A4-0482/98

Resolution on the Communication from the Commission on implementing European Union strategy on defence-related industries (COM(97)0583 - C4-0223/98)

The European Parliament,

- having regard to the Communication from the Commission (COM(97)0583 - C4-0223/98),

- having regard to its resolutions of

. 14 May 1997 on the formulation of perspectives for the common security policy of the European Union ((OJ C 167, 2.6.1997, p. 99.)),

. 15 May 1997 on the Commission Communication on the challenges facing the European defence-related industry, a contribution for action at European level (COM(96)0010 - C4-0093/96) ((OJ C 167, 2.6.1997, p. 137.)),

. 14 May 1998 on the gradual establishment of a common defence policy for the European Union ((OJ C 167, 1.6.1998, p. 190.)),

- having regard to the code of conduct for arms exports adopted by the Council on 25 May 1998 and its resolutions of 15 January 1998 ((OJ C 34, 2.2.1998, p. 163.)) and 14 May 1998 ((OJ C 167, 1.6.1998, p. 226.)) on the subject,

- having regard to recommendation No 622 of the WEU Assembly on European cooperation in the field of defence equipment procurement ((See notice to members PE 224.946.)),

- having regard to the joint statement by Germany, France and the United Kingdom of 9 December 1997 on the aerospace and defence electronics industry, which was endorsed by Spain and Italy ((See notice to members PE 225.659.)),

- having regard to the joint statement of 20 April 1998 by the Ministers of Defence of the same countries, in which they agreed to give priority to trying to harmonise the needs of their armed forces so as to avoid unnecessary duplication of their procurement, research and technological development policies,

- having regard to the letter of intent on accompanying the industrial restructuring in the field of defence, signed in London on 6 July 1998 by the Defence Ministers of Germany, Spain, France, Italy, the United Kingdom and Sweden, which states the objectives and principles which the governments set themselves in order to encourage the creation and efficient operation of transnational companies in the field of defence equipment in Europe,

- having regard to the report of the Committee on Foreign Affairs, Security and Defence Policy and the opinion of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0482/98),

A. whereas the Amsterdam Treaty provides the Member States of the European Union for the first time with a legal basis (Article J.7, first paragraph) for developing cooperation on arms,

B. expressing regret that Article 223 of the EC Treaty was not amended at the Intergovernmental Conference to make its use absolutely exceptional,

C. stressing that the aim of creating a European Armaments Agency has yet to be achieved, but noting at the same time that OCCAR, together with the WEAO, may form the basis of the future agency,

D. whereas the European defence industry is far less advanced than its US counterpart and is unable effectively to maintain its technological capabilities, as indeed the Gulf War demonstrated,

E. whereas the code of conduct on arms exports is an essential element in the development of cooperation in the field of arms, even though its prime objective is to make a form of trade with specific characteristics more transparent,

F. whereas the new code of conduct is a small step towards the adoption of legally binding rules on arms exports at European level,

G. having regard to the WEU meeting on 16 and 17 November 1998 in Rome and the Master Plan adopted on this occasion by WEAO,

1. Backs the efforts made by the Member States of the European Union and European defence companies to restructure the arms industry sector, with the aim of achieving the introduction of a European arms policy based on the existence of a competitive technological and industrial base;

2. Firmly believes that a European research and technology policy should provide scope for contributing towards an autonomous defence capability founded on a strong industrial base;

3. Maintains that a European arms policy is an essential element in the gradual development of a common defence policy in the context of the CFSP and the establishment of a European security and defence identity within NATO;

4. Notes that a European arms policy in the service of the CFSP is compatible with the objective of global disarmament;

With regard to the Action Plan

5. Welcomes the Action Plan proposed by the Commission in its communication;

6. Considers that this Action Plan is a coherent set of measures aimed at extending the single market to defence equipment; therefore calls on the Commission to submit to the Council, on this basis, proposals designed to promote the gradual emergence of a common policy in the arms sector;

