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2015 Issue 07 A magazine of European Defence Matters Research & Technology: the European option Interview: VADM The benefits “Enhancing Matthieu Borsboom, of maritime cooperation” – Defence Material surveillance Raimonds Vējonis, Organisation Director, data sharing Latvia’s Minister the Netherlands of Defence
CONTENTS © DLR Publishing Director Eric Platteau Contents Welcome Programmes and Industry Editor-in-Chief Guillaume Steuer 5 Publishing Director Eric Platteau and 18 New wings for Europe’s strategic tanker fleet Editorial Contributor Editor-In-Chief Guillaume Steuer introduce this Three European nations have agreed to move Philip Butterworth-Hayes edition of European Defence Matters forward and enter negotiations with Airbus Design Simon Smith Associates 20 Future capabilities: a long-term vision Printing European Defence News The EDA recently updated its Capability Drukkerij Hendrix NV Development Plan, a reference document for 6 News defence planners in Europe Kiezel Kleine-Brogel 55, B-3990 Peer New EDA Chief Executive Jorge Domecq takes Belgium office 22 Demand grows for non-lethal capabilities A ten-nation EDA project team is developing a new This document is published on behalf of the EDA 7 EU Affairs range of non-lethal capabilities by PMI Media Ltd in the interests of exchange of Successful RPAS deployment in support of information Operation Atalanta, EUFOR RCA brings ‘Unity Bridge’ Front cover image; © Airbus Other images; EDA to Bangui, Joint anti-piracy exercise carried out in In the Spotlight the Seychelles 24 “We need to look at an increased interdependence 8 Industry News with our EU allies” Contacts Thales and Rheinmetall to upgrade Tiger helicopter The Netherlands has been at the forefront of Eric Platteau flight simulators, Complex live-firing test for European Pooling & Sharing initiatives Head of Media and Communication European surface-to-air missile, France signs first Rafale export contract with Egypt, Saab teams up Guillaume Steuer Media and Communication Officer with Damen to address submarine market Operations and projects European Defence Agency 26 Maritime surveillance: a European challenge Rue des Drapiers 17-23 Surveillance of Europe’s vast maritime areas is a B-1050 Brussels Cover Story: key element of the Maritime Security Strategy www.eda.europa.eu Contact: info@eda.europa.eu Research and Technology 28 A greener future for Europe’s armed forces? 10 Preparing the future: European research at a Through a wide portfolio of projects, European Advertising crossroads countries are trying to expand the use of Diana Scogna, Commercial Manager Experts from the European Commission and the renewable energy in their armed forces 145 bis, Blvd. Voltaire, Bâtiment 9 European Defence Agency sit down with European 75011 Paris, France T: +336 62 52 25 47 dscogna@dsmedia.com.fr Defence Matters to provide their viewpoint on the way ahead Opinion 30 “The prerequisite for improving our security will be 13 “EU-funded research must lead to concrete enhancement of cooperation” procurement projects” Latvia holds the presidency of the European Union Eric Trappier, Chairman of the Defence Business for the first six months of 2015 Unit of the Aerospace and Defence Industries Association of Europe 34 “Shepherding Europe’s defence establishments towards more effective programmes” 14 Challenging times for the defence industry Nick Witney, Senior Policy Fellow at the European Fabio Liberti, EDA Project Officer in charge of Council on Foreign Relations defence and industry analysis 36 “Collaboration in defence investment should be 16 Trends in European defence spending the default option” In times of constant pressure on defence budgets Airbus Group Chief Executive Tom Enders shares its in the European Union, the European Defence long-term vision for European defence Agency has taken a close look at spending trends among Member States to produce its annual EDA is a member of the European Military Press Defence Data booklet Key Quotes Association 38 Key quotes and facts, index to advertisers Catalogue number QU-AC-15-001-EN-C ISSN (1977-5059) © The European Defence Agency (EDA) February 2015. All rights reserved. The entire contents of this publication are protected by copyright. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means: electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the EDA. The reproduction of advertisements in this publication does not in any way imply endorsement of their content by PMI Media Ltd or the EDA. The views expressed in the articles are those of the authors and do not necessarily reflect the official position or policy of the EDA. E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 3
Make this page work for you EUROPEAN DEFENCE MATTERS is a magazine that matters – and has reach. The official journal of the European Defence Agency, it is circulated to key Our typical readership, featuring appropriate decision makers across Europe involved in all individuals in every nation of the EU, breaks down aspects of defence planning, policy, capability into the following categories: development, research and technology and Senior political readers (9%) operations. Prime ministers, ministers, deputy ministers, state The journal supports the Agency’s four main tasks: secretaries, chefs de cabinet, senior advisors - defence departments, foreign affairs, economic development • developing defence capabilities; and EU affairs • promoting defence research and technology Other political readers (11%) (R&T); National parliamentarians, departmental managers, • promoting armaments co-operation; analysts, institutional officials • creating a competitive European defence Senior military readers (13%) equipment market and strengthening the Chiefs of defence, chiefs of staff, service chiefs, European defence, technological and industrial intelligence, budget, capability, research and base technology Middle ranking military readers (18%) As a vehicle for marketing communications to the Capability managers, requirements, planning, European defence community, EUROPEAN procurement, operations and intelligence officers DEFENCE MATTERS has unrivalled reach. The professional readership is in excess of 10,000 and Institutional readers (18%) the demographics of the audience ensure that the EU, EC, European parliament, EUMS, EEAS, ESA, message arrives directly on the desk of the people EUMC, Eurocontrol, NATO, NATO ACT, NSPA, NC3A, who most matter – whether military officers, OCCAR, Permanent representatives, defence attachés politicians or professional managers in Industrial readers (15%) governmental institutions and industry. CEO/President, senior sales and marketing, business development, government affairs and communications For further information, contact Diana Scogna Academic readers (2%) Media Marketing Services International Think tanks, universities, R&T organisations T: +33 662 522 547 75% of the total circulation is delivered to dscogna@dsmedia.com.fr specifically addressed individuals or direct to EU Member States defence and security institutions.
