EuropEan DEfEncE agEncy’s stratEgic framEwork

ContentsIntRoDUCtIon BY ALeXAnDeR WeIs, eDA CHIeF eXeCUtIVe ......................................................... 3

CAPABILItY DeVeLoPMent PLAn - oVeRVIeW ............................................................................................ 5

eURoPeAn DeFenCe ReseARCH & teCHnoLoGY stRAteGY ............................................................ 21

eURoPeAn ARMAMents Co-oPeRAtIon stRAteGY ............................................................................ 27

stRAteGY FoR tHe eURoPeAn DeFenCe teCHnoLoGICAL AnD InDUstRIAL BAse ........................................................................................................................................... 35

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 3

eDA’s stRAteGIC FRAMeWoRkALeXAnDeR WeIs, CHIeF eXeCUtIVe oF tHe eURoPeAn DeFenCe AGenCY

the European Defence agency’s mission is to support the European union Member states in their efforts to improve the military capabilities needed for the European security and Defence policy (EsDp). to carry out this mission four functional areas, covering the complete cycle from demand to supply have to be addressed together, as they are all relevant to capability improvement. these functions have been incorporated in the agency’s birth certificate, the 2004 Joint action. they could be summarised as follows:

to work for a more comprehensive and systematic approach to defining and meeting the capability needs of the ■■

European security and Defence policy (EsDp), which includes the harmonisation of military requirements;

to enhance the effectiveness of European Defence research and technology, which includes the promotion of ■■

r&t collaboration;

to promote and enhance European armaments cooperation through establishing programmes, quicker and ■■

more effective than in the past;

to strengthen the Defence technological and industrial Base and to create an internationally competitive European ■■

Defence Equipment Market. it is crucial that these four functions are treated together in a coherent way. research & technology should support capability development. armaments cooperation has to focus on collaborative programmes, delivering equipment faster and more cost-effectively. industry should produce what the military need tomorrow, not what was needed in the past. EDa houses four communities under one roof: military capability planners, research and technology experts, armament cooperation programmers and industry & market. By working closely together EDa breaks with stove-piped approaches, which dominated in the past. in essence this is the unique way of working of EDa: the integrated approach.

However, this coherent and integrated way of working requires guidance or direction. Without it the agency would sail without destinations and without a course to get there. in 2007-2008 the EDa steering Board has endorsed four strategies, providing the destinations and setting the course. together they form the strategic framework to guide the activities of the agency and its 26 participating Member states:

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 4

■■ Capability Development Plan (CDP), which defines future capability needs. it connects short-term EsDp needs of the Eu Headline Goal 2010 to longer-term capability and capacity needs beyond 2020, for which the EDa Long-term Vision of 2006 forms the original basis. the cDp is the overall strategic tool, the ‘driver’ for r&t investment, for armaments cooperation and for the defence industries.

■■ European Defence Research & Technology (EDRT) strategy to enhance more effective r&t in support of military capabilities. the EDrt strategy defines the ‘Ends’ (in which key technologies to invest), the ‘Means’ (how to do this) and the ‘Ways’ to implement the ends and means through roadmaps and action plans.

■■ European Armaments Cooperation (EAC) strategy to promote and enhance more effective European arma-ments co-operation in support of EsDp capability needs. the Eac strategy defines how to improve the effective-ness and efficiency of European armaments programmes by a series of actions, applying lessons learned from past experiences through a ‘Guide to armaments co-operation Best practice’.

■■ European Defence Technological and Industrial Base (EDTIB) strategy, which describes the future European defence industrial landscape, based on the three cs: capability-driven, competent and competitive. the future EDtiB has to be more integrated, less duplicative and more interdependent, with increased specialisation, for example by establishing industrial centres of Excellence. it refers to action fields for which Governments will be responsible, such as consolidating demand and investment. Logically, the strategy links the work on realising the future EDtiB to the agency’s activities on the European Defence Equipment Market. special attention is paid to the importance of small- and Medium-sized Enterprises with their typical flexibility and capacity to innovate.

Like the EDa is working in an integrated way, the four strategies also have to be treated together. none of them can be implemented in isolation. the cDp ‘drives’ all EDa activities: capabilities-relevant r&t, capabilities-relevant armaments cooperation, capabilities-relevant industries. the EDrt strategy defines key technologies; these can be cross-linked to cDp priorities – an activity conducted already by the agency. the Eac takes the process a step further by transforming harmonised military requirements and, in applicable cases the result of r&t, into collabora-tive projects or programmes. finally, the EDtiB strategy is linked to the other strategies, not only at the receiving end (responding to military requirements) but equally helping to support standardisation and interoperability by becoming more integrated and more interdependent.

the EDa and its participating Member states have an excellent strategic framework in place. the four strategies will keep us on course to establish projects and programmes as well as to produce further initiatives to improve Europe’s military capabilities needed to face tomorrow’s security challenges.

Mi171 - Czech Republic, Gap 2009 - 1st Multinational Helicopters Exercise conducted by EDA

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 5

CAPABILItY DeVeLoPMent

PLAn

© E

DA

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 6

CAPABILItY DeVeLoPMent PLAn (CDP)

■ oVeRALL stRAteGIC tooLthe agency is capability-driven. EDa programmes, projects and other activities have to contribute to improving the military capabilities needed for EsDp operations in the future. the capacity Development plan is the ‘driver’ for r&t, armament cooperation and for industry. thus, the capability Development plan is the ‘overall strategic tool’ in the package of the four long-term strategies. it defines future capability needs from the short to longer term.

the cDp is not a ‘plan’ in the traditional sense, describing the number of units or the amount of equipment Mem-ber states should have at their disposal. rather it ‘pictures’ the future capability needs, taking into account the impact of future security challenges, technological development and other trends. it assists the Member states in their national defence planning and programmes.

■ BACkGRoUnDin october 2006 the steering Board in Defence Ministers formation endorsed the Long term Vision for European Defence capability and capacity needs. such a Long term Vision (LtV) was required as the existing tools in the European union (through the Headline Goal 2010 process) were focussed on near term needs. in terms of defence investment 2010 is today and for research & technology it is yesterday. the LtV provided a first ‘picture’ of the long-term capability needs, based on future trends analysis.

the capability Development plan was the next step. in December 2006 the steering Board in capabilities forma-tion endorsed the following aims for the cDp exercise:

to make the Long term Vision (LtV) capability guidance more specific and thus more useful;■■

to identify priorities for capability improvement;■■

to bring out opportunities to pool and cooperate;■■

and thus

to frame efforts of those operating the comprehensive capability development process;■■

to guide research and industry;■■

to provide metrics on collective progress.■■

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 7

in 18 months the cDp was prepared in close collaboration between Member states’ experts, the European Defence agency (EDa), the European union Military committee (EuMc) and the European union Military staff (EuMs).

an initial cDp was endorsed by the EDa steering Board in July 2008.

■ oVeRARCHInG PRInCIPLes oF tHe CDPthere are certain overarching principles which have guided the preparation of the cDp.

the cDp intends to inform national plans and programmes, but is not a supranational plan.■■

it is also a tool to bring out opportunities to pool and collaborate.■■

it is a key tool and catalyst for a capability-based approach to force and capability planning.■■

it is a framework to assess the fundamental character of current and future operations.■■

it supports conceptual development.■■

it supports a coherent integration of technology into military capabilities.■■

it supports the development of appropriate strategies to implement the concepts.■■

it is a living document, which will be updated as appropriate, in close cooperation with pMs ■■

and other Eu bodies.

■ tHe FoUR eLeMents oF tHe CDPthe content of the cDp was derived from several sources, all involving inputs from the participating Member states.

shorter term elements were taken from the Headline Goal 2010 and the subsequent progress catalogue 2007.■■

shorter term elements were also taken from Lessons Learned collected from crisis management operations.■■

Medium term elements were collected from a collaborative opportunities Database, which was established to ■■

cover ongoing and planned projects and programmes.