7. Calls on the Commission to adhere rigorously to its timetable for major actions presented in the Action Plan for the defence-related industry;

8. Considers that the introduction of a defence technological and industrial base depends on close cooperation between the European Union and the WEU; notes that the Military Committee of the WEU and the WEAG may help to identify the needs common to the countries of the European Union, which would enable them to coordinate purchases of the same military equipment with the best cost/effectiveness ratio;

9. Hopes for better coordination among all the initiatives launched by the states of Europe in the form of arms cooperation bodies, common arms programmes or encouragement of industrial restructuring; to that end, hopes that the European Union will in the initial stages be granted observer status in the armaments cooperation bodies;

10. Notes the decision by four member countries of OCCAR to give that organisation a legal personality, thus enabling it to draw up contracts directly with the industry, and hopes that it will be merged with the WEAO to form the European Armaments Agency referred to in the Treaty on European Union;

11. In this respect, welcomes the Master Plan adopted by WEAG as the basis for further development and actions towards the European Armaments Agency;

12. Notes that the aerospace sector is the one in which the pooling of the Member States' know-how and industrial and technological resources is needed most urgently but is also most promising;

13. Notes, at the same time, that cooperation between European countries is still inadequate in the sphere of land and naval equipment and that the restructuring of the industries operating in these sectors is still far from being achieved, which is bound to cause social and regional development problems;

14. Regrets, from this point of view, the completion in 1999 of the KONVER programme, which indirectly constitutes an instrument facilitating the restructuring of the defence-related industries; notes that in view of the forthcoming enlargement of the European Union to include the CEECs, a programme of this kind, adapted to the needs of the countries in question, could also play a very useful role; therefore calls on the Commission to take these factors into consideration and to propose that the duration and geographical scope of the KONVER programme be extended;

15. Urges the Member States to clear the way for the cross-border consolidation of the arms industry in Europe while not ignoring the need for a strong competition policy based on existing Community competition policy arrangements; in this connection calls - again - for progress on the European Company Statute;

16. Welcomes the code of conduct on arms exports, but stresses that this is an initial step towards the adoption of legally binding rules on arms exports at European level;

17. Urges the Council to quickly establish a joint list containing the military equipment covered by the code of conduct;

18. Welcomes the expressed intention of the new German Presidency and the initiatives to be taken in this perspective to make this code mandatory for all Member States of the European Union; expresses its opinion that such should be done at the strictest level possible;

19. Notes that the European code of conduct on arms exports will be reviewed under the German Presidency; also notes that the new German Federal Government will submit its arms exports report each year to the German Bundestag; calls on the Council to forward to it each year the consolidated report on the implementation of the code of conduct, which will be drawn up on the basis of contributions from the Member States;

20. Stresses that this report, as well as the individual contributions made by the States should be examined jointly by the European Parliament and the WEU Assembly, in particular in the context of the delegation proposed in its above-mentioned resolution of 14 May 1998, so as to ensure democratic control over the way in which the States implement the code of conduct;

21. Calls on the Commission, at the same time, to continue its work on drawing up a White Paper on arms exports, as requested in its above-mentioned resolution of 15 May 1997, highlighting the points on which the code of conduct might be amended or supplemented, the aim being to make arms exports compatible with the European Union's foreign policy objectives;

22. Notes that the intra-Community arms trade is developing slowly; therefore proposes, with a view to the gradual introduction of a unified arms market, the drafting of an internal code of conduct limiting the opportunities for invoking Article 223 of the EC Treaty;

23. Calls upon all EU Member States to ratify and implement the Ottawa Treaty on Anti-Personnel Landmines as soon as possible;

24. Welcomes the new joint action of 17 December 1998 on small arms and calls on the Member States to implement it as a matter of priority and with sufficient financial backing;

