35 Amendments of Jasenko SELIMOVIC related to 2018/0254(COD)
Amendment 39 #
Proposal for a regulation
Recital -1 (new)
Recital -1 (new)
(-1) The EU’s geopolitical context has changed dramatically in the last decade. The situation in Europe's neighbouring regions is unstable and the EU faces a complex and challenging environment combining the emergence of new threats like hybrid and cyber-attacks and the return of more conventional challenges. Faced with this context both European citizens and their political leaders share the view that more has to be done collectively to defend ourselves. 75% of Europeans support a common defence and security policy. In the joint declaration of 25 March 2017 in Rome, leaders of 27 Member States and the European Council, the European Parliament and the European Commission stated that the Union will strengthen its common security and defence and foster a more competitive and integrated defence industry.
Amendment 40 #
Proposal for a regulation
Recital 1
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 technological and industrial capabilities to respond to security challenges, as well as to foster a competitive, innovative and efficient European defence industry and the creation of a true and integrated European defence market. It proposed in particular to launch a European Defence Fund (the 'Fund') to support investments in joint research and the joint development of defence products and technologies, thus fostering synergies and cost-effectiveness, and to promote the Member States’ joint purchase and maintenance of defence equipment. This Fund would complement national funding already used for this purpose and should act as an incentive for Member States to cooperate and invest more in defence. The Fund would support cooperation during the whole cycle of defence products and technologies.
Amendment 41 #
Proposal for a regulation
Recital 1
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 technological and industrial capabilities to respond to security challenges, as well as to foster a competitive, innovative and, efficient European defence industry and to create a more integrated defence market in Europe. It proposed in particular to launch a European Defence Fund (the 'Fund') to support investments in joint research and the joint development of defence products and technologies, thus fostering synergies and cost-effectiveness, and to promote the Member States’ joint purchase and maintenance of defence equipment. This Fund would complement national funding already used for this purpose and should act as an incentive for Member States to cooperate and invest more in defence. The Fund would support cooperation during the whole cycle of defence products and technologies.
Amendment 43 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1 a) On 7 June 2017, the Commission adopted a Communication launching the European Defence Fund. A two-step approach was proposed: firstly, to test the approach, initial financing for both research and development has been made available under the 2014-2020 Multi- Annual Financial Framework ('MFF') by the adoption of Regulation (EU) 2018/10921a; secondly, a dedicated Fund would be established under the MFF 2021-2027 scaling up the funding for collaborative research in innovative defence products and technologies and for subsequent stages of the development cycle, including the development of prototypes. There should be a consistent and coherent approach between those two steps. _________________ 1a Regulation (EU) 2018/1092 of the European Parliament and of the Council of 18 July 2018 establishing the European Defence Industrial Development Programme aiming at supporting the competitiveness and innovation capacity of the Union's defence industry
Amendment 44 #
Proposal for a regulation
Recital 1 b (new)
Recital 1 b (new)
(1 b) The defence sector is characterised by increasing costs of defence equipment and by high R&D costs that limit the launch of new defence programmes and directly impact on the competitiveness and innovation capacity of the EU industry. In view of the cost escalation, of the magnitude of non-recurring R&D expenses and of the small series that can be procured nationally, the development of a new generation of major defence systems and of new defence technologies is increasingly beyond the reach of single EU Member States.
Amendment 45 #
Proposal for a regulation
Recital 1 c (new)
Recital 1 c (new)
(1 c) The situation of the defence sector has been further exacerbated by important cuts in defence budgets across Europe in the past 10 years, affecting in particular R&D and equipment expenditures. Between 2006 and 2013 real defence expenditure levels in the EDA participating Member States were reduced by 12%. Considering that defence R&D is the basis for the development of the future cutting edge defence technologies, such trends are particularly worrying and pose a serious challenge to the capacity to maintain EU’s defence industry competitiveness over the long term.
Amendment 46 #
Proposal for a regulation
Recital 1 d (new)
Recital 1 d (new)
(1 d) Despite the interplay between increasing costs and decreasing spending, defence planning and defence spending on R&D and procurement of equipment has remained largely at national level with very limited cooperation between Member States in defence equipment investments. Additionally, when implemented, only few programs are also linked to EU capability priorities: In 2015 only 16% of equipment was procured through European collaborative procurement, far away from the agreed collective benchmark of 35%.