Longer term elements were derived from a comprehensive analysis of potential future trends for the 2025+ ■■

timeframe, including strategic drivers, threats, science & technology. the LtV provided much of the back-ground for this work.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 8

© C

ounc

il of

the

Euro

pean

Uni

on -

© E

U NA

VFOR

- ©

EUF

OR T

chad

RCA

- ©

BAE

Sys

tem

s -

© E

DA -

© s

xc.h

u

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 9

■ Contents oF tHe CDPthe cDp consists of both detailed contents and overall conclusions. the detailed contents of the cDp is structured by military task and by time period, listing key issues, task significance and trends per task per time period, thus bringing the results of the cDp’s four elements together into one common format.

the tasks used are taken from a List of Generic Military tasks (explained below), with detailed cDp statements provided at the subtask level. three time periods are used – shorter, medium and longer term – which in the initial cDp published in 2008 corresponds to 2008-2012, 2013-2018 and 2025 and beyond.

■ LIst oF GeneRIC MILItARY tAsksthe list of generic military tasks provides a structure by which the cDp is reported. this hierarchical structure con-tains a number of tasks under each capability development area, and subtasks under each task.

While the way that a military task is performed may change over time, the generic tasks in themselves are likely to stay the same over extended periods of time. this makes a task orientation a relevant structure in which to present trends in the cDp, which looks at several different time frames.

■ keY ResULts oF tHe WoRk on FUtURe tRenDs CAteGoRIseD BY CAPABILItY DeVeLoPMent AReAs

Command & Control

the main challenge will be to establishing the right information architectures and management processes.■■

network Enabled capability (nEc) will be relevant to all players at home and in theatre. connectivity and ■■

interoperability will be key to success.

as more non-military sources of information are likely to contribute to the common operational picture (cop), ■■

the necessity to validate this information will become more important.

concepts for the integration and exchange of information with non-military actors will have to be developed in ■■

order to assure the security / validation of information.

Growing dependence on networks / networking will lead to growing vulnerability. the requirement for effective ■■

and (timely) efficient encryption will increase.

© C

ounc

il of

the

Euro

pean

Uni

on -

© E

U NA

VFOR

- ©

EUF

OR T

chad

RCA

- ©

BAE

Sys

tem

s -

© E

DA -

© s

xc.h

u

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 10

a common understanding and concepts for “effects in cyberspace” will be mandatory for efficient and effective ■■

follow-on activities.

the cooperation with other actors in theatre will increase the effort for co-ordination, especially when aiming ■■

at common desired effects.

the ability to “reach back” will be essential in future operations.■■

Provide Intelligence

Efficient planning for coalition operations will require considerable cooperation between agencies, ■■

sharing an understanding of collection capabilities and resources to minimise the duplication.

in coalition operations, cooperation between intelligence communities will remain essential and this will en-■■

hance the requirement for a dedicated, secure, jam-resistant physical network with sufficient bandwidth.

the anticipated growth in the availability and usage of both manned and unmanned intelligence, surveillance, ■■

target acquisition and reconnaissance (istar) assets and systems will require that an effective istar architec-ture to be established.

the trend to more human intelligence (HuMint) will continue. ■■

the wider use of internet and other open sources is likely to result in a need for an increase in open sources ■■

intelligence (osint) capabilities.

the comprehensive analysis of adversaries’ capabilities and intentions will become more complex and demand-■■

ing. the training of specialised personnel will have to adapt to these circumstances.

in future coalition environments, there will be a need to harmonise intelligence products in terms of structure ■■

and language and this is likely to require adaptations of education and training.

in the future networked environment, network needs for intelligence are likely to be part of a wider command, ■■

control, communications, computers and intelligence (c4i) architecture, with intelligence specialised networks being deployed only in certain cases, such as covert operations or in the case of highly specialised national resources.

Conduct Manoeuvre & Joint Fires

identifying irregular adversaries and operations in urban areas will require novel techniques to select, classify ■■

and confirm targets. reach back may become vital when selecting and confirming target priorities.

Effect-based planning and procedures will need to be developed. ■■

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 11

non-lethal effects are likely to be as important as the traditional kinetic and lethal ones. the range, reliability and ■■

the preciseness of effects, provided by non-lethal weapons (nLW), will have to be increased / improved.

although air mobility will increase in importance, the need for ground mobility will remain, due to weight and ■■

size of forces to be moved and threat to air assets.

importance of manoeuvre from the sea is likely to increase.■■

a wider spread use of sea mines / remote control improvised explosive devices (iEDs) by the adversary will ■■

require more detection and identification capabilities.

nEc will become the prerequisite for efficient and timely fire support in a more joint and combined environment.■■

the critical threat from man-portable air defence systems (ManpaDs) will continue to increase. ■■

new concepts will need to be developed in parallel with technological advances in order to counter the Man-paDs threat.

ensure Force Protection & security

training and education will remain the primary means to counter adversary’s psychological operations. ■■

iEDs will remain a priority for irregular adversaries in all environments and will become more sophisticated. ■■

iEDs will continue to create powerful psychological and strategic effects. ■■

timely reaction on threats will become even more critical. therefore, the need for nEc and a more direct link ■■

between sensors and effectors is likely to increase.

the number of unmanned aerial vehicles (uaVs) and civilian aircrafts in theatre will increase, and this is likely ■■

to further complicate this task.

Defensive counter air against uaVs is likely to be based on two aspects - physical (kinetic) effects and electronic ■■

warfare (EW), and may create the need for new concepts.

the increased complexity in threat from weapons and devices based on chemical, biological, radiological and ■■

nuclear agents and explosives (cBrnE) will increase the importance of passive defence as a whole.

Vulnerability to electronic attacks will be proportionate to the rapid growth of net-enabled systems, in addition ■■

to the challenges of electronic protection that will affect stand-alone systems.

© s

xc.h

u

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 14

ensure strategic Reach & Freedom of Movement

strategic flows will gain in efficiency, coherence and consistency through end-to-end and multi-modal manage-■■

ment of national/contracted means of transport. furthermore, the need to use civilian market capacities for strategic sealift is likely to remain significant.

the increasing recourse to commercial services for strategic transport will remain. ■■

in many foreseeable theatres of operations, the likely limited capacity of airports of debarkation (apoDs) will ■■

remain a limiting factor and a bottleneck for the deployment and subsequent logistic flow. this applies also to standard civilian airfields.

airspace control is unlikely to change significantly by 2025 and thus, all aircraft, including unmanned, will be ■■

required to comply with established airspace control measures.

Host nation support is likely to be limited in most cases.■■

potential adversaries will try to deny access to theatre by the extended use of sea mines and / or remote ■■

control devices.

to provide faster evacuation, medical practices will need to be standardised and harmonised across the force.■■

technology will play a significant part in casualty management, including decision tools for patient evacuation ■■

and patient tracking and tracing for use during evacuation.

ensure support & Logistics

advances in telemedicine and biotechnology will need to be leveraged for military health support.■■

future operations will be conducted in a more legal environment. the need for tailored education and training ■■

programmes on legal issues is likely to extend to all deployed personnel.

religious support will be broadened as personnel of our forces are likely to be more multicultural in their composition.■■

new power systems are unlikely to bring significant benefits to the armed forces in the time period considered. ■■

the increasing sophistication of weapon systems is unlikely to simplify the maintenance in theatre. ■■

requirements for high standards of living in theatre will become a key trend for prolonged operations.■■

co-operation and co-ordination between military and civilian elements will remain significant for overall mission ■■

success. for most aspects in logistic domain, civilian logistics technologies and practices are likely to be applied.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 15

■ oPeRAtIonAL ConCLUsIons When the cDp was compiled, a number of operational conclusions were drawn, cutting across a large number of tasks. they have relevance over the entire time frame studied. several of the operational conclusions underline the fact that while armaments and new technology play an important role, capability development must take place in all lines of development, and few challenges can be solved by technology alone.

the following operational conclusions were highlighted in the initial cDp:

Concepts and doctrine ■■ – consistent and appropriate concepts and doctrine is needed in all capability areas to underpin other developments. they need to be fundamentally joint, multinational and inter-agency in nature and must depict how the force will operate in the future, addressing the role of the military across the full range of missions. they must be specific enough to enable identification of capability development priorities, yet flex-ible enough to absorb new ideas as new technology emerges, threats develop and strategic drivers evolve. static concepts do not encourage intellectual development and will be made irrelevant by flexible adversaries.

