Defence: New rules should bring better value for money

Published: 21 January 2009 y., Wednesday

Eurai
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.
 

Šaltinis: europarl.europa.eu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Summit wraps up on rebuilding Haiti

World Summit for the Future of Haiti wraps up in Dominican Republic with President Leonel Fernandez calling on countries to firm up previous pledges for reconstruction. more »

Mini-tornado hits Australian town

A mini-tornado tears through a town on Australia's east coast, leaving a trail of destruction. more »

European members of parliament and US congressmen support the intensification of mutual dialogue

This Sunday, at the end of the LXVIII EU-US Interparliamentary Meeting, the delegations of European MPs and US congressmen approved a joint declaration in which they support the intensification of mutual dialogue. more »

Green Week: Fighting biodiversity loss will fail unless local and regional level is more widely implicated

This year's Green Week is focusing on halting biodiversity loss, but the Committee of the Regions has warned that European and international efforts will continue to fail unless more is done to involve local and regional authorities in both the creation and implementation of policy. more »

Bosnia and Herzegovina: MEPs dissatisfied over limited progress

MEPs are dissatisfied over the limited progress made by Bosnia and Herzegovina (BiH), a potential candidate for EU membership. more »

Humanitarian convoy: MEPs condemn Israeli commando operation

Israel's Tzahal commando operation against a humanitarian convoy was almost unanimously condemned by the Foreign Affairs Committee on Tuesday, in a debate in Brussels with the Israeli Ambassador and a Council representative. more »

EU and Russia launch new partnership for modernization

The 25th EU - Russia Summit took place in Rostov-on-Don on 31 May and 1 June. more »

“End the siege on Gaza now” say MEPs visiting the territory

“The worsening humanitarian situation calls for an immediate, comprehensive and lasting end to the Israeli blockade on Gaza”. more »

MEPs see Nepal face stability and climate challenges

The Himalayan country of Nepal has endured years of violence and instability as Maoist rebels battled against the government. more »

EP delegation in Israel and the Palestinian Territories

MEPs visiting Israel and the occupied Palestinian Territories welcomed the launch of proximity talks, and stressed that negotiations should lead to a solution based on two viable and autonomous states. more »