Observatory on European defence, December 2006

8 December 2006
European Defence Market - Interpretative Communication of the European Commission
The European Commission published an interpretative Communication on the applicability of the exemption foreseen by article 296 TEC consistent with the Case of Law of the European Court of Justice.
This article allows for the exemption of military purchases from common market rules as a result of essential interests related to national security.
The initiative adds to the complementary ones undertaken after the publication, in September 2004, of the European Commission's Green Paper on defence procurement aimed at introducing a degree of competitiveness in the European defence market:
- a voluntary and not legally binding Code of Conduct, adopted by the European Defence Agency with entry into force on 1st July 2006; it covers those contracts which, given their strategic value, are exempt from common market rules as foreseen in article 296, providing for systematic information among partners on national invitations to tender worth at least 1 million euros.
- a Directive foreseen for 2007 which regulates, taking account of the sector's specificities, those contracts to which the exception of art. 296 TEC could apply but which do not have the strategic nature required to make exemption worthwhile.

11-12 December 2006 
EU General Affairs and External Relations Council -  ESDP Missions: Balkans, Afghanistan, Aceh (Indonesia); Mission funding and Budget, Arms Exports and Non Proliferation
Ministers reviewed the ESDP missions.
A reduction of troops committed to the EU military mission (EUFOR-ALTHEA) in Bosnia-Herzegovina was confirmed. The number of men will decrease from about 6,500 to 2,500 by springtime, in view of total withdrawal in 2008.
Work continued for the launch, in 2007, of an ESDP mission in Kosovo aimed at restoring the rule of law in the police, justice and customs sectors : the mandate of the EU planning team EUPT Kosovo was extended to May 2007.
Ministers confirmed Europe's long-term support for security and the rule of law in Afghanistan. An EU fact-finding mission is currently in the country to assess the possibility of an ESDP civil operation to train local police to enforce the rule of law. 23 member states are currently participating in the NATO ISAF mission for an overall amount of about 18,500 men.
On 15 December, the first democratic local elections were held in the Indonesian province of Aceh, bringing to an end the Aceh Monitoring Mission (AMM), the EU civil mission monitoring peace agreements between the government and the separatist guerrillas which the EU undertook in September 2005.
Ministers agreed on a draft decision to review ATHENA, the mechanism established in 2004 to finance the common costs of ESDP missions with implications in the military or defence sectors. It stipulates that operational common costs relative to the active phase of operations are always borne by ATHENA; operational common costs relative to the active phase of a specific operation are borne by ATHENA when the Council so decides; and operational common costs are borne by ATHENA when requested by the Operation Commander and approved by the Special Committee.
On 14 December, the EU 2007 budget was approved: ESDP funds amount to 159 million euro.
Finally, the Council touched upon various interconnected issues relating to arms export.
In fact, the willingness to lift the arms embargo on China, which had become clear during the European Council of December 2004, was confirmed. In the past, the lifting has always been discussed in relation to a strengthening of the European arms export regime in connection with which ministers discussed drafting a common (legally binding) position based on the EU Code of Conduct on arms exports introduced in 1998.
The Council welcomed the drafting at UN level of a legally binding international treaty establishing common rules for impost, export and transit/transfer of conventional weapons; a pro-active role of the EU and member states in its preparation was confirmed.
The GAERC approved a concept paper on monitoring and enhancing consistent implementation of the EU strategy against the proliferation of weapons of mass destruction (2003), by means of a monitoring Centre which develops a cooperative working method between the Council, Commission services and member states..

14-15 December 2006
European Council - Justice and Home Affairs, External Relations and Six-monthly Report on ESDP
The European Council, although dominated by enlargement and institutional issues, in particular those related to the follow-up of the Constitutional-Treaty, dealt extensively with justice and home affairs matters.
Enhancement of the common migration policy, the integrated management of EU external borders and cooperation with third countries was foreseen. Instead, an agreement on proceeding with the streamlining of the decision-making process (bridging clause) was not reached.
The conclusions concerned external relations, in particular with Africa, the Balkans and neighbourhood policy, Afghanistan and the Middle East, Lebanon and Iran for which the Council confirmed the statement issued by the GAERC.
Finally, the Council approved the Six-monthly Report on ESDP submitted by the Presidency and underlined the need of improvement of the EU's response to crisis and natural disasters based on capabilities made available by member states.

December 2006
ESDP Operations - Democratic Republic of Congo, Sudan
The two EU operations in Congo, the police mission EUPOL Kinshasa and EUSEC RDC assisting reform in the security sector, were extended to 30 June 2007.
Instead, the EU military mission EUFOR RD Congo finished at the end of 2006. Launched in April 2006 to support the UN MONUC mission, the operation guaranteed the security of the electoral process.
Concerning the grave crisis in Darfur, at the end of December the Congolese authorities finally authorized the transition of the AMIS II mandate of to the UN, already operational with the UNMIS mission, as foreseen by Res. 1706 (2006) of the UN Security Council. The EU should take on a supporting role in planning the takeover. The EU supports AMIS II with financing, equipment and strategic lift capabilities (EU/NATO cooperation), as well as deployment of military, police and civil personnel for training.

December 2006
EU Capabilities - European Defence Agnecy, Civil Capabilities and Civil Portection, Seventh Framework Programme
In the framework of the document "An Initial Long-Term Vision for European Capability and Capacity Needs" - the basis for EDA agenda planning in the medium and long term (20 years) approved by the Agency last October -the Agency's Steering Board adopted the principles for a "Capability Development Plan" for ESDP operations on 14 December. The Agency will coordinate the drafting of a shared development plan, not legally binding, which will harmonize the development of national capabilities on a voluntary basis.
The CAGRE of 11-12 December approved a plan for the improvement of civil capabilities for 2007 in the framework of the "Civilian Headline Goal 2008".
Moreover, Ministers agreed on a draft decision to establish a financial tool for the community civil protection mechanism. For the period 2007-2013, every year 17 million euro will be made available for actions within the EU and 8 million for actions in third countries.
On 18 December, the Seventh Framework Programme for research and technological development (period 2007-2013) was formally approved by the Council. The programme allocates 1,430 and 1,400 million euro for space and security, respectively.

December 2006
EU - Countering International Terrorism
The initiatives for countering international terrorism and protecting critical infrastructure continue. The EU counter-terrorism coordinator, de Vries, reported to the Justice and Home Affairs Council held on 4-5 December about the implementation of the EU anti-terrorism strategy approved in December 2005 and the related action plan. While on one hand the initiative for cooperation with international partners, above all the US and Russia, has expanded, on the other hand there remain shortfalls in the application of measures at the national level and inefficiencies caused by a decision-making process regulated by unanimity at the EU level.
The capabilities for management of the consequences of a terrorist attack require continuous improvement.
On 12 December, the Commission proposed measures for the protection of critical infrastructure, especially a Directive listing the critical ones at EU level and detailing a related plan of protection from terrorist attacks and incidents. Moreover, the Commission issued a Communication aimed at implementing the European Programme for Critical Infrastructure Protection (EPCIP) including a Critical Infrastructure Warning Information Network (CIWIN).