25. Recognizes the tremendous harm caused in the developing world by the heavy flows of light weapons and small arms, believing the restriction of such flows to be absolutely essential to promoting the security and development aims of the Union; believes that the production of such weapons, and their export from the Union, should be placed under extremely restrictive controls; therefore welcomes the joint action of the Council of 17 December 1998 in this perspective;

26. Takes the view that the harmonisation of the presidencies of the European Union and the WEU as of 1 January 1999 must provide an opportunity for bringing together the Foreign and Defence Ministers of the Member States of the Union to debate the conditions required for the emergence of a common policy in the arms sphere;

27. Notes that the associated members and associated partners of the WEU - some of which are applicants for membership of the European Union - could be invited to take part in these deliberations, insofar as most of them will one day become members of the European Union;

28. Considers it essential to include the CEECs in the move to restructure defence-related industries, so as not to waste the know-how in those countries and with a view to preparing for their inclusion in the CFSP and in the European security and defence identity; calls on the applicant countries to subscribe to the EU Code of conduct on arms exports of 25 May 1998;

29. Warmly welcomes the indication by the associated countries of Central and Eastern Europe, and Cyprus, Norway and Iceland that they share and subscribe to the objectives of the EU Code of Conduct on arms exports; nevertheless notes with concern that arms export controls in the CEECs tend to be very lax; considers it essential that, as a minimum standard, the CEECs should adopt and implement strict controls on their arms exports; urges the Commission in this connection to proceed without delay to an assessment of the situation of the defence-related industries in these countries;

30. Maintains that the development of a European technological and industrial defence base is not incompatible with the establishment of cooperation links with countries such as the United States, Russia and Ukraine and that in this context certain projects might be developed jointly, for example to devise equipment appropriate for missions of the Petersberg type;

31. Similarly takes the view that the development of a European technological and industrial base would provide enhanced opportunities for the establishment of cooperation links with countries such as the United States, Russia and Ukraine with a view to protecting against threats linked to the proliferation of weapons of mass destruction and their delivery vehicles;

With regard to the draft common position

32. Welcomes the Commission's initiative in proposing a draft common position to the Council and calls on the latter to adopt it, taking into account the amendments proposed below, so as to assert the Union's determination to make progress in establishing a technological and industrial defence base to be used by the CFSP;

(Amendment 1)

First recital

>Original text>

Whereas drawing up a European armaments policy based on the existence of a competitive technological and industrial base is an essential precondition for the development of a European defence identity within the framework of the Common Foreign and Security Policy;

>Text following EP vote>

Whereas drawing up a European armaments policy based on the existence of a competitive technological and industrial base is

one of the essential preconditions for the development of a European security and defence identity within the framework of the Common Foreign and Security Policy,

(Amendment 2)

Fourth recital

>Original text>

Whereas Community policies and instruments can make an important contribution to developing a European armaments policy;

>Text following EP vote>

Whereas

the policies and instruments referred to in the Treaty establishing the European Community and the Treaty on European Union can make an important contribution to developing a European armaments policy, in synergy with the measures carried out among European countries in a bilateral or multilateral framework,

(Amendment 3)

Fifth recital

>Original text>

Whereas the Commission Communications of January 1996 on the defence-related industries and of September 1997 on the European aerospace industry, which focus on the urgent need to restructure the industries at European level and promote synergy between military and non-military production and trade, demonstrate the necessity of taking action at European level, in particular through the Community;

>Text following EP vote>

Whereas the Commission Communications of January 1996 on the defence-related industries and of September 1997 on the European aerospace industry, which focus on the urgent need to restructure the industries at European level and promote synergy between military and non-military production and trade, demonstrate the necessity of taking action at European level,

by using the instruments provided for in the Treaty establishing the European Community and Title V of the Treaty on European Union,

(Amendment 4)

Sixth recital

>Original text>

Whereas it is necessary to protect the industrial and technological defence base and promote the competitiveness of the European industry;

