Training Seminar: Opportunities for companies arising from the EU's defence industrial policy

Foto de familia Seminario Industria de Defensa

Family photo: María Lacasa, head of the antenna department in European programmes of the Commercial Office of the Embassy of Spain in Belgium and Luxembourg; Diego de Ojeda, head of unit in the General Secretariat of the European Commission, in charge of the coordination of foreign policy, security and defence; Pilar Ruiz, director of the Delegation of the Spanish Chamber of Commerce to the EU; and Keka Torres-de Paz, deputy director of the Delegation.

Brussels, 07/06/2024.- The Delegation of the Spanish Chamber of Commerce to the European Union (EU) held a training seminar to explore the opportunities that the EU's defence industrial policy offers to Spanish companies, especially SMEs. 

The new defence industrial policy aims, in fact, to give greater coverage to SMEs in order to increase their participation, since they constitute 99% of the EU's business fabric. Pilar Ruiz Huélamo, director of the Delegation. 

The seminar was attended by Diego de Ojeda, head of unit in the General Secretariat of the European Commission, in charge of the coordination of foreign, security and defence policy.

The Common Security and Defence Policy (CSDP) is part of the Union's Common Foreign and Security Policy (CFSP). The CSDP is the main policy framework through which Member States' Ministries of Defence develop a strategic European security and defence culture, address conflicts and crises and protect the European Union.

As a result of the tense geopolitical context, CSDP has been one of the fastest-evolving policies in the last ten years. The Multiannual Financial Framework 2021-2027 already provided for the creation of a European Defence Fund (EDF) endowed with 8,000 million euros:

  • €2.7 billion for collaborative research on defence and 
  • €5.3 billion for collaborative capacity building projects that complement national contributions.

The EDF is implemented through annual work programmes and financial support is mainly provided through grants of up to 100% of eligible costs, with a premium system that takes into account the participation of SMEs and mid-caps.

EDF Work Programme for 2024: addresses 32 call topics in total, structured in 6 thematic calls for proposals and 2 calls for proposals dedicated to SMEs.

It will support projects in critical areas of defense: fight against hypersonic missiles, unmanned vehicles in the air and on the ground, secure space communication or next-generation defense systems (helicopters and medium-sized cargo planes).

In addition, it provides for support measures to promote defence innovation and inclusiveness through the EU Defence Innovation Plan (EUDIS), with a total funding of €225 million. EUDIS will continue to fund the annual defence hackathons, business advice for beneficiary SMEs and the Defence Capital Facility under InvestEU. 

New for 2024 is the planned funding for an EUDIS Business Accelerator and Matchmaking with investors (call for tenders to be published in spring 2024).
 

De Ojeda highlighted the important participation of Spanish companies in the consortia of projects selected by the European Commission (EC). 

The EC intends to support projects of high defence capabilities. In this context, in July 2022 the EDINAF project led by Navantia on the next generation of ships in Europe was launched, in which the Spanish company INDRA also participates. Diego de Ojeda, head of unit at the General Secretariat of the European Commission, in charge of the coordination of foreign policy, security and defence.

With Russia's unjustified war of aggression against Ukraine, the European Union is once again experiencing a conflict of great intensity. This is why in March 2024, the European Commission presented the first European Defence Industrial Strategy (EDIS). It provides a clear and long-term vision for strengthening defence industrial readiness in the EU.

We must have defence systems and equipment ready when they are needed and in the necessary quantities. Diego de Ojeda, head of unit at the General Secretariat of the European Commission, in charge of the coordination of foreign policy, security and defence.

The Strategy sets out a number of objectives. By 2030, EU countries should:

  • to purchase at least 40% of defence equipment in a coordinated manner;
  • spend at least half of its defence procurement budget on products made in Europe; and
  • to market at least 35% of defence products between EU countries rather than with other countries.

The European Defence Industry Programme (EDIP) is a Regulation proposed by the EC to start implementing concrete measures identified in the European Defence Industrial Strategy:

  • Provide financial support with €1.5 billion from the EU budget over the period 2025-2027.
  • Strengthening the competitiveness and responsiveness of the European defence technology and industrial base (EDTIB)
  • Ensure the availability and supply of defence products.
  • Promote cooperation with Ukraine in the recovery, reconstruction and modernisation of its defence industry.

The European Union must strengthen the European Defence Technology and Industrial Base (EDTIB) not only for security reasons, but also for economic reasons, and to achieve industrial preparedness in the field of defence. This is necessary to better protect our citizens and support our partners. Diego de Ojeda, head of unit at the General Secretariat of the European Commission, in charge of the coordination of foreign policy, security and defence.

The event was attended by the Territorial Chambers of Commerce of Zaragoza, Astorga, Malaga, Teruel, Cáceres and Santiago de Compostela, as well as the Permanent Delegation of Castilla y León and the Economic and Commercial Office of the Embassy of Spain to the EU.

Among the companies present were INDRA, BBVA, Banco Santander, Escribano Mechanical & Engineering, Zabala Innovation, Crowe, Deventigo, Latam Prod and Synapses Tech. The Galicia Europa Foundation and the Universities of Ghent and Rey Juan Carlos also participated.