Defence: New rules should bring better value for money
At present it is difficult to buy military equipment in another European country due to red tape. This means that taxpayers are not getting value for money as everything from night vision goggles to police helicopters are being produced for disparate markets. We spoke to German Liberal Alexander Graf Lambsdorff who has drawn up the EP position on new rules that will make it easier to buy and sell equipment across the EU.
Last Wednesday MEPs debated new rules on defence procurement that form the second key component of the EU defence package.
Value for money for taxpayers stressed
Currently, European defence equipment producers must obtain export licences even when selling goods to another EU member state.
Mr Lambsdorff believes that the market is far too convoluted: “The single market for defence products doesn't work. It’s highly fragmented and there's too little competition. European countries do not cooperate enough when buying defence or security products or services, whether it is night-vision equipment or a police helicopter.”
The former press attaché at the German Embassy in Washington sees the legislation as good for taxpayers. “The aim is to ensure that EU countries buy the best available product on the market, no matter whether it is produced by one of its own companies or in other EU countries,” he said.
The 42-year old MEP, who was elected to the European Parliament in 2004, added, “this allows for more transparent and more open competition between companies in the EU and armed European forces will benefit from better equipment”.
Small and medium businesses will benefit
Small and medium sized businesses in particular are expected to benefit from the new directive, in part because of the new rules on subcontracting. Currently a company that receives an order for a product or service can ask other companies, especially small and medium enterprises to produce part of this product.
“Companies that decide to subcontract have to do this in an open and transparent manner, which allows for fair competition among small and medium enterprises across the EU to cooperate with the main company,” Mr Lambsdorff said.
Avoiding discrimination based on “national interests”
Mr Lambsdorff's report focuses on the need to change existing EU rules on procurement. The new directive will ensure that there is no discrimination between procedural processes. The two main exceptions to this are contracts outside the EU and intelligence related contracts, which will still have the right of monopoly and anonymity.
“There will of course remain security measures whenever highly sensitive information, materials or services are at stake, in order to prevent them from getting into the wrong hands” he said.
A strengthened European defence policy
Mr Lambsdorff concluded by saying that this legislation can only strengthen a capitalist economy by opening trade and creating a single defence market: “This directive will lead to more transparency and more competition. This legislative package is making an important contribution to strengthening European security and defence policy”.
The proposed directive will need the formal endorsement of EU countries. After that, and after publication in the Official Journal of the EU, countries will have two years to implement the new rules.