Council Recommendation of 18 November 2024 assessing the progress made by the participating Member States to fulfil commitments undertaken in the framework of the permanent structured cooperation (PESCO)
Date: 2024-11-18
Institutions: Council of the European Union
Subjects: EU Member State, European defence policy, European security, common security and defence policy, military cooperation








C_202406982EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2024/6982


19.11.2024







            COUNCIL RECOMMENDATION
         
of 18 November 2024
         
assessing the progress made by the participating Member States to fulfil commitments undertaken in the framework of the permanent structured cooperation (PESCO)
(C/2024/6982)


THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European Union, in particular Article 46(6) thereof,


Having regard to Protocol No 10 on permanent structured cooperation established by Article 42 of the Treaty on European Union attached to the Treaty on European Union and to the Treaty on the Functioning of the European Union,


Having regard to Council Decision (CFSP) 2017/2315 of 11 December 2017 establishing permanent structured cooperation (PESCO) and determining the list of participating Member States (1),


Having regard to the proposal from the High Representative of the Union for Foreign Affairs and Security Policy,

Whereas:







(1)


Article 4(2)(d) of Decision (CFSP) 2017/2315 provides that the Council is to adopt decisions and recommendations on assessing the contributions of participating Member States (pMS) to fulfil the agreed commitments, according to the mechanism described in Article 6 of that Decision.












(2)


Article 6(3) of Decision (CFSP) 2017/2315 provides that, on the basis of the annual report on permanent structured cooperation (PESCO) presented by the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’), the Council is to review once a year whether the pMS continue to fulfil the more binding commitments referred to in Article 3 of that Decision.












(3)


Appendix 1 to the Annex to the Council conclusions of 20 November 2020 on the PESCO Strategic Review 2020 specifies that the High Representative is to present the annual report on PESCO implementation by July of each year, with a view to the Council adopting its recommendation assessing the progress made by the pMS to fulfil the commitments undertaken in the framework of PESCO by November of that year. Paragraph 16 of the Council Recommendation of 6 March 2018 concerning a roadmap for the implementation of PESCO (2) provides that the Military Committee of the European Union (EUMC) should provide the Political and Security Committee with military advice and recommendations to enable it to prepare the Council’s review on whether the pMS continue to fulfil the more binding commitments.












(4)


Paragraph 26 of the Council Recommendation of 16 November 2021 concerning the sequencing of the fulfilment of the more binding commitments undertaken in the framework of PESCO and specifying more precise objectives, and repealing the Recommendation of 15 October 2018 (3) (the ‘Recommendation of 16 November 2021’), provides that the pMS will review and update their national implementation plans (NIPs) accordingly and communicate them to the PESCO secretariat by 10 March 2022, and annually thereafter by the same date in accordance with Article 3(2) of Decision (CFSP) 2017/2315, in view of the assessment process set out in Article 6(3) of that Decision. Every other year, the NIPs should be accompanied by a high-level political statement in which the pMS could outline main achievements, state specific national priorities and share their experience in terms of planning and contributions to the fulfilment of all more binding commitments.












(5)


Paragraph 28 of the Recommendation of 16 November 2021 provides that the High Representative should take into account that Recommendation in the annual report on PESCO from 2022 onwards, which will support the assessment of the fulfilment of the more binding commitments by each pMS.












(6)


On 23 May 2023, the Council adopted Decision (CFSP) 2023/1015 (4), which, inter alia, confirmed the participation of Denmark in PESCO.












(7)


On 13 November 2023, the Council adopted its Recommendation (5) assessing the progress made by the pMS to fulfil commitments undertaken in the framework of the permanent structured cooperation, providing guidance for the implementation of PESCO, as well as for the PESCO Strategic Review, including its aim and timeline.












(8)


On 20 March 2024, the High Representative submitted the annual report on Strategic Compass implementation, which stressed that PESCO remains a crucial framework for defence cooperation to increase the ability to act and invest together and noted that the Strategic Review provides a major opportunity to adapt PESCO to the changed environment and to make it fit for purpose for the coming years.












(9)


On 27 May 2024 the Council approved Conclusions on EU Security and Defence, in which it stressed that PESCO is a central framework to deepen defence cooperation among pMS at Union level, enhancing operational readiness and interoperability, defence spending and investment, capability development, and the contribution of their armed forces to the most demanding missions, as well as helping to build a common strategic culture. The Council also provided guidance to the ongoing PESCO Strategic Review, addressing both the more binding commitments and collaborative projects.












