Recommendations for a Stronger European Defence
An ambitious new European Commissioner for Defence
In the current shifting global security dynamics and the increasing recognition of the need for a cohesive defence strategy, we as Eurodefense have taken a proactive stance in advocating for enhanced European defence cooperation. Since the inception of our federation in 1992, we continuously have emphasized the importance of a united approach to defence across Europe. This article intends to be a recommendation to the new European Commission, where Mr. Andrius Kubilius is the designated Commissioner for Defence. According to his Mission letter[1] as issued by Mrs. Von der Leyen, he will draft a white paper on Defence within 100 days after his appointment.
The recommendations in this article by Eurodefense Netherlands for the European Defence Union, the Rapid Deployment Capacity, the European Defence industry are based on several policy proposals of the Eurodefense network over the last eight years. Our vision on Eurobonds and financing is currently under debate in the network. We have seen many of our recommendations in decisions and proposals at the EU level, like the in Strategic Compass for European Security and Defence, the European Defence Industry Strategy (EDIS) and, the resolution of the European Parliament on a future amendment of the Lisbon treaty[2]. All suggestions already implemented or not topical anymore are not mentioned in this article.
European Defence Union
First of all, we welcome the appointment of a dedicated Commissioner for Defence, tasked to establish a true European Defence Union. In 2022 Eurodefense proposed to establish a European Defence Organisation (EUDO)[3]. A European Defence Union headed by a Commissioner seamlessly fits in our proposal.
Consequently, we strongly endorse the European Defence Union concept as a critical step towards enhancing collective security. By pooling and sharing resources and capabilities, the European Union can create a more resilient and adaptable defence posture. The implementation of this Defence Union within the European Union would not only help to streamline decision-making processes but also enable a more effective response to emerging threats.
In addition to the current proposals related to procurement and the Defence industry, and as suggested by the EPP in the European Parliament[4], a European Defence Union could also facilitate exercises and training programs, ultimately leading to improved cooperation and interoperability among Member State forces. In 2017 we suggested[5] to start cooperative training and simulation already in the early stages of military education. Military personnel will then be used to work and fight together from the start of their career.
Rapid Deployment Capability (RDC)
The establishment of a Rapid Deployment Force (RDC), as outlined in the Strategic Compass, presents a significant opportunity for enhancing European military readiness. However, if the RDC remains composed solely of Member State capabilities assembled on an ad hoc basis, it will likely face the same challenges that have historically plagued the EU battlegroups and NATO’s rapid deployment forces. These issues include long lead times, insufficient interoperability, and fragmented logistical support.
To overcome these barriers, we advocate the creation of a RDC equipped with
standardized, interoperable military equipment, purchased and owned by the
European Commission or an Agency reporting to the Commission[6].
This approach would streamline logistics and enhance operational effectiveness,
enabling real rapid deployment in times of crisis.
We also advocate establishing the RDC as a community force, with military personnel bearing EU insignia and EU legal status.
Community owned equipment would be interoperable by nature and have just one line of logistics. This approach would enhance operational effectiveness and enable real rapid deployment in times of crisis. Although the integration of military personnel into a community force may face legal and bureaucratic hurdles under current treaty provisions, the RDC as pilot could serve as a step towards the intentions of last year’s resolution of the European Parliament resolution[7]. The result of the pilot could be used for a future update of the treaties.
European Defence Industry (short term)
The fragmentation of the European defence industry is another significant obstacle to achieving a unified defence strategy. As Eurodefense we have highlighted on several occasions that the disparate interests of individual member states and industry often hinder collaborative efforts.
To address this issue in the short term, we proposed ten principles in May 2024[8].
In summary these are:
- Be in line with the ambition of the Strategic Compass.
- Harmonise of operational needs: Consult and cooperate among member states to align requirements, in particular using the European Defence Agency (EDA).
- Prioritise European solutions:
o Favor European-made equipment and systems over non-European options, except in urgent cases.
o Encourage joint procurement: Promote group purchases among European nations to achieve economies of scale and leverage collective bargaining power.
- Launch new structuring capability developments in European cooperation: Foster collaboration among European defence industries to reduce duplication and as much as possible the dependence on export control policies of non-member states, increase efficiency, and enhance competitiveness.
- Strengthen the consolidation and industrial integration of European defence companies through structuring programmes to let them sustainable and able to compete on a global level
- Structuring of industry could be achieved using innovation clusters open also to civil technologies or solutions and adjust the number of these clusters so that they are sustainable
- Strengthen the European supply chain: Promote a more diverse and resilient European supply chain, encouraging competition among European companies.