WELCOME © Luftwaffe European defence matters now – more than ever European defence is at a turning point. With a rapidly changing security environment and a constant pressure on defence budgets in the European Union, the need for cooperation has never been more pressing T he tasks issued to the European Defence well be the best way to achieve this. Ongoing work on a Agency by Heads of State and Government in Preparatory Action for research programmes related to the December 2013 provided a robust roadmap for Common Security and Defence Policy is meant to unlock the implementation of key capability- the financial potential of the EU in that regard. In this development programmes. Progress has been magazine, experts from the European Commission, made on most of them, and the recent decision by three industry and the EDA share their views on this topic of countries to move forward with the procurement of a critical importance for the future of European defence. pooled fleet of A330 MRTT air-to-air refuelling and transport Nominations at the top of the European defence aircraft (see our article page 18) is only one example of ecosystem also promise to bring a renewed impetus for the Agency’s achievements since then. cooperation. Federica Mogherini, appointed High Only a few months from now, during the next European Representative/Vice-President and Head of Agency late Council, European Union leaders will meet once again to last year, will now work hand-in-hand with the new EDA discuss defence matters, acknowledging the fact that the Chief Executive Jorge Domecq, who took office in February. topic remains one of paramount importance for Member Under this new governance, the Agency will look at States. This is a promising sign for European defence, and strengthening existing relations with Member States on a rendezvous that should not be missed. Ahead of this defence issues in order to take cooperation to the next important milestone, the Agency will be active and fully level, and to provide their shareholders with new options supportive of its shareholders and stakeholders, working for cooperation. out ways to kick-start new cooperative programmes and The European Defence Agency has now entered to find new synergies with existing projects and initiatives. its second decade of existence and it will keep doing In any case, new programmes will require a robust what it does best: supporting all Member States, European defence technological and industrial base. It has irrespective of size, in the development of their defence become urgent to halt the decrease in defence research capabilities. But if we want to succeed, we need to do and technology spending – and cooperation might be very even more – starting today. Eric Platteau Head of Media and Communication Guillaume Steuer Editor-in-Chief E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 5
EUROPEAN DEFENCE NEWS News New EDA Chief Executive Jorge Domecq takes office J orge Domecq joined the Agency on 2 February 2015 from his previous position as Ambassador, Permanent Representative of Spain to the Organisation of Security and Cooperation in Europe (OSCE). Here he shares his very first impressions of the European Defence Agency and outlines some of its main priorities for the months ahead. Mr Domecq, what have been your initial impressions upon joining the Agency? It is an honour and privilege to have been appointed Chief Executive of the EDA. I am also delighted to be working once again on defence – something in which I was deeply involved earlier in my diplomatic career. I have met the staff individually: like me, they are totally committed to delivering tangible output and dealing with the challenges ahead. The EDA is now into its second decade. I want to congratulate my predecessors for the tremendous amount they have achieved. The EDA is a reference body at the disposal of in the EU is under continuing pressure: the technology, including in dual-use projects, is Member States. We are there to support their case for increased cooperation has never been also a key part of what we do, not only to efforts to improve capabilities in a pragmatic so compelling. ensure that we invest today in the capabilities and flexible manner. European security and of tomorrow, but also to support a strong, defence are at the top of the political agenda. What are your expectations for the technologically advanced and innovative Under the authority of the Head of Agency and upcoming 2015 European Council? European defence industrial and technological High Representative Federica Mogherini, I am The December 2013 European Council base. committed to delivering and taking European provided us with many tasks, all of which have The June European Council will provide defence cooperation to the next level. either been fulfilled or are well on-track. We Heads of State and Government with an have seen progress in the four main capability opportunity to confirm their willingness to see What are your priorities? priorities: air-to-air refuelling, governmental act together on defence matters. Public The initial contacts I have had with our satellite communications, remotely piloted opinion is expecting a renewed impulse in shareholders have confirmed that the EDA’s aircraft systems and cyber defence. In terms defence cooperation in the face of the present expertise and operational output is not only of fiscal incentives to make cooperation more security environment. We need to exploit all recognised but also deeply appreciated. The attractive, projects run in the framework of the available EU instruments and exploit synergies level of engagement from Member States is Agency are now exempt from VAT. And we will with the civil security sector: after all, the line positive. But we cannot rest on our laurels. I present further proposals on incentives, between security and defence is becoming am determined further to strengthen our specifically a pooled procurement mechanism. increasingly blurred, as Hybrid warfare has relations with and support to them. In the New projects are vital, not just because they demonstrated beyond any doubt. Under the coming weeks, I intend to visit each and every will fill current capability gaps, but also guidance of the Head of Agency, Federica Member State in order to gather their views because they will boost the European defence Mogherini, and in close cooperation with our first hand and hear their priorities. We all need industry. So we will be making some proposals, Member States and the European Commission, to be on the same wavelength. This is all the perhaps in areas such as maritime, missile we will prepare a set of substantive proposals more important because defence expenditure defence or space observation. Research and for this key rendezvous. 6 www.eda.europa.eu