Persistent intelligence and knowledge-based operations ■■ – the exploitation of knowledge in the form of knowledge-based operations will be fundamental in future operations. to achieve this, wide-area surveillance, full spectrum intelligence and a robust early warning capacity are needed. surveillance coverage must be established where and when needed, day or night, as well as in denied or contested locations, and the needs in operations against irregular adversaries needs attention. this also requires future isr capabilities to be developed with the overarching joint intelligence needs in mind, supporting improved levels of precision and enhanced selectivity. a network enabled architecture and the use of civilian sensors and sources are also key elements in this area.

■■ Comprehensive and co-ordinated actions – complex operational challenges need to be addressed by using a multi-agency concept based on seamless and adaptive civilian-military structures and procedures. im-portant contributions to synergy will be strategic and operational integration, sharing of information. relevant military elements will need greater adaptability, and be more flexible and modular. network enabled capability can enable critical relationships, and speed up connectivity and business processes, if a shift from a military-focused effort to a strengthened, all agency-wide strategy take place.

Maintaining the initiative ■■ – Eu forces need constantly to maintain the initiative and the ability to manoeu-vre in all operational dimensions when facing adversaries who are unconstrained in their actions. adversaries, irregular or traditionally-structured, are likely to adopt an anti-access strategy and anti-manoeuvre tactics, across all environments and domains, in order to deny Eu forces the ability to manoeuvre and prevent them gaining and maintaining the initiative. future forces may be required to manage all aspects of threat, includ-ing these in the cyberspace and from weapons of mass effect.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 16

Achieving agility and adaptability■■ – overall, there will be a need for greater flexibility, agility, responsive-ness, tactical manoeuvre and a discriminate force usage, in order to prepare for the challenges of an unpredict-able future. in the nearer term this may predominantly be in the form of irregular and nonlinear actions from a variety of adversaries, but in the longer-term the re-emergence of a conventionally-structured adversary involved in a regional conflict cannot be discounted. future military capability development will need to stress greater flexibility, versatility and speed in order to create the necessary rapid effects across the full spectrum of mis-sions. strategic reach and tactical mobility need to be sufficient to ensure credibility. all-weather, stand-off preci-sion weapons must be balanced with a highly discriminate force usage that will require combinations of kinetic, non-kinetic and less than lethal means with the focus on the desired effect (e.g. to avoid collateral damages). furthermore, the increased importance of information operations will necessitate a new and novel tool set.

the human factor ■■ - people remain the most critical requirement for the future forces. Higher-quality personnel will be needed to address the complexity of modern security operations, which place severe demands on the mental agility and ingenuity of military personnel. future operational demands of deployed forces will require even higher-quality personnel and training. it is unclear whether if armed forces can rely solely on traditional career profiles to provide critical skills, or if novel solutions need to be sought. training and education require-ments at all levels and across the full spectrum of actors are also changing, with traditionally skills needing to be supplemented with improved, broader proficiencies that can support emerging technological techniques, new operating concepts, and novel approaches to knowledge exploitation and decision-making.

■ PRIoRItIseD ACtIons as a result of the initial cDp, the July 2008 steering Board selected 12 prioritised vactions. these 12 actions, and the suggested focus of activities under them, are:

Counter Man Portable Air Defence systems (C-ManPADs)■■

the cDp future trends analysis indicates that the proliferation of sophisticated ManpaDs assets will increase. as a result, the critical threat from ManpaDs will also increase and will require highly-capable counter-measures, based on new concepts in parallel with technical advances

Computer network operations (Cno)■■

the cDp indicates this will remain important in the longer term. the development of computer network opera-tions (cno) concept, doctrines, tactics, techniques, procedures, education and training has been identified as priority. in the future, providing effects in cyberspace may become an alternative to the use of force, especially at the beginning of future operations.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 17

Mine Counter-Measures (MCM) in littoral sea areas■■

the cDp future trends analysis indicates that the importance of manoeuvre from the sea is likely to increase due to denser populated coastal areas. furthermore, this analysis highlights that adversaries may be prepared to use asymmetrical tactics to prevent the Eu forces from gaining and maintaining the initiative. a wider spread use of sea mines / remote controlled devices by the adversary will require more detection and identification capabilities.

Comprehensive Approach - Military Implications■■

co-operation and co-ordination between military and civilian elements will remain significant for overall mission success. as a comprehensive approach to the conduct of crisis management operations (cMos) evolves, the con-structive synergy between military and civilian elements may become critical. in the context of a comprehensive approach, non-military actors, at home and in theatre, will need to be integrated into new info management systems.

Military Human Intelligence and Cultural / Language training■■

the cDp future trends analysis mentions an increasing relevance of military human intelligence (HuMint) capacities. in addition, the need for adequate training programmes for host nation security forces, in order to promote close co-operation, has been identified. the prerequisite for the setup of these programmes are the clear understanding of the mission environment. this aspect is supported by the cDp future trends analysis, which states the necessity to conduct a more specific staff in order to become better adapted to the specific cultural background of the operation.

Intelligence, surveillance, target Acquisition and Reconnaissance Architecture■■

the cDp indicates that this is a critical, short-term issue. Lessons identified from current operations emphasize clearly the lack of effective layered istar architecture due to deficits in doctrine, interoperability, and equip-ment. the cDp future trends analysis states the requirements for a multinational and standardised istar architecture.

Medical support■■

the cDp indicates that there is a need for timely medical arrangements amongst participating Member states and for greater interoperability of equipment or medical consumables. in the longer-term, the cDp indicates that Eu forces will not be able to deploy to different regions of the world without a sound healthcare support organisation in place and that medical practices, treatments and supplies will need to be standardised and harmonised for increased interoperability.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 18

Chemical, Biological, Radiological and nuclear (CBRn) Defence■■

the cDp future capability trends analysis concludes that the increased complexity in threat from cBrnE weap-ons and devices will increase the importance of passive defence as a whole. the usage of cBrn weapons and devices may represent a powerful strategic effect available to a future adversary with biggest threat from impro-vised devices and that adversaries will use countermeasures against our sensors.

third Party Logistic support■■

the cDp indicates that this issue could see a considerable increase in significance in the longer-term. industry will be more organised to enable faster processing for the contracting of commercial services in support of military operations. Likewise the military will need to be more prepared to use commercial support for logistics, which may reduce the pressure to secure host nation support. commercial solutions can be used for almost everything (with the exception of ammunition) .

Counter-Improvised explosive Device (C-IeD)■■

the cDp indicates that in the longer-term there will be a considerable increase in significance of c-iED. the vul-nerability of land lines of communications will remain very high, with iEDs as the main threat. iEDs will remain a priority for irregular adversaries in all environments and will become more sophisticated. they will continue to create powerful psychological and strategic effects, supporting both the ‘bomber’ and counter-activities, includ-ing protection capabilities.

