Europaudvalget 2023-24
EUU Alm.del Bilag 215
Offentligt
POSITION PAPER
–
THE EUROPEAN DEFENCE INDUSTRIAL STRATEGY
With this position paper, Denmark aims to contribute constructively to the consultation process
in relation to the European Defence Industrial Strategy (EDIS).
Denmark strongly supports
the Commission’s ambition to facilitate the development of a
stronger European defence technological and industrial base (EDTIB). It is important to bring
the European defence industry forward while delivering on the political ambitions regarding a
Europe that takes more responsibility for its own security, including a focus on security of
supply. Strengthening the EDTIB is a matter of urgency as well as of strategic importance.
Both in terms of being able to continue our support to Ukraine here and now and securing
Europe’s security and defence posture going into the future.
The European Union has an important role to play in developing and bolstering the defence
industrial capacity and defence readiness of its member states. Europe must do more to en-
sure its own security. The European Union has already proven valuable in this regard. Hence,
it is important that EDIS capitalises on the momentum created by instruments such as the
EDF, EDIRPA and ASAP, the work done by the Defence Joint Procurement Task Force as well
as the joint procurement of 155 mm artillery ammunition. It is essential that we continue
European collaboration and combined efforts. While defense industrial capacity constitutes
national security-critical infrastructure and is a national responsibility, including procurement
practices and requirements for industrial co-operation, it is also a collective commitment. EDIS
will be an important contribution in strengthening European collaboration and combined efforts
going forward.
The main contribution of EDIS will be to establish the framework required to foster European
cooperation aimed at collectively achieving a strong and competitive European base of
knowledge, technology and industrial capacity. The benefit of EDIS will also be in piecing
together a coherent framework, by utilizing existing tools and instruments.
Going forward with the consultation process, Denmark sets out the following initial recom-
mendations for EDIS.
1.
A competitive European defence industry to support SME’s and incentivising
open value chains
Competition is key in boosting the development of innovative solutions. A key Danish priority
is to have an open, free and competitive internal market for defence equipment and services
in the EU. We encourage the Commission to take the necessary steps to ensure that intergov-
ernmental cooperation does not preclude competition at the industry level. These two ele-
ments should not be mutually exclusive.
This complements our recommendation on focusing on supporting small and medium-sized
enterprises (SMEs) and incentivising open value chains. There is a number of barriers making
the European defence market more difficult to access for SMEs including the protection of
national manufacturers and lack of open competition. This is especially the case for SMEs from
smaller member states with more modest defence budgets and industrial bases. These struc-
tural challenges must be
addressed with due regard to member states’ right to act in accord-
ance with their own national security interests.
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Denmark believes that SMEs, including those from the civil market, will play an important role
in the development of new defence solutions capable of countering the threats of tomorrow.
To this end, it is crucial that EDIS ensures a framework that incentivises open and dynamic
supply chains, a more flexible regulative approach in order to facilitate the merger of defence
and civilian technologies, and the removal of entry barriers for SMEs across the EU.
2. Security of supply
EDIS must establish the framework to support the advancement of European defence industry
related knowledge, technology and industrial capacities and reduce the risk of disruptions in
supply. This is a difficult balance. EDIS must harmonise competing interests between bolster-
ing industrial output to meet the current spike in demand on e.g. ammunition on one hand,
and on the other hand subsequently ensuring an appropriate level of enduring industrial ca-
pacity and responsiveness, i.e. securing the ramp up of productions capacity in the long-term.
All the while not risking an unnecessary consolidation of the European defence industry and a
further decrease in investments in defence innovation, research and technology. Moreover,
focus on security of supply throughout the supply chain is important, including critical compo-
nents. Lessons learned from the implementation of the 3-track ammunition initiative for
Ukraine will be critical in this context, and could serve as one way to identify new initiatives
to implement in order to ensure a speedier production ramp-up, including of ammunition, and
delivery hereof to Ukraine.