EUROPEAN DEFENCE NEWS EU Affairs Successful RPAS deployment in support of Operation Atalanta F rom 4 September 2014 to 5 February been known to 2015, an Italian MQ-1 Predator remotely operate and to give piloted aircraft system (RPAS) operated an early warning of a © EUNAVFOR from Djibouti in support of the European Union possible attack. (EU) mission. This was a first for Operation During the five-month deployment, 28 airbase in Djibouti as well as from Amendola Atalanta, led by the European Union Naval missions were conducted for a total of more airbase in Italy through a satellite link. Force (EUNAVFOR) off the coast of Somalia to than 300 hours flown over areas such the This marked the first time a medium fight piracy in the India Ocean. northern coast of Somalia, the Bab-el- altitude long endurance (MALE) RPAS was The objective was to provide real-time Mandeb strait and the Gulf of Aden. The MQ-1 deployed in direct support of Operation video surveillance of areas where pirates have Predator was controlled from Chabelley Atalanta. EUFOR RCA brings ‘Unity Bridge’ to Bangui A s part of its mandate to improve the built by the EU and should be ready security situation in Central African later this year. © EUFOR RCA Republic, EU mission EUFOR RCA Several European countries recently contributed to the installation of a took part in this truly multinational initiative: were assembled in less than 48 hours. temporary bridge in the country to facilitate the Czech Republic donated the 24-metre Dubbed the ‘Unity Bridge’, the construction communication between three different bridge upon EUFOR RCA request, Sweden was formally inaugurated in January 2015. districts of the capital city Bangui. chartered a cargo flight to bring it on-site During the ceremony, EUFOR RCA Operation The initiative was launched as part of the while Italy’s engineers stationed in Bangui Commander Major General Philippe Pontiès European Union’s Comprehensive Approach assembled it under Czech technical stressed that the bridge “highly symbolizes and was meant to provide a temporary supervision and with the assistance of the importance of the European Union alternative to the concrete bridge that is being German-led engineers. Over 1.000 metal parts commitment in Central African Republic”. Joint anti-piracy exercise carried out in the Seychelles A joint counter-piracy exercise was entities. The exercise was also designed to Over the past few years, EUCAP Nestor staged earlier this year in the test common procedures and tactics for the has provided training to local forces on Seychelles involving EU Naval Force effective processing of suspected pirates as evidence-handling and investigation Somalia (Operation Atalanta), the EU’s well as evidence-handling at sea. The techniques related to the anti-piracy civilian maritime security capacity building exercise involved Italian destroyer ITS mission. Even if the number of pirate attacks mission EUCAP Nestor as well as local Coast Andrea Doria working closely with the has decreased in the region, lack of Guard, Air Force and Police units to practice Seychelles Coast Guard and maritime evidence often remains an obstacle when it cooperation between maritime security police patrol units. comes to prosecution of the pirates. E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 7
EUROPEAN DEFENCE NEWS Industry News Thales and Rheinmetall to upgrade Tiger helicopter flight simulators T he Organisation for Joint Armament Cooperation (OCCAR) recently awarded Thales and Rheinmetall Defence Electronics (RDE) an upgrade © Airbus Helicopters contract for 18 Tiger helicopter simulation systems. The simulators will be installed in the namely the Tigre HAD (Hélicoptère Appui The agreement covers the upgrade of Franco-German Tiger training school located Destruction) in France and the Tiger UHT eight full mission simulators (FMS), ten in Luc-en-Provence and Phalsbourg in (Unterstützungshubschrauber Tiger) in cockpit procedures trainer (CPT) as well as France, as well as Fritzlar in Germany. They Germany. These will notably include the purchase of two new CPTs to be provided will provide the French and German Army upgraded communication and datalink by Thales. These systems will be used by with new training capabilities in line with the systems as well as a compatibility with the France and Germany for aircrew training. latest versions of the Tiger helicopter, Tiger’s helmet-mounted sight TopOwl. Complex live-firing test for European surface-to- air missile E arlier this year, the missile test System), a naval air defence system funded division of the French defence by France, Italy and the United Kingdom procurement agency (DGA) and the and developed by European company French navy carried out a complex test MBDA for the missile element. It also firing of the Aster 30 air defence missile. includes a multi-functional radar, a Launched from the ‘Chevalier Paul’ air surveillance radar as well as the associated defence frigate, the missile successfully command and control system. engaged an air target which was pursuing a The ammunition procurement friendly aircraft. programme is managed by OCCAR on behalf The objective was to demonstrate the of the participating states in order to missile’s capability to discriminate between achieve economies of scale. The PAAMS is two radar tracks in close proximity. currently operational with the French and The scenario proved the effectiveness Italian Horizon-class frigates as well as with © MBDA of the PAAMS (Principal Anti-Air Missile the UK’s Type 45 destroyers. 8 www.eda.europa.eu
EUROPEAN DEFENCE NEWS France signs first Rafale export contract with Egypt O n 16 February 2015, French Minister of Defence Jean-Yves Le Drian travelled to Cairo to sign the first Rafale export contract with Egyptian President Abdel Fattah el-Sisi. The contract, part of a larger arms deal with Egypt, includes the purchase © Dassault Aviation of 24 Rafale combat aircraft to be built in France by Dassault Aviation and its industrial equip its air force with the Rafale," the countries are pursuing a common struggle partners such as Safran and Thales. French manufacturer stated in an official against terrorism”, French Minister of The first aircraft are expected to be release, adding: “This decision is a Defence Jean-Yves Le Drian said during the delivered to the Egyptian Air Force over the continuation of our cooperation that dates signing ceremony. course of 2015. The Rafale deal also includes back to the 1970s." The Rafale deal was part of a larger arms the purchase of air-launched weapons as Egypt has indeed been a long-time package, including a DCNS-built FREMM well as support and training services for the operator of French combat aircraft, starting multi-mission frigate and missiles provided new aircraft. with the Mirage 5. The country also became by MBDA, for a total value estimated at €5.2 "Dassault Aviation is greatly honoured by the first export customer of the Dassault billion. Half of the amount will be financed by the Arab Republic of Egypt’s decision to Mirage 2000 in the early 1980s. “Our two French bank loans. Saab teams up with Damen to address submarine market S wedish defence company Saab and company to broaden its Dutch shipbuilder Damen Shipyards expertise in the design Group (DSG) recently signed a and manufacture of partnership agreement aimed at exploring submarines as well as future opportunities in the international surface vessels and to market. increase its global More specifically, this teaming competitiveness on the agreement seeks to address the future international market. © Saab Kockums replacement programme for the Dutch According to an Walrus-class submarines, which would have official release, DSG currently delivers about which are in service with the Royal to be phased out during the next decade. 160 vessels annually, ranging in size from 7m Netherlands Navy. In July last year, Saab acquired to over 200m. The teaming agreement with The two companies also stressed that ThyssenKrupp Marine Systems (TKMS), Saab will allow both companies to work on a this partnership could lead to “a successful which has since been renamed Saab successor to the current Walrus-class of cooperation in more submarine programmes Kockums. The move allowed the Swedish diesel-electric attack submarines, four of worldwide”. E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 9