Increased availability of helicopters■■

the cDp indicates that manoeuvre units will be able to deliver the required capability, but this assumes suf-ficient training, adequate equipment and that helicopter remain scarce assets. in the longer-term, the cDp highlights that air mobility will increase in importance and that interoperability and common procedures will provide the foundation for successful maintaining mobility.

network enabled Capability (neC)■■

the cDp indicates that in the longer-term nEc will likely be a prerequisite for fully participating in future opera-tions and that it will be relevant to all players at home and in theatre. connectivity and interoperability will be key to success, enabling essential critical relationships to speed up business processes and decision-making to deliver the required strategic effect. the main challenge will be the identification of their information exchange requirements and the development of adequate architectures prior to the operation.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 19

© E

DA -

© U

FOR

Tcha

d RC

A

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 20

Avior, laser system characterised by unlimited depth of definition, a high degree of colour diversity, brightness and constant colour convergence - developed by Rheinmetall Defence Electronics

■ WAY AHeADafter the endorsement of the initial cDp, the actual main focus lies on the translation of the selected 12 actions into deliverable capabilities. in order to keep the momentum of the process and in order to set the conditions for pMs to commit to collaborative capability improvement projects within the Eu, an initial set of strategic context cases (sccs) have been developed for the individual selected actions set in July 2008. the fundamental purpose of the sccs is to inform and support national decision-making. Each scc provides a strategic background of the requirement, outlines the objectives to be achieved, and offers a series of options covering the most appropriate lines of development. the individual sccs also provide for each presented option an outlined project plan and preliminary assessments of required resources..

there are many other follow-on activities. connectivity of cDp priorities with research & technology priorities is ongoing, with an initial focus on c-ManpaDs, cBrn, c-iED and MMcM (maritime mine counter-measures).

the Eu Military committee has assumed responsibility for follow-on work in the areas of computer network opera-tions, military HuMint and the military implications of a comprehensive approach, while EDa has the lead in the further development of the other nine selected priorities.

the collaborative Database will remain the tool to identify potential collaborative projects. Member states will further be invited to provide their inputs on a regular basis and all possibilities of working closely together with EDa and the appropriate integrated Development teams (iDts) will be explored.

finally, from the beginning, the cDp was designed to integrate the inherent flexibility to be adapted to changing circumstances or new developments. therefore, the cDp itself will have to be updated and reviewed in the future in accordance with changes in the international security environment change, future challenges and trends.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 21

eURoPeAn DeFenCe ReseARCH

& teCHnoLoGY stRAteGY

© R

hein

met

all D

efen

ce E

lect

roni

c

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 22

eURoPeAn DeFenCe ReseARCH & teCHnoLoGY stRAteGY

■ IntRoDUCtIon according to the council Joint action 2004/551/cfsp on the establishment of the European Defence 1. agency (EDa), the mission of EDa is to support the council and the participating Member states (pMs) in their effort to improve the Eu’s defence capabilities in the field of crisis management and to sustain EsDp as it stands now and develops in the future. for this purpose, four functions and tasks are allocated to the agency. these are the development of defence capabilities in crisis management, the promotion and en-hancement of European armaments co-operation, the strengthening of the European Defence technological and industrial Base (EDtiB) and the enhancement of the effectiveness of European Defence research and technology (EDrt).

the establishment of an EDrt strategy will enable the EDa to better perform its role in each of the above 2. functions, and particularly in the enhancement of the effectiveness of EDrt. the need for a EDrt strategy is reinforced by the following trends: growing need for research and technology in order to face new defence and security challenges, introduction of a European capability drive for research and technology program-ming for the development of defence equipment and systems, restructuring and cross-border ownership on the industrial supply side, and multi-lateralisation of collaborations.

furthermore, the EDrt strategy should be implemented in concert with the on-going work on the “capabil-3. ity Development plan” (cDp) – endorsed by the EDa steering Board (sB) on 8 July 2008 - and the “EDtiB strategy” - endorsed by the EDa sB on 14 May 2007 - which have already recognised r&t collaboration as a key factor for success. the synergy between these three strategies, in addition to the “European armament co-operation strategy” – endorsed by the EDa sB on 15 october 2008, will enable the achievement of the main objective of improving European defence capabilities.

in this context, an EDrt strategy is an ambitious guide for the different Defence r&t stakeholders (pMs, industry 4. & research suppliers, European commission, nato, occar, Esa,…) in their investment. in addition to maintain-ing a strong link with the other strategies in the capability, EDtiB and armament co-operation areas, the EDrt strategy should support the efforts of pMs to improve their investment and collaboration in r&t.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 23

■ VIsIonTo enhance and develop more effective research collaboration in science, technology and demonstrators to de-liver in time the right technologies in support of military capabilities for short, medium and long term needs.

the EDrt strategy covers two phases: a planning phase and an implementation phase. the “Ends” represent 5. the areas where r&t investment is required in order to improve European defence capabilities; the “Means” describe the tools which may improve the efficiency and accelerate the implementation of the “Ends”. the implementation phase of the EDrt strategy embraces r&t collaborative projects which will deliver the “Ends” effectively through the use of appropriate “Means”. roadmaps and action plans will be crucial tools to de-scribe the “Ways” and connect the planning and the implementation phases of the EDrt strategy.

■ stRAteGIC AIM : tHe “enDs” Defining a list of key technologies for European Defence R&T

the “Ends” are the technologies to which investment should be directed to serve the ambitions of pMs for 6. improved European defence operational and industrial capabilities. the immediate questions are how to identify and accomplish these “Ends”? a prioritised European list of key technologies in which to invest will provide the core of the EDrt strategy. all other objectives will contribute to the achievement of these priori-ties or “Ends”, delivering the right technologies with the performances required by the operational needs, at the right time.

the “Ends” need to be substantiated in order to justify pMs investment. firstly, the capability-driven approach 7. in research and technology programming dictates that they should be linked with operational requirements. such a link would need to be established through a translation process deriving r&t priorities from the ca-pability priorities identified through the cDp; and to be indicated through the integrated roadmaps showing the “Ways” of implementing the r&t. other criteria also need to be considered such as the impact of techno-logical breakthroughs on capabilities, EDtiB strengthening, less- or non-dependence on critical technologies, opportunities for collaboration, options for acquisition, etc.

considering the time and effort needed to provide this level of substantiation, a preliminary European de-8. fence key technologies exercise has provided initial r&t priorities at the European level. this first guidance will now be progressively refined by the outputs of the cDp through successive translation exercises.

the initial list of “Ends” will include both key-technologies and skills that need to be developed or preserved 9.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 24

in Europe. However, a fully adequate DtiB is no longer sustainable on a strictly national basis and pMs need therefore to press on with developing a truly European DtiB, which is more than a sum of its national parts. on this basis, the initial list of “Ends” represents a first alignment of pMs needs which should be used, together with other inputs, to guide the defence suppliers towards a better integrated European DtiB.

the “Ends” should be accomplished through collaborative r&t projects detailed in roadmaps, with an ad-10. equate balance between capability driven research projects and more scientific and bottom-up projects to anticipate new threats and to stay aware of progress in science and technology for operational superiority. in particular, a special attention on disruptive technologies and emerging technologies must be carried out by pMs to evaluate their potential defence applications. the roadmaps should take into consideration appropri-ate “Means” that may enable a more effective accomplishment of the “Ends”. these roadmaps will bridge the planning and the implementation phases of the EDrt strategy.

appropriate use of funds should be made to accomplish the “Ends” taking into account projects which are 11. currently in the pipeline and also results of previous collaborative efforts. “Ends” will require the generation of r&t collaborative projects/programmes under an appropriate framework (e.g. EDa) and using appropriate tools (cat.a, cat.B, Joint investment programmes, EDa operational Budget, etc.).

