The European Commission emphasises the need for effective implementation of Directive 2009/81/EC to increase competition in the defence sector, provide transparency, and protect security interests while promoting an open internal market.
FREMONT, CA: Removing market barriers in the internal market for defence products will increase the competition inside the aerospace and defence sector's industrial and technological base. In the year 2016, the Commission generated a report on the application of Directive 2009/81/EC on defence and sensitive security procurement.
The report proclaims that the Directive resulted in an initial rise of defence procurement in an EU-wide competition, but that a large share of expenditure, specifically for strategic, high-value, complex defence systems, is conducted outside of the Directive. Furthermore, the application of the Directive is not even across the countries in the EU.
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To confront this challenge, the report speaks about the dire need to emphasise the effective implementation of the Directive and provides several recommendations to take action, such as dialogue with EU countries, interpretation of specific provisions, enforcement actions, and scoreboards on countries’ use of the Directive.
The report then concludes that the Directive is designed for the purpose and need not be amended. It emphasises largely that a more open defence internal market will increase the competitiveness of the sector’s industrial and technological base, specifically by allowing for economies of scale.
The EU Directive on the Defense and Sensitive Security Procurement
Directive 2009/81/EC on defence and sensitive security procurement provides European rules for the procurement of ammunition, arms, and war material for defence purposes. It also provides rules for the procurement of sensitive works, supplies, and services for security purposes. These rules are implemented to the specificities of defence procurements, which by nature are sensitive and complicated. The Directive also provides rules that boost the transparency and openness in defence markets between EU countries, while also ascertaining that individual countries’ security interests are protected.
Directive 2009/81/EC comprises a few advancements that are customised to specific requirements of procurement in defence and security markets.
• Contenders may need to submit definite guarantees assuring the security of certain information, safeguarding classified information, and security of supply, for on-time and dependable contract execution, especially in a crisis.
• Authorities who are awarding may utilise the negotiated procedure with previous publications as a standing procedure while providing them with the required flexibility to streamline and fine-tune all details of the contract.
• Certain rules on research and development contracts provide the needed balance between the requirement to support advancements and the necessary openness of production markets.
• A specific set of national review procedures will offer effective remedies to protect the rights of businesses that are participating in the award procedure.
The European Commission is in support of the implementation of Directive 2009/81/EC.
