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International Relations, PUBLICATIONS

European Defence Fund: Multiannual financial framework 2021-2027 [EU Legislation in Progress]

Written by Cemal Karakas (2nd edition, updated on 15.5.2019),

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© luzitanija / Fotolia

In June 2018, the European Commission presented a legislative proposal on a European Defence Fund, including a budget allocation of €13 billion in current prices for the 2021-2027 period. The proposal aims to streamline and simplify the current legislation by integrating the Preparatory Action on Defence Research (research window) and the European Defence Industrial Development Programme (as one part of the capability window) into a single fund. The main aims of the fund are to foster the competitiveness and innovativeness of European defence and to contribute to the EU’s strategic autonomy. In this regard, the fund would support collaborative industrial projects; co‑finance the costs of prototype development; encourage the participation of small and medium-sized enterprises; and promote projects in the framework of permanent structured cooperation. Synergies are expected with other EU initiatives in the field of cybersecurity, maritime transport, border management, Horizon Europe, the space programme and the European Peace Facility. In April 2019, after several trilogue meetings, Parliament and Council reached a partial agreement on the programme, covering the content, but not, among other things, budgetary issues. Parliament adopted its position at first reading in April. Further discussions on the outstanding issues can be expected once Council reaches agreement on the overall multiannual budget.


Proposal for a regulation establishing the European Defence Fund
Committee responsible: Industry, Research and Energy (ITRE) COM(2018) 476
Rapporteur: Zdzisław Krasnodębski (ECR, Poland) 2018/0254 (COD)
Shadow rapporteurs: Françoise Grossetête (EPP, France)
Edouard Martin (S&D, France)
Dominique Riquet (ALDE, France)
Neoklis Sylikiotis (GUE/NGL, Cyprus)
Reinhard Bütikofer (Greens/EFA, Germany)
Fabio Massimo Castaldo (EFDD, Italy)
Christelle Lechevalier (ENF, France)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Resumption of trilogue negotiations

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