The "Politics and Defence & Security Engineering" working group analyses current political developments in the defence sector. It provides facts and interpretation from the technological knowledge and experience of engineers.
The working group has the following comments and questions on the European Commission's Communication on the European Defence Fund and the fiche prepared on it by the Ministry of Foreign Affairs. These have been prepared on the basis of publicly available documents and knowledge and experience in the field of defence technology. The comments and questions concern exclusively technological or related aspects.
General
The working group agrees with the comments of the Federation of European Defence Technology Associations (EDTA). In addition, the specifically Dutch aspects are listed here.
Harmonisation of requirements and synchronisation of planning
In order for the fund to function, it is necessary to harmonise plans for research in the "research window" and new capabilities in the "capability window" in terms of content and planning. The Dutch role in this is by definition limited, as 26 or 27 member states play a role in this including the major European countries. Formally, of course, the countries remain entirely self-determining and no transfer of sovereignty takes place, but the explicit need for synchronisation and harmonisation has implications for national decision-making power and options.
The EDTA (see annex) suggests in its comments that a Community Office should be set up to study acquisition plans and make recommendations for synchronisation and harmonisation.
A European harmonisation and synchronisation agency could be in the Dutch interest to create a good balance in Europe. If the Netherlands is explicitly involved in such an agency, it can keep track of developments in other countries and connection opportunities to them more effectively than is possible in bilateral or regional contexts. It could also be an opportunity for the Dutch technology sector and industry to participate more effectively in tenders.
Dutch role in the European Defence Fund
European developments in the field of defence cooperation have traditionally been very slow. In the past year, however, activities by the European Commission have accelerated them. Especially in the areas of technical scientific research and equipment development, there are now concrete plans that can be expected to be implemented.
It is important for the Dutch technology sector that the government, industry and other relevant organisations are well aligned with these developments. Participating substantively and proactively now offers opportunities in a few years' time, especially if developments continue to accelerate.
To ensure good alignment with the rapid developments, it seems wise to set up a coordination meeting where politics, Defence, EZ/CMP, industry (broader than the NIDV) and the technology sector give direction to the Dutch role in the European Defence Fund.
Focus on SMEs
Many economic analyses and political papers identify SMEs as drivers of innovation. However, this is not the case in the defence sector. The reasons for this are diverse, but the most important aspect is that the initiative and financing of new defence products lies with the government. Large companies can more easily meet the associated complex requirements and lengthy procurement procedures. The European Defence Fund will reinforce rather than reduce this tendency.
An additional disadvantage for Dutch defence-related companies is that they almost never act as main contractors (OEM) but usually only as sub-suppliers of sub-systems.
The focus of Dutch policy regarding the European Defence Fund should be on strengthening the role of SMEs. Therefore, in the European Defence Fund, encourage the possibility for smaller projects, promote asynchronous[1] development and give most attention to new technology areas in which Dutch research institutes and companies can excel.
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The Hague, 17 August 2017
More information can be found on the webpage of the Working Group on Politics and Defence & Security Technology.
Do you have any questions? Please contact the working group atE:dv@kivi.nl or T: 071 7113973
Disclaimer: The facts and opinions given are based on open sources and on the knowledge and experience of working group members. This is not an official position of KIVI. The association accepts no liability for anything put forward by the working group or its members.
Photo: Ministry of Defence.
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[1] See KIVI comments on the Discussion Paper on the Future of European Defence, 7 June 2017.
