantime, PADR’s other projects are starting to deliver results. Once operational, the fully-fledged EDF will institutionalise the practice and lift the spending to far greater levels. “Whereas we had a maximum of around 10 proposals for the previous two calls, this one saw around 30 coming from industry and other players,” said Mr Ripoche. There was also work on a high precision anti-tank missile, warships, airborne electronic attack capability, cybersecurity and active stealth technologies. Breton also taught at Harvard Business School 2007-2008, after serving as economy minister. In addition, EDA, through its role in PESCO and the CARD, can contribute to the identification of cooperation opportunities and help Member States to synchronise their national investment plans. Currently the Agency is evaluating PADR’s third and final annual calls whose projects will have an average lifespan of two-to-three years, meaning until 2023. The fund would increase a collective approach in joint investment and widen European  investment, particularly among member states such as Poland, Romania and Lithuania, Breton said. Such cooperation should be consistent with defence capability priorities commonly agreed by Member States within the framework of the Common Foreign and Security Policy, and particularly in the context of the Capability Development Plan (CDP). As this was uncharted territory for the Commission, it turned to the European Defence Agency to run and manage PADR’s annual calls for proposals and proposal evaluations and to oversee the granted projects up to their conclusions. The current proposal for the EDF specifically stresses the utilisation of synergies with Horizon Europe, and the potential funding of dual-use technologies (with civilian and defence implications) by both programmes. We tried to provide input to avoid the risk of over-classification yet we are all getting there in the end,” said Mr Ripoche. But, clearly, there could be a project manager role for us, and that on various EDF research themes,” he said. Projects can receive up to 100% funding for research and 20% to 80% for the development phase. In preparing the work programmes, the Commission is assisted by a Committee of Member States (the Programme Committee). Breton showed a picture of his presenting the report to the then French president François Hollande and German chancellor Angela Merkel. More important will be the Agency’s potential advisory role, both related to defence research and capability development. EDF: opening new ‘windows’ for defence support. These calls cover priority areas in all domains – air, land, sea, cyber and space. Already now, through precursor programmes, the Commission is testing the Fund’s two planned ‘dimensions’ – one for defence R&T through the Preparatory Action on Defence Research, the other for defence capability development and prototyping through the European Defence Industrial Development Programme. “EDA has an observer position vis-à-vis the EDIDP where our role is to provide views and expertise based on the agreed EU capability development priorities and the implementing Strategic Context Cases to ensure that the EDIDP’s funding goes towards filling the identified capability gaps and the provision of more coherence of the European capability landscape. As an observer to the Programme Committee, EDA will have the opportunity to provide its views and expertise, and can thus help to ensure that the work programmes are consistent with CDP and OSRA. The book can be bought through our website: The book is available as of October 28, 2020 on Amazon in an e-book version. In our new book on European defense, we focus on the roles which the European Union might play in the direct defense of Europe as well as analyzing what the EDF could provide in such efforts. How can the Commission make sure those tools will be used in the most efficient way? Although it is chiefly bound to improve the competitiveness of the European defence industry, it will need to resonate closely with all the other European defence related prioritisation tools and initiatives set up in the aftermath of the Union’s 2016 Global Strategy, especially the EU’s revised Capability Development Plan (CDP) which delivered the 11 EU Capability Development Priorities, the Overarching Strategic Research Agenda (OSRA), the Coordinated Annual Review of Defence (CARD) which is tracking the Member States’ defence plans, research goals, budgets and other aspects related to defence capability development, as well as PESCO, the Permanent Structured Cooperation in defence. It also aims at further developing the complementarity and synergies between CARD, PESCO and the EDF, based on the EU Capability Development Priorities and OSRA. Furthermore, the results of the calls for proposals for the Preparatory Action are quite satisfactory. They are the first upstream point of contact.”. This represents € 500 million for research and € 1 billion for development annually. A two-year initiative (2019-2020) with a EUR 500 million budget, EDIDP supports joint development of defence equipment and technology in a wide range of cutting-edge defence technology domains including drone technology, satellite communication, early warning systems, artificial intelligence, cyber-defence or maritime surveillance. How do you see EDA’s role in the implementation of the European Defence Fund (EDF)? Use your E-Mail address instead of User ID! “We extracted some lessons learnt. The European commission, the executive arm of the EU, had pitched the launch of the fund with a €13 billion budget, with negotiations with member states whittling that down to €11 billion before arriving at €7 billion. The European Defence Fund (EDF) is an unprecedented, comprehensive instrument covering funding for the whole defence industrial cycle to support European strategic autonomy. As previously mentioned, PADR and the EDIDP are two sides of the same coin in that, together, they represent the test-bed for the future European Defence Fund. Finally, it is not clear yet how the Commission exactly plans to administer the EDF, including how it will delegate functions to other stakeholders. He had pitched the idea to the then commission president Jean-Claude Juncker, among other senior officials.

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