[ParlTrack]

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the European Defence Industrial Development ~~Programme aiming at supporting the competitiveness and innovative capacity of the EU~~Cooperation Programme for an efficient defence ~~industry~~sector

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 1

(1) In the European Defence Action Plan, adopted on 30 November 2016, the Commission committed to complement, leverage and consolidate collaborative efforts by Member States in developing defence capabilities to respond to security challenges, as well as to foster a competitive and innovative European defence industry. It proposed in particular to launch a European Defence Fund to support investmentdescribed the many structural problems in the European defence sector which hamper the efficient use of national resources for providing the defence capabilities needed for an effective Common Security and Defence Policy (CSDP). The Commission in particular underlines that duplications, fragmentation, and other structural problems have led to a sector which generates only 15% of capabilities compared to the same investment by the US. The highly inefficient structures and mechanisms, coupled with a very low rate of collaborative projects currently leads to a loss of an estimated 25-100 bn€ annually according to the Commission.1a This is why in the European Defence Action Plan, the Commission committed to complement, leverage and consolidate collaborative efforts by Member States in developing defence capabilities to respond to security challenges, as well as to foster an efficient European defence industry. To realise these objectives it is therefore at Union level necessary to enhance the institutional framework for cooperation of Member States in the defence industrial development sector. It proposed in particular to launch efficient cooperation actions that would lead to investments by the Member States in joint research and the joint development of defence equipment and technologies~~. The Fund would support coopera~~, as well as action ~~dur~~ing the ~~whole cycle of defence product and technology development.~~ scope of conversion from military to civil protection. ´ __________________ 1a European Commission, 30 November2016, ANNEX The business case for more efficient spending on defence.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 1 a (new)

(1a) In order for the establishment of an efficient European defence market, including for this Programme to have real impact, it is of crucial importance that the key regulatory preconditions are fulfilled. In this respect the Directive on procurement was adopted eight years ago with a view to improve the functioning of the defence market and increasing competition. If fully applied, it still could make a significant contribution to achieving the goal of an integrated open and competitive European Defence Equipment Market. However, the evaluations of the Directive identified a number of shortcomings. In particular, despite a more than twofold increase in the value of the contracts published EU- wide, a large share of defence procurement is still done outside EU public procurement rules leaving a significant untapped potential to generate further public savings. Furthermore, public authorities to some extent still use, offsets/industrial return requirements which can lead to uncertainties for the industry. Finally, the subcontracting provisions of the Directive, which enable procurement authorities to require the successful tenderer to subcontract a share of the contract to third parties via competitive tendering, are rarely used. After eight years on inactivity, it is now time for effective implementation of the Directive, including through enforcement by the Commission.

2017/12/07
Committee: BUDG

Monika VANA

(2) In order to contribute to the e~~nhancement of the competitiveness and innovation capacit~~fficiency of the Union's defence industry, a European Defence Industrial Development Cooperation Programme (hereinafter referred to as the Programme) should be established jointly by the Member States and the Commission. The Programme should ~~aim at enhancing the~~consist of a comope~~titiveness of the Union's defence industry inter alia cyber defence by supporting the cooperation between undertakings in~~ration mechanism between Member States and the Commission, and address the development phase of defence products and technologies. The development phase, which follows the research and technology phase, which entails significant risks and costs that hamper the further exploitation of the results of research ~~and adversely impact the competitiveness of the Union's defence industry. By support~~. By addressing the development phase, the Programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation. The Programme should complement activities carried out in accordance with Article 182 TFEU and it does not cover the production of defence products and technologies.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 3

(3) To better exploit economies of scale in the defence industry, the Programme should support the cooperation between ~~undertaking~~Member States in the development of defence products and technologies.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 4

(4) The Programme should cover a two year period from 1 January 2019 to 31 December 2020 ~~whereas the amount for the implementation of the Programme should be determined for this period~~.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 5