(10)


On 31 July 2024, the High Representative provided the Council with the Annual Report on the status of PESCO implementation (the ‘Annual Report’), including on the fulfilment by each pMS of its commitments, in accordance with its updated and reviewed NIP, as well as presenting recommendations, on the basis of the Strategic Review reflection phase, on tailoring PESCO for its second phase from 2026 to 2030 to better respond and deliver in the changing security environment.












(11)


The Council should therefore adopt a Recommendation assessing the progress made by the pMS to fulfil commitments undertaken in the framework of PESCO,





HAS ADOPTED THIS RECOMMENDATION:


I.   Objective and scope









1.


The objective of this Recommendation is to assess the contributions made by the pMS to fulfil the 20 more binding commitments undertaken in the framework of PESCO. The assessment is based on the Annual Report provided by the High Representative on 31 July 2024 and on the NIPs presented by the pMS in 2024, which were accompanied by high-level political statements. This year, the Annual Report contains a section dedicated to the PESCO Strategic Review.




II.   Findings and recommendations









2.


The Annual Report offers a solid basis to assess the status of PESCO implementation, including the fulfilment of the 20 more binding commitments, including through the PESCO projects, by each pMS in accordance with its NIP.












3.


The Council notes that, in line with the biennial cycle, all pMS have accompanied their NIPs with a high-level political statement, outlining main achievements and stating specific national priorities and contributions to the fulfilment of the more binding commitments. The Council stresses the relevance of focused NIPs as basis for the assessment of progress in PESCO and that of the political statements as a means of ensuring the necessary political ownership.












4.


The Council recognises the progress made by pMS in adopting a more strategic and policy-driven approach in their NIPs, supported by examples of concrete actions taken. However, it emphasises the need for continued efforts to better reflect in those NIPs the defence policies, forward-looking strategies and planning, and long-term objectives of the pMs. Doing so will help to articulate the political intent and vision for fulfilling commitments. This approach will also contribute to the political visibility of the initiative.












5.


The Council underlines that, during the reporting period, PESCO remained a central framework to deepen defence cooperation among pMS at Union level, enhancing operational readiness and interoperability, defence spending and investment, capability development, and the contribution of their armed forces to the most demanding missions, as well as helping to build a common strategic culture.












6.


The Council welcomes that the Annual Report includes recommendations specific to the PESCO Strategic Review, based on the outcomes of the reflection phase of the Review, conducted in line with the Council Recommendation of 13 November 2023.





Commitments









7.


In the current geopolitical context, the Council welcomes the enhanced cooperation in the PESCO framework and the improvements across all the commitment areas. At the same time, it acknowledges that further progress is needed for the fulfilment of all commitments by the end of the second PESCO initial phase, in 2025.












8.


To that effect, the Council underlines that:






(a)


responding to the changed security environment, the vast majority of pMS have continued to increase their defence expenditure, leading to a 10 % defence expenditure increase in 2023 compared to 2022. Further increases are foreseen in 2024, with defence expenditure projected to rise by 16 %, reaching an 1,9 % of EU GDP. Approximately half of pMS spend more than 2 % of their GDP on defence, also meeting the relevant NATO guideline, where applicable. Most pMS have also spent at least 20 % of their total defence budget on defence investment, thus reaching the level set in the collective benchmark established by EDA Ministerial Steering Board in 2007. The Council therefore notes that the two relevant commitments can be considered largely fulfilled in the initial phase of PESCO.
Despite an overall increase of 28 % in EU defence research and technology investment in 2024, most pMS contributions towards reaching the collective benchmark remain below 2 %, with an overall 1,6 % of total defence expenditure. The pMS have been spending more, but not more together: the increased defence expenditure and investment have not been translated into more collaborative projects. Joint procurement activities and new instruments and legislative proposals at Union level, such as the Regulation establishing an instrument for the reinforcement of the European defence industry through common Procurement (EDIRPA) and a Regulation proposed by the Commission ‘establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products’ (EDIP), could help reverse this tendency, thus supporting the achievement of the European collaborative defence equipment procurement (35 %) and European collaborative defence R&T (20 %) benchmarks established by EDA Ministerial Steering Board in 2007. The Council recalls that boosting research, technology, development and innovation, as well as acquisition, particularly in cooperation among pMS, should remain a priority for the pMS, while striking the right balance between long-term innovation for future capabilities and adequate quantities of military equipment and stockpiles, also with a view to strengthening the European Defence Technological and Industrial Base (EDTIB).