>Text following EP vote>

Whereas it is necessary to protect

and develop the industrial and technological defence base and therefore to promote the competitiveness of the European defence-related industries,

(Amendment 5)

Ninth recital

>Original text>

Whereas it is in the interests of the European Union and the Community that certain imports of arms and equipment for the European armed forces should benefit from exemption from customs duties and a list of equipments suitable for exemption from such duties is therefore needed;

>Text following EP vote>

Whereas it is in the interests of the European Union and the Community that certain imports of arms and equipment for the armed forces

of the Member States of the Union should benefit from exemption from customs duties provided that this does not lead to distortions of competition on the single market and a list of equipments suitable for exemption from such duties, to be reviewed annually, is therefore needed;

(Amendment 6)

Tenth recital

>Original text>

Whereas, in accordance with Article 223(2) of the Treaty the Council has drawn up a list of products to which the provisions of Article 223(1)(b) apply,

>Text following EP vote>

Whereas

the harmonised application of Article 223 of the Treaty establishing the European Community by the Member States, taking into account the specific nature of the arms sector, will enable the single market to be extended to defence equipment and hence promote the development of a European arms policy,

(Amendment 7)

Article 3

>Original text>

The Council notes that European armaments policy is linked to Community policies, in particular on industry, trade, customs, the regions, competition, innovation and research.

>Text following EP vote>

The Council notes that European armaments policy

, an essential element in the gradual development of a common defence policy, is linked to both the CFSP and Community policies, in particular on industry, trade, customs, the regions, competition, innovation and research;

(Amendment 8)

Article 4

>Original text>

The Council notes that the Commission has presented an Action Plan for the defence-related industries calling for the application of a number of Community instruments and that the Commission will take the appropriate initiatives to ensure that it is implemented. The Council declares its intention of using the Plan to further develop a European armaments policy.

>Text following EP vote>

The Council notes that the Commission has presented an Action Plan for the defence-related industries calling for the application of a number of Community instruments and that the Commission will take the appropriate initiatives to ensure that it is implemented. The Council declares its intention of using the Plan to further develop a European armaments policy

with a view to developing the CFSP and a European security and defence identity, whilst respecting each institution's sphere of competence;

(Amendment 9)

Article 5(2)

>Original text>

2. Customs

>Text following EP vote>

2. Customs

>Original text>

The Council undertakes to draw up, before 31 December 1998, a list of products which could be exempt from the common customs tariff in the light of the defence needs of the Member States and the desirability of encouraging the development of a European armaments policy.

>Text following EP vote>

The Council undertakes to draw up, before 31 December 1998, a list of products which could be exempt from the common customs tariff in the light of the defence needs of the Member States and the desirability of encouraging the development of a European armaments policy

whilst ensuring that no distortions of competition are created in the single market. This list shall be revised annually.

>Original text>

Taking account of this list Commission will, where appropriate, make appropriate proposals for exemptions based on the Treaty establishing the European Community.

>Text following EP vote>

Taking account of this list Commission will, where appropriate, make appropriate proposals for exemptions based on the Treaty establishing the European Community.

(Amendment 10)

Article 6

>Original text>

This Common Position shall be reviewed 18 months after its adoption.

>Text following EP vote>

This Common Position shall be reviewed 18 months after its adoption.

The Council will continue its efforts to set up a European Armaments Agency. The European Parliament will be kept informed of developments in this sphere in accordance with Article J.7 of the Treaty on European Union.

33. Takes the view that this common position must be extended by common actions in the context of the CFSP aimed at setting up the structures needed for cooperation in the arms sphere, starting with the European Armaments Agency, and at drawing up military programmes to meet the needs of the CFSP, in particular for carrying out 'Petersberg' missions;

34. Instructs its President to forward this resolution to the Commission and the Council, the WEU, NATO, the countries of Central and Eastern Europe, Russia, the Ukraine and the United States.