(5) The Programme should be implemented in full compliance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council6 . Funding may take in particular the form of grants. Financial instruments or public procurement may be used where appropriate. _________________ 6 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).deleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 6

(6) The Commission may entrust part of the implementation of the programme to entities referred to in Article 58(1) (c) of Regulation (EU, Euratom) N°966/2012. In view of its expertise, the Commission may entrust the European Defence Agency with such a role.deleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 7

(7) In view of the specificities of the sector, ~~in practice~~ no collaborative project between undertakings ~~will~~should be launched if the Member States have not first agreed to support such projects. After having defined common defence capability priorities ~~at Union-level and also taking into ac~~via the Capability Development Plan in the count ~~where appropriate collaborative initiatives on a regional basis~~ext of the Common Security and Defence Policy (CSDP), Member States identify and consolidate military requirements and define the technical specifications of the project. They may also appoint a project manager in charge of leading the work related to the development of a collaborative project.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 7 a (new)

(7a) The Union financial contribution, to be drawn from existing administrative budget of the Union, will be available exclusively to support actions of administrative and organisational nature, necessary for establishing the appropriate cooperation mechanisms leading to the development and the implementation of the Programme; actions implemented under the Programme itself shall be fully financed by the Member States and as appropriate by the Athena Mechanism; as the aim is to enable better efficiency of spending of available investments in the Member States, under no circumstances should financing of projects under for this programme be drawn from existing EU programmes established under the MFF.

2017/12/07
Committee: BUDG

Monika VANA

(8) In case an action supported by the Programme is managed by a project manager appointed by Member States, the Commission should inform the project manager prior to executing the payment to the beneficiary of the eligible action so that the project manager can ensure that the time-frames are respected by the beneficiaries.deleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 9

(9) The Union financial support should not affect the export of products, equipment or technologies, and it should not affect the discretion of Member States regarding policy on the export of defence related products. The Union financial support should not affect Member States' export policies on defence related productsMilitary or dual-use technology supported by this Programme should only be exported to NATO allies and friendly nations which fully comply with the provisions of the Arms Trade Treaty (ATT). Also any technology supported by this Programme should, when exported to third countries, comply with the eight criteria of Common Position 944/2008/CFSP. Those Member States involved in a particular action should all agree to the export and the Commission should monitor and report back on the end-use and end-users of that particular technology.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 10

(10) As the objective of the Programme is to ~~support the competitiveness of the Union defence industry by~~increase the level of efficiency of cooperation between Member States and de-risking the development phase of cooperative projects, actions related to the development of a defence product or technology, namely definition of common technical specifications, design, prototyping, testing, qualification, certification ~~as well feasibility studies and other supporting measures, should be eligible to benefit from it~~should be considered under the Programme. This will also apply to the upgrade of existing defence products and technologies.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 11

(11) Given that the Programme aims particularly at enhancing cooperation between ~~undertakings across~~ Member States, an action should be ~~eligible for funding~~considered under the Programme only if it is undertaken by a cooperation of at least ~~three~~four undertakings based in at least twohree different Member States.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 12

(12) Cross-border collaboration in the development of defence products and technologies has often been hampered by the difficulty to agree on common technical specifications. The absence or limited level of common technical specifications have led to increased complexity, delays and inflated costs in the development phase. The agreement on common technical specifications should be a condition in order to benefit from the Union's administrative support under this Programme. Actions aiming at supporting the creation of a common definition of technical specifications should also be eligible for support under the Programme.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 13

(13) As the Programme aims at enhancing the comope~~titiveness of~~ration of Member States leading to efficiency gains in the Union's defence industry, only entities established in the Union and effectively controlled by Member States or their nationals should be eligible for support. Additionally, in order to ensure the protection of essential security interests of the Union and its Member States, the infrastructure, facilities, assets and resources used by the ~~beneficiarie~~participants and subcontractors in actions ~~fund~~supported under the Programme, shall not be located on the territory of non-Member States and shall not be subject to control or restrictions by third-countries, undertakings or public entities in third countries..

