A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School

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A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
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EU-Ratspräsidentschaft 201

                             A Europe that protects
                 Paving the way for a Defence Union?

                              Alpeuregio Summer School
                                Brussels, 26th June 2019
                                     Axel Jandesek
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
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                             Topics
•   Diving into defence
•   Of fears and threats
•   From strategy to shelter
•   Becoming a world leader
•   Looking ahead
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
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EU / RUSSIA
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                                                         Integration

                                          US First

                                               Global Ambitions

  • Sanktionen – Wirtschaft, Zusammenarbeit, diplomatische Beziehungen
  • Unterschiedliche Wahrnehmungen der Mitgliedstaaten
  • Aufrechterhaltung Dialog
                             New Chance
                             for EU-27
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
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                 Of what Europe is really afraid
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
common strategic culture for three main reasons:                               a common European strategic culture will develop
differences in their historic experiences of war and                           in conjunction with closer defence cooperation, not
                                                                               prior to it. Moreover, a more common strategic culture                              bmlv.gv.at
peace, diverging military doctrines closely linked to
distinct national identities and societal consensus on the                     and more practical defence cooperation are mutually-
use of military force, and diverging perceptions on                            reinforcing processes. The European Defence Union
  EU-Ratspräsidentschaft
key  future threats to national201 security.                                   will accelerate the gradual development of a European
                                                                               strategic culture.

                                   Of what we are really afraid
Figure 5: The same key threats on Member States’ security radars
                                                          10    Terrorism                                                          Germany
                     Energy                                 9                                                                      Estonia
                  vulnerability                                                         Cyber                                      Spain
                                                            8                                                                      Finland
                                                            7                                                                      France
                                                                                                                                   Croatia
                                                            6
                                                                                                                                   Italy
                                                            5                                           Instability/failed         Netherlands
  Uncontrolled and                                                                                       states/regional           Poland
 irregular migration                                        4
                                                                                                            con icts               United Kingdom
                                                            3
                                                            2
                                                            1
                                                            0

   Technology                                                                                            Disruption of communication,
 related trends                                                                                              critical infrastructure,
                                                                                                          transport and transit routes

                       Hybrid                                                            Conventional
                                                                                                                         Source: European Political Strategy Centre based
                       Environment and resource constraints (incl. health risks, climate change,                         on a review of a representative sample of national
                            water scarcity and increasing energy needs/natural disasters)                                security documents
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
• US First                                                           bmlv.gv.at

  EU /n’Roll
• Rock          RUSSLAND
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                         201

    • Sanktionen – Wirtschaft, Zusammenarbeit, diplomatische Beziehungen
    • Unterschiedliche Wahrnehmungen der Mitgliedstaaten
    • Aufrechterhaltung Dialog               • EU-27 ???
                                             • Integration vs. Escape
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
Wars and conflicts on
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MIGRATION
the periphery of
 EU-Ratspräsidentschaft 201

Europe
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
Terror, Dead & Injured
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MIGRATION
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       in Europe
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
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   European Border
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                             & Coast Guard
• Redistribution - resettlement - repatriation
   EU-Turkey Agreement
A Europe that protects - Paving the way for a Defence Union? Alpeuregio Summer School
• credible                 bmlv.gv.at

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                                 • responsive
                                 • networked

                             •   Peace & Security
                             •   Prosperity
                             •   Democracy
                             •   Based on existing world order
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    Europe and its citizens are protected by the EU and
       defended by NATO (see EU-Global Strategy)
• The strength of the EU lies in the integrated security approach
• The EU also wants to become a global security player and
  more self-sufficient seeking autonomy
• But:
      • 22 of 28 EU Members are NATO allies
      • over 90 % der EU-citizens live in a NATO country
      • 80% of defence expenditures within NATO after BREXIT will be
        provided by Non-EU Member States
      • NATO = „military standardization entity“; plus: training & exercises        11
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                                     Political context

     July 2014        Political guidelines of President Juncker: strengthening European citizens' security is a priority.
                      Europe must become a security provider.

September 2016        State of the Union speech in 2016: announcement of the creation of a European Defence Fund and
                      the need to go towards a European Defence Union.

                      European Defence Action Plan adopted, the Commission announced the initial parameter of a
November 2016
                      possible European Defence Fund, and started the Preparatory Action on Defence Research with a
                      budget of €90m for 3 years.