COVER STORY: RESEARCH AND TECHNOLOGY Preparing the future: European research at a crossroads At a time when national defence research & technology budgets are declining, several initiatives are on-going to try and tackle this important issue through increased cooperation at the European Union level. Experts from the European Commission and the European Defence Agency sit down with European Defence Matters to provide their viewpoint on the way ahead © ONERA 10 www.eda.europa.eu
COVER STORY: RESEARCH AND TECHNOLOGY A ‘Preparatory Action for Common Security and Defence Horizon 2020, which will take place somewhere in 2021. Policy (CSDP)-related research’ is currently being In the whole process I see also a very important role explored at European level. What is the end objective? for the forthcoming June European Council and its Philippe Brunet, Director of Aerospace, Maritime, Security potential support for the work done so far on the and Defence Industries within the European Commission’s Preparatory Action and, more generally speaking, for the Directorate General Enterprise and Industry idea of future EU funded CSDP related research. Maybe first a word of explanation. In the Commission's budgetary jargon a Preparatory Action What role will the group of personalities play? What is a generic budgetary term used to describe the should be the governance of a CSDP-related Preparatory testing of a new policy approach requiring financial Action? resources, outside the existing legal base. Philippe Brunet Accordingly, in the case of CSDP-related research, the Commissioner Bieńkowska has created the group of Philippe Brunet, Director novelty is the link to defence, as the current EU personalities which will be asked to give strategic advice of Aerospace, Maritime, Security and Defence Research Framework Programme (Horizon 2020) has on the set-up and on the governance of the Preparatory Industries within the an exclusive civil focus. And the end objective of the Action but also with a view to provide more political European Commission’s Directorate General Preparatory Action would be to prove that it makes legitimacy to the idea of an EU research programme Enterprise and Industry sense to have CSDP related research as a fully- related to the CSDP. Accordingly, the group's members fledged component of the next EU Framework represent all the potential stakeholders interested in such Programme, starting in 2021. research – chief executive officers from the industry, This link between the success of the Preparatory research institutes, European Action and the inclusion of CSDP-related research in Parliament, politicians known for their interest in the the next EU budget (2021-2027) seems crucial to me. CSDP, European External Action Service (EEAS) and The Preparatory Action itself will have limited funding representatives of small and medium sized enterprises. (possibly €30-40 million) and, accordingly, limited We expect the group of personalities to present their final Denis Roger, EDA impact on on-going research activities or on the report by early next year. How the governance for the European Synergies and Innovation Director competitiveness of our defence industry. But its real Preparatory Action should look like is also a matter for a importance would be to produce successful research more technical dialogue with Member States, carried R&T cases that could underpin our CSDP and that normally currently jointly by the Commission and the EDA under the the future Preparing would not be conducted by Member States acting form of dedicated seminars. It is too early to draw more alone. Similarly, we would expect to make a similar specific conclusions; however, I believe the governance case on the side of the defence industry, whereby should follow the model of Horizon 2020, albeit with some research projects would foster EU-wide collaboration adaptations to the nature of defence research, in particular and consolidate the European Defence Technological in the area of Intellectual Property Rights. We also think Inge Ceuppens, and Industrial Base (EDTIB). If this is indeed what will that the role played by the EDA in defence research will be EDA Project Officer happen, the discussions on the future EU CSDP properly reflected in this governance mechanism, in related research programme can start. particular in the area of the implementation. When could the Preparatory Action be launched, What is the current state-of-play of defence-oriented and what could be the next milestones? research in Europe? Philippe Brunet Denis Roger, EDA European Synergies and Innovation Our intention is to launch the Preparatory Action Director in 2017. This means that the work shall start with the Research in support of the Common Security and David Chinn, EDA R&T coordinator drafting of the 2017 European Union budget, which Defence Policy is currently conducted by Member States begins early in 2016 and which will include the within an EDA framework. It covers a wide variety of funding and a first proposal for the Preparatory domains such as air or naval systems, electronic Action, approved by the Council and European components, materials or sensor technologies to name but Parliament. The next step would be to prepare and a few. These research activities are driven by innovation and adopt the Commission's decision and are based on the Strategic Research Agendas established communication on the launch of the Preparatory in each technology area. They also link to the Capability Action, and to draft a work programme, so that first Development Plan (see page 22) which could be compared Gerlof de Wilde, EDA calls can be launched already in the beginning of to a catalogue of operational priorities for EU armed forces, Innovative Research 2017. As Preparatory Action can last up to three in particular for CSDP operations. However, the research Head of Unit years, the last calls would be announced in 2019. done in the EDA suffers from the cuts in Member States’ The last milestone would be the start of the discussions defence research budgets. It is clear that a significant on the next EU budget and the adoption of the next budget for CSDP-related research can have a strong research Framework Programme, the successor of impact, especially for topics with EU-added value such E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 11
