European 2016 Issue 11 A magazine of Defence Matters

EU Global Strategy – What’s next for defence?

Interview: Stéphane Mayer Focus on energy Interview: Jens Stoltenberg NEXTER CEO / KNDS co-CEO management in defence NATO Secretary General CHOOSE SAMP/T, THE UNIQUE EUROPEAN EXTENDED AIR DEFENSE SYSTEM

www.eurosam.com

CONTENTS

Contents Publishing Director Eric Platteau In the spotlight Editor-in-Chief Welcome Helmut Brüls 4 Publishing Director Eric Platteau and 22 “We took the NATO-EU cooperation to a new level” Editorial Editor-In-Chief Helmut Brüls introduce this edition NATO Secretary General Jens Stoltenberg talks to Elisabeth Schoeffmann of European Defence Matters European Defence Matters about the recent Design Warsaw Summit, the EU Global Strategy and the Simon Smith Associates European Defence News future EU-NATO relationship Printing Drukkerij Hendrix NV 5 Industry wants research to be “top priority” of Kiezel Kleine-Brogel 55, B-3990 Peer Defence Plan Opinion Circular Economy matters Multinational Multi-Role Tanker Transport Fleet 26 This document is published by the EDA in the Jyrki Katainen, Vice- interests of exchange of information (MMF) takes shape President for Jobs, Growth, Investment and Front cover image; © 2014 - European Parliament. Other images; EDA, Competitiveness, shares his analysis about the Shutterstock, Thinkstock Cover Story: importance of the ‘circular economy’ concept Contacts EU Global Strategy (EUGS): 28 Why European defence research is vital Jorge Domecq, the Chief Executive of the Eric Platteau What's next for defence? Head of Media and Communication European Defence Agency, explains why defence Introduction Helmut Brüls 6 research matters Media and Communication Officer 8 Serving European Security – Towards defence European Defence Agency cooperation becoming ‘the norm’ In the field Rue des Drapiers 17-23 An analysis of the defence-related aspects of the B-1050 30 Sustaining Europe’s Armed Forces www.eda.europa.eu EUGS A look at the growing importance of energy Contact : [email protected] 11 An ambitious defence follow-up for an ambitious management and efficiency in the military EUGS Building Open System Architecture for military European Defence Matters is the only 34 Prof Dr Biscop on the defence implementation of land vehicles dedicated official European defence the EUGS magazine focusing on senior decision- The more military equipment is built on open- makers within national governments, 14 European Strategy in times of geopolitical source technical standards, the more European institutions and industry in interdependence Europe. interoperable and flexible it is, especially when Luis Simón explains how security-related concerns deployed in multinational operations Published three times per year, with a circulation of around 10,000 copies, the have returned to the center stage of political magazine provides a unique vehicle for debate Interview the wider European defence community to debate the essential issues around 36 Military capabilities: “Europe still lacks strategic capabilities, research, EU policies, Industry Talk enablers” industrial matters, armament “European consolidation is an efficient way to General Mikhail Kostarakos, the Chairman of the programmes, procurement and larger 16 Defence & Security challenges. achieve competitiveness and interoperability” European Union Military Committee (EUMC), If you are interested in advertising to European Defence Matters speaks to Stéphane shares his analysis with European Defence Europe’s key decision-makers, please Mayer, CEO of Nexter and co-CEO of the newly Matters contact: created KNDS Cyril Mikaïloff Key Quotes Advertising Sales Director T: +33.6.21.71.11.18. Focus 39 Key quotes and facts [email protected] 20 EU naval industry in good shape but more R&T investment needed, study says EU manufacturers of military vessels and submarines are doing well, especially on international markets where exports are booming

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Catalogue number QU-AC-16-002-EN-N ISSN (2443-5511) © The European Defence Agency (EDA) September 2016. All rights reserved. The entire contents of this publication are protected by copyright. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means: electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the EDA. The reproduction of advertisements in this publication does not in any way imply endorsement of their content by the EDA. The views expressed in the articles are those of the authors and do not necessarily reflect the official position or policy of the EDA.

EUROPEAN DEFENCE MATTERS Issue 11 2016 3 WELCOME EUGS: setting the ambitions for a stronger CSDP

The new EU Global Strategy sets an ambitious vision for Common Security and Defence Policy (CSDP) and provides a good foundation for a stronger, more credible and more efficient European defence

hen the High Representative of the Union implementation. This should include further specifying the for Foreign Affairs and Security Policy and civil-military level of ambition, tasks, requirements and Vice-President of the Commission, capability priorities. In particular, we asked Prof. Dr. Sven WFederica Mogherini, last June presented Biscop to outline what, in his view, this defence strategy the EU’s new ‘Global Strategy for Foreign should entail and how it could be implemented. and Security Policy’ (EUGS), our choice for the cover story Furthermore, Luis Simón, Director of the Brussels office of this 11th issue of European Defence Matters became a of the Royal Elcano Institute, looked at the EUGS through no-brainer. the prism of increasing geopolitical interdependence. Indeed, as Prof. Dr. Sven Biscop, Director at the Egmont In the first of a new series of ‘Industry Talk’ interviews Royal Institute for International Relations in Brussels and which will become from now on a regular feature of one of our guest writers in this magazine, accurately our magazine, we spoke to Nexter CEO Stéphane Mayer points out: “The EUGS is one of the most ambitious EU about the recent merger with Krauss- Wegmann documents on defence to date. For the first time, strategic (KMW) and the creation of KNDS which, many say, could autonomy has unambiguously become the objective. Not be the beginning of a consolidation process in the land a moment too soon, as security challenges inside and defence systems sector in Europe. around Europe are rising, while the US has made it clear EU-NATO cooperation is another topic after the two that it will not, and cannot, solve all of Europe’s problems”. organisations signed a Joint Declaration last July. We Arguably, among the most ambitious EUGS also spoke to NATO Secretary General Jens Stoltenberg statements, ideas and proposals many are related to about this, the recent Warsaw NATO Summit and the EU defence and military capabilities. In a nutshell, it calls for a Global Strategy. more credible, efficient and interoperable European In a longer article, we looked at the growing defence. Europeans need to be better equipped, trained importance of energy management in the defence as the and organised to take effective military action impact of energy consumption on defence budgets and autonomously, if and when necessary. Europe needs a military effectiveness is growing drastically. sustainable, innovative and competitive defence industry In our ‘Opinion’ section, Jyrki Katainen, European allowing it to rely on the “full spectrum” of land, air, space Commission Vice-President, shared his analysis about the and maritime capabilities, including strategic enablers. importance of the ‘circular economy’ concept for the And, most importantly, Member States need to move defence sector and how it can help to improve the towards defence cooperation “as the norm”. However: European defence industry’s competitiveness. We also ambitious as the EUGS might be, what really matters at have an exclusive interview with the chair of the EU military the end is its practical implementation. Committee (EUMC), General Mikhail Kostarakos. We therefore propose an analysis of the defence Should you have comments or suggestions to make, aspects of the EUGS while also looking at the follow up, please contact us: [email protected]. especially in view of the strategy’s concrete Enjoy your reading!

