European Defence Fund
07 June 2017by eub2 -- last modified 07 June 2017
The European Commission launched on 7 June a European Defence Fund to help EU Member States spend taxpayer money more efficiently, reduce duplications in spending, and get better value for money. The Fund will coordinate, supplement and amplify national investments in defence research, in the development of prototypes and in the acquisition of defence equipment and technology.
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The European Defence Fund has two strands:
- Research: The research aspect of the
Fund is already delivering. Starting in 2017, the EU will for the first
time offer grants for collaborative research in innovative defence
technologies and products, fully and directly funded from the EU budget.
Projects eligible for EU funding will focus on priority areas
previously agreed by Member States, and could typically include
electronics, metamaterials, encrypted software or robotics. This will be
financed with:
- €90 million until the end of 2019, with €25 million allocated for 2017. A call for proposals is being launched today for projects in the areas of unmanned systems in a naval environment and soldiers systems. The signature of the first grant agreements is expected by the end of this year.
- €500 million per year after 2020. In 2018, the Commission will propose a dedicated EU defence research programme with an estimated annual budget of €500 million making the EU one of the biggest defence research investors in Europe.
- Development and acquisition: The
Fund will create incentives for Member States to cooperate on joint
development and the acquisition of defence equipment and technology
through co-financing from the EU budget and practical support from the
Commission. Member States may for example jointly invest in developing
drone technology or satellite communication, or bulk buy helicopters to
reduce costs. Only collaborative projects will be eligible, and a
proportion of the overall budget will be earmarked for projects
involving cross-border participation of SMEs. The EU will offer
co-financing with:
- €500 million in total for 2019 and 2020, under a dedicated defence and industrial development programme proposed today.
- €1 billion per year after 2020. A more substantial programme will be prepared for post-2020, with an estimated annual budget of €1 billion. The programme will leverage national financing with an expected multiplying effect of 5. It could therefore generate a total investment in defence capability development of €5 billion per year after 2020.
Factsheet on the European Defence Fund