COVER STORY: RESEARCH AND TECHNOLOGY as capabilities needed for CSDP operations in the mid- and national experts who take into account both the military long-term future. needs as well as the research communities’ capacities. This is unique and in fact predates the EDA, which inherited the How could the specificities of the defence community be work achieved in the Western European Armament Group. best taken into account? The EDA promotes, facilitates and manages defence Inge Ceuppens, EDA Project Officer research and is fully aware of its specificities. It is very logical It is important to remember that research related to to use this core of experience, which can bring together the defence and CSDP is different from most civil research. There necessary knowledge of developing a balanced research is no ‘normal’ commercial programme both for near term research – aiming at new market for the research systems and finally capabilities – as well activities for which results to be taken up; more innovative thinking is required. A new centrally-funded the only buyers are programme could support core key activities with an EU governments. Therefore, added-value; meanwhile, Member States could still decide to defence companies need provide additional funding through an EDA framework (co- to have an idea of a funding), leveraging activities and ensuring complementarity government’s needs and with existing research. procurement plans before it engages in research for How should the Preparatory Action be coordinated with defence systems. As national research programmes? © Airbus a consequence, CSDP- David Chinn, EDA R&T coordinator research differs significantly from civil research. Modalities There clearly needs to be a collaborative effort based for the Preparatory Action are discussed in dedicated on the experience outlined above. Some activities will workshops with the Member States. Important issues to remain national for good strategic reasons, but the address are how a work programme will be established, Preparatory Action can provide the stimulus for looking at which selection criteria will apply, who can participate in the areas of common interest. Centralised funding will clearly research projects, how the research will be funded and last help, but Member States will be keen to ensure that EU R&T but not least IPR for industry and user rights for governments. activities complement national ones. For instance, some activities cannot logically be done at national level or the future Preparing How differentiated or coordinated with existing security demand a critical mass that can only be reached through and dual-use research should a future CSDP-related joint funding. EU CSDP-related research must be a Research Programme covering defence-oriented complement and not a substitute for national research. research be? The Preparatory Action will clearly need to be connected Inge Ceuppens to national research programmes, as ultimately capabilities Horizon 2020, the seven-year research programme of are owned at a nation level. Establishing the best the European Commission, already funds some research mechanisms for complementarity between the national related to CSDP. The programme foresees, within the Secure programmes and the Preparatory Action is one of the areas Societies challenge, research funding to support the Union's that needs to be tested. external security policies, including conflict prevention and peace-building. This research is mainly focused on civilian How could the European Defence Technological and CSDP missions and their needs. In a workshop organised Industrial Base benefit from a dedicated defence-oriented by the EDA and the Commission, Member States have EU research programme? clearly pointed to the need for something new, namely Denis Roger defence-oriented research designed to avoid overlap with Over the years the EDA has acquired a strong and solid the existing Horizon 2020 research scope. It cannot be experience in establishing priorities in the various domains of stressed enough that this defence-oriented research needs defence research, elaborating a capability development plan to go along with specific rules reflecting the sensitivity of and launching and managing complex research projects the topic. It also needs to foresee better exploitation of involving governments and industry. The missing link is a synergies with dual-use technologies. central budget: the quality of EDA’s processes in selecting and managing defence projects is much higher than its capacity The EDA supports the development of defence to attract funding for them! A centrally-funded defence- capabilities in the long term, in particular through oriented research programme will give long-term predictability research projects. What would be the synergies between on research and capability priorities. This is essential for the Agency’s current activities and a new research industry since the market is totally dependent on future programme? acquisition from Ministries of Defence. And this will also help Gerlof de Wilde, EDA Innovative Research Head of Unit it develop its competitiveness in areas critical for future The EDA has a long experience of bringing together defence systems and for Europe’s strategic autonomy. 12 www.eda.europa.eu
COVER STORY: RESEARCH AND TECHNOLOGY “EU-funded research must lead to concrete procurement projects” In this opinion piece Eric Trappier, Chairman of the Defence Business Unit of the Aerospace and Defence Industries Association of Europe (ASD), shares his views on the potential benefits of the Preparatory Action for Common Security and Defence Policy (CSDP)- related research A SD, representing European defence and and of the governance to be put in place for the PA and its aerospace industries, welcomes the European follow-on defence research programme. Consequently, the Commission’s intention to establish a conditions of the current Framework Programme, as laid out in Preparatory Action (‘PA’) for CSDP-related EU Regulation 1290/2013, need to be modified for CSDP-related R&T research, and views as the strategic goal of the defence research. the future Preparing PA the preparation of a fully-fledged CSDP-related defence Activities under the PA can have various CSDP-related research programme as part of the next Multi-Annual objectives: support of military CSDP missions, interoperability Financial Framework (2021 – 2027). and common standards, security of supply at European level Key attributes for success of the PA are to demonstrate for key defence technologies and capabilities, and new European Union (EU)-added value, and related to this, technologies (emerging, disruptive, or coming from other complementarity with existing funding mechanisms sectors) with major defence potential. In principle, all these (national programmes, the European Defence Agency and objectives will offer EU-added-value, but each of them implies Horizon 2020). Equally important is to take into account the a different approach for identifying and managing research specificities of the defence sector, especially as concerns projects. funding levels, Intellectual Property Rights aspects, rules of Hence we recommend using the PA to test how these operation, terms and conditions. approaches can best support defence research at EU level. There are some specificities in the defence sector, Consequently, the PA should foresee at least one project for which impact