Eric Platteau Head of Media and Communication Helmut Brüls Editor-in-Chief

4 www.eda.europa.eu EUROPEAN DEFENCE NEWS News Industry wants research to be “top priority” of Defence Action Plan n a position paper issued in July, the they need to fulfil their missions”, ASD said. It Furthermore, the Commission should make IAeroSpace and Defence Industries called on the Commission to make a clear security of supply a priority of its work Association of Europe (ASD) asked the commitment in the EDAP to develop the programme for 2017 with a view to effective European Commission to focus its upcoming Preparatory Action (PA) for CSDP-related implementation of the roadmap concerning European Defence Action Plan (EDAP), research further into a legislative proposal for this issue before the end of its mandate in expected before the end of this year, on a a “substantial” European Defence Research 2019. The future security of supply regime limited number of clearly defined priorities, programme (EDRP), funded by “circa should be based on a commitment by together with concrete measures and a €500m/year”, as part of the EU’s next Member States not to hinder any transfer of timetable for their implementation. multiannual financial framework (2021-2027). goods needed for the use, maintenance or Research should be the “top priority” The action plan should also give an orientation modernisation of defence equipment acquired because it is “crucial to ensure that European on how to improve the effectiveness of the by another Member State, once it has industry remains competitive and that our two 2009 EU directives on defence authorised the initial sale of the equipment, armed forced get state-of-the art equipment procurement and intra-European transfers. ASD said. www.asd-europe.org

© Airbus Multinational Multi-Role Tanker Transport Fleet (MMF) takes shape n 28 July, the Dutch Ministry of up to six more when, as expected, other the European materiel organisation ODefence (MoD) notified its national nations join the grouping. “The MRTT (Multi Role Organisation Conjointe de Coopération en Parliament of the signing of a Tanker Transport) project is an example of the matière d’ARmement (OCCAR) are closely Memorandum of Understanding with type of future-oriented collaboration between involved in the purchase of the aircraft, on Luxembourg to proceed with the acquisition European countries that the government behalf on the NATO Support & Procurement of a pooled fleet of Airbus A330 Multi Role advocates”, the Dutch MoD said in a press Agency (NSPA). Discussions are underway at Tanker Transport (A330 MRTT) aircraft. statement. The aircraft will be NATO property various stages with Belgium, , It also announced the signing, that same and will be stationed at Eindhoven Air Base for and with a view to those nations also day, of a contract paving the way for the pooling and sharing. The European Defence participating in the programme, known as the delivery of two Airbus aircraft with options for Agency (EDA), which facilitated the project, and Multinational MRTT Fleet (MMF) initiative.

EUROPEAN DEFENCE MATTERS Issue 11 2016 5 GLOBAL STRATEGY EU Global Strategy – Meeting the security

Now that the new EU Global Strategy (EUGS) is on the table, the critical work of implementation has to start. One of the core areas for urgent follow- up is defence and in particular the future defence capabilities EU Member States’ Armed Forces will require to be able to live up to the Union’s Common Security and Defence (CSDP) ambitions. In the following dossier, European Defence Matters analyses the defence implications of the EUGS and gives the floor to subject matter experts to comment on the Strategy document and the actions which need to follow.

6 www.eda.europa.eu GLOBAL STRATEGY challenges of the 21st century Index

8. Serving European Security – Towards defence cooperation becoming ‘the norm’ An analysis of the main defence- related aspects of the EUGS

11. After the EUGS: What is now required for defence Prof. Dr. Sven Biscop on the defence implementation of the strategy

14. Academic view on the EUGS Luis Simón, on European strategy in times of increasing geopolitical interdependence

EUROPEAN DEFENCE MATTERS Issue 11 2016 7 GLOBAL STRATEGY Serving European Security – Towards defence cooperation becoming ‘the norm’

Released by EU High Representative Federica Mogherini end of June in the immediate wake of the UK’s vote to leave the European Union, the long- awaited ‘Global Strategy for the EU’s Foreign and Security Policy’ probably didn’t get the immediate attention and appraisal it deserved. Yet the document, only the second of its kind after the 2003 European Security Strategy, sets ambitious goals and puts forward a number of innovative initiatives which, if followed-up, have the potential to bolster the Union’s Common Security and Defence Policy (CSDP) in the years ahead

