European defence, EU integrated market and environment policies

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1 European defence, EU integrated market Legal Affairs Department French MoD 1 DIE/E/FCH SCOP: Unclassified

2 Summary 1. Political background : The European Union and defence related issues 1.1. What are the spirit and core purposes of the EU internal market? 1.2. What are the spirit and core purposes of the EU defence policy (DFSP)? 1.3. Is the Defence Package the first step towards an integrated EU internal market for defence goods? 2. EU policy mix: defence, internal market and environment 2.1. Has the gap between EU internal market and defence policy been bridged? 2.2. To what extent do internal market interact? 2.3. Balancing environment policies and defence interests: what for and how to do it? 3. Thinking different: a comprehensive approach is possible 3.1. What is at stake? Developing EU internal defence market and transatlantic defence relationship 3.2. An example: the REACH regulation 3.3. The way ahead: fine-tuning the constellation of powers (EU, NATO, European Defence Agency) 2

3 Political background: the EU and defence related issues 3

4 1.1. What are the spirit and core purposes of the EU internal market? EU internal market in action! Free movement in Europe (goods, persons, services, capitals) Abolishing tariff and trade barriers between EU member States Gradually implemented by EU institutions and member States (EU and national law making process) Actors, principles and tools Free movement is ensured under the supervision of EU institutions (Commission and European Court of Justice) Harmonisation measures at EU level (EU law : regulations and directives) Mutual recognition of national standards Spirit = integrated, supranational, federal policy 4

5 1.2. What are the spirit and core purposes of the EU defence policy? The European Security and Defence Policy (ESDP) - art. 24 of the EU treaty (former art. 11): a crisis management instrument for UE (EUPOL Kinshasa, Concordia Macedonia, Artemis Congo DR, EUFOR Althea Bosnia, EUFOR Tchad/RCA, fight against piracy) The ESDP: a multilateral framework for peace keeping and peace enforcing external operations The Treaty of Lisbon renamed the ESDP to Common Security and Defence Policy (CSDP). Spirit = intergovernmental policies based on the cooperation of willing sovereign nations 5

6 1.3. Is the Defence package the first step towards an EU integrated market? Defence package: 2007 EU Defence and security procurement Two directives in 2009: facilitate European defence market development Intra-EU transfers of defence-related products Implemented by member States As usual, progressing EU integration is spured by economic factors 6

7 EU policy mix: defence, internal market and environment 7

8 2.1. Has the gap between EU internal market and defence been bridged? 8

9 2.1. Has the gap between EU internal market and defence been bridged? First step: until recently, defence goods were not part of the EU internal market (defence = sovereignty of member States) Internal market Defenc e 9

10 2.1. Has the gap between EU internal market and defence been bridged? Second step: Lisbon Treaty came into force in 2010 unifying the EU legal basis = Comprehensive approach (EU as an unified legal entity) 10

11 2.2. To what extent do internal market and environment policies interact? Policies closely linked together since the early beginning of the European integration 11

12 2.2. To what extent do internal market interact? The principle: Article 3 of the TEU «The Union shall establish an internal market. It shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social progress, and a high level of protection and improvement of the quality of environment». First step: policies closely linked since the early European integration Environment protection: a limit to the free movement of goods Internal market harmonisation methods: helpful to promote environmental protection (regulations and directives) 12

13 2.2. To what extent do internal market and environment policies interact? Second step: Environment, an EU policy on its own Based on specific EU competences (articles 191 to 193 of the TFEU) All environmental fields are covered (wastes, chemicals, climate ) More than 85% member States environmental regulations stem from the EU 13

14 2.3. Balancing environment policies and defence interests: what for and how to do it? EU Member States MoD s activities are more and more concerned with EU environmental law in all sectors (defence industry, materials, planning, training, operations, dismantling ) 14

15 2.3. Balancing environment policies and defence interests: what for and how to do it? Methods implemented by defence First step (we are still here): the defence exemption, a traditional and blunt method to protect military sector The exemption provided for by the treaty: article 346 of the TFUE Exemptions are also set up by EU regulations and directives (Ex. REACH, Biocides) 15

16 2.3. Balancing environment policies and defence interests: what for and how to do it? Second step (we are on the way!) EU defence often does not seek special exemptions anymore (political, economical or industrial reasons) EU defence sector (including industry) is moving on to meet environmental requirements in many ways and activities: building, planning, training, operations However specific, defence sector needs to work closer with EU institutions and Agencies, in order to promote defence interest when environmental regulations are being drafted (ship dismantling for example) Maintaining check and balance between environmental protection and operational capability is needed 16

17 Way forward What method could be implemented? Environment Internal market? Defence 17

18 3. Thinking different: a comprehensive approach is now possible 3.1. What is at stake: developing the EU internal defence market and the transatlantic defence relationship 3.2. An example: the REACH regulation 3.3. The way ahead: fine-tuning the constellation of powers (EU, NATO, European Defence Agency) 18

19 3.1. What is at stake: developing the EU internal defence market and the transatlantic defence relationship Building up an EU internal market for defence goods, while enforcing environmental protection Improving transatlantic defence relationship, while promoting interoperability between armed forces 19

20 3.2. An example: the REACH regulation (Registration, Authorisation and Restriction of Chemical substances) What is REACH? - REACH: set up environmental standards for chemicals - REACH: a complete EU legal system for chemicals - REACH: has to be reviewed in 2012 National defence exemptions inspired by REACH - National responsibility for implementation - On the way to be implemented in many EU member States - Current screening by an European agency (European Defence Agency) - REACH exemption has become a model for several other issues (Biocides, Classification, Labelling and packaging of substances ) 20

21 3.2. An example: the REACH regulation National defence exemptions differ throughout Europe; meanwhile EU defence internal market is developing and should be further developed (especially for joint defence programs) National defence exemptions in Europe could hinder the defence internal market (defence industrial programs and partnerships): reduction in the free movement of goods National defence exemptions in Europe hamper interoperability within the EU and within NATO as well 21

22 3.3. The way ahead: fine-tuning the constellation of powers (EU, NATO, EDA) How to find out the right level of decision makers to address interoperability issues and curb down market distortions? A governance issue at the European level: Industries (Aerospace and Defence industries ) Governments: many MoDs in Europe (DEFNET) European institutions (EDA, EU Commission ) 22

23 3.3. The way ahead: fine-tuning the constellation of powers (NATO, EU, EDA) How to find out the right level of decision makers to address interoperability issues and curb down market distortions? A governance issue at the Transatlantic level: NATO working groups EDA (building bridges between NATO and EU) 23

24 THANK YOU FOR YOUR ATTENTION 24