■ stRAteGIC AIM: tHe “MeAns” Developing the right tools to achieve the ends

the “Means” are objectives that must be pursued in terms of frameworks, mechanisms, processes and struc-12. tures to help improve performance in delivering the “Ends” through various forms of collaboration – whilst also fulfilling the complementary needs for autonomy and national operational sovereignty – including co-operation with international institutions. achieving these objectives will ensure the effective and sustainable identification and delivery of the “Ends”.

a number of “Means” are necessary in order to improve collaboration in r&t and achieve the “Ends” quickly 13. and efficiently. such “Means” have been identified through an appropriate analysis and grouped into the following clusters:

improve integration of the defence technology and industrial base into the wider supply base:■■ “Means” within this cluster include, establishing a strategic dialogue with industry and research providers, includ-ing civil research, ensuring appropriate coordination with other r&t networks and bodies, broadening the

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 25

supplier base; and promoting r&t networks of Excellence. these “Means” are aimed at maintaining the European security of supply by strengthening the competitiveness and increasing the efficiency of the Eu defence industry through improvements in the r&t base.

promote technology push:■■ “Means” within this cluster include improving the shared r&t watch mecha-nism, promoting awareness of civil technologies for defence purposes and developing technology road-maps. such “Means” are aimed at ensuring that the Eu has appropriate tools in place to identify emerging and disruptive technologies that may lead to future “Ends”, thus ensuring that the Eu remains one step-ahead of possible adversaries and on-par with industrial competitors.

improve the effectiveness of r&t collaboration:■■ “Means” within this cluster include encouraging a stronger pMs commitment to r&t collaboration and budget alignments, providing better management of r&t, cre-ating an enabling environment for r&t collaboration; and accelerating new technology insertion into pro-grammes in priority areas. these “Means” are aimed at improving the speed and efficiency of delivering the “Ends” whilst ensuring that the delivered “Ends” will have a direct benefit for Eu defence capabilities.

■ stRAteGIC AIM: tHe “WAYs”Implementing “Ends” and “Means” through roadmaps and actions plans

When used correctly, roadmaps can be an important tool in the transition from the technology strategy level, to 14. the “make it happen” level, organising more detailed objectives, implementing the strategic ones – both from the “Ends” and the “Means” areas, allowing for better application of r&t resources, as well as a closer and sustained coordination with adjacent roadmaps in the capability, armament and DtiB areas. such roadmaps should clearly indicate how the r&t activities are connected to operational and industrial capabilities.

the implementation of the strategy using roadmaps is best seen as a concurrent process reducing the pos-15. sible investment risks. in helping to identify the possible paths to meeting strategic goals, road mapping can inform strategic choices. a good roadmap highlights the advantages and disadvantages of various possible “paths”, assisting the strategic level to choose between different options. it will also provide a reference for later “a posteriori” evaluation of implementation phases by tracking r&t projects against the different objec-tives.

road mapping can however be a very complex and time-consuming task and needs to be carried out by ex-16. perienced personnel working within a coherent and mature organisational framework. this requirement can limit its application at a multilateral level. Moreover road-mapping requires consensus among participants as to not only the general objectives, but also on the ways to keep future options open. roadmaps will there-

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 26

Aircrafts without pilots

fore need to be applied, on a case-by-case basis, very often in variable geometries of pMs rather than at a European level.

■ ConCLUsIon the EDrt strategy, as described above, should encourage the commitment of all stakeholders (EDa, 17. pMs, industry, academia, research centres, etc) towards the realisation of the Vision of this EDrt strat-egy. a first step towards this goal would be the realisation of collective benchmarks and the estab-lishment of voluntary r&t expenditure targets. such voluntary benchmarks (in the sense that turn-ing them into national targets is optional) were approved by the Ministerial steering Board on the 19 november 2007:

- Defence r&t spending: 2% of total defence expenditure, - European collaborative Defence r&t spending: 20% of Defence r&t expenditure,

the EDrt strategy should enable the development of effective collaborations taking into consideration 18. priorities from capability (e.g. the EDa’s capability Development plan), armaments co-operation and EDtiB strategies whilst also influencing them. taking into account the substantial effort required in terms of defi-nition, agreement and implementation there is a necessity to prioritise among the strategic objectives, in both “Ends” and “Means” areas, in order to implement them effectively. However a fair balance between addressing short term and longer term objectives is also needed. the EDrt strategy will therefore give rise to an incremental living process, benefiting progressively from iterative and successive developments, aimed at providing the appropriate level of scrutiny and substantiation to achieve pMs buy-in.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 27

eURoPeAn ARMAMents Co-oPeRAtIon

stRAteGY

© E

UFOR

Tch

ad R

CA

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 28

eURoPeAn ARMAMents Co-oPeRAtIon stRAteGY

■ IntRoDUCtIon the continual pressure on defence budgets, the rising costs of armaments and the decrease in the numbers 1. of equipment produced accentuates the need to find more efficient ways of providing capability to our forces. in the context of this strategy this means achieving more effective European armaments co-operation in support of the European security Defence policy (EsDp); to reach full operational capability quicker and more cost-effectively than has been done before. the growing use of new technologies, which are increasingly being adapted from civil technologies (dual-use), joint off-the-shelf purchase and co-operation in-service, has increased the opportunities for co-operation.

Governments’ draw security policy, military, economical, technology and industrial benefits from participat-2. ing in co-operative armaments programmes. for example to meet a capability requirement and sustain it thereafter at a more affordable price, to improve interoperability of forces, to increase potential equipment sales, to strengthen the European Defence technology and industrial Base (EDtiB) and to foster strategic multinational understanding.

the pMs’ have developed sophisticated methods to identify their capability needs. they take account of their 3. membership of the Eu and other organisations and from these derive their political and military ambitions. one of the natural sources for identifying capability needs is through the EDa’s capability Development plan (cDp), although it is recognised that not all needs will be fulfilled through co-operative programmes. a European policy approach to armaments is needed that links the future European capabilities needs with the future EDtiB and investment therein.

■ VIsIon To promote and enhance more effective European armaments co-operation in support of the ESDP.

stRAteGY

if the vision is to be met and Europe is to have a significant role globally, we have to find ways to achieve 4. the following three strategic aims.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 29

stRAteGIC AIM 1 - GENERATE, PROMOTE AND FACILITATE COOPERATIVE PROGRAMMES TO MEET CAPABILITY NEEDS

to achieve more effective armaments co-operation it is necessary to use co-operative opportunities early in 5. the life cycle and to shape these potential programmes co-operatively from the onset. the EDa, within its function and tasks ascribed in the Joint action, has an important role to facilitate the translation of capability needs into co-operative programmes in a structured manner. We must take informed decisions regarding co-operation in order to take the co-operative approach, when it is appropriate to do so, as a means of fulfilling the capability priorities emerging from the cDp or from initiatives proposed by the pMs. acquisition strate-gies must be selected carefully and we must make the best use of r&t derived from the EDrt strategy, the pMs, civil technologies, and the investment by defence industry.

once military needs are harmonised between pMs’, future cooperative programmes can be prepared in a 6. structured manner in a so-called “preparation phase,” which should be documented accordingly. the sub-sequent programmes are generally carried out by appropriate executive agencies after the corresponding decisions have been taken by the interested pMs.

once we embark on co-operation we must continue to avoid divergence for the good reasons we originally identi-7. fied: we do not wish to see duplicate international initiatives that end up with different solutions that are not able to work effectively together in operations. Likewise, we wish to avoid the possibility of purchasing equipment that will no longer be effective in operations, and therefore coherence with the capability Development plan (cDp) and the pMs defence plans will need to be checked at major programme decision points.

