Recommendation 2018/624 - Cross-border market access for sub-suppliers and SMEs in the defence sector - Main contents

EN

Official Journal of the European Union

L 102/87

The European Council, in December 2013, set the objective of achieving a better integrated and more sustainable, innovative and competitive defence technological and industrial base (EDTIB), which is needed to develop and sustain defence capabilities and strengthen Europe's strategic autonomy and its ability to take action in cooperation with partners. In this context, it underlined the importance of cross-border market access for small and medium-sized enterprises (SMEs), called on the Commission to investigate the possibility of additional measures to open up supply chains to SMEs from all Member States, and noted that SMEs are a major component of the defence supply chain, a source of innovation and key enablers of competitiveness (1).

The European Defence Action Plan (EDAP) of 30 November 2016 announced that the Commission would make recommendations to facilitate cross-border market access for SMEs and intermediate companies in the defence sector. This was also confirmed in the Commission Communication ‘Launching the European Defence Fund’ (2), adopted on 7 June 2017.

The Commission considers competitive cross-border supply chains to be a crucial component of a better integrated and more competitive EDTIB, and believes that the European defence equipment market should provide opportunities for European companies irrespective of their size and location.

This Recommendation has been developed with input from the Commission's advisory group on cross-border access for SMEs to defence and security contracts, which completed its work and published its final report in November 2016 (3), and from Member State experts. It is part of a broad range of Commission initiatives and activities designed to support SMEs active in the field of defence.

The work done by the European Defence Agency (EDA) (4) in the areas of defence procurement, skills, funding and SME capacity has been taken into account in developing this Recommendation (5).

Since industry players, especially prime contractors, play a key role in defence, the Commission, in addition to developing this Recommendation, also started a dialogue with industry stakeholders with a view to identifying and finding common agreement on possible further actions aimed at creating the conditions for competitive cross-border defence supply chains.

Member State action could significantly improve cross-border market access for SMEs and intermediate companies in the defence sector. This Recommendation should therefore list types of action that could remedy some of the problems facing SMEs and intermediate companies or help integrate them into defence supply chains.

Obtaining early information on future armament plans and projects could enable SMEs and intermediate companies to better anticipate market developments and possible participation in defence projects and contracts.

Advertising contracts of a value below the threshold established by Articles 8 and 9 of Directive 2009/81/EC of the European Parliament and of the Council (6) would enhance competition. It would also encourage SMEs' participation in the defence sector. Contracting authorities should not limit such advertising to their own Member State.

The complex nature of the information in procurement documents made available to tenderers or potential tenderers by the...