     June 2017        Commission launched the European Defence Fund: A two step approach
                           Two initial programmes in the current budget (the Preparatory Action and a proposal for the European Defence
                           Industrial Development Programme)
                           Scaled up funding for the new MFF: European Defence Fund

December 2017
                      Permanent Structure Cooperation (PESCO) with 25 Member States, and 34 concrete operational
                      cooperation projects

     June 2018        Commission adopted its proposal for a European Defence Fund regulation

      July 2018       Council and European Parliament adopted the EDIDP regulation
The European Defence Union can foster enhanced                                                                  and sea transport, remotely piloted aircraft systems,
defence solidarity, more joined-up security output,                                                                                                          bmlv.gv.at
                                                                                                                command and control (C2) – are the key references
and modern capability development for Member                                                                    for capability development. The EU Capability
States beyond their national resources. The                                                                     Development Plan (CDP), the Coordinated Annual
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individual               201 be further strengthened
           components must                                                                                      Review on Defence (CARD), the Permanent Structured
through joint EU-level action. They will be invigorated                                                         Cooperation (PESCO) and the European Defence Fund

 In defence of Europe: laying the foundations
Figure 1: Ambition, cohesion and complementarity: the foundations of a credible
              of Union
European Defence    a European Defence Union
                                                                       European Defence Union

                                                             EU Global Strategy on Foreign and Security Policy
                             Bi-/ multilateral cooperation
                                   among Member States

                                                               PESCO

                                                                       CARD / CDP

                                                                                    EDF 2017-20

                                                                                                        CSDP missions &
                                                                                                  agreed forces, incl. OHQ

                                                                                                                                   MFF 2021-27 &
                                                                                                                             European Peace Facility

                                                                                                                                                       Common Strategic Culture

                                                                                                                                                                                  Core partnerships NATO/ UN
                                                             Political will to invest in European security and
                                                             progressively frame a common defence policy 3

Source: European Political Strategy Centre
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                               Fragmentation ...

                             ... the case for greater cooperation on defence?
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    Rationale for the European Defence Fund
                              Reduction of inefficiencies of the current market,
      ECONOMIC
                                     synergies and economies of scale

      STRATEGIC                       Strategic autonomy of the Union

                             Protection of the basic interest of the Union and its
       POLITICAL
                                               Member States

      World class cutting-edge capabilities are only
      available at global market conditions!
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EPSC Brief
     Fuelling the Defence Union with resources
Figure 4: Next Multiannual Financial Framework: EU defence budget scheduled for major
expansion
                                            EU BUDGET
                                                                    22x                                    OFF BUDGET
                             2014-2020                               2021-2027                             2021-2027
   European                           590 m€*       x22                13 bn€             European           10.5 bn€
   Defence                                                                                Peace
   Fund                              90 m€ Research               4.1 bn€ Research        Facility   3 party peace operations
                                                                                                      rd

                                     500 m€                       8.9 bn€ Development                CSDP military missions'
                                     Development                                                     joint costs
   Connecting                                                                                        Non-EU countries' armed
   Europe                                                                                            forces
   Facility                                                             6.5 bn€
                                                                  Military Mobility
   *Starting as of 2017

Source: European Commission, European Political Strategy Centre

 • 2021-2027
Fuelling       budgets are
          the Defence       still proposals!
                        Union:          ‘The 13 billion euro European Defence
                                          Fund is the instrument to support
   Investment
•matching       decisions
            ambitions withshould   be based   on defence capability
                                      European defence cooperation and defence
   priorities agreed by the Member States
                                        capabilities development. By spending
resources                                together, we spend better towards a
While the European Defence Fund and its two windows                               credible Defence Union that protects
represent solid first steps on the EU level, more                                          European citizens.’
Member States’ forces will have to adapt to changing dynamics in the pace, nature and location of
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technological innovation – raising new threats and challenges. In the past, it was the military that
drove the cutting edge of technological innovation, often with beneficial ‘spill overs’ into wider civilian
      EU-Ratspräsidentschaft 201
life such as satellite navigation or the Internet.

              Investments on Artificial Intelligence
That relationship is now being reversed. The combined defence R&D expenditure of the 27 EDA pMS
is significantly smaller than the annual research spending of leading commercial companies – many
of them based outside of Europe, including in the US or Asia.

