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On 11 December 2017, the Council adopted a decision establishing Permanent Structured Cooperation (PESCO), less than a month after receiving a joint notification by member states of their intention to participate.
The 25 member states participating in PESCO are: Austria, Belgium, Bulgaria, Czech Republic, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Spain and Sweden. On 13 November 2017, ministers from 23 member states signed a joint notification on the Permanent Structured Cooperation (PESCO) and handed it over to the High Representative and the Council. On 7 December 2017, Ireland and Portugal also notified their decision to join PESCO.
Permanent Structured Cooperation in the area of security and defence policy was introduced by the Lisbon Treaty. It foresees the possibility of a number of EU member states working more closely together in the area of security and defence. This permanent framework for defence cooperation will allow willing and able member states to develop jointly defence capabilities, invest in shared projects, and enhance the operational readiness and contribution of their armed forces.
The Council decision establishing PESCO sets out:
- the list of participating member states
- the list of ambitious and more binding common commitments undertaken by the participating member states, including "regularly increasing defence budgets in real terms in order to reach agreed objectives"
- the PESCO governance, with an overarching level maintaining the coherence and the ambition of the PESCO, complemented by specific governance procedures at projects level
- administrative arrangements, including the secretariat functions for PESCO at project level and financing
Member states participating in PESCO also adopted a declaration at the same time as the adoption of the decision establishing PESCO. The declaration welcomes the political agreement identifying an initial list of 17 projects to be undertaken under PESCO. The projects cover areas such as training, capability development and operational readiness in the field of defence. These initial projects are expected to be formally adopted by the Council in early 2018.
Next steps
The decision establishing PESCO foresees that the Council, by unanimity of the representatives of member states participating in PESCO, will adopt, further decisions and recommendations in a number of areas, including to establish:
- the list of projects to be developed under PESCO (expected early 2018)
- a common set of governance rules for projects, which could be adapted for individual projects
- the general conditions under which third States could be invited to participate in individual projects.
Defence cooperation: 23 member states sign joint notification on the Permanent Structured Cooperation (PESCO)
On 13 November 2017 ministers from 23 member states signed a joint notification on the Permanent Structured Cooperation (PESCO) and handed it over to the High Representative and the Council.
The possibility of the Permanent Structured Cooperation in the area of defence security and defence policy was introduced by the Lisbon Treaty. It foresees the possibility of a number of EU member states working more closely together in the area of security and defence. This permanent framework for defence cooperation will allow those member states willing and able to jointly develop defence capabilities, invest in shared projects, or enhance the operational readiness and contribution of their armed forces.
The member states who signed the joint notification are: Austria, Belgium, Bulgaria, Czech Republic, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Romania, Slovakia, Slovenia, Spain and Sweden. It is possible for other member states to join at a later stage.
The joint notification is the first formal step to set up the PESCO. It sets out:
- the principles of the PESCO, in particular underlining that the "PESCO is an ambitious, binding and inclusive European legal framework for investments in the security and defence of the EU's territory and its citizens"
- the list of "ambitious and more binding common commitments" the member states have agreed to undertake, including "regularly increasing defence budgets in real terms in order to reach agreed objectives",
- proposals on PESCO governance, with an overarching level maintaining the coherence and the ambition of the PESCO, complemented by specific governance procedures at projects level.
Next steps
The Council now has to adopt a decision establishing PESCO by reinforced qualified majority. This could take place at the next Foreign Affairs Council (11 December).
A first list of projects to be undertaken within the PESCO framework should be agreed by the participating member states once PESCO has been established. These could cover areas such as training, capabilities development and operational readiness in the field of defence.
EU cooperation on security and defence
The EU strengthens cooperation on security and defence
At the Bratislava Summit of September 2016, EU leaders decided to give new impetus to the European external security and defence by strengthening EU cooperation in this area.
Delivering on this commitment, EU leaders adopted conclusions in December 2016:
- endorsing the implementation plan on security and defence
- welcoming the proposal by the European Commission of the European defence action plan
- urging swift action to increase cooperation between the EU and NATO
Concrete actions to boost security and defence cooperation
In December 2016, the European Council endorsed the implementation plan on security and defence. The implementation plan sets the way ahead for the development of EU security and defence policy.