Amendment 49 #
Proposal for a regulation
Recital 3
Recital 3
(3) Following an integrated approach and in order to contribute to the enhancement of the competitiveness and innovation capacity of the Union's defence industry, a European Defence Fund should be established. The Fund should aim at enhancing the competitiveness, innovation, efficiency and autonomy of the Union's defence industry thereby contributing to the Union's strategic autonomy by supporting the cross border cooperation between Member States and between enterprises, research centres, national administrations, international organisations and universities, in the research phase and in the development phase of defence products and technologies. To achieve more innovative solutions and an open internal market, the Fund should support the cross-border participation of defence small and medium sized enterprises (SMEs) and middle capitalisation companies (mid-caps).
Amendment 50 #
Proposal for a regulation
Recital 3
Recital 3
(3) Following an integrated approach and in order to contribute to the enhancement of the competitiveness and innovation capacity of the Union's defence industry, a European Defence Fund should be established. The Fund should aim at enhancing the competitiveness, innovation, efficiency and autonomy of the Union's defence industry thereby contributing to the Union's strategic autonomy by supporting the cross border cooperation between Member States and between enterprises, research centres, national administrations, international organisations and universities, in the research phase and in the development phase of defence products and technologies. This should also improve the efficiency of the single market in the defence sector which would ultimately mean better value for money for the Member States. To achieve more innovative and interoperable solutions and an open internal market, the Fund should support the cross-border participation of defence small and medium sized enterprises (SMEs) and middle capitalisation companies (mid-caps).
Amendment 53 #
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
Amendment 55 #
Proposal for a regulation
Recital 8
Recital 8
(8) The difficulty to agree on consolidated defence capability requirements and common technical specifications or standards hampers cross- border collaboration between Member States and between legal entities based in different Member States. The absence of such requirements, specifications and standards has led to increased fragmentation of the defence sector, technical complexity, delays and, inflated costs, unnecessary duplication of capabilities as well as decreased interoperability. The agreement on common technical specifications should be a prerequisite for actions involving a higher level of technological readiness. Activities of Member States leading to common defence capability requirements and supporting studies as well as actions aiming at supporting the creation of a common definition of technical specifications or standards should also be eligible for support by the Fund.
Amendment 59 #
Proposal for a regulation
Recital 10
Recital 10
(10) Given that the Fund aims particularly at enhancing cooperation between legal entities and Member States across Europe, an action should be eligible for funding only if it is undertaken by a cooperation of at least three legal entities based in at least three different Member States and/or associated countries. At least three of these legal eligible entities established in at least two different Member States and/or associated countrOn the top of it, a cooperation might include legal entities from an associated country. Legal eligible entities should not be effectively controlled, directly or indirectly, by the same entity or should not control each other. In order to boost the cooperation between Member States the Fund may support joint pre-commercial procurement .
Amendment 63 #
Proposal for a regulation
Recital 13
Recital 13
(13) In certain circumstances, if this is necessary for achieving the objectives of the action, it should be possible to derogate from the principle that recipients and their subcontractors should not bet should be possible to derogate from the principle that beneficiaries and subcontractors involved in an action are not subject to control by non-associateda third countriesy or non-associatedby a third- country entitiesy. In that perspective, legal entitiecontext, undertakings established in the Union that are controlled by a non-associated third country or a non-associatedby a third -country entity can be eligible ifshould be able to be eligible for funding provided that relevant and, strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled. The participation of such entitieundertakings should not contravene the objectives of the Fund. ApplicantProgramme. Beneficiaries should provide all relevant information about the infrastructure, facilities, assets and resources to be used in the action. Member States' concerns regarding security of supply should also be taken into account.
Amendment 73 #
Proposal for a regulation
Recital 23
Recital 23
(23) The promotion of innovation and technological development in the Union defence industry should take place in a manner coherent with the security and defence interests of the Union. Accordingly, the action's contribution to those interests and to the defence research and capability priorities commonly agreed by Member States should serve as an award criterion. Within the Union, common defence research and capability shortfalls are identified in the Common Security and Defence Policy (CSDP) framework notably through Overarching Strategic Research Agenda and the Capability Development Plan. Other Union processes such as the Coordinated Annual Review on Defence and the Permanent Structured Cooperation will support the implementation of relevant priorities through identifying and taking forward opportunities for enhanced cooperation with a view to fulfilling the EU level of ambition on security and defence. Where appropriate, rRegional and international priorities, including those in the North Atlantic Treaty Organisation context, mayust also be taken into account if they are in line with Union priorities and do not prevent any Member State or an associated country from participating, while also taking into account that unnecessary duplication should be avoided.