resented with the Global of ambition, tasks, requirements and involved in this exercise, she added. Strategy at a 28 June European capability priorities stemming from this Council meeting entirely Strategy”. Soft AND hard power Povershadowed by , EU On 18 July, EU foreign ministers meeting A fundamental point is made from the leaders understandably stopped in the had a first outset by Mrs Mogherini in the Strategy’s short of discussing the content of the discussion on the follow-up strategy; they foreword: to protect the security and document but “welcomed” its presentation welcomed the document and expressed prosperity of the citizens in and around and, most importantly, invited the High their readiness to continue the work in Europe, the EU cannot limit itself to ‘soft Representative, the Commission and the the implementation phase. The High power’ tools but must rely on a wide array of Council “to take the work forward”. Representative concluded policies and instruments, Notwithstanding, there are multiple reasons this first ministerial debate including military power if why energy matters for the military. underlining her intent to “Member States required. “The European The High Representative decided to stick present “in the autumn” of will need to Union has always prided to the time schedule for the publication of the 2016 a framework with move towards itself on its soft power – Strategy because, as she explained in the processes and timelines. defence and it will keep doing so, foreword, there was no time to lose. “In This framework, Mrs because we are the best challenging times, a strong Union is one that Mogherini said, “will detail cooperation as in this field. However, the thinks strategically, shares a vision and acts the work to come to the norm” idea that Europe is an together. This is even more true after the British operationalise the vision exclusively ‘civilian power’ referendum. This is no time for uncertainty: our set out in the strategy, on does not do justice to Union needs a Strategy. We need a shared strands such as security and defence”, but an evolving reality. For Europe, soft and hard vision, and common action”, she stated. also on other civilian polices including power go hand in hand”, the High Some guidance on how the ‘work forward’ sustainable development and migration, as Representative insists. This maxim – should look like, at least on its defence-related well as the link between development and considered all but self-evident in the past – is part, is already given in the Strategy itself: it humanitarian aid. It will be a “clear framework reiterated even stronger in the main text of calls for the development of a “sectoral with timetables and proposals for starting the Strategy: “In this fragile world, soft power is strategy” to be approved by the Council which implementation of the Global Strategy already not enough: we must enhance our credibility “should further specify the civil-military level in September”. Defence ministers will be in security and defence”.

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“This is no time for uncertainty: our Union needs a Strategy. We need a shared vision, and common action”

Strategic autonomy European defence industry is essential for Declaration signed by both organization on 8 With a constant emphasis on the Europe’s strategic autonomy and for a July in Warsaw, the Strategy calls for a strong intertwined security issues at home and credible CSDP”. A solid European defence, EU-NATO relationship with both sides being abroad, the Strategy very comprehensively technological and industrial base needs a “fair, complementary: “The EU will therefore deepen outlines the political level of ambition the EU functioning and transparent internal market, cooperation with the North Atlantic Alliance should have as a world actor by touching security of supply, and a structured dialogue in complementarity, synergy, and full respect upon a vast number of important topics. But with defence relevant industries”. for the institutional framework, inclusiveness the most ambitious statements, ideas and In this respect, EU funds to support and decision-making autonomy of the two”. proposals it puts forward are related to defence research and technologies and defence and military capabilities. multinational cooperation are crucial for Defence cooperation has to become “the First and foremost, the Strategy insists European security and defence efforts norm” on the need for Europe to develop an underpinned by a strong European defence For Europe to achieve strategic autonomy appropriate level of ‘strategic autonomy’ in industry, the Strategy underlines. “Crucially, EU and become a security provider capable of order to be able to guarantee the security of funding for defence research and technology, responding to external crises and keeping its the Union and its citizens. “Europeans must reflected first in the mid-term review of the territory and citizens safe, Member States take greater responsibility for (their) security” Multiannual Financial Framework, and then in a need to have at their disposal “all major high- and, therefore, need to invest more and better fully-fledged programme in the next budget end military capabilities and equipment”, as in defence in order to be “better equipped, cycle, will prove instrumental in developing the well as the technological and industrial means trained and organised”, be it for contributing defence capabilities Europe needs”. to acquire and sustain such capabilities. “This to collective defence efforts (NATO) or for While insisting on the undisputed fact that means having full-spectrum land, air, space acting “autonomously if and when “NATO remains the primary framework for most and maritime capabilities, including strategic necessary”. Therefore, “an appropriate level of Member States”, the Strategy underscores enablers”, one reads in the Strategy. ambition and strategic autonomy is important that the EU needs to be strengthened as a Europeans must also improve the for Europe’s ability to foster peace and “security community: European security and monitoring and control of flows which have safeguard security within and beyond its defence efforts should enable the EU to act security implications. This requires investing in borders”. autonomously while also contributing to and Intelligence, Surveillance and Reconnaissance, The Strategy also stresses that “a undertaking actions in cooperation with NATO”. including Remotely Piloted Aircraft Systems sustainable, innovative and competitive Echoing the letter and spirit of the Joint (RPAS, or drones), satellite communications,

EUROPEAN DEFENCE MATTERS Issue 11 2016 9 GLOBAL STRATEGY

“Crucially, EU funding for defence research and technology(…) will prove instrumental in developing the defence capabilities Europe needs”

and autonomous access to space and security and defence efforts. In particular, the institutional structure. Though the Strategy permanent earth observation, the document EDA has a “key role to play by strengthening refrains from openly calling for a “permanent emphasizes. the Capability Development Plan, acting as an civil-military chain of command” as did the Furthermore, Europeans must invest in interface between Member States and the German and French Foreign ministers in a joint digital capabilities to secure data, networks Commission, and assisting Member States to statement end of June, the Strategy and critical infrastructure within the European develop the capabilities stemming from the nevertheless calls for a “strengthening of digital space. “We must develop capabilities political goals set out in the Strategy”. operational planning and conduct structures” in trusted digital services and products and in The Strategy also stresses the importance as well as closer connections between civilian cyber technologies to enhance our resilience. of a “gradual synchronization and mutual and military structures and missions, bearing We will encourage greater investments and adaptation of national defence planning in mind that these may be deployed in the skills across Member States through cycles and capability development practices” same theatre. To this end, “enhanced cooperative research and development, which can enhance strategic convergence cooperation between Member States should training, exercises and procurement between Member States. “Regular be explored, and might lead to a more programmes”. assessments of EDA benchmarks can also structured form of cooperation, making full Against this backdrop, and not- create positive peer pressure among use of the Lisbon Treaty’s potential”, it is stated withstanding the overarching consensus that Member States”. in the Strategy. “Member States remain sovereign in their An annual coordinated review process defence decisions”, the Strategy urges EU at EU level to discuss Member States’ High expectations leaders to come to terms with the reality that military spending plans could, for instance, As the preparatory work on the defence “no Member State can afford to do this generate greater coherence in defence sub-strategy continues, expectations are high individually: this requires a concerted and planning and capability development. This among defence stakeholders (including the cooperative effort”. As a consequence, should take place in “full coherence with EDA, see box below) that swift and concrete “Member States will need to move towards NATO’s defence planning process”. steps will be taken in order to translate the defence cooperation as the norm”. Strategy into tangible follow-on actions which Cooperation is all the more indispensable as Exploring match the expressed level of ambition. “nationally-oriented defence programmes are To shape a more responsive and effective insufficient to address capability shortfalls”. CSDP, the EU should also streamline its