on defence research: each of these objectives; the experience gained from these • The defence market is monopsonic in nature, with only exercises should then be used to establish a method for the one public customer per member state; definition of the content of the follow-on programme. • National Ministers of Defence (as final customers, and in Finally, market uptake is crucial in order to ensure that EU- charge of providing the necessary technologies to the funded defence research generates new capabilities for final users) determine the capability requirements; armed forces in Europe and business opportunities for the • Very long time scales are involved in the development European Defence Technological and Industrial Base (EDTIB). and life cycle of complex defense systems; Most important for industry in this context is market • Defence activities are by nature sensitive and therefore uptake: to generate new capabilities and strengthen the EDTIB, subject to specific national rules for handling classified EU-funded research must lead to concrete procurement information and export control. projects. This is politically and institutionally challenging, Any EU defence research programme must take these since the final customers will be national defence ministries. specificities into account. To achieve this, the experience Therefore, the PA must explore ways to bridge this gap accumulated with the EDA over the past 10 years, together between EU-funded research and national procurement. This with the previous EUROPA memorandum of understanding, issue should be discussed in the Group of Personalities which should be taken into account in the definition of the scope will be set up by the European Commission. E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 13
COVER STORY: RESEARCH AND TECHNOLOGY © Lockheed Martin The United States defence industry continues to compete effectively on a global scale Challenging times for the defence industry Fabio Liberti, EDA Project Officer in charge of defence and industry analysis, provides us with an assessment of Europe’s defence and R&T technological industrial base the future Preparing T he European Council in December 2013 EU countries can be seriously compromised. highlighted the need for a more integrated, The European defence sector is today composed of sustainable, innovative and competitive world-class, highly-skilled companies, thanks to decades defence technological and industrial base, to of strong public investment in the sector and to the develop and sustain defence capabilities. In order technological excellence of EU Member States. The to do so, it is important for Member States to have a shared sector is extremely competent and competitive, while assessment of the current trends affecting the European being financially healthy. But not everything can be read defence technological and industrial base (EDTIB). To assist and analysed through rose-coloured glasses. Several them in this exercise, the European negative trends are affecting the sector, forcing Defence Agency recently carried out an European defence industries to operate in a very difficult analysis of the state of this EDTIB. environment – and the analysis carried out by the Agency “Industries are getting Several scientific articles focusing on sought to identify them. more national and more the subject have been published over the First of all, defence investment spending in Europe is international, but not last decade, sometimes questioning the constantly decreasing (in real terms, total defence definition of a ‘European’ defence industry, expenditure has decreased by 15% since 2006), while more European” calling for industrial consolidation or increasing elsewhere in the world (such as in the so-called comparing the state of the sector with BRIC countries – Brazil, Russia, India and China). third countries. EDA’s analysis is meant to contribute to this debate at a time when new threats A lack of programmes emerge on the international stage and when European Secondly, there are no new major defence armed forces are called to contribute to international programmes in the pipeline, a situation that will potentially security and the defence of European borders. affect Europe’s ability to design and manufacture complex weapon systems in the future. Without new programmes, World-class, highly-skilled it is increasingly complicate to retain on European soil the The defence industry develops equipment tailored to key skills and industrial capacities needed to manufacture the needs of European Union (EU) armed forces. Without a and maintain complex defence systems. Also, around one- strong defence industrial sector, the freedom of action of third of the European defence industrial workforce is aged 14 www.eda.europa.eu
COVER STORY: RESEARCH AND TECHNOLOGY © UK MOD Projects, such as the Elizabeth class aircraft carrier are seen as National rather than European over 50, with the industry facing a risk for a substantial loss of expertise when these individuals reach retirement age. Finally, without new programmes, there is a very serious risk that the defence industry will lose most of its attractiveness for young engineers, who might want to choose a career in the commercial sector. It should also be underlined that EDTIB players are becoming more and more dependent on the export market, against a backdrop of aggressive global competition (third countries are investing heavily in the defence sector, and promoting actively the development R&T of ‘national champions’) and increasing demand for the future Preparing technology transfer. Meanwhile, American companies are becoming more and more competitive on the global stage (even if they sometimes remain absent in some specific sectors and markets), thanks inter alia to the International “The sector is extremely Traffic in Arms Regulations (ITAR) regulation reform. competent and Need to adapt competitive, while being In order to adapt to this changing environment, financially healthy. But not European defence companies are diversifying their everything can be read activities, increasing the share of their turnover generated from the civilian market and their role as service providers. and analysed through There also seems to be a growing tendency to see military rose-coloured glasses” activities as a problem for a company rather than an opportunity. also to meet the demand for ‘local content’ mandated by Eventually, in a sector historically characterised by the export market). At the same time, EU countries strong ties between governments and defence affected by the economic downturn tried to preserve contractors (governments funding research & ‘jobs at home’. In the end, European defence industries technology and research & development, granting export are getting more national and more international, but not licences, acting as prime and often sole customer as well more European. as key shareholder), a loosening of these ties is visible. Against all these backdrops, the European Defence The risk is a ‘divorce’ between Europe and its defence Agency is offering its expertise to help its Member States industry, with a consequent industrial desertification in to develop a shared assessment of the defence industry the European defence sector and serious impact in landscape and status. In these times of critical terms of security of supply and strategic importance for Europe’s defence industry, dedicated autonomy/freedom of action. actions must be taken to strengthen the European Again, in the absence of major programmes, the defence technological and industrial base. Europe’s defence industry tried to penetrate third country markets, ability to launch the programmes of the 2030s and and had to diversify its supply chain (to cut its costs but beyond is at stake. E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 15