Amendment 75 #
Proposal for a regulation
Recital 31
Recital 31
(31) The Commission should establish annual or multiannual work programmes in line with the objectives of the Fund. The work programme shall set out in detail the categories of projects to be funded under the Fund and their direct relation to the objectives set out in the Fund. The work programme shall also ensure that a credible proportion of the overall budget will benefit actions enabling the cross- border participation of SMEs, possibly on the basis of a specific project category focusing on SMEs cross-border participation. The Commission should be assisted in the establishment of the work programme by a committee of Member States. In order to benefit from its expertise in the defence sector, the European Defence Agency will be given the status of an observer in the committee. Given the specificities of the defence area, the European External Action Service should also assist in the committee of Member States.
Amendment 76 #
Proposal for a regulation
Recital 33
Recital 33
(33) In order to support an open internal market, participation oflight of the Union policy on SMEs and mid-caps as being key to ensuring economic growth, innovation, job creation, and social integration in the Union and the fact that the actions supported typically require trans-national collaboration, it is of importance that the work programme reflect and enable open and transparent cross- border SMEs and mid-caps, either as members of consortia or as subcontractors, should be encouragedaccess and participation of SMEs and mid-caps, and that therefore at least 20 % of the overall budget benefit such actions, allowing SMEs and mid-caps to be included in the value chains of the actions. A category of projects should be specifically dedicated to SMEs and mid-caps.
Amendment 80 #
Proposal for a regulation
Recital 38 a (new)
Recital 38 a (new)
(38 a) The European Court of Auditors shall also consider value for money of projects financed by the Fund. The Commission must take these audits into account without undue delay.
Amendment 81 #
Proposal for a regulation
Recital 39
Recital 39
(39) Third countries which are members of the European Economic Area (EEA) may partiFree Trade Associpate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreemention (EFTA) and the United Kingdom may participate in Union programmes. A specific provision should be introduced in this Regulation to grant the necessary rights for and access to the authorising officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences.
Amendment 86 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
(5) '‘executive management structures'’ means any body or bodies,f an undertaking appointed in accordance with national law, which are empowered to set the legal entityand, where applicable, reporting to the chief executive officer, which is empowered to establish the undertaking's strategy, objectives and overall direction, and which oversees and monitors management decision-making;
Amendment 103 #
Proposal for a regulation
Article 4 – paragraph 4 a (new)
Article 4 – paragraph 4 a (new)
4 a. At least 20 % of the overall budget benefit actions that allow SMEs and mid- caps to be included in the value chains of the actions.
Amendment 115 #
Proposal for a regulation
Article 7 – paragraph 5
Article 7 – paragraph 5
5. Actions which are not ethically acceptable mayshall be rejected or terminated at any time.
Amendment 128 #
Proposal for a regulation
Article 10 – paragraph 2 – point a
Article 10 – paragraph 2 – point a
(a) the control over the applicant will not be exercised in a manner that restricts in any way its it is not exclusively controlled by third countries or by entities estability to perform and complete the actionshed in third countries;
Amendment 132 #
Proposal for a regulation
Article 10 – paragraph 2 – point c a (new)
Article 10 – paragraph 2 – point c a (new)
(c a) all other relevant information about the infrastructure, facilities, assets and resources to be used in the action.
Amendment 133 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. All infrastructure, facilities, assets and resources used in actions financed under the Fund shall be located on the territory of the Union or associated countries. Furthermore, when performing an eligible action, beneficiaries and their subcontractors shall cooperate only with legal entities established in the Union or in an associated country and not exclusively controlled by non-associated third countries or non- associated third country entities.
Amendment 136 #
Proposal for a regulation
Article 10 – paragraph 4 a (new)
Article 10 – paragraph 4 a (new)
4 a. Where appropriate, and in order to achieve the objectives of the Programme, beneficiaries may cooperate with entities located in third countries, and especially if those have a relevant expertise for the action financed. However, the undertakings that cooperate with beneficiaries shall not be located in third countries that are not identified in the work programme.