EDA as a key cooperation tool for Member States Federica Mogherini was mandated to prepare the new EU Global Strategy by the in June 2015 and invited to The current “voluntary approach” towards present it to the leaders in June of this year. The strategy is the result of defence capability cooperation will not suffice an open and transparent process: between the summers of 2015 and to achieve these goals and, therefore, must be 2016, extensive consultations took place with the EU Member States, turned “into real commitment”, is stated in the the European institutions, the European civil society at large, including Strategy which calls for collaborative think thanks. The strategy, elaborated under the leadership of the High Repesentative, programmes to be “systematically reflects the collective views expressed in the process and offers a strategic vision for encouraged” at EU level. the EU global role. A crucial role lies with the European The full text is available here: Defence Agency (EDA): the “full use of its http://eeas.europa.eu/top_stories/pdf/eugs_review_web.pdf potential” in the capability development field is an “essential prerequisite” for European

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An ambitious defence follow-up for an ambitious EUGS

In the following pages,Prof. Dr. Sven Biscopoutlines what, in his view, a sectoral defence strategy or EU Defence White Paper – announced as part of the EU Global Strategy follow-up – should entail and how it could be implemented

he EU Global Strategy for Foreign and Security Policy (EUGS) is one of the most ambitious EU documents on defence to date. For the first time, strategic autonomy has Tunambiguously become the objective. Not a moment too soon, as security challenges inside and around Europe are rising, while the US has made it clear that it will not, and cannot, solve all of Europe’s problems. The operational dimension of strategic autonomy comes down to the ability to act without the US whenever necessary. From that follows the industrial dimension: having a defence industry that can produce everything that this requires, notably the strategic enablers. The EUGS sets out four major military tasks: to help protect the European way of life at home; to maintain stability in the broad neighbourhood; to maintain the freedom of the global commons; and to contribute to United Nations collective security. Together, these four tasks represent a clear increase in the burden placed on Europe’s armed forces. The neighbourhood especially presents a challenge. The emphasis is on increasing resilience and building capacity, but where war is ongoing, the EUGS also commits the EU to protect civilians

EUROPEAN DEFENCE MATTERS Issue 11 2016 11 GLOBAL STRATEGY

and to consolidate local ceasefires. That “The (defence) white entails deploying troops on the ground with serious firepower, backed up by air support paper must now quantify and ready reserves, who will not necessarily the four military tasks seek out and destroy an opponent but who and the desired will fight when the civilians for whom they are concurrency: How many responsible are threatened. Without that determination, the EU will not have created a operations, of which safe zone but a trap. For many Member size, should Europeans States, land operations with such a high be able to undertake potential of combat go far beyond anything that they have recently undertaken, certainly simultaneously, without in an autonomous European framework. relying on non-European It is vital therefore that the implications assets?” of this and the other tasks are spelled out and fully taken on board by the political and military leadership. The EUGS provides for a “sectoral strategy” on defence to do exactly that, under the heading, recently announced by the High Representative, of a Strategic Implementation Plan on Security and Defence. What this really is, of course, is an EU defence white paper. The EUGS itself calls for “full-spectrum land, air, space and maritime capabilities, including strategic enablers”. The white paper must now quantify the four military tasks and the desired concurrency: How many operations, of which size, should Europeans be able to undertake simultaneously, without relying on non-European assets? When a new strategy demands strategic autonomy, it would be contradictory to set too modest a level of ambition. Some now propose to focus on the autonomous deployment of a brigade, presenting this as an increase as compared to the ambition to have two battalion-size Battlegroups on stand-by. That, of course, is the wrong point of departure: the existing level of ambition is term cannot be easily filled by the existing operations and a high intensity crisis the Headline Goal – to deploy and sustain up capabilities of the remaining Member States. management operation of several brigades to a corps of 60,000. It is the Headline Goal But the Headline Goal was set in 1999, for a and squadrons in the neighbourhood, as that must be revised – upwards. Union of 15 Member States. A revised well as long-term naval operations, and For sure, if after a Brexit the British Headline Goal will be a target for a Union of battalion-size contributions to UN contribution is withdrawn from the EU’s Force 27, with 1.35 million troops and a total peacekeeping, while engaging in capacity- Catalogue, it will create gaps that in the short defence expenditure of $200 billion. At the building and military cooperation. very least, the current Headline Goal In light of the crises in Europe’s should remain eminently feasible. neighbourhood and the global geopolitical is the Prof. Dr. Sven Biscop But with such overall numbers even tensions, this level of ambition is none too Director of the Europe in the World Programme at an increased Headline Goal can be high. It is but the reflection of the rhythm of the Egmont – Royal Institute for International achieved over time – on the operations of the last decade. Maintaining Relations in Brussels, and teaches at Ghent University and at the College of Europe in condition that defence integration is and, over time, even increasing the Headline Bruges. He is an Honorary Fellow of the European pushed much further. And an Goal is the realist option therefore: in view of Security and Defence College, and chairs the jury increased Headline Goal will be what is necessary, but also in view of what is of the biennial EDA-Egmont PhD Prize. necessary if Europeans want to be possible, looking at Europe’s military able to deploy, simultaneously: potential. Realism not only means not setting long-term brigade-size stabilisation unachievable objectives – it also means not