3. Continuing joint efforts in procurement
Denmark supports EDIS as a framework for fostering and incentivising further collaboration
and efforts in relation to joint procurement, including by reducing current barriers. Increased
collaboration in this sphere can create economies of scale and send strong demand signals to
the European defence industry allowing industry adequate time to respond to the expected
long-term demand cycle as European nations increase defence spending. Simultaneously, a
stronger focus on joint procurement can lead to increased interoperability between Member
States’
armed
forces.
4. Strengthening the efficiency and innovation capacity of the EU defence indus-
try
Denmark sees a need to focus more on the potential for research and innovation and thus
supports the development of a coordinated and effective collaboration on technological devel-
opment. It is important to maintain this focus at both the national and EU level in a time of
increased focus on off-the-shelf-products. This applies to the traditional defence industry and
the spin-in segment of civilian high-tech companies whose commercial technology can poten-
tially improve products and services from the traditional defence sector. Denmark finds it
important to work on increasing the political and strategic understanding of how emerging
disruptive technologies affect our existing security structures.
5. Fostering a cooperative environment
It is important that EDIS is implemented and functions in cooperation with relevant represent-
atives across EU authorities, industry, research institutions and within the financial sector. We
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 EUU, Alm.del - 2023-24 - Bilag 215: Dansk positionspapir om European Defence Industrial Strategy (EDIS)
must continue to build an expansive, competitive EU defence industrial ecosystem emphasis-
ing cross-border cooperation.
Likewise, it is important that EDIS take the need for increased cooperation into account, as
well as dialogue and knowledge sharing with NATO and other likeminded partners. This to
ensure that it is possible to draw on the supply chains of likeminded partners
–
both inside
and outside of the EU. Additionally, ensuring coherence and avoiding unnecessary duplication
of efforts. Hence, it is important that EDIS establish a framework to increase synergies be-
tween EU and NATO, to include their respective complementary strengths taking NATO-stand-
ardisation
and EU’s financial and regulatory competencies into account. This should be pursued
withregards to both existing relevant entities such as NATO’s Support and Procurement Agency
(NSPA) and defence technology and innovation initiatives such as
NATO’s Defence Innovation
Accelerator for the North Atlantic (DIANA) and the NATO Innovation Fund (NIF), as well as
any future avenues.
6. Appropriate framework conditions for the defence industry
Denmark finds it important that EDIS focuses on ensuring the appropriate framework condi-
tions for the European defence industry. Denmark supports the ambition to identify new ways
of strengthening European defence cooperation, including the framework of EDF and the on-
going review of the EU’s Common Position on control of exports of military technology and
equipment. The defence industry is highly regulated for important reasons. However, it is
important that regulation is proportional and do not impede the innovative force of SMEs.
When designing and administrating EU funds and programmes, formal requirements on SMEs
should be kept proportional and at a minimum in order to not discourage the SMEs from taking
part at the EU level.
At the same time, it is also important that EDIS respects national sovereignty in this area.
7. Securing coherence and synergies with existing EU instruments
From a Danish point of view, the capacity to ensure synergies between existing EU tools,
instruments and work strands will be a clear benefit. Drawing on the revised CDP priorities,
industry networks in EDA, relevant PESCO projects, as well as the recently launched instru-
ments EDIRPA and ASAP, it will be important to secure coherence across tools, structures,
initiatives and regulation.
8. A European Investment Programme (EDIP)
Lastly, Denmark supports the Commissions ambition in putting forward a European Invest-
ment Programme (EDIP). Simultaneously, it is important that EDIP will become effective and
deliver concrete results. Therefore, Denmark believes the EDIP should be put forward when it
is deemed ready to deliver such results. Moreover, Denmark strongly urges the Commission
to notify member states as early as possible, whether EDIP will be put forward in the same
package as EDIS.
A European Investment programme should build on an evaluation of ASAP and EDIRPA to
ensure an efficient programme that delivers on common European challenges. Potential EU-
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 EUU, Alm.del - 2023-24 - Bilag 215: Dansk positionspapir om European Defence Industrial Strategy (EDIS)
funding for EDIP can and should be found via redeployments within the current EU-budget in
respect of MFF-ceilings agreed upon by the EU Heads of State or Government in 2020.
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