Amendment 150 #
Proposal for a regulation
Article 11 – paragraph 4
Article 11 – paragraph 4
4. Unless otherwise provided for in the work programme referred to in Article 27, the action shall be undertaken in a cooperation of at least three legal entities which are established in at least three different Member States and/or associated countries. At least three of these eligible entities established in at least two Member States and/or associated countries shall not, during the whole imp. On the top of it, a cooperation might include legal entities from associated countries. Legal eligiblem entaition of the action,es shall not be effectively controlled, directly or indirectly, by the same entity, and or shall not control each other.
Amendment 164 #
Proposal for a regulation
Article 13 – paragraph 1 – point f a (new)
Article 13 – paragraph 1 – point f a (new)
(f a) the proportion of the overall budget of the action to be allocated to the participation of SMEs established in the European Union, either as members of the consortium, subcontractors or as other undertakings in the supply chain;
Amendment 177 #
Proposal for a regulation
Article 27 – paragraph 1 a (new)
Article 27 – paragraph 1 a (new)
1 a. The work programme shall set out in detail the categories of projects to be funded under the Programme and their direct relation to the objectives set out in Article 3.
Amendment 178 #
Proposal for a regulation
Article 27 – paragraph 1 b (new)
Article 27 – paragraph 1 b (new)
1 b. The work programme shall ensure that a credible proportion of the overall budget will benefit actions enabling the cross-border participation of SMEs, possibly on the basis of a specific project category focusing on SMEs cross-border participation.
Amendment 188 #
Proposal for a regulation
Article 29 – paragraph 2
Article 29 – paragraph 2
2. Independent experts shall be Union's citizens identified and selected on the basis of open and transparent calls for expressions of interest addressed to relevant organisations such as Ministries of Defence and subordinated agencies, research institutes, universities, business associations or enterprises of the defence sector with a view to establishing a list of experts. By derogation from Article [237] of the Financial Regulation, this list shall not be made public.
Amendment 190 #
Proposal for a regulation
Article 29 – paragraph 2 a (new)
Article 29 – paragraph 2 a (new)
2 a. The Commission should ensure that its relevant rules on avoiding conflicts of interest are applied strictly.
Amendment 191 #
Proposal for a regulation
Article 29 – paragraph 2 b (new)
Article 29 – paragraph 2 b (new)
2 b. The Commission should endeavour to ensure that the experts are drawn from as broad a range of Member States as possible.
Amendment 195 #
Proposal for a regulation
Article 32 – paragraph 2
Article 32 – paragraph 2
2. The interim evaluation of the Fund shall be performed once there is sufficient information available about the implementation of the Fund, but no later than fourtwo years after the start of the Fund implementation. The interim evaluation report will include notably, an assessment of the governance of the Fund,- building on relevant consultations of Member States and key stakeholders - shall, in particular, assess the progress made towards the achievement of objectives set out in Article 3, while examining the efficiency and effectiveness of the supported actions in terms of financial implementation, rates, project award results including SMEs and mid-caps involvement and the degree of their cross- border participation, and funding granted in accordance with Article [195]esults, costs and, where possible, impacts. They shall also analyse the different award criteria as set out in Article 13 and provide relevant data, including information ofn the Financial Regulation by 31 July 2024. The Commission may submit proposals for any appropriate amendments to the present regulatioparticipation of SMEs and small mid- cap companies in the implemented projects and in the global value chain.
Amendment 196 #
Proposal for a regulation
Article 32 – paragraph 4
Article 32 – paragraph 4
4. The Commission shall communicate the conclusions of the evaluationssend the evaluations as referred to in paragraph 2 and 3, accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.
Amendment 197 #
Proposal for a regulation
Article 33 – paragraph 1
Article 33 – paragraph 1
Audits on the use of the Union contribution carried out by persons or entities, including by other than those mandated by the Union Institutions or bodies, shall form the basis of the overall assurance pursuant to Article [127] of the Financial Regulation. The European Court of Auditors shall examine the accounts of all revenue and expenditure of the Union according to Article 287 TFEU including effectiveness of finances spent on projects suported by the Fund.