Building on the EU Global Strategy, the implementation plan focuses on three strategic priorities:
- responding to external conflicts and crises
- building the capacities of partners
- protecting the EU and its citizens
Concrete actions to achieve these goals include:
- launching a coordinated annual review on defence (CARD) to enhance defence cooperation between member states
- establishing a permanent structured cooperation (PESCO) to strengthen defence cooperation among those member states willing to go further in this cooperation
- setting up a military planning and conduct capability (MPCC) to improve crisis management structures
- strengthening the EU's rapid response toolbox, including the EU battlegroups and civilian capabilities
1. Coordinated annual review on defence
The coordinated annual review on defence (CARD) would provide a better overview at EU level of defence spending, national investment and research efforts.
The review would increase the transparency and political visibility of European defence capabilities. The benefits include:
- better identification of shortfalls
- deeper defence cooperation
- better and more coherent approach to defence expenditure planning
2. Permanent structured cooperation
The Lisbon Treaty provides that a group of member states can strengthen their cooperation in defence matters by setting up a permanent structured cooperation (PESCO).
On 22 June 2017, EU leaders agreed to launch a permanent structured cooperation in order to strengthen Europe's security and defence.
On 11 December 2017, the Council adopted a decision establishing PESCO. All EU member states are taking part in PESCO, except three countries (Denmark, Malta, and the United Kingdom).
Participating member states agreed on an initial list of 17 projects to be undertaken under PESCO. The projects cover areas such as:
- training
- capability development
- operational readiness in the field of defence
These initial projects are expected to be formally adopted by the Council in early 2018.
3. Improved crisis management structures
On 8 June 2017, the Council agreed to establish a military planning and conduct capability (MPCC) within the EU military staff.
The MPCC improves the EU's capacity to react in a faster, more effective and more coherent manner.
It is responsible, at the strategic level, for the operational planning and conduct of non-executive CSDP military missions.
4. Reinforced EU rapid response toolbox
EU battlegroups are one of the tools at the EU's disposal that can be used to respond quickly to crises and conflicts. They are military forces that can be rapidly deployed on the ground.
The battlegroups were created in 2005, but they have never yet been deployed due to political, technical and financial obstacles.
In order to strengthen the EU's rapid response capabilities, EU leaders agreed on 22 June 2017 to bear the deployment of battlegroups as a common cost. The financing of battlegroups will be managed at EU level through the Athena mechanism on a permanent basis.
The EU is also working to develop the civilian capabilities and enhance the responsiveness of civilian crisis management, including through the possible creation of a core responsiveness capacity.
EU-NATO cooperation
On 8 July 2016, the EU and NATO signed a joint declaration to further strengthen their cooperation in seven strategic areas, namely:
- hybrid threats
- operational cooperation, including maritime issues
- cyber security
- defence capabilities
- industry and research
- coordinated exercises
- capacity building
Afterwards, on 6 December 2016, the Council endorsed a common set of 42 proposals, which was also endorsed by NATO.
On 5 December 2017, the Council endorsed new proposals for concrete actions in areas such as:
- counter-terrorism
- women
- peace and security
- military mobility
European defence action plan
With €203 billion spent on defence in 2015, EU member states are the world's second largest military spender, after the US.
However, defence budget funds are often inefficiently used due to:
- fragmentation of the European defence market
- costly duplication of military capabilities
- insufficient industrial collaboration and lack of interoperability
To address these issues, the European Commission presented the European defence action plan on 30 November 2016. The action plan aims to:
- boost cost efficiency of defence spending
- enhance defence cooperation
- build a stronger industrial base
The plan sets out three key actions:
- setting up a European defence fund
- encouraging investments in the defence industry
- reinforcing the single market for defence
On 22 June 2017, the European Council welcomed the Commission's communication on a European defence fund. They also called for rapid agreement on the proposal for a European defence industrial development programme.
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