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 14

(14) Eligible actions developed in the context of Permanent Structured Cooperation in the institutional framework of the Union would ensure enhanced cooperation between undertakings in the different Member States on a continuous basis and thus directly contribute to the aims of the Programme. Such projects should thus be eligible for an increased ~~funding rate~~administrative support by the Commission.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 15

(15) If a consortium of undertakings wishes to participate in an eligible action under the Programme and financial assistance of the Union is to take form of a grant, the consortium should appoint one of its members as a coordinator who will be the principle point of contact with the Commission.deleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 16

(16) The promotion of innovation and technological development in the Union defence industry should take place in a manner coherent with the security interests of the Union as defined objectively within the context of the Common Security and Defence Policy (CSDP). Accordingly, the action's contribution to those interests and to the defence capability priorities commonly agreed by Member States should serve as an award criterion. Within the Union, common defence capability priorities are identified notably through the Capability Development Plan. Other Union processes such as the Coordinated Annual Review on Defence (CARD) and the Permanent Structured Cooperation will support the implementation of relevant priorities through enhanced cooperation. Where appropriate regional or international cooperative initiatives, such as in the NATO context, and serving the Union security and defence interest, may also be taken into account.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 17

(17) ~~In order to ensure that the funded actions are viable, the Member States commitment to effectively contribute to the financing of the action should be an award criterion for such actions~~Member States should consider whether to make use of the already existing intergovernmental ATHENA mechanism of the Common Security and Defence Policy (CSDP) for co-funding actions under this Programme.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 18

(18) In order to ensure that the ~~funded~~ actions will contribute to ~~the competitiveness~~a higher level of efficiency of the European defence industry, they should be market- oriented and demand driven. Therefore, the fact that Member States have already committed to jointly produce and procure the final product or technology, possibly in a coordinated way, should be taken into account in the award criteria. In order to reduce market distortions in the defence sector, which often hamper efficient projects, it is of crucial importance to not subsidise the defence industry via the use of EU funds.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 19

(19) The financial assistance of the Union under the Programme should not exceed 20% of the total eligible cost of the action when it relates to prototyping which is often the most costly action in the development phase. The totality of the eligible costs should however be covered for other actions in the development phase.deleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 20

(20) As the Union support aims at enhancing the ~~competitiveness of~~efficient cooperation within the sector and concerns only the specific development phase, the Commission should not have ownership or intellectual property rights over the products or technologies resulting from the ~~funded~~ actions supported. The applicable intellectual property rights regime will be defined contractually by the ~~beneficiarie~~participants.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 21

(21) The Commission should establish a multiannual work programme in line with the objectives of the Programme. The Commission should be assisted in the establishment of the work programme by a committee of Member States (hereinafter referred to as Programme Committee). In light of the Union policy on Small and Medium Enterprises (SMEs) as key to ensuring economic growth, innovation, job creation, and social integration in the Union and the fact that the supported actions will typically require trans- national collaboration, it is of importance that the work programme will reflect and enable ~~such~~ cross-border participation of SMEs and that therefore a proportion of the overall budget will benefit such action.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 23

(23) For the selection of actions to be funded by the Programme, the Commission or the entities referred to in Article 58(1)(c) of Regulation N°966/2012 should organise competitive calls as provided for by Regulation No 966/2012. After evaluation of the received proposals with the help of independent experts, the Commission will select the actions to be funded under the Programme. In order to ensure uniform conditions for the implementation of this Regulation implementing powers should be conferred on the Commission as regards the adoption and the implementation of the work programme, as well as for awarding the funding to selected actions. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council7 . _________________ 7Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powersdeleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Recital 25

(25) The Commission should ~~draw up~~monitor implementation and draw up an interim progress report every six month and an implementation report at the end of the Programme, examining the financial activities in terms of financial implementation results and where possible, impact. This report should also analyse the cross border participation of SMEs in projects under the Programme as well as the participation of SMEs to the global value chain. The interim progress reports and the implementation report at the end of the Programme should be presented to the European Parliament.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 1 – paragraph 1