We must seek to maximise the opportunities to use armaments co-operation and ensure the option to co-op-8. erate is considered in our defence planning and in our procurement decisions. this should not be exclusively for co-operative development but consider also the potential advantages of co-operating on in-service support or upgrading of existing assets and other lines of capability development.

stRAteGIC AIM 2 - ENSURE THE EDTIB AND INVESTMENT THEREIN IS CAPABILITY ORIENTATED AND SUPPORTS FUTURE CO-OPERATIVE PROGRAMMES

a solid European industrial base is a prerequisite for effective European armaments co-operation. converse-9. ly, effective co-operation on armaments programmes fosters the environment in which the EDtiB can be strengthened and provide competitive products for European industry.

Greater transparency and mutual understanding between governments and industries will help to ensure 10. the EDtiB remains coherent with future European capability needs. Here we must look to provide the Eu-

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 30

ropean defence industry with the information that it will need to inform its decisions on consolidation and investment. this information will be based on analysis of the cDp, the results of implementation of both the European Defence research and technology (EDrt) strategy and the EDtiB strategy, and the way we structure future co-operative programmes. However, we must recognise that some such decisions have to be taken in the light of developments in the global market. nonetheless, we wish to secure the ability to procure defence equipment from strategic sectors of the European market in the long term. these orientations must be supported by appropriate acquisition strategies and resource allocation.

stRAteGIC AIM 3 - IMPROVE THE EFFECTIVENESS AND THE EFFICIENCY OF EUROPEAN ARMA-MENTS CO-OPERATION DEVELOPING THE RIGHT TOOLS TO ACHIEVE THE ENDS

Beside the activity to facilitate and prepare armament co-operations, efforts have to be made to improve 11. the efficiency of European armaments co-operation. opportunities to cooperate must be identified and con-sidered early in the life cycle to be most effective. Whereas there is an interest to intensify the dialogue in order to harmonise capability needs, the definition of cooperation programme itself must not result in the sum of national requirements leading to an over-specified product. instead there must be a real and effective harmonisation of needs to maximise the benefits of co-operation.

Decisions taken during the programme ‘preparation phase’ and targeted risk reduction activities will have 12. a significant influence upon the outcome of a co-operative programme in terms of costs, timescales and performance. We should not only be clear on how to conduct a programme ‘preparation phase’, but also how to ensure the progression of a co-operative programme. a through-life approach is needed from the onset so that co-operative programmes are best placed to progress effectively through-life. thus, the working interfaces between the pMs, the EDa and the relevant executive agencies documented accordingly must be smooth, flexible and avoid duplication of effort as much as possible. and we need to co-ordinate and har-monise materiel standardization in accordance with the EDa standardization policy.

as part of our through-life approach we must plan early for test and evaluation aspects. in turn, the European 13. Defence test & Evaluation Base (DtEB) must be optimised, as outlined in the “DtEB conceptual Guide”.

Being clear on how we work together, learning from each other and tackling co-operation from a Euro-14. pean perspective will be essential. in the long-term we wish to see a common understanding and approach emerge, supported where required through training and education. above all though, through our actions the pMs will mitigate against additional burdens.

finally, we need to improve the way we do business generally by sharing and utilising current tools for best 15. practice in the acquisition process and associated skills.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 31

■ ACtIons DeRIVeD FRoM tHe eURoPeAn ARMAMents Co-oPeRAtIon stRAteGY

Armaments acquisition has many facets and it demands many actions from the pMS and the EDA to bring about more effective European armaments co-operation, as described in the European Armaments Co-oper-ation Strategy. The following actions have been derived against each of the strategic aims.

stRAteGIC AIM 1 - GENERATE, PROMOTE AND FACILITATE COOPERATIVE PROGRAMMES TO MEET CAPABILITY NEEDS, THROUGH:

using the results and priorities defined by the cDp and pMs capability initiatives as the foundation upon ■■

which short-to-long term capability development activity within EsDp should be undertaken;

EDa, in consultation with the pMs, to produce and maintain a ‘Guide to the conduct of a programme ■■

preparation phase’ that includes methods and tools to be applied and identifies the roles of stakeholders, the outputs and the decision points of the pMs both nationally and collectively;

EDa to facilitate and support the harmonisation of common staff targets (cst) and common staff re-■■

quirements (csr) and encourage the pMs to inform others of their requirements early so that opportuni-ties for co-operation can be optimised;

identifying innovative solutions to co-operation, notably by utilising ‘dual use’ technologies applicable to ■■

the military and security sectors;

constructing defence equipment or procurement plans on the premise that co-operation is considered as ■■

a potential solution, so that we are receptive to co-operation at the earliest opportunity;

opportunities to co-operate (throughout the acquisition life-cycle and for the harmonisation of capability ■■

needs) are shared amongst the pMs through the cDp Database and the co-operative option is considered in all acquisition decisions, so that no opportunities to co-operate are missed;

the EDa analyse the pMs’ intentions to upgrade existing major assets, and draw to the attention of like-minded ■■

pMs the possibilities for joint support solutions and user clubs and promoting them as appropriate;

consider all lines of development in order to maximise co-operation and interoperability.■■

stRAteGIC AIM 2 - ENSURE THE EDTIB AND INVESTMENT THEREIN IS CAPABILITY ORIENTED AND SUPPORTS FUTURE CO-OPERATIVE PROGRAMMES, THROUGH:

Exchanging appropriate information between governments and industries on long-term European capabil-■■

ity planning and industrial long-term investment planning;

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 32

© E

UFOR

Tch

ad R

CA -

© F

inm

ecca

nica

- ©

200

5 BA

E Sy

stem

s -

© B

AE S

yste

ms

- ©

EAD

S -

© E

U NA

VFOR

- ©

sxc

.hu

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 33

as established in the EDtiB strategy, we need to:■■

Ensuring the key European industrial capacities is preserved or developed; i.

improving the assuredness in European security of supply and security of information as established ii. in the EDtiB strategy;

seeking a rational and more flexible approach to industrial participation that improves the efficiency iii. and effectiveness of co-operative projects and allows industry to find the most efficient solution to support consolidated requirements; and

Enlarging the contribution of small and medium sized enterprises.iv.

using when appropriate co-operation in sub-systems and components as the forerunner to platform and ■■

systems co-operation; and

transparency and compatibility of procurement policies and practices, including budgetary planning and ■■

cycles, so that we may improve the way we do our business.

stRAteGIC AIM 3 - IMPROVE THE EFFECTIVENESS/EFFICIENCY OF EUROPEAN ARMAMENTS CO-OPERATION, AS FOLLOWS:

EDa to develop with the pMs and other stakeholders an outline of how the EDa should interface with ■■

relevant executive agencies and service providers in the circumstance of the management of co-operative programmes;

common understanding of the policies and processes applying to co-operative programmes developed where ■■

required through education, training and practical experience, with the EDa facilitating such advice;

in developing publicity and providing briefings to explain the benefits of co-operation, particularly to ■■

those national staffs involved in the initiation of programmes;

in developing best practice defence materiel standardisation management;■■

EDa to produce, maintain and promote a living ‘Guide to armaments co-operation Best practice,’ devel-■■

oped in consultation with the pMs to tackle the breadth and diversity of co-operative programmes. this would include but not be limited to the above and:

outline reasons to co-operate and the advantages of doing so;i.

Models for the efficient conduct of joint off-the-shelf purchases;ii.

© E

UFOR

Tch

ad R

CA -

© F

inm

ecca

nica

- ©

200

5 BA

E Sy

stem

s -

© B

AE S

yste

ms

- ©

EAD

S -

© E

U NA

VFOR

- ©

sxc

.hu

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 34

procedures for applying through-life management and life cycle costing to aid decision making;i.

Best practice standardisation management;ii.

European quality guidelines;iii.

General arrangement, that also draws upon a set of standard contractual conditions, which could be iv. used as the basis for co-operative armaments programmes;

a guide to co-operation in sub-systems and components;v.

improving security of supply and security of information;vi.

innovative approaches to financing programmes;vii.

actions to optimise costs and time-schedules for co-operative armaments programmes;viii.

analysis of lessons learned from ongoing co-operative programmes and share acquisition process best ix. practice amongst pMs;

to promote functional and value analysis within the framework of the programme preparation phases; andx.

to support and promote risks management methods in relationship with European standardization bodies.xi.