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These priorities can then be incorporated into the NATO Defence Planning Process (NDPP) as well. Only if the next iteration of the NDPP takes into account the capability requirements of European strategic autonomy, notably with regard to enablers, can a capability mix be created that allows Europeans to do all: to contribute to Article 5, to undertake non-Article 5 operations with the US and the other non-EU Allies, and to launch autonomous expeditionary operations. In the words of the EUGS: “European security and defence efforts should enable the EU to act autonomously while also contributing to and undertaking actions in cooperation with NATO”. The white paper is key to the industrial side of strategic autonomy too. Under the next framework programme for research (2021- 2027), the European Commission will, for the first time, provide significant funding (of at least €500 million) for defence research – a concrete result of the December 2013 European Council meeting on defence. The white paper and the resulting capability priorities must become the formal guidance for the use of these new funds, so that they will directly contribute to the goal of strategic autonomy. Industry must serve the Member States and their armed forces, not the other way around. Finally, Member States need not wait until the new Headline Goal has been translated into detailed requirements and a new CDP to take action. The EU should avoid the impression that the EUGS has just engendered another paper tiger. The only way to achieve the capability targets will be further cooperation and integration, at two levels. At the EU-level, making full use of the EDA, to setting the bar too low and underexploit the additional maritime scenario can be acquire the necessary strategic enablers. And potential that is there. envisaged. Then has to follow a new iteration at the level of various clusters of Member The white paper need not be very long, of the Capability Development Mechanism States, to create larger deployable formations nor therefore should it take a long time to (CDM), updating the detailed catalogues through a combination of far-reaching pooling draft – it ought to be adopted of capability requirements, and specialization. The EU as such can in early 2017. Subsequently, existing capabilities (minus facilitate cooperation in clusters, but only the the EU Military Staff (EUMS) the UK), and shortfalls. Member States themselves can initiate it. can revisit the illustrative “The (defence) This will take time, but They should do so as soon as the EU white scenarios for European white paper is key immediately after the paper is finished. operations. The existing to the industrial adoption of the white paper, At that point, two simultaneous scenarios focus on peace side of strategic the European Defence Agency processes should thus take off: while the EU enforcement, peacekeeping, autonomy too” (EDA) can already update the institutions prepare a new iteration of the CDP, evacuation of EU citizens, Capability Development Plan one or more clusters of Member States capacity-building, and (CDP), which was foreseen in coming at it from the other side should supporting disaster relief. 2017 anyway, and generate a immediately announce the start of closer These can be updated by incorporating the first set of capability priorities in order to link military integration between them, in order to implications of tasks related to “homeland national and multinational efforts to the demonstrate a number of shorter term results. security” and counter-terrorism; perhaps an objective of strategic autonomy. For results are what we need.

EUROPEAN DEFENCE MATTERS Issue 11 2016 13 GLOBAL STRATEGY

European Strategy in times of geopolitical interdependence

As Europeans struggle to get through an economic and political crisis that is shaking the foundations of , security-related concerns have returned to the center stage of political debate, says Luis Simón, Director of the Brussels office of the Royal Elcano Institute

ussian revisionism represents a Europeans to put their own neighbourhood precision-guided weaponry and systems) direct threat to many eastern first, given the proliferation of crises and have led to greater global geopolitical and and central European countries. instability along the continent’s eastern and strategic interconnectivity. For instance, the RIn turn, the ripple effects of southern peripheries. However, a world that increasing number, survivability and range of instability in Syria, Iraq or Libya is increasingly characterized by the rise of Beijing’s missile inventory, as well as China’s continue to be felt throughout Europe, not Asia and the multiplication of centres of rapidly expanding subsurface fleet, have only through successive waves of refugees economic activity is one that calls for a truly already extended the reach of China’s so- and migrants, but also through terrorism and global approach to foreign and security called “anti-access and area denial” mounting insecurity. policy. capabilities to cover much of the Indian Following the publication of the EU’s Europeans should be careful not to make Ocean region. This suggests that Asian Global Strategy on Foreign and Security Policy too strict a distinction between the powers can greatly impact the geostrategic (EUGS) in June 2016, and NATO’s July summit neighbourhood and what is beyond – and balances of the Persian Gulf and, by in Warsaw, most discussions on European avoid confusing a “neighbourhood-first” with extension, parts of the immediate European strategy appear to be revolving around the a “neighbourhood-only” approach to strategy neighbourhood, such as the Levant and even following questions: (A) how to bring security and foreign policy. Two reasons stand out in the eastern Mediterranean. to Europe’s immediate neighbourhood and (B) this regard. The first is the geography of the how to balance attention and resources European peninsula, and its contiguity with What does this increasing geostrategic between Eastern Europe, North Africa/Sahel, the rest of the great Eurasian landmass. The interdependence mean for the future of and the Levant. second relates to the fact that economic European strategy? When it comes to strategy, prioritization globalization and advances in military It means Europeans should perhaps is essential. And it does make sense for technology (including the proliferation of pay more attention to those regions or

