Resolution on the Communication from the Commission on implementing European Union strategy on defence-related industries (COM(97)0583 C4-0223/98)
Date: 1999-01-28
Institutions: Committee on Foreign Affairs, European Parliament
Subjects: EU policy, arms industry, defence policy, hiring, industrial restructuring, research and development

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7.  Defence-related industries

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 (1),

›  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) (2),

›  14  May  1998  on  the  gradual  establishment  of  a  common  defence  policy  for  the  European

Union (3),

›  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 (4) and 14 May 1998 (5) on the subject,

›  having regard to recommendation No 622 of the WEU Assembly on European cooperation in the field

of defence equipment procurement (6),

›  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 (7),

›  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,

(1)  OJ C 167, 2.6.1997, p. 99.
(2)  OJ C 167, 2.6.1997, p. 137.
(3)  OJ C 167, 1.6.1998, p. 190.
(4)  OJ C 34, 2.2.1998, p. 163.
(5)  OJ C 167, 1.6.1998, p. 226.
(6)  See notice to members PE 224.946.
(7)  See notice to members PE 225.659.

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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;

Firmly  believes  that  a  European  research  and  technology  policy  should  provide  scope  for

2.
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;

Notes that a European arms policy in the service of the CFSP is compatible with the objective of

4.
global disarmament;

With regard to the Action Plan

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

Considers that this Action Plan is a coherent set of measures aimed at extending the single market to
6.
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;

Calls  on  the  Commission  to  adhere  rigorously  to  its  timetable  for  major  actions  presented  in  the

7.
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;

In this respect, welcomes the Master Plan adopted by WEAG as the basis for further development

11.
and actions towards the European Armaments Agency;

Notes that the aerospace sector is the one in which the pooling of the Member States(cid:146) know-how

12.
and industrial and technological resources is needed most urgently but is also most promising;

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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;

Urges the Council to quickly establish a joint list containing the military equipment covered by the

17.
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(cid:146)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;

Calls upon all EU Member States to ratify and implement the Ottawa Treaty on Anti-Personnel

23.
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;

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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;

Similarly  takes  the  view  that  the  development  of  a  European  technological  and  industrial  base
31.
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(cid:146)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(cid:146)s determination to make progress in establishing a technological and industrial defence base to be
used by the CFSP;

TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

(Amendment 1)

First recital

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;

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

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

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

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TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

(Amendment 3)

Fifth recital

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;

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

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

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

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;

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)

10th recital

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;

Whereas  the  harmonised  application  of  Article  223  of  the
Treaty establishing the European Community by the Mem-
ber  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

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

The Council notes that European armaments policy, an essen-
tial  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;

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TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

(Amendment 8)

Article 4

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.

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 insti-
tution(cid:146)s sphere of competence;

(Amendment 9)

Article 5(2)

2.  Customs

2.  Customs

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.

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.

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

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

(Amendment 10)

Article 6

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

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 (cid:145)Petersberg(cid:146) missions;

*

*

*

Instructs  its  President  to  forward  this  resolution  to  the  Commission  and  the  Council,  the  WEU,

34.
NATO, the countries of Central and Eastern Europe, Russia, the Ukraine and the United States.