A European cooperation mechanism between the Commission and Member States, supporting the development and implementation of a joint European Defence Industrial Development Cooperation Programme (hereinafter referred to as the Programme) ~~for Union action~~ covering the period from 1st January 2019 to 31 December 2020 ,is hereby established.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 2 – paragraph 1 – introductory part

~~The~~Member States shall cooperate with each other and with the Commission in a transparent manner in order to adopt and implement a Programme sthallt have the following objectives:

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 2 – paragraph 1 – point a

(a) to foster ~~the competitiveness and innovation capacity of~~efficiency gains in the Union defence industry by Member States supporting joint actions ~~in their~~on Union territory in their industrial development phase;

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) to support and leverage the cooperation between Member States and with undertakings, including small and medium-sized enterprises, in the development of technologies or products solely in line with defence capability priorities commonly agreed by Member States within the Union in the context of the Capability Development Plan of the Common Security and Defence Policy (CSDP);

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 3 – title

~~Budget~~Financial resources

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 3 – paragraph 1

~~The amount for the implementation~~Actions under this Programme shall be funded by the Member States and where appropriate via the use of the ATHENA mechanism. Only administrative and organisational expenditure to which the development of theis Programme ~~for the period 2019-2020 is set at EUR 500 million in current prices~~gives rise for the institutions may be charged to the Union budget. The financial resources will be drawn from the existing administrative resources available to the institutions. No financing of projects under for this Programme shall be drawn from existing EU programmes established under the MFF.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 4

General financing provisions 1. The Union's financial assistance may be provided through the types of financing envisaged by Regulation (EU, Euratom) No 966/2012, and in particular: (a) (b) (c) 2. in paragraph 1 of this Article and the methods of implementation, shall be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden and the risk of conflict of interests. 3. shall be implemented by the Commission as provided for by Regulation (EU, Euratom) No 966/2012 directly or indirectly by entrusting budget implementation tasks to the entities listed in Article 58(1) (c) of that Regulation. 4. appointed by Member States, the Commission shall execute the payment to the eligible beneficiaries after informing theArticle 4 deleted grants; financial instruments; public procurement. The types of financing referred to The Union's financial assistance In case a project manager. is

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 5

1. accordance with Title VIII of Regulation (EU, Euratom) No 966/2012 may be used to facilitate access to finance by entities implementing actions in accordance with Article 6. 2. instruments may be used: (a) investments; (b) (c)Article 5 deleted Types of financial instruments Financial instruments set up in The following types of financial Equity or quasi-equity Loans or guarantees; Risk sharing instruments.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 6 – title

~~Eligible ac~~Areas of cooperations

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 6 – paragraph 1 – introductory part

1. The Programme shall ~~provide support for actions by beneficiarie~~identify and develop actions by participants in the development phase covering both new and the upgrade of existing products and technologies, in relation to:

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 6 – paragraph 1 – point f

~~(f) studies such as feasibility studies and other accompanying measures.~~deleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 6 – paragraph 2

2. The action shall be undertaken in a cooperation of at least three undertakings which are established in at least two different Member States. The undertakings ~~which are beneficiarie~~and their subcontractors which are participants shall not effectively be controlled, directly or indirectly, by the same entity or shall not control each other.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 6 – paragraph 4 a (new)

4a. Actions which contribute in parts or entirely (parts and components including software, artificial intelligence features, and any relevant dual-use technologies), directly or indirectly to the following technologies shall be excluded from the Programme: (a) Weapons of mass destruction and related warhead and missile technology; (b) Banned weapons and munitions not compliant with international law such as: (i) Cluster munitions and related aspects in line with the Convention on Cluster Munitions; (ii) Anti-personal landmines and related aspects in line with the Convention on the Prohibition on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti- Personnel Mines and their Destruction; (iii) Incendiary weapons including white phosphorus; (iv) Depleted uranium ammunitions; (c) Fully autonomous weapons that enable lethal actions without meaningful human intervention; (d) Small and light weapons (SALW) mainly developed for export purposes, i.e. where no Member State has expressed a requirement for the action to be carried out.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 6 – paragraph 4 b (new)

