European Defence Fund (2021-2027)

SUMMARY OF:

Regulation (EU) 2021/697 establishing the European Defence Fund

WHAT IS THE AIM OF THE REGULATION?

It sets up the 2021-2027 European Defence Fund. The fund aims to foster the competitiveness, efficiency and innovation capacity of the European defence technological and industrial base throughout the European Union (EU).

KEY POINTS

• In its 2016 European defence action plan communication, the European Commission undertook to complement, leverage and consolidate collaborative efforts by EU Member States in developing defence technological and industrial capabilities to respond to security challenges and to foster a competitive, innovative and efficient European defence industry throughout the EU and beyond.
• The regulation complements existing EU initiatives towards a more integrated European defence equipment market, and in particular Directives 2009/43/EC (see summary) and 2009/81/EC (see summary) on EU transfers and procurement in the defence sector.

Objectives

The fund should support collaborative efforts and cross-border cooperation between EU public and private entities such as companies (including small and medium-sized enterprises), universities and research and technology organisations. The regulation has two specific objectives:

• to support collaborative research which would maximise innovation and introduce new defence products and technologies, including disruptive technologies for defence, and which would make the most efficient use of defence research spending in the EU;
• to support the collaborative development of defence products and technologies, thus contributing to the greater efficiency of defence spending within the EU, ultimately leading to an increase in the standardisation of defence systems and thus greater interoperability.

Budget

• The fund will run for the period of the current multiannual financial framework, from 1 January 2021 to 31 December 2027.
• It has an overall budget of €7.953 billion for the 2021-2027 period.

Eligibility and awards

The regulations sets out a number of rules for the awarding of funds, including:

• the eligibility of entities
• the eligibility of actions
• the selection and award procedure
• the award criteria.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 January 2021.

BACKGROUND

• European Defence Fund (European Defence Agency).

MAIN DOCUMENT

Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing the European Defence Fund and repealing Regulation (EU) 2018/1092 (OJ L 170, 12.5.2021, pp. 149-177)

RELATED DOCUMENTS

Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe — the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 170, 12.5.2021, pp. 1-68)

Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, pp. 30-89)

Joint communication to the European Parliament and the Council — Resilience, deterrence and defence: Building strong cybersecurity for the EU (JOIN(2017) 450 final, 13.9.2017)

Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions — European defence action plan (COM(2016) 950 final, 30.11.2016)

Directive 2009/81/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defence and security, and amending Directives 2004/17/EC and 2004/18/EC (OJ L 216, 20.8.2009, pp. 76-136)

Successive amendments to Directive 2009/81/EC have been incorporated into the original text. This consolidated version is of documentary value only.

Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community (OJ L 146, 10.6.2009, pp. 1-36)

See consolidated version.

last update 29.06.2021