        Comparison of defence R&D of EDA-27 with top commercial research spenders (€bn)
                   Amazon (USA)                                                                   14,2
                  Alphabet (USA)                                                         12,3
              Samsung (S. Korea)                                                     11,2
                       Intel (USA)                                                   11,2
          Volkswagen (Germany)                                                    10,7
                  Microsoft (USA)                                                 10,6
              Roche (Switzerland)                                               10,1
                Merck (Germany)                                           8,9
                      Apple (USA)                                         8,8
          Defence R&D of EDA-27                                          8,8
            Novartis (Switzerland)                                      8,5
                  Toyota (Japan)                                       8,2
         Johnson & Johnson (USA)                                      8,1
                                     0,0   2,0   4,0    6,0     8,0       10,0     12,0    14,0     16,0

         The commercial sector has the lead role in AI development
At the same
         Thetime,   non-statespent
              US Pentagon     actors$7.4
                                     are bn
                                         using
                                            on ‘dual-use’
                                                AI in 2017commercial off-the-shelf (COTS) technology to
improvise low-cost and adaptable alternatives to expensive military equipment. These could include
deploying fleets of cheap, disposable unmanned air vehicles (UAVs), launching cyberattacks on military
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                 EUR 13 billion for 2021 - 2027
  2021-2027:                                        EU financing rate:

                                                    § Research: up to 100%

                                                    § Prototypes: up to 20%

                                                    § Post-prototype: up to 80%

  Additional incentives:
  •   Cross-border participation of SMEs/midcaps – EU funding rate increasing
      with the level of cross-border participation of SMEs/midcaps in the projects
      (higher for SMEs)
  •   PESCO (if eligible): +10% co-financing bonus
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        EU-Ratspräsidentschaft 201
 orging more strategic
                                          Figure 6: Culture of cooperation:
               Culture of                cooperation:
                                          a virtuous cycle a virtuous cycle
Fighting for the same
 eatre generates similar
 ation of military personnel
ed experiences from the                                                                Common experiences
nd Afghanistan, that                                                     • 100.000 personnel served under t e E a
                                                                           in CSDP missions and operations since 2003
king today. The PESCO
                                                                         • 10 EU-level military exercises planned or
 n EU military operations

                                                                                                                             li nin Strate ic Culture
                                               Cooperation in Practice

 ntion Initiative spearheaded
                                                                                       Common capabilities
heir own way further
                                                                         • Joint planning t rou PESCO C D and t e CDP
 tegic convergence between                                               • Joint R&D ED and t e European Securit nitiative
 tes.                                                                    • oint procurement and maintenance
Operating with equipment                                                 • 180 projects ort over     illion ana ed
                                                                              ED since
more and more geared
      The number of personnel is based on
national   planners and
      an EU Military Staff estimate, taking                                         Common doctrine/training
eir own
      intocapabilities
           account that multiple individuals
e wider   mosaic
      rotate throughof  alliedposition in a
                     a single                                            •         o cers trained at t e European Security
      CSDP mission  or operation per year.                                 and Defence College
  a similar  understanding                                               • Soldiers receivin trainin ollo in bilateral
more likely develop a more                                                 exchange agreements and Military Erasmus
 what they should do.
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                     The other side of the coin?
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                                       The Legislative Tube

Source: better europe public affairs

               • Accelerating the speed of the legislative train
               • Challenge for the negotiating parties
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                    The EDF Legislative Process
• Early communication with institutional stakeholders, in particular
    • European Commission | DG GROW
    • Council of the European Union | General Secretariat
      • European Parliament | leading EP committee
      • Incoming presidency
• Continuous liaison with relevant / responsible governmental bodies in the
  capital
      • Ministries of Defence | Research | Finance | Economy | others
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                     Looking ahead – scenarios

• 2019                 EUCO, EC, VP/HR agree on Defence Union
     – EP makes political condition for EC & HR/VP appointment
• 2020 EUCO, MS establish Defence Union
     – EP contributes to Defence Union convent
• 2021                 First HICOM EURFOR appointment
     – EP contributes through financial decisions
• 2022                 First EUFOR operations & actions
• 2023                 MFF Revision secures budgeting of
                       Defence Union
• 2027+                MFF with fully fledged EU Defence Budget
• - 2030               EU treaty modification & strengthening
                       Defence Union
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