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interests in their immediate neighbourhood, their contribution to “Western” primacy in while simultaneously ignoring adjacent the so-called ‘global commons’, such as air regions whose economic, political, and and maritime domains, as well as space strategic developments will no doubt and cyberspace. Admittedly, when it comes impact the security of Europe and its to the security of the global commons, the immediate neighbourhood. lion’s share of the burden will continue to Presumably, the very same logic that fall on the United States. However, leads Europeans to conclude that Europeans can and should contribute more ‘developments in their neighbourhood affect to the security of the air- and sea-spaces the security and prosperity of Europe itself’ of Europe’s extended neighbourhood – should lead them to also think that including the Gulf of Guinea, the “Europeans should aim to developments beyond their immediate Mediterranean and Red Seas, the western neighbourhood can affect the stability of Indian Ocean, and the Arctic. In this regard, contribute to the their own neighbourhood – and of Europe. they should step up their efforts in terms preservation of a balance Therefore, it seems that Europe’s ambitions of military-technological innovation and also of power in the “middle should be global in nature. contribute to the security of outer space spaces” and in the Asia- Having said this, Europeans need to be and cyber-space, alongside the United Pacific region. That would realistic about their own limitations, given States. the need to attend to current crises in their Thirdly, Europeans should aim to require being in immediate backyard. contribute to the preservation of a balance geostrategic sync with of power in the “middle spaces” and in the the United States and Against this backdrop, a few final Asia-Pacific region. That would require being other key regional observations can be offered. in geostrategic sync with the United States partners.” Firstly, Europeans should remain and other key regional partners. ambitious in their immediate These three geographical levels of neighbourhood. In terms of goals, that analysis are very much intertwined, in that means the primacy of European power and preventing the emergence of a regional values. That goes for eastern and hegemon in the Asia-Pacific region is © Airbus southeastern Europe, as much as it goes for directly linked to the preservation of Western “middle spaces” that connect Europe and the Mediterranean basin. In this sense, the strategic primacy over the global commons its immediate neighborhood to the rest of idea of accommodating revisionist powers and to the security of the “middle spaces.” the Eurasian landmass all the way to the and accepting different spheres of influence That, in turn, is the key to preserving the Asia Pacific, i.e. the Indian Ocean, Central in Europe’s immediate neighbourhood – let balance of power globally and the stability Asia, and the Arctic. These geographical alone in Europe itself – should be resisted. of the international liberal order. spaces are increasingly relevant because Secondly, Europeans need to increase countries like China, India, Japan and South Korea are reaching westwards, all the way Luis Simón is Director of the Brussels office of the Royal to the Middle East, Africa, and even to Elcano Institute and Research Professor at the Institute for Europe, in order to satisfy their need for European Studies (Vrije Universiteit Brussel). On 1 May 2016 the energy, other resources and export Elcano Royal Institute opened an office in Brussels, its first markets. And they are doing that primarily outside . The purpose behind the expansion is to embark through the Indian Ocean and Central Asia upon a broadening of the Elcano Royal Institute’s international – and perhaps also increasingly the Arctic activities, starting with Brussels from where it will produce in the future. reports, projects and activities in cooperation with other think tanks and research centres as a means of extending its European The extra-regional outreach of Asian and international operations. powers is primarily economic and diplomatic, but it is beginning to have The setting up of the Brussels office is linked to one of the Institute’s most ambitious projects in recent years: the creation of geopolitical and strategic ramifications, a ‘Map of Spain’s influence in Brussels’. The project’s aim is to both in the middle spaces and in the study the organisation and operation of the Spanish system of relations with the EU, European neighbourhood itself. In this both at the official/institutional level and in terms of networking in which private regard, Europeans should perhaps think stakeholders also participate. The Elcano Royal Institute is a private foundation whose harder about the geopolitical implications essential mission is to serve as a means of focusing thought and generating ideas of China’s ‘One Belt, One Road’ initiative, or that might prove fruitful to policy-makers, leaders of relevant public and private the ongoing proliferation of so-called Anti institutions and the shaping of public opinion. Access/Area Denial bubbles in the Indian www.realinstitutoelcano.org Ocean region. It is increasingly unclear how Europeans would be able to secure their

EUROPEAN DEFENCE MATTERS Issue 11 2016 15 INDUSTRY TALK “European consolidation is an efficient way to achieve competitiveness and interoperability”

In December 2015, Nexter and Krauss-Maffei Wegmann (KMW) announced the completion of their association and the creation of a new joint holding company – KNDS – which, many say, could trigger a wider consolidation in the sector of land defence systems in Europe. To find out more about the strategy behind the transaction and its wider impact on the defence industry landscape, European Defence Matters spoke to Stéphane Mayer, CEO of Nexter and co-CEO of the newly created KNDS

Which were the main drivers behind the adopt the same approach to export controls. Nexter-KMW merger and the creation of Over the last few months, we have been KNDS (KMW + Nexter Defense Systems): developing synergies by gradually combining synergy and cost-saving considerations or our efforts in several areas: sales, more long-term, strategic ambitions? communication, purchasing, finance, products, were the first, and the move came as a surprise The strategic aim of the joint venture engineering and production. We are aiming to to some. In Europe, our Governments need between Nexter and KMW is to create a both boost revenue and limit costs. The efficient and competitive products and are aiming European leader in land defence offering joint process does not involve any restructuring, for more inter-operability. On the worldwide products that meet the operational needs of because both Nexter and KMW are profitable market, the competition is extremely strong. A the French and German armies, and obviously companies with order books representing European consolidation process is an efficient those of other European and international more than three years of business. way to achieve those objectives. Besides forces. This will result in genuine convergence and Germany, we are aiming to progressively for users that often operate together in the Would you say that KNDS is the starting expand our industrial footprint in other European same theatres. The success of our alliance will shot for a major consolidation process in countries to continue this strategic move. be boosted by two kinds of convergence the European land defence systems market between our Governments, which must not to ensure Europeans remain competitive? Some say KNDS could become the “Airbus only define common requirements, but also When we announced our joint venture, we of the land systems sector”. Is this your

16 www.eda.europa.eu INDUSTRY TALK

“We need to maintain and develop a European industry that guarantees the sovereignty of EU states”