Vat issues related to cooperative programmes.xii.

the EDa to implement and maintain the “DtEB conceptual Guide”.■■

■ ACknoWLeDGeMentsDuring the process of creating the European armaments co-operation strategy, the agency has received a significant amount of help and expertise. EDa is particularly grateful to the armaments strategy team representatives from the agency’s participating Member states, and for the contributions from the aerospace and Defence industries associa-tion of Europe (asD) and the organisation conjointe de coopération en matière d’ armement (occar).

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 35

stRAteGY FoR tHe eURoPeAn DeFenCe teCHnoLoGICAL

AnD InDUstRIAL BAse

© E

DA

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 36

stRAteGY FoR tHe eURoPeAn DeFenCe teCHnoLoGICAL AnD InDUstRIAL BAse

in this statement the steering Board of the European Defence agency, meeting today in Defence Ministers 1. formation, sets out its view of the future defence technological and industrial base (DtiB) we must seek to achieve in Europe. We then consider the policy implications – what we must do to get from here to there.

■ A tRULY eURoPeAn DtIB the maintenance of a strong DtiB in Europe is a fundamental underpinning of the European security and 2. Defence policy. it is our DtiB which supplies the bulk of the equipment and systems our armed forces re-quire; which ensures that they have the best which world-leading technology can provide for them; and which guarantees that we can operate with appropriate independence. and the DtiB is also a valuable economic asset, as a major source of jobs, exports and technological advance - which in turn helps to maintain public support for defence.

today, Europe possesses a widely-capable, and in many sectors world-leading, DtiB. But we recognise that 3. this is largely the result of past investment. for the past decade and more, Europe’s investment in its DtiB (EDtiB) has substantially declined, along with overall levels of defence expenditure. at the same time, the costs and complexity of defence systems have continued to grow – and competition in overseas markets has become even more intense, from the us but also from the rising asian economies. We recognise that a point has now be reached when we need fundamental change in how we manage the “business aspects” of defence in Europe – and that time is not on our side.

the essence of this change is to recognise that a fully adequate DtiB is no longer sustainable on a strictly na-4. tional basis – and that we must therefore press on with developing a truly European DtiB, as something more than a sum of its national parts. We cannot continue routinely to determine our equipment requirements on separate national bases, develop them through separate national r&D efforts, and realise them through separate national procurements. this approach is no longer economically sustainable – and in a world of multinational operations it is operationally unacceptable, too. We need therefore to achieve consolidation on both sides of the market in Europe: aligning and combining our various needs in shared equipment require-ments; and meeting them from an increasingly integrated EDtiB.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 37

as our national armaments Directors have already identified, this EDtiB needs to be: 5.

capability-driven (that is, focussed on meeting the real operational requirements of the armed forces of ■■

the future, whilst sustaining the necessary levels of European and national operational sovereignty);

competent (denoting in particular the rapid exploitation of the best technologies); and■■

competitive (both within and outside Europe).■■

such an EDtiB will also need to be more integrated, less duplicative, and more interdependent – increased 6. specialisation, at all levels of the supply chain, must take over from all (or at least too many) trying to do everything. centres of excellence should generally emerge from a market-driven process, moderated by policy considerations including the requirement to achieve an appropriate regional distribution. this EDtiB must also be more closely integrated with the wider, non-defence European technological and industrial base, with less European dependence on non-European sources for key defence technologies.

We do not envision this EDtiB of the future as a “fortress Europe”, excluding imports from, or cooperation 7. with, overseas defence industries. But we recognise that the problem of accessing the us defence market, and of establishing balanced technology exchange across the atlantic, make it natural and necessary for Europeans to cooperate more closely to ensure the future of their own DtiB.

■ GettInG FRoM HeRe to tHeRe Like any industry, a strong defence industry needs competition and investment. unlike other industries the 8. defence business depends critically on governments in their role as regulators, customers and investors.

■ keY ACtIons FoR GoVeRnMentsthere is therefore a key role for governments in bringing about the EDtiB to which we aspire:9.

clarifying priorities.■■ industry needs a customer that knows his own mind: and Ministries of Defence need to identify to the industry what they want, as far ahead as possible. this includes:

prioritising capability needs.■■ a start was made on this in the development of the Long term Vision we published last autumn. We attach particular importance to following this up with the proposed capability Development plan, which must be worked up as a matter of priority.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 38

identifying key technologies. We need to identify, from a European perspective, the key defence ■■

technologies that we must seek to preserve or develop. Military capability need is the prime criterion, but we must also have regard to the needs of autonomy and operational sovereignty, and the need to sustain pre-eminence where this is economically valuable.

identifying key industrial capacities. We must also undertake the wider task of determining which key ■■

industrial capacities we must preserve or develop in Europe (and conversely when we can reasonably plan to source of our future needs from the wider world market).

■■ consolidating demand. aligning and combining the future materiel needs of our armed forces has been long advocated, and seldom achieved. again, we look to the capability Development plan to provide a new springboard for this effort – whilst recognising that this will require real effort and a real readiness to adjust our individual defence programmes. Effective national processes are required to ensure that the collaborative option is always considered in our procurement decisions. this should apply not just to new equipment developments but equally - or perhaps more - to off-the-shelf purchases, shared programmes to upgrade existing equipments, and all other aspects of in-service support. our long-term aim is of an EDa fully competent to advise on potential collaborative matches.

■■ increasing investments. inadequate investment drives the need for change. today’s pre-eminent industrial competitor, the us industry, benefits not only from defence spending more than double the sum of our budgets, but from a higher proportion of this larger sum spent on research and technology, development and procurement (over 30% of the us defence budget, as opposed to the average of less than 20% in Europe). as we have previously noted, the imbalance is especially acute in spending on research, technol-ogy and development – the ratio is currently some 6 to 1. as we agreed a year ago an immediate priority is for us to “spend more, spend better and spend more together on Defence r&t”.

Ensuring security of supply.■■ the concept of a truly European DtiB will not be realised in practice unless Member states can be confident that increased mutual dependence for supply of defence goods and services is matched by increased mutual assurance of that supply. the framework agreement on security of supply in circumstances of operational urgency was a good first step. But that framework agreement must be operationalised and we need to find ways to better assure long-term survival of sources of key technologies in other countries – and a long-term willingness of partner governments to facilitate supply. our ultimate aim is the achievement of equal confidence in security of supply from any part of Europe.

increasing competition and cooperation.■■ above all, a strong EDtiB requires governments to work together both to increase competition in European defence procurement and, when that is not possible or appropri-ate, to improve cooperation.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 39

© E

DA -

© A

irbus

Mili

tary

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 40

■ CoMPetItIon: DeVeLoPInG tHe eDeM though comprehensive data are unavailable, we believe that in recent years less than half of defence pro-10. curement has been carried out in accordance with the public procurement regulations of the Eu internal market; Member states in general have relied on the “national security” exception in article 296 of the treaty establishing the European community to make the bulk of their defence purchases on a national basis. this has had the effect of stunting the development of a proper European Defence Equipment Market – thus denying both the customer and the industry the benefits of competition, and hindering the necessary cross-border integration of the European DtiB. it was this recognition that lay behind our landmark agreement in november 2005 to a code of conduct on Defence procurement which commits the 22 of us who have subscribed to the code to open our national defence markets, on a voluntary and reciprocal basis, to suppli-ers based in each others’ countries.

the code arrangement is operationalised through the Electronic Bulletin Board on the EDa’s website; the 11. number, scale and distribution of the contracting opportunities now advertised there suggest that all nation-al administrations are taking their responsibilities under the code seriously. after 10 months of operation, the first cross-border contract awards are beginning to appear. We judge this initiative, therefore, to have made a good start; but we recognise that we need to maintain, and in some cases to improve, our effort, if we are to achieve the transparency and build the mutual confidence that is required for the long-term success of this initiative. We also recognise that we must specifically address a number of outstanding obstacles to the operation of a fair market. We note and applaud the complementary efforts the commission is making to tackle the same problem of market fragmentation.