4b. Actions which contribute directly or indirectly to the production of armed unmanned aerial vehicles or their parts, including the production of parts and components, software, artificial intelligence features and any relevant dual-use technologies, are excluded so long as no Council Decision on the use of such new military technology exists which upholds international human rights law and international humanitarian law and which addresses issues such as a legal framework, proportionality, protection of civilians and transparency.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 6 – paragraph 4 c (new)

4c. Military or dual-use technology supported by this Programme shall only be exported to NATO allies and friendly nations which fully comply with the provisions of the Arms Trade Treaty (ATT). Such exports shall also fully comply with the eight criteria of Common position 944/2008/CFSP on arms exports. The results of cooperation between Member States under this Programme shall only be authorised for export in case all participating Member States agree. The Commission shall put in place a tracking mechanism to verify the end-use and end-users of the technology supported by this Programme and report about their status every 6 months to Council and Parliament.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 7 – title

~~Eligible~~Participating Entities

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 7 – paragraph 1

1. ~~Beneficiaries shall be undertaking~~Participants in the actions foreseen by the Programme shall be undertakings and their subcontractors established in the Union, in which Member States and/or nationals of Member States own ~~more than 50% of~~ the undertaking and effectively control it within the meaning of Article 6(3), whether directly or indirectly through one or more intermediate undertakings. In addition, all infrastructure, facilities, assets and resources used by the participants, including subcontractors and other third parties, in actions f~~unded~~oreseen under the Programme shall not be located on the territory of non-Member States during the entire duration of the action. The use of these infrastructures, facilities, assets and resources shall not be under the control of any third country or entity established outside of the Union.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 7 – paragraph 1 a (new)

1a. In case a change occurs regarding the effective control of an undertaking participating in the Programme, the undertaking concerned should inform without delay the Commission and competent authority in the Member State in which it is established which will then jointly decide on appropriate measures with regards to the protection of national and Union interests.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 7 – paragraph 2

2. If the ~~beneficiary~~participant, as defined in paragraph 1, is developing an action, as defined in Article 6, in the context of Permanent Structured Cooperation, it shall be ~~eligible~~identified for the increased ~~funding~~administrative support referred to in Article 11(2) in respect of that action.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 8 – title

Declaration by ~~applic~~participants

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 9 – paragraph 1

1. Where the Union’s ~~financial assistance is provided through a grant~~administrative support is provided, the members of any consortium wishing to participate in an action shall appoint one of them to act as coordinator, which shall be identified in the ~~grant~~ agreement. The coordinator shall be the principal point of contact between the members of the consortium in relations with the Commission orand the relevant funding ~~body~~Member States, unless specified otherwise in the ~~grant~~ agreement or in the event of non- compliance with its obligations under the ~~grant~~ agreement.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 9 – paragraph 2

2. The members of a consortium participating in an action shall conclude an internal agreement establishing their rights and obligations with respect to the implementation of the action (in compliance with the ~~grant~~ agreement), except in duly justified cases provided for in the work programme or call for proposals.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 10 – title

~~Award~~Selection criteria

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 10 – paragraph 1 – introductory part

Actions proposed for ~~funding under~~inclusion in the Programme and eligible for administrative support shall be evaluated on the basis of the following cumulative criteria:

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 10 – paragraph 1 – point b

(b) contribution to the innovation and technological development of defence industries and thus to fostering the industrial autonomy of the Union in ~~the field of defence technologies; and,~~relation to the capability requirements under the Common Security and Defence Policy (CSDP);

