Simplification of intra-EU transfers of defence-related products and simplification of security and defence procurement (Omnibus V)
The European Parliament adopted by 549 votes to 92, with 27 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council amending Directives 2009/43/EC and 2009/81/EC as regards the simplification of intra-EU transfers of defence-related products and the simplification of security and defence procurement (Omnibus V).
The objective of the proposal is to simplify the rules applicable to the intra-EU transfer of defence-related products and to the awarding of works, supplies and services contracts in the defence and security sectors in order to ensure the proper functioning of the internal market.
The European Parliament adopted its position at first reading by amending the Commission's proposal as follows:
Amendments to Directive 2009/43/EC
General Transfer License
The rules introduce a new general transfer licence for defence-related products that should make it easier for defence companies to operate across EU borders. Member states will be required to publish these licences, giving industry a more predictable framework for intra-EU transfers. They will also have to publish licenses for transfers taking place within the framework of a structured intra-EU industrial partnership.
Certification
Member States should designate the competent authorities responsible for certifying companies established in their territory that receive or supply defence related products under transfer licenses issued by Member States. The certification should establish the reliability of the undertaking, in particular as regards its capacity to comply with Union and national transfer and export control legislation, especially in relation to due diligence measures assessing risks related to the export of the products and export limitations of defence related products received under a transfer licence from another Member State. The Directive specifies the criteria on which reliability will be assessed.
The competent authorities must verify, at least every three years, the company's compliance with the stated criteria. Companies must notify the competent authorities without delay of any changes to their internal organisation or to their industrial or commercial activities concerning defence related products.
Amendments to Directive 2009/81/EC
With regard to public procurement in the defence sector, the amended text updates and raises the threshold for the application of European public procurement rules. The directive will apply to contracts whose estimated value, excluding value-added tax (VAT), is equal to or greater than the following thresholds: a) EUR 2 million (instead of EUR 412 000), for supply and service contracts; b) EUR 10 million (instead of EUR 5 150 000), for works contracts.
The directive also provides for extending the maximum duration of framework agreements from seven to ten years and introducing greater flexibility to allow Member States to carry out occasional joint acquisitions.
Thus, two or more contracting authorities/entities may agree to perform certain specific procurements jointly. Where the conduct of a procurement procedure in its entirety is carried out jointly in the name and on behalf of all the contracting authorities/entities concerned, they shall be jointly responsible for fulfilling their obligations pursuant to this Directive.
The amended text also specifies that contracts may be modified without a new procurement procedure being necessary when the value of the modification is less than 10% of the value of the initial contract for service and supply contracts and 15% of the value of the initial contract for works contracts.
Re-examination
No later than 1 January 2031, the Commission should examine the implementation of Directives 2009/43/EC and 2009/43/EC as amended in the context of improving Europe's defence readiness by 2030 as requested by the European Parliament and the European Council in March 2025 and should report on this to the European Parliament and the Council.
Joint statement
Parliament and the Council also adopted a joint statement in which they stressed the importance of:
- taking all appropriate measures to strengthen and further develop the European defence industrial and technological and base (EDTIB), including small and medium-sized enterprises, and;
- removing bottlenecks in order to enable procurement processes to proceed in a faster and more agile manner, thereby supporting the achievement of capability targets and increasing production capacity across the Union defence industry value chains.
The European Parliament and the Council recognised that further efforts are required to reach Defence Readiness by 2030. They therefore called on the Commission to consider, as appropriate, putting forward as soon as possible any further initiatives necessary to strengthen the EDTIB and foster defence readiness. They stressed the need to enhance the Union’s strategic autonomy and capacity to respond to emerging security challenges.