European Parliament backs law on common procurement in defence – bonuses for projects supporting Ukraine and Moldova
September 12, 2023

European Parliament backs law on common procurement in defence – bonuses for projects supporting Ukraine and Moldova

The European Parliament today gave majority support to a law to strengthen the European defence industry through common procurement (EDIRPA).

The regulation, agreed with the Council of the EU this June, establishes a short-term instrument for the reinforcement of the European defence industry through common procurement until 31 December 2025. It will help member states to fill their most urgent and critical defence needs, which have been exacerbated by transfers of defence products to Ukraine, in a voluntary and collaborative way.
A €300 million budget will finance the instrument. Joint purchases will have to involve at least three member states, and should be open to the participation of members of the European Free Trade Association. Contractors and subcontractors must be established in the EU or in an associated country, and not be subject to control by a non-associated third country or entity.

According to EDIPRA, the EU financial contribution to each action will be capped at 15% of the estimated value of the common procurement contract per consortium. This ceiling may be raised to 20% if Ukraine or Moldova are recipients of additional quantities of defence products.

“Today’s vote marks a historic moment for EU defence, establishing the first EU instrument for joint procurement by member states,” co-rapporteur for Foreign Affairs committee of the European Parliament Michael Gahler (EPP, DE) said after the vote. “It will help them to refill their stocks, increase interoperability among our armed forces, strengthen our industry and contribute to our unwavering support for Ukraine.”

The legislation was adopted with 530 votes to 66, with 32 abstentions. It now requires the Council’s formal approval in order to become law.

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