- Strengthen the critical mass of defence companies by facilitating defence exports: Support the export of European defence products to strengthen strategic partnerships with third countries, with due reference to the trilateral agreement of FRA/DEU/ESP.
- Involve third countries: Consider co-development and production with non-EU countries that adhere to European principles and standards.
- Launch EU-owned defence assets: Undertake ambitious projects that require a pan-European approach, similar to the Galileo satellite navigation system.
This proactive approach would not only strengthen national and industrial defence capabilities but also foster a more integrated and competitive European defence market.
European Defence Industry (longer term)
In the long term, this should lead to a more effective European Defence Technological and Industrial Base (EDTIB) achieved through regional clustering along technology lines[9].
his strategic approach would facilitate specialisation, allowing member states and corporations to leverage their unique strengths while minimizing duplication of efforts. By encouraging collaboration among nations and companies with complementary technological capabilities, Europe can enhance innovation and efficiency within the defence sector, ultimately leading to a more robust and self-sufficient defence posture. For this purpose companies and their cluster of suppliers, should be capable to compete on a global level.
In this new structure, European companies would be recognised and allowed to participate within Europe and for exports on an equitable basis. Each ‘cluster’ would be dedicated to a specific defence technology area consisting of established European enterprises and institutes reinforcing each other. A limited number of clusters per technology area, strategically spread across the continent. Such a structure limits the abundance of different systems in Europe, supports harmonisation of requirements and technical standards and supports international cooperation.
Common development and production in regional industrial clusters? Picture NL-MoD
Similarly, we recommend to strategically spread production of consumables throughout Europe in order to allow continued manufacturing in times of crisis and war. This concept of clusters is flexible to allow easy scale-up and scale down production whenever required. This will also smooth out price fluctuations.
Eurobonds and Financing
Recently we have noted concerns in Europe regarding the use of Eurobonds for financing European defence initiatives. On the one hand 100 Billion euro or (much) more is urgently needed to enhance European Defence capabilities, but on the other hand Member States with a relatively low interest rate caused by a low government debt and budget deficit are reluctant to endorse issuing Eurobonds. In particular when the funds are intended for capabilities owned and operated by individual nations. After all, this would increase the costs of capital for Member States with a low interest rate.
To navigate these complexities, we propose that Eurobonds or similar community financing mechanisms should only be utilized for capabilities that are jointly owned. Similar to Galileo and NATO AWACS aircraft. This recommendation echoes sentiments found in the recent Draghi[10] report, which emphasizes the need for strategic fiscal planning within defence financing.
As an alternative to Eurobonds for Member States capabilities, we advocate to allow the European Commission to provide guarantees instead of raising money by issuing bonds. By providing guarantees from the European Commission on private loans provided to companies or member states, the desired interest rate advantages can be achieved. While the Draghi report already discusses such guarantees for various sectors, we believe similar provisions could extend to finance defence capability. Leveraging private funds also can significantly accelerate decisions, helping to address the urgent need for financing in this crucial area.
Conclusion
As Eurodefense Netherlands, we strongly advocate for a more integrated and capable European defence posture in the European institutions, the Member States and industry. We believe that the establishment of a European Defence Union, the creation of a Rapid Deployment Capability using community owned systems and – if possible – community personnel are important steps towards achieving this goal.
The defence industry should be revitalised by a more European focus on member
state procurements and harmonisation of requirements.
Furthermore, we propose a financing mechanism using EU guarantees to overcome
sensitive issues related to issuing Eurobonds.
By implementing these recommendations, the European Union can significantly enhance its security and strategic autonomy, ensuring a more resilient and prosperous future for our citizens.
The Hague, 15 november 2024
Jan Wind
President Eurodefense Netherlands
[1] Mission letter for Mr. Andrius Kubilius, European Commissioner for Defence (desig), 17 sep 2024
[2] Proposals of the European Parliament for the amendment of the Treaties, EP, 22 Nov 2023
[3] A Strategic Compass: what’s next?, Eurodefense, 25 May 2022
[4] A Europe that protects and that stands for true peace: building a European Defence Union, EPP, 7 Oct 2024
[5] European cooperative military education, training and simulation, Eurodefense/EDTA, 27 Dec 2017.
[6] New initiative for security and defence of the European Union, Eurodefense, 6 Nov 2020
[7] European Parliament resolution for the amendment of the Treaties, European Pariament, 22 nov 2023.
[8] Ten principles to urgently improve European operational and industrial Defence capabilities, Eurodefense, 3 Jun 2024
[9] Clustering the EDTB, the reform of juste-retour, compensation and industrial participation, Eurodefense/EDTA, 29 May 2024