When we launched the Electronic Bulletin Board we also agreed, with industry a separate code of Best 12. practice in the supply chain. We know that our vision of a healthy, competitive and integrated future EDtiB will not be realised if our market-opening efforts are perceived to be simply a bonanza for the large prime contractors. With industry’s active cooperation, we need to drive the benefits of competition down the supply chain – so that excellent second- and third-tier companies, often sMEs (with their typical flexibility and capac-ity to innovate), are able to prosper in a European scale of market. this makes economic as well as political sense: the future success of the DtiB in Europe will depend upon effective utilisation of human capital and innovation wherever these are to be found in Europe – in sMEs, and in suppliers not always associated with defence (universities, software houses, providers of dual-use technology), and in the new Member states. We note the slowness of Western European prime contractors to see the new Member states as places to invest, rather than just sell.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 41

against this background, we welcome the EDa’s Defence r&t Joint investment programme initiative, as a 13. complement to other more traditional r&t collaborations. nineteen of us are contributing to this initiative, which aims to attract new resources, both financial and intellectual, into our currently-inadequate European defence r&t efforts. We also welcome the recent launch of the second phase of the EDa’s Electronic Bulletin Board, which complements the earlier government-to-industry contracting opportunities with an industry-to-industry section. it is in this second field that sMEs may expect to find the most promising new opportunities. the strong support that industry has given to this expansion of the Electronic Bulletin Board suggests confi-dence that real movement is now underway towards the achievement of an effectively functioning European Defence Equipment Market.

the next stages of the journey will, however, require concerted efforts to tackle some major issues. security of 14. supply has already been mentioned. others include:

cross-border transfers.■■ current restrictions on intra-Eu transfer of goods, services and skills are a major impediment to the achievement of our objectives. they are often absurd in their effects (a spare part urgently needed for a grounded aircraft in another Member state has to be processed as a “defence ex-port”). this will be a complicated issue to resolve, not least in relation to internal transfers of goods and technology imported from outside the Eu, especially from the usa. over time, reduced dependence on non-Eu sources for key technologies will help. Meanwhile, we welcome the efforts of the commission and different participating Member states to find practicable ways forward, and look to the EDa to lend its support, as and when appropriate.

offsets.■■ Many Eu Member states require their defence imports to be “offset” by compensatory purchases or investments. the present structure of the European DtiB, and the still-infant status of our open market efforts, make this practice understandable; and such arrangements can provide opportunities for individual Member states to build their own skills and develop important relationships for their companies. nonethe-less, when offsets appear as a criterion in defence competitions, then these clearly are not being decided on the basis of the value of competing offers alone. this issue requires further study and analysis, and will need careful consideration over time. nonetheless, we share the ultimate aim to create the market condi-tions, and the European DtiB structure, in which the practice may no longer be needed – and, meanwhile, to consider how adverse impact on competition and the DtiB might be mitigated.

Equity amongst competitors.■■ fair competition requires not only a level playing field, but also the assur-ance that individual competitors are not improperly advantaged. this suggests that features such as gov-ernment ownership of, or publicly-provided aids to, defence industries will call for particular transparency

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 42

© E

UFOR

Tch

ad R

CA -

© A

gust

aWes

tland

- ©

Fin

mec

cani

ca

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 43

if mutual confidence is to be maintained that there is no unfair competitive advantage (such as hidden subsidy) involved.

Whilst recognising that this is an issue that runs beyond our competence as Defence Ministers, we also note 15. that differences in extra-Eu export policies can indirectly impact upon the fairness of competition within the European Defence Equipment Market – especially bearing in mind that the value of the extra-European market to our industry is almost as large as the European home market.

■ CooPeRAtIon: ACHIeVInG MoRe, AnD MoRe eFFeCtIVe, CoLLABoRAtIon

competition is not a cure-all. it is a tool for providing better value to the customer, sharpening our industries, 16. and encouraging the evolution of the EDtiB we want to see. often, however, cooperation may offer a better approach to the same ends.

the history of European equipment collaborations is mixed. some have been highly successful. But too often 17. they have been used with too little regard to producing cost-effective equipment, and too much emphasis on national defence industrial ends. such a course is ultimately self-defeating; our defence industries will survive only if they can provide top quality goods at competitive prices. in this context, the main contribution governments can make is to exercise self-restraint – to allow industry to find the most efficient solution to consolidated requirements, and to move as rapidly as possible away from the approach of “fair shares” (juste retour).

Governments are also responsible for initiating cooperative efforts with robust and realistic shared require-18. ments. We need to make more systematic efforts to identify such opportunities in existing national plans – we look to the work of the capability Development plan as a key enabler in that regard. and we need to shift the emphasis away from an exclusive focus on cooperative development of new equipment, to consider also the potential advantages of collaborating on in-service support or upgrading of existing assets.

When new capabilities are required, it must be consistently borne in mind that the best collaborations start 19. “upstream” – the shared requirements must be achieved at the point where thought is being given to what the new capability will be for, and how it will be used. attempts to harmonise the technical requirements of independently-conceived platforms are rarely successful. this emphasis on the early conceptual stage underlines the importance of a step-change in defence r&t collaboration in Europe as key to “upstream” convergence of requirements thinking, and the point where the possible applications of new technologies are

© E

UFOR

Tch

ad R

CA -

© A

gust

aWes

tland

- ©

Fin

mec

cani

ca

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 44

explored. r&t collaborations whether in the form of pursuing new technologies in their own right, or exploring through technology demonstration their possible application, are also more practically achievable than major equipment collaborations – the sums of money involved are typically much less than for new platform develop-ment, and therefore may more easily and quickly be made available from heavily-committed defence budgets.

■ ConCLUsIons We recognise that this strategy, sketching our shared aims and identifying some of the main principles to be 20. followed and main issues to be addressed, is only a start. the course we have set out involves a long journey and we recall words used in another context over 50 years ago: “Europe can be built only through practical achievements which will first of all create real solidarity”. But we commit ourselves to continuous and ac-tive review of our collective progress towards the realisation of the successful European DtiB which we have sketched above – and we commit ourselves in particular to working on the increased transparency, growing mutual confidence and closer convergence of EDtiB policies upon which success will depend.

Euro

pEa

n D

EfEn

cE a

GEn

cy’s

str

atEG

ic f

raM

EWo

rK -

paG

E 45

eDA BACkGRoUnDthe European Defence agency was established under a Joint action of the council of Ministers of 12 July, 2004, « to support the Member states and the council in the their effort to improve European defence capabilities in the field of crisis management and to sustain the European security and Defence policy as it stands now and develops in the future».

■ tHe AGenCY’s tAsks ARe:

to work for a more comprehensive and systematic approach to defining and meeting the capability needs ■■

of the European security and Defence policy

to promote more effective use of defence r&t resources in Europe by increasing collaboration and manag-■■

ing joint projects, with a focus on key capabilities

to promote equipment collaborations, both to contribute to defence capabilities and as catalysts for fur-■■

ther restructuring of the European defence industry

to work for an internationally competitive European Defence Equipment Market and a strong Defence ■■

technological and industrial Base.

european Defence Agencyrue des Drapiers 17-231050 Brussels Belgiumhttp://www.eda.europa.euinfo@eda.europa.euall rights reserved

Design by www.eu-turn.eu

www.eda.europa.eu