© Nexter ambition and are you already looking for companies leading their national markets. In Munitions division, which is now Europe's additional European partners to join the the future, we want to strengthen the group third-largest munitions player. Combining group? further by welcoming new partners that are these three companies has allowed us to The Joint Venture between Nexter and an equally good fit and equally effective. I am generate multiple synergies in ammunitions, KMW is the first step towards a strong, very confident about this new phase of but more importantly to maintain a high level durable and independent European industry. consolidation, although at the moment the of quality in terms of precision, effectiveness Since we started the project, we have priority remains setting up KNDS with Nexter and security. As a result, the KNDS group can consistently stated our desire to drive and KMW. rely on a solid munitions business. European consolidation, partly through new I would also like to take this opportunity industrial alliances. Today, we are laying the to talk about European consolidation in R&T is a domain where huge synergy foundations of a new group, based on the another area, that of ammunitions. In 2014, effects can be expected from this merger. excellent fit between Nexter and KMW's Nexter acquired Mecar in Belgium and What do you hope to achieve in R&T businesses and the expertise of two Simmel Difesa in who joined our Nexter together what was not possible alone and

EUROPEAN DEFENCE MATTERS Issue 11 2016 17

INDUSTRY TALK

Unfortunately in some cases buyers decided to purchase non-European equipment or untested equipment. Of course competitiveness is essential in order to meet the European market's needs. But there are also needs for greater European awareness regarding defence, and particularly land defence. Armies on the ground need to be much more integrated through common equipment, we need to maintain an independent EDTIB that maintains Europe's superiority in certain areas of excellence (protection, firepower, communication systems, etc.) and we need to maintain and © ECPAD France ROINE Arnaud develop a European industry that guarantees CAESAR artillery system in operation with in Mali the sovereignty of EU states. how do you see the future of R&T at EU the timeframe to achieve a common vision level? between the German, French and other On the other hand, there is also the KNDS will indeed lead to R&T synergies. European customers. In the Defence industry, uncertainty created by the Brexit vote and Financing innovation is crucial for the success this takes 5 to 10 years! the prospect of the UK leaving the EU. How of our plans, since innovation will allow us to will all this impact European defence maintain a technological edge over our rivals 2016 has seen a lot of movement in CSDP cooperation? by developing distinctive systems. Naturally, (EUGS set to be followed by a sectoral The European defence project is vital and we will work to eliminate potential duplication defence strategy; launch of Pilot Project the many dramatic events we have seen in of R&T within the new group. Moreover, we and preparation of the Preparatory Action recent years are a reminder that we must not welcome the willingness of the Governments on defence-related research) and more is let down our guard on security to support advanced technologies and R&T expected in the coming months (European and defence issues. We are “Brexit is studies for the current and future systems. The Defence Action Plan by the EC). How therefore confident that the unlikely to single most important subject for us in terms optimistic are you that all this will give a will remain a have an of R&T and innovation is linked to the Franco- boost to the European defence industry in staunch ally and continue to German initiative to jointly develop the general, and to the land systems sector in develop a strong defence impact on technologies for the MGCS (Main Ground particular? relationship with France. our Combat System) and CIFS (Common Indirect We can be optimistic, while remaining Nexter has a joint venture projects” Fire System). realistic. The land defence market is doing well with BAE, CTA International, internationally, and there are still many based in France. CTA International specialises It seems that in a first phase, both opportunities, particularly in Asia and the in telescoped 40mm-calibre armament companies involved in KNDS will keep their Middle East. However, it is an extremely systems, and has developed a revolutionary organisation, staff and even their own competitive sector and every tender process new cannon. This 40mm cannon has been range of products. When do you foresee the requires increasingly large investments from acquired by both the French and British armies first jointly developed and produced KNDS the companies involved. In Europe in the last as part of the Scorpion and Scout weapon systems – for instance a combat few years, Nexter and KMW have taken part in programmes, proving both the effectiveness of tank – to be on the market? tender processes with products such as our the weapons themselves and the wisdom of For many years, we will have to keep large 8x8 combat vehicles (VBCI and Boxer) and our Franco-British joint venture. Brexit is parts of our present organisations unchanged 155mm artillery systems (Caesar and unlikely to have an impact on our projects. in order to deliver on our commitments to our PZH2000). We were not successful. customers and our existing partnerships and to remain able to support our products in service. However, we are already starting to Stéphane Mayer joined the Airbus group (formerly EADS) in 2003 as Chairman and CEO of EADS Socata, an aviation identify synergies, to act jointly on several component and aircraft manufacturer. In 2007, EADS appointed matters (sales, product policy, finance, him for a 3-year term as CEO of ATR, a joint venture plane maker. purchasing, communication, etc.). We have In 2010, he joined the Daher group as President and CEO of its also started to work together on future aviation and defence division. At the end of 2015, he was systems, including combat tanks and artillery appointed Chairman and CEO of , which designs, integrates and systems. These programs will be managed, maintains in operational condition weapons systems and armoured vehicles. As part of developed and produced by a shared the association with Krauss-Maffei Wegmann, he simultaneously became co-CEO of organisation. Their calendars are mainly driven KNDS, the joint holding company which owns the two operating entities. by the operational needs of our customers and

EUROPEAN DEFENCE MATTERS Issue 11 2016 19 FOCUS EU naval industry in good shape but more R&T investment needed, study says

