on the position to be adopted, on behalf of the European Union, within the EEA Joint Committee concerning an amendment to Protocol 31 to the EEA Agreement (The Union's preparatory action on defence research)

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The draft Decision of the EEA Joint Committee (annexed to the proposed Council Decision) aims to amend Protocol 31 to the EEA Agreement in order to continue the participation of EEA EFTA States (Norway) in the Union’s Preparatory Action on Defence Research (henceforth "Preparatory Action") in the financial year 2018.

As Liechtenstein and Iceland did not express their interest in participating in this Preparatory Action, the draft Decision of the EEA Joint Committee therefore concerns only Norway.

•Consistency with existing policy provisions in the policy area

The EEA Agreement foresees in Article 78 that the Contracting Parties shall strengthen and broaden cooperation in the framework of the EU's activities in the fields of research and technological development. The Commission, which currently finances exclusively civilian or dual-use R&D through its Horizon 2020 programme, considers the Preparatory Action as a major instrument for testing the added-value of defence-related research from the EU budget.

Norway already participated in the Preparatory Action in the previous year 2017. In addition, Norway had concluded a Cooperation Agreement with the European Defence Agency and the related Defence and Security Procurement Directive (2009/81/EC), had been incorporated into the EEA Agreement already in 2014.

•Consistency with other Union policies

Cooperative defence research in innovative technologies, products and services is key to safeguarding the long-term competitiveness of the defence sector and, ultimately, Europe's strategic autonomy. The cooperation with Norway therefore positively contributes to the EU's efforts in this field.

The Commission recognises that the Preparatory Action is part of its policies related to the internal market, industry and research. Further deepening of cooperation in this area in this area is therefore in line with objectives of the EEA Agreement.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

The legal basis is Articles 54(2)(b), 84(2) and Article 124 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 in conjunction with Article 1(3) of Council Regulation (EC) No 2894/94 concerning arrangements for implementing the EEA Agreement providing that the Council establishes the position to be adopted on the Union’s behalf on such Decisions, on a proposal from the Commission.

The Commission in cooperation with the EEAS submits the draft Decision of the EEA Joint Committee for adoption by the Council as the Union’s position. The Commission would hope to be able to present it in the EEA Joint Committee at the earliest possible opportunity.

•Subsidiarity (for non-exclusive competence)

The proposal complies with the subsidiarity principle for the following reason.

The objective of this proposal, namely to establishing cooperation in the area of defence research with EEA EFTA States through its participation in a Preparatory Action financed by the EU budget, cannot be sufficiently achieved by the Member States and can therefore, by reason of the effects, be better achieved at Union level.

•Proportionality