(b)


the pMS have demonstrated improvements in the use of the EU capability development tools and initiatives as references in national processes, and most have demonstrated interest in exploring their best use to support their efforts in the future. As numerous pMS acknowledge that the 2023 EU Capability Development Priorities are in line with their national priorities, this alignment could result in an enhanced cooperation in addressing commonly identified EU capability gaps, while contributing to national needs, and NATO priorities, for those Member States which are also members of NATO. The Council recalls that pMS are encouraged to make full use of the EU prioritisation tools and initiatives, notably the EU Capability Development Plan (CDP) which serves as a central reference for EU capability development, taking into account the Headline Goal Process, as well as recommendations of the Coordinated Annual Review on Defence (CARD) to inform national planners. This is supporting the pMS’ efforts towards making their defence plans converge, where possible. The Council recalls that coherence of output between, on the one hand, the CDP and the CARD and, on the other hand, respective NATO processes such as the NATO Defence Planning Process has been and will continue to be ensured where requirements overlap, while recognising the different nature of the two organisations and their respective responsibilities and memberships.










(c)


the pMS have been committed to the implementation of the EU Rapid Deployment Capacity (EU RDC), a key deliverable of the Strategic Compass, with a view to reaching the EU RDC’s full operational capacity by 2025. The pMS have further contributed to filling the Battlegroups Roster, and have declared additional national modules to the Comprehensive Database, and many of them took part in the first EU live exercise, supporting the preparation of the EU RDC, in 2023. The Council welcomes the overall progress made and stresses the importance of pursuing efforts to sustain this positive trend through continued commitments to the EU RDC. The Council also encourages pMS to consider taking on the responsibility as framework nation for the EU Battlegroups. In parallel, in light of the critical gaps that most CSDP missions and operations were facing, it calls on pMS to urgently step up their contributions, while keeping in mind the single set of forces principle. All of these efforts will contribute to further increasing interoperability, readiness, and operational effectiveness. The Council also welcomes the finalisation of the re-assessment of the scope and definition of the common costs of military CSDP missions and operations, military exercises, and the EU RDC, and the resulting amendment of the EPF Council Decision. Regarding the Headline Goal Process, the Council encourages pMS to enhance the contributions to the Force Catalogue with all deployable national capabilities and to better reflect in the NIPs the planning efforts to address the High Impact Capability Goals.










(d)


while many pMS are reassessing their policies and strategies to make better use of a European collaborative approach in addressing national capability gaps, for the majority of pMS a European collaborative approach is still not sufficiently prioritised. The Council thus calls on the pMS to use their growing defence budgets to increase investments in European collaborative solutions, thus contributing to a more coherent EU defence landscape and to reducing technological and industrial dependencies. To further strengthen the European collaborative approach, pMS are also invited to better capitalise on the collaborative opportunities proposed in CARD to prepare new proposals for the upcoming sixth wave of PESCO projects.










(e)


The pMS have continued to use the European Defence Agency (EDA) as the European forum for joint capability development. The EDA’s key role as the Intergovernmental Defence nexus at EU level was reinforced through its Long-Term Review, recently adopted by the Ministers of Defence. EDA will support Member States with its five core tasks, related to identifying shared capability needs, enabling collaborative defence RT&I, harmonising requirements, aggregating demand towards joint procurement, and interfacing with EU civilian and defence policies. The pMS are encouraged to make best use of the reinforced role of EDA across the full capability development cycle, further improving the coherence of output with NATO.