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 10 – paragraph 1 – point c

(c) contribution to the sCommon Security and dDefence ~~interests of the Union~~Policy (CSDP) by enhancing defence technologies which contribute to implement defence capability priorities commonly agreed by Member States ~~within the Union; and,~~n in the context of the Capability Development Plan;

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 10 – paragraph 1 – point d

(d) viability notably via a demonstration by the ~~beneficiaries that the remaining~~participants that the costs of the eligible action are covered by ~~other~~ means of financing such as Member States’ contributions and the ATHENA mechanism; and

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 10 – paragraph 1 – point e

(e) for actions described in points (b) to (e) of Article 6(1), the contribution ~~to the competitiveness of the~~a more efficient and integrated European defence industry inter alia through the demonstration by the ~~beneficiarie~~participants that Member States have committed to jointly produce and procure the final product or technology in a coordinated way, including joint procurement where applicable.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 11

1. Union provided under the Programme may not exceed 20% of the total cost of the action where it relates to prototyping. In all the other cases, the assistance may cover up to the total cost of the action. 2. An action developed by a beneficiary referred to in Article 7 paragraph 2 may benefit from a funding rate increased by an additional 10 percentage points.Article 11 deleted Funding rates The financial assistance of the

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 12 – paragraph 1 a (new)

The results of the actions under this Programme shall under no circumstances be under the control of any third country or entity established outside of the Union.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 13 – paragraph 1

1. The Commission, by means of ~~an implementing~~delegated act, shall adopt multiannual a work -programme for the duration of the Programme. This ~~implementing~~delegated act shall be adopted in accordance with ~~the examination procedure referred to in in~~ Article 16(2). This work programme shall be in line with the objectives set out in Article 2;.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 13 – paragraph 2

2. The work programme shall set out in detail the categories of projects to be ~~funded under the Programme~~included in the Programme as well as the commitment of the Member States for financing their implementation;

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 13 – paragraph 3

3. The work programme shall ~~ensure that a credible proportion of the overall budget~~set out in detail the categories of projects to be included in the Programme as wiell ~~benefit actions enabling the cross-border participation of SMEs~~as the commitment of the Member States for financing their implementation.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 14

~~1. In the implementation of the Programme, Union funding shall be granted following competitive calls issued in accordance with Regulation (EU, Euratom) No 966/2012 and Commission D~~Article 14 delegated Regulation (EU) No 1268/128 . 2. the call for proposals shall be evaluated by the Commission assisted by independent experts on the basis of the award criteria of Article 10. 3. The Commission shall award, after each call, the funding for selected actions, by means of an implementing act. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 16(2). _________________ 8 Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (OJ L 362, 31.12.2012, p. 1).Award procedure The proposals submitted following

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 16 – paragraph 1

1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. The European Defence Agency and representatives of the European Parliament, civil society and academia shall be invited as observer.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 16 – paragraph 1 a (new)

1a. The Commission shall establish an Advisory group composed of independent experts, academia and civil society organisations to provide advice to the Committee in particular on the compatibility of technology supported by this Programme with a view on moral, ethical and international law obligations of both the Union and its Member States.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 16 – paragraph 2

~~2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.~~deleted

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 16 – paragraph 2 a (new)

2a. The power to adopt delegated acts referred to in Article 13 shall be conferred on the Commission for the duration of the programme and may be revoked at any time by the European Parliament or by the Council. Before adopting the delegated act, the Commission shall consult the Committee and Advisory Group. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. A delegated act adopted pursuant to Articles 13 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.

2017/12/07
Committee: BUDG

Monika VANA

Proposal for a regulation
Article 17 – paragraph 1

1. The Commission shall regularly monitor the implementation of the programme and ~~annually report~~sent a monitoring report every six month to the Parliament and the Council on the progress, made in accordance with Article 38(3)(e) of Regulation 966/2012. To this end, the Commission shall put in place necessary monitoring arrangements.

2017/12/07
Committee: BUDG

65 Amendments of Monika VANA related to 2017/0125(COD)

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