EU to boost European military industry through common procurement with EUR 500 million instrument

RIGA - The European Commission on Tuesday adopted a proposal for a Regulation by the European Parliament and the Council establishing the European Defense Industry Reinforcement through common Procurement Act (EDIRPA), the EU Commission said on its website. 

As announced in the Joint communication on the Defense Investment Gaps in May, the Commission is delivering on its commitment to set up a short-term EU instrument reinforcing European defense industrial capacities through common procurement by EU member states, the European Commission said.  

The instrument, responding to the European Council's request, aims to address the most urgent and critical needs for defense products, resulting from Russia's aggression against Ukraine. The Commission proposes to commit EUR 500 million of the EU budget from 2022 to 2024. 

The Instrument will incentivize member states, in a spirit of solidarity, to commonly procure and will facilitate access for all member states to urgently needed defense products.

It will avoid competition among member states for the same products and facilitate cost savings. It will strengthen interoperability and allow the European Defense Technological and Industrial Base (EDTIB) to better adjust and ramp-up its manufacturing capacities to deliver the needed products. 

The instrument will support actions from consortia composed of at least three EU member states. Eligible actions can involve new defense procurement projects or the extension of those launched since the start of the war.

“Member states have taken bold steps by transferring urgently needed defense equipment to Ukraine. In the same spirit of solidarity, the EU will help them replenish these stocks by incentivizing joint procurement, allowing the European defense industry to respond better these urgent needs," said European Commission Executive Vice-President, Margarethe Vestager.

In her words, the proposal for the EDIRPA Regulation is a historical milestone in establishing the EU Defense Union, increasing the security of EU citizens and making the EU a stronger partner for our allies.

Responding to the urgency of the situation, within six weeks of receiving the task from the European Council, the Commission has adopted the proposal for a regulation as a matter of high priority and will transmit it to the co-legislators. The Commission counts on a swift adoption in order to be able, by the end of 2022, to support member states addressing their most urgent and critical defense product needs in a cooperative manner.

In addition, the Commission will propose a European Defense Investment Program (EDIP) regulation, which will serve as the anchor for future joint development and procurement projects of high common interest to the security of the Member States and the Union.