(f)


through their continued and increased use of the European Defence Fund to support projects, pMS have contributed to cross-border cooperation and the strengthening of the EDTIB. Moreover, numerous pMS show growing support for a more integrated and stronger European defence industry, as evidenced also by their participation in instruments and initiatives such as EDIRPA and the Act in Support of Ammunition Production (ASAP). The Council strongly encourages pMS to increase efforts to ensure that their cooperation programmes and acquisition strategies have a positive impact on EDTIB, and to make best use of existing and future EU financial tools in this regard, including the European Defence Fund and those envisaged in the Regulation proposed by the Commission ‘establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products’. In its conclusions of 27 May 2024, the Council welcomed the presentation of the Joint Communication of the European Commission and the High Representative on a new European Defence Industrial Strategy and called on all work on it to be taken forward in coordination with Member States.
















9.


The Council further calls on each pMS to take into account the findings and recommendations presented in the Annual Report, and to review and update its contribution to the fulfilment of all the more binding commitments.





PESCO projects









10.


Noting the PESCO Projects Progress Report of 16 July 2024 (6), the Council welcomes the projects’ overall progress across all domains, with a significant number of projects having advanced to the execution phase. The Council also notes that over the past year, PESCO projects have continued to yield deliverables while some report delays.












11.


The Council underlines PESCO projects’ relevance for enhancing EU capabilities in the new geostrategic situation, while demonstrating their resilience and adaptability to multifaceted challenges. The Council notes that the continued relevance of PESCO projects is confirmed by an important increase in the level of pMS participation in the past year and by some third states expressing interest in joining specific projects.












12.


The Council highlights the need to address the implications of Russia’s war of aggression against Ukraine in the context of PESCO across different operational domains, including through current and future PESCO projects. The Council welcomes that, to this end, several ongoing projects are working to address lessons from the return of high-intensity warfare to the European continent, notably in the areas of indirect fire capabilities and medical training in the land domain, strategic air transport, securing control over airspace, reconnaissance, surveillance, and targeting capabilities in the air domain, protection of critical underwater infrastructure in the maritime domain, and cyber ranges in the cyber domain.












13.


The Council recalls that with a view to meeting the objectives set in the 2020 PESCO Strategic Review (7), 26 projects were to deliver concrete results or reach full operational capability (FOC) by 2025. The Council notes that currently half of these projects are expected to reach this objective, including two that have already successfully closed with deliverables in 2024: EUFOR Crisis Response Operation Core contributing to developing EU force sensing mechanisms, and European Medical Command, establishing a permanent medical capability supporting the coordination of military medical services of the Member States. This medical capability has already been used in support of EU CSDP missions and operations during the COVID-19 pandemic and provided assistance to Ukraine after the start of Russia’s war of aggression against that country.












14.


The Council welcomes that PESCO projects in the cyber and maritime domains are contributing to reaching the objectives of wider EU policies also benefitting the military domain, namely the EU Policy on Cyber Defence (8) and the EU Maritime Security Strategy (9). The Council also welcomes that the implementation of the new set of actions agreed in the 2024 Military Mobility Pledge will be facilitated by the PESCO projects Military Mobility and Network of Logistic Hubs in Europe providing an example of collaboration between PESCO projects.












15.


The Council highlights that EU institutions, bodies, and agencies stand to benefit from the outputs of PESCO projects thus optimising existing resources and improving their overall effectiveness. In this regard, several ongoing projects seek such cooperation.












16.


The Council highlights that a key element for the success of PESCO projects is a well-established proposal with an appropriate level of maturity, and a clear timeline. This was demonstrated by several projects adopted in May 2023 that are already making progress, and one project that started implementation in the PESCO framework from the execution phase.












17.


In view of the call for a sixth wave of PESCO project proposals, launched in July 2024, the Council stresses the need for the new projects to ensure full coherence with the 2023 EU Capability Development Priorities, including the High Impact Capability Goals, and the outcomes of the 2024 Coordinated Annual Review on Defence (CARD). The Council underlines that the collaborative opportunities identified through CARD should guide the Member States for new PESCO projects, and the possible continuation and expansion in scope of the existing ones. In light of the rapidly deteriorating threat landscape and the need to urgently enhance the defence readiness of the Union, as well as to meet the EU level of ambition, the Council encourages to consider new ambitious projects of strategic relevance focusing on those that will address the pMS’ most critically needed capabilities, also to ensure the protection of the Union and its citizens, and projects to support the EU RDC and CSDP missions and operations, preparedness, and interoperability of forces to further support the implementation of the Strategic Compass for Security and Defence.












18.