COVER STORY: RESEARCH AND TECHNOLOGY Trends in European defence spending In times of constant pressure on defence budgets in the European Union, the European Defence Agency has taken a close look at spending trends among Member States to produce its annual Defence Data booklet. Here we review some of the document’s key findings F or the eighth year in a row, the European Defence upon by EDA Member States in 2007. According to one of Agency has published a comprehensive these benchmarks, defence R&T expenditure should document gathering data on Europe’s defence amount to 2% of total defence spending. The figures for expenditure. Part of the Agency’s mission to 2013 fall short of this objective: defence R&T spending monitor and strengthen the European defence only amount to 1.12% of total expenditure. “The steady technological and industrial base, this extensive work reduction in R&T spending as a percentage of total aims to provide the defence community with an defence expenditure is still on-going”, Silvija Guzelyte overview of defence spending in the EU, both from a explains, “even if we have witnessed small increases in macroeconomic and a collaborative 2011 and 2013”. On the other hand, the benchmark set by point of view. The latest issue of the Member States on the proportion of defence equipment Defence Data booklet focused on 2013 procurement and R&D (investment) in the total R&T aggregated figures – the most recent expenditure has been slowly but steadily increasing, ones available for participating Member remaining above the agreed 20% mark since 2007. the future Preparing States who voluntarily provide the data to the Agency. A worrisome trend Since 2012, it has not been possible to provide a Trends comprehensive picture of the total EDA Member States’ “Generally speaking, 2013 didn’t expenditure on collaborative (including European Silvija Guzelyte, EDA Project contradict the trend we have been witnessing in recent collaboration) defence equipment procurement and R&T Officer Defence years”, Silvija Guzelyte, EDA Project Officer Defence & projects or programmes, as several Member States were not & Industry Industry Analysis, underlines. “Despite the fact that the able to provide this data. However, “a glimpse into the partial Analysis number of EDA participating Member States increased in 2012–2013 data reveals a worrisome trend, particularly for 2013 from 26 to 27, the total defence expenditure decreased defence equipment procurement”, the EDA Project Officer by €1.7 billion”, she adds. In real terms, the total defence stresses. Between 2012 and 2013, reported collaborative expenditure has been declining steadily since 2006. “It has equipment procurement expenditure decreased by 20.7% to dropped by over €32 billion or about 15% from 2006 to 2013”, the lowest level since 2006 of €4.75 billion. In relation to the the officer in charge of the Defence Data study points out. total defence equipment procurement, collaborative Overall, EU Member States spent €186 billion on defence in expenditure accounted for15.9%, suggesting that over 84% 2013. As a comparison, the United States – which remains was spent nationally. European collaborative equipment the world’s biggest defence spender – dedicated procurement experienced an even sharper decrease of approximately €600 billion to its military budget in 2013. 21.6%, and in 2013, amounted to €4.50 billion, accounting for The situation is slightly different when it comes to 94.6% of the total collaborative equipment procurement. research and development (R&D) as well as research and The total collaborative defence R&T expenditure of the technology (R&T) spending. Breaking a downward trend that EDA Member States that provided the data also shrank, had been observed since 2006, defence R&D expenditure though less dramatically (-0.9%), to €203 million. Its share increased slightly in 2013 to €7.5 billion, amounting to 4% of in total defence R&T was 9.7%, the remaining 90.3% being the total defence expenditure. R&T, which is considered a regarded as national expenditure. Although the reported subset of R&D, followed a similar path, increasing by just European collaborative defence R&T expenditure increased over 3% from 2012 to 2013 and reaching €2.1 billion. by 21.4% between 2012 and 2013, with a total of €168 million, However, these figures need to be analysed against accounting for 82.5% of the total collaborative defence R&T, a set of collective benchmarks for investments agreed it nevertheless remained at a record low. 16 www.eda.europa.eu
COVER STORY: RESEARCH AND TECHNOLOGY Defence expenditure breakdown (billion EUR and % change on previous year) 120 110.6 -4.2% +1.1% 106.0 107.2 -8.2% +0.3% +0.2% 98.4 98.7 98.8 -3.1% 100 95.7 -4.1% 91.8 80 60 +8.1% +0.5% +4.4% 46.9 +7.7% -7.8% +0.3% +2.0% -1.0% +4.8% +2.2% 46.8 43.4 43.2 42.0 44.1 -2.6% 43.7 42.9 44.6 -10.5% 44.8 +1.6% 38.9 41.9 40.9 39.0 -3.8% 40 38.4 37.5 20 +19.5% +19.7% +13.9% -4.3% -21.8% -3.4% +6.1% 9.3 8.9 10.7 8.1 8.6 10.2 8.2 8.4 0 1 1 2006 2007 2008 2009 2010 2011 2012 2013 Personnel Operations and maintenance Investment (equivalent procurement and R&D) Other expenditure (including infrastructure/construction) 1 Revised data 1 Defence expenditure in current and constant prices (billion EUR) 225 220 218 216 215 212 210 208 205 204 202 R&T 201 201 200 the future Preparing 196 195 194 194 1902 190 190 1882 186 185 2006 2007 2008 2009 2010 2011 2012 2013 Constant prices (2013) Current prices 1 2 Data from 2006 to 2012 has been inflated to 2013 economic conditions Revised data Source of deflator: European Commission ECFIN – based on weight of EU-28 Defence investment breakdown (billion EUR and % change on previous year) 50 45 +4.8% +7.7% +0.3% -2.6% 42.87 41.90 42.02 40.92 -10.5% +1.6% 40 38.92 38.37 38.97 -3.8% 37.50 +5.5% +3.2% -2.3% 34.31 35 +10.7% 33.27 +3.0% 32.24 32.52 -10.8% 30.60 31.50 -4.9% 29.13 29.97 30 25 20 15 -1.3% 9.79 9.66 -9.5% -4.0% +1.9% 10 8.75 -9.2% -3.9% +0.9% 8.40 8.56 7.77 7.53 7.47 5 -4.3% -2.5% -8.9% -8.0% +3.4% -5.7% -3.1% 2.66 2.54 2.48 2.26 2.08 2.15 2.03 2.09 0 2 2 2006 2007 2008 2009 2010 2011 2012 2013 1 Total investment Equipment procurement R&D R&T 1 2 R&T is a subset of R&D Revised data E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 17
PROGRAMMES AND INDUSTRY New wings for Europe’s strategic tanker fleet Three European nations have agreed to move forward and enter negotiations with Airbus for the purchase of a pooled fleet of new-generation tanker aircraft. This initiative will help alleviate some critical capability shortfalls, as we explain in this issue of European Defence Matters T hey have become absolutely reached with the decision of the Netherlands, expected in 2019, participating Member States essential to the success of modern Poland and Norway to move forward together by will work on placing a contract at the end of air operations, yet they remain a entering negotiations with Airbus Defence & 2015 or early in 2016. They will be assisted in this scarce resource in Europe. Air-to-air Space for the acquisition of a common fleet of process by the Organisation Conjointe de (AAR) refuelling aircraft, more A330 MRTT multirole tanker transport aircraft. Coopération en matière d’ARmement (OCCAR) commonly known as tankers, are designed to Facilitated by the European Defence Agency who and the NATO Support Agency (NSPA), the former provide other air assets with the fuel they need gathered Member States’ requirements and providing its expertise in the management of to increase their range or to loiter for extended drafted a Request for Information which was cooperative programmes and the latter acting periods of time over a battlefield. But as all post- sent to the industry earlier in 2014, this initiative as the contract holder on behalf of Member Cold War operations have shown, European air was carried out under a Dutch lead. States. “This is a model for closer co-operation forces are largely dependent on American “This project is an example of innovative and between nations and defence organisations”, tankers when they get involved in a coalition future-oriented cooperation between like-minded explains Pete Round, EDA Capabilities, Armament operation. During the 2011 campaign over Libya, European countries. It means that the joint & Technology Director. “This new milestone is 80% of all AAR missions were flown by US capability to act is enhanced”, Dutch Minister of in line with our objective to help increasing aircraft, this is no change from what happened in Defence Jeanine Hennis-Plasschaert the European tanker capability by 2020 and the Balkans in 1999. While Europe is able to field commented right after the 19 December beyond through the establishment a approximately 40 tanker aircraft, the US has over announcement. The global AAR capability in multinational multirole tanker fleet”, he adds. 550 tankers in its inventory. Europe will indeed be strengthened by this new A single configuration has been selected for acquisition: while the Netherlands is looking to this common fleet of multirole tanker transport Addressing the shortfall replace its existing fleet of two KDC-10 tanker aircraft, which should all be equipped with a rigid To address this shortfall, AAR was endorsed aircraft, Poland and Norway currently lack this boom as well as underwing pods, thus allowing as early as 2011 by the European Defence Agency kind of strategic AAR capability. The joint MRTT the tanker to refuel all equipped fixed-wing Steering Board as one of the initial eleven Pooling acquisition will aim to procure an initial fleet of receiver aircraft. They will also meet the users’ & Sharing projects. During the European Council four A330 tankers, with potential options for more requirements in terms of passenger transport, meeting of December 2013, the work on AAR was to be exercised later on. cargo transport, and medical evacuation. It is recognised as one of the four key capability expected that these aircraft will be operated by projects for EDA to expend even more effort on. Joint effort a multinational unit from a main operating base On 19 December 2014, a major milestone was With an initial operating capability (IOC) located in Eindhoven, Netherlands. They should 18 www.eda.europa.eu
PROGRAMMES AND INDUSTRY The A330 MRTT in figures • Overall Length: 58.80 m • Overall Height: 17.40 m • Wing Span: 60.30 m • Maximum Take Off Weight: 233 000 kg • Maximum Cruise Speed: Mach 0.86 (550 kt) • Main Deck Maximum Useable Volume: 335 m3 • Internal Fuel Weight: 111 000 kg • Maximum Payload: 45 000 kg • Range with Maximum Payload: 7000 km Source: Airbus Images: © Airbus be placed under the operational control of the Synergies Training (EART) series of exercises, the first of European Air Transport Command (EATC) in order Two other European countries have already which took place in March 2014 in Eindhoven. to maximise the “Pooling & Sharing” effect of chosen the A330 MRTT as their next-generation For the first time in Europe, it provided tanker these new European assets. “This is more than tanker aircraft: the United Kingdom and France. crews with the opportunity to share and refine just a tanker”, Philippe Rütz, the EDA Pooling & Even if these were procured through national their procedures in a realistic training Sharing project officer, points out. “Thanks to its programmes, potential synergies can be found environment. It attracted interest from several modularity, the A330 MRTT will also contribute in the field of support or training. But Member States including the Netherlands, to an increase in Member States’ strategic interoperability between European allies will also Germany and Italy. This first-of-its-kind event passenger, cargo transport and medical be greatly improved. “This could help reduce the offered a great cooperation opportunity for the evacuation capabilities”. European fragmentation in terms of tanker European AAR community and a second one Although the project has been kick-started types”, Philippe Rütz by a small group of three nations, other explains. “Today, the 40 “This project is an example countries could join the initiative later in the tankers operational in of innovative and future- process, be it through the acquisition or the in- Europe are of multiple oriented cooperation service phase. While OCCAR and NSPA will different types, and this between like-minded effectively take over from the Agency to conduct creates problem when it European countries. It means negotiations and contracting with Airbus comes to interoperability that the joint capability to act Defence & Space, this doesn’t mean EDA will and receiver certification”, is enhanced” completely disappear from the radar scope as he adds. The EDA is active in far as this activity is concerned. “It is of great that particular field: several Jeanine Hennis-Plasschaert, importance to us to try and bring new Member air-to-air compatibility Dutch Minister of Defence © Dutch Ministry of Defence States around the table to broaden this project certification trials with the to a greater number of nations”, Philippe Rütz Italian KC767 have already been organised to will take place in April 2015, once again in underlines. “The Agency has a role to play in alleviate that shortfall and make sure that tanker Eindhoven. If Member States want to play a establishing links with other MRTT users in aircraft will be “cleared” to refuel as many substantial role in future air operations while Europe in order to yield operational and European receivers as possible. reducing their dependence to the United economic benefits through a collaborative Another Agency work strand focuses on States, there is only one way forward: doing approach”, he stresses. training, through the European Air Transport more together. E U R O P E A N D E F E N C E M AT T E R S Issue 7 2015 19
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