The Council recalls that third States that meet the general conditions could exceptionally be invited to participate in individual PESCO projects, in accordance with the invitation procedure contained in Decision (CFSP) 2020/1639. The Council reiterates that it looks forward to the future participation of the United Kingdom in the Military Mobility project, upon the completion of the Administrative Arrangement, as provided for in Council Decision (CFSP) 2022/2244 (10).




III.   PESCO Strategic Review









19.


The Council recalls its guidance, provided in its Recommendation of 13 November 2023 in relation to the PESCO Strategic Review, through which the pMS will assess the fulfilment of all PESCO commitments set for the initial phase, and discuss and decide on new commitments, with a view to embarking on a new stage towards European security and defence integration, in line with the Strategic Compass.












20.


In this context, the Council welcomes the successful conclusion of the reflection phase, conducted from November 2023 to May 2024, encompassing discussions among the pMS on the scope and depth of the PESCO Strategic Review and takes note of the recommendations reflected in the Annual Report.












21.


Recalling that the PESCO Strategic Review should result in a more strategic and effective PESCO beyond 2025, in order to finalise the decision phase, the Council will provide focused guidance on the future of PESCO through its Conclusions to be approved in November 2024.




IV.   Way forward









22.


The pMS should make further progress in the implementation of the 20 more binding commitments, with a view to fulfilling all of them by 2025, and the related projects, taking into account this Recommendation. The Council underlines that the projects should assist the pMS in fulfilling the more binding commitments.












23.


The Annual Report provided information on progress achieved in the fulfilment of the more binding commitments since the launch of PESCO in 2017 thus presenting the status of PESCO implementation as the initiative approaches the end of its initial phase in 2025. The pMS are therefore invited to validate the information in their NIPs for 2024 and only to add significant changes from the previous year, maintaining a focus on political and policy-related matters that alter or enhance the overall picture.












24.


The Council reaffirms the guidance outlined in its Recommendation of 13 November 2023, in particular as set out in paragraphs 20 to 23 thereof, pertaining to commitments, projects, coherence with other initiatives and processes, and overall political oversight, which remains valid. The Council urges the pMS to address that guidance, alongside the recommendations provided herein, while inviting them to implement, to the greatest extent possible within the current PESCO phase, the orientations which will be set forth in the Council Conclusions on the PESCO Strategic Review. This will help lay the groundwork for the second PESCO phase, scheduled to commence in 2026.












25.


In this regard, the Council looks forward to the amendment of the relevant PESCO legal acts in 2025 on the basis of the guidance to be provided in its forthcoming Conclusions on the PESCO Strategic Review, to be approved in November 2024.







Done at Brussels, 18 November 2024.


For the Council


The President

J. BORRELL FONTELLES
            





(1)  
            OJ L 331, 14.12.2017, p. 57.

(2)  
            OJ C 88, 8.3.2018, p. 1.

(3)  
            OJ C 464, 17.11.2021, p. 1.

(4)  Council Decision (CFSP) 2023/1015 of 23 May 2023 confirming the participation of Denmark in PESCO, and amending Decision (CFSP) 2017/2315 establishing permanent structured cooperation (PESCO) and determining the list of participating Member States (OJ L 136, 24.5.2023, p. 73).

(5)  Council Recommendation of 13 November 2023 assessing the progress made by the participating Member States to fulfil commitments undertaken in the framework of the permanent structured cooperation (PESCO) (OJ C, C/2023/994, 14.11.2023, ELI: http://data.europa.eu/eli/C/2023/994/oj).

(6)  PESCO Projects Progress Report of 16 July 2024 (12340/24).

(7)  Council Conclusions on the PESCO Strategic Review 2020 of 20 November 2020 (13188/20).

(8)  Council Conclusions on the EU Policy on Cyber Defence of 22 May 2023 (9618/23).

(9)  Council Conclusions on the Revised EU Maritime Security Strategy (EUMSS) and its Action Plan of 24 October 2023 (14280/23).

(10)  Council Decision (CFSP) 2022/2244 of 14 November 2022 on the participation of the United Kingdom of Great Britain and Northern Ireland in the PESCO project Military Mobility (OJ L 294, 15.11.2022, p. 22).


ELI: http://data.europa.eu/eli/C/2024/6982/oj
ISSN 1977-091X (electronic edition)