Goods news from our shipyards: EU manufacturers of military vessels and submarines are doing well, especially on international markets awhere exports are booming. No reason though for the industry to rest on its laurels as it urgently needs to invest in research & technology (R&T) if it wants to stay at the top, as a recent study commissioned by the European Defence Agency (EDA) shows

espite difficult conditions on a markets such as the Middle East, Africa, Asia of the products designed and built by these growingly turbulent global naval and Latin America which all devote growing companies, they can be regarded as ‘system market – mainly caused by rising budgets to defence and often have no integrators’, dismissing once forever the old Dexports from Chinese, Russian and meaningful indigenous naval industry. Also image of shipbuilders as mere assemblers of South Korean shipyards - Europe’s due to decreasing defence budgets in Europe steel blocks”, it says. naval industry has managed to maintain its (at least over the past decade, whereas the The European naval industry’s supply chain position as a highly competitive global player if trend has now started to reverse), export is also considered both diverse and complete not a world leader, notably thanks to its markets nowadays account for 42% of the with no area in which a monopoly exists. Most technological edge and strong exports, the EDA- European naval order book value. importantly (with regard to Europe’s strategic commissioned ‘Study on Industrial and autonomy in defence) there are European Technological Competences in the Naval Sector’ Healthy successful industrial base, but... alternative suppliers and replacement options concludes. Another positive characteristic of the in place for all systems/components currently The study, which was carried out by a European naval industry, according to the study, procured from outside Europe. consortium in 2015 and early 2016 (see box is its ability to design, integrate and produce the Business diversification is another trump below), confirms that European naval industries whole range of naval ships and almost the card played by the European naval industry. The are very strong in their respective domestic totality of its core systems and components. majority of the naval players are also successful European markets – but also in international “Considering the complexity and sophistication players in the high-end segments of merchant shipbuilding (e.g. cruise ships and mega- yachts) and in the related maritime activities About the study (e.g. offshore and marine renewable energies). With the adoption of the EU Maritime Security Strategy in 2014 which also “This diversification strategy has created a encompasses defence-related aspects through its CSDP dimension, the maritime favourable cross-fertilization between civil and domain has gained renewed focus at EU level. The ability for European nations to military technologies (dual-use technologies), implement such a strategy will depend on both the availability of required capabilities both at the Prime Contractors and at the Supply- for both civilian missions and military operations, and the existence of a competent and Chain levels, leading to cost-effective designs competitive naval industrial base. Therefore, in 2015, the EDA commissioned this study – and solutions”, the study says. which was conducted by a consortium of Sea Europe (lead partner), Damen, DCNS, Fincantieri, Navantia and TKMS – to acquire a comprehensive picture of the European The study’s overall conclusion could hardly Naval Technological and Industrial base and its technological priorities. be more encouraging: “The European Naval Industrial Base today is made up of healthy,

20 www.eda.europa.eu FOCUS © French Marine Nationale Marine French © capable, diversified and successful export- The European Commission’s upcoming © Armada Español oriented companies”. Preparatory Action (PA) on defence-related The five Spanish Air-Defence frigates Álvaro de Bazán research and the Defence Action Plan equipped with the American Aegis combat system ...more R&T investments needed (scheduled for later this year) could also play a However, all forecasts in the study are not key role as political frameworks to increase the entirely rosy. The study also warns that some resources devoted to defence research threats stemming from non-European activities, including in the naval domain, the competitors are on the horizon such as fierce study concludes. “Here, a distinct role of overall price competition from non-EU countries, coordinator is foreseen and advocated for the especially China, South Korea and Russia. EDA”, it says. The study also pleads for a regular

Countries which very actively support their exchange of ideas between the EDA and the © Damen naval industries “as an act both of foreign and major players in the naval shipbuilding sector in The Damen Frigate Sigma Class Allal Ben Abdellah taking industrial policy”. order to better coordinate and integrate the evasive action during an exercise According to the study, the best way to objectives of the future R&T programmes in this counter this threat is by maintaining Europe’s field. technological lead at the Prime/System Finally, the study has also led to a list Integrators level as well as across the full supply of technologies considered of “primary chain “through increased, more supported, importance” both to maintain the European more coordinated and more focused competitiveness and technological lead and to investments in Research, Development and ensure the required level of operational

Innovation (RDI) at national and European level”. superiority. In total 13 high priority topics and © Marina Militare In order to increase intra-EU cooperation in the 4 new items were identified. Italian FREMM Frigate Virginio Fasan just before its birthing naval defence and security domain, a dedicated The high priority list includes surface area for naval related research should be technologies topics (virtual ships, simulation, services and transversal technologies secured within the next multi-annual maintenance, oceanography, environmental (uninhabited systems, propulsor & propellers). Framework for Research, Development and protection, supply & support), subsea The identified new R&T topics to be Innovation starting in 2021, the study technologies (hydrodynamics and UxV focussed on in the future are 3D printing, high recommends: “This is essential to the long-term integration, modularity, UxV integration, capacity batteries, augmented reality and sustainability of the European naval industry”. vulnerability reduction, propulsor) as well as drones.

EUROPEAN DEFENCE MATTERS Issue 11 2016 21 IN THE SPOTLIGHT

22 www.eda.europa.eu IN THE SPOTLIGHT “We took the NATO-EU cooperation to a new level” NATO Secretary General Jens Stoltenberg talks to European Defence Matters about the recent Warsaw Summit, the EU Global Strategy and the future EU-NATO relationship

In the light of a possible Brexit, how do you envisage not be able to deliver the capabilities we need in the the future development of the NATO-EU relationship? long-run. Cooperation between NATO and the European Union has become even more important in the wake of the UK The Warsaw NATO Summit 2016, will it be remembered as referendum. Unity and cooperation are essential to deliver the moment when EU-NATO relations and cooperation the defence capabilities we need. Our security is entered a new era? interconnected, and today we face security challenges of Yes. At Warsaw, we took NATO-EU cooperation to a new a magnitude and complexity much greater than only a few level. The Joint Declaration we signed will give new impetus years ago. Neither NATO nor the EU are entirely equipped and substance to the NATO-EU partnership. It sets out with the tools to tackle these challenges, but together we concrete areas for cooperation and outlines measures for have the full tool-kit. Our partnership will continue to grow. implementation. This will enable us to work closer together By working together, we make the most than ever before. “I welcome the EU efficient use of our resources. We will boost our ability to counter hybrid Global Strategy. It While it will take time for the threats, including through timely information sharing, and consequences of ‘Brexit’ to become clear, cooperation on civil preparedness, cyber defence, and highlights the the importance of a strong European strategic communications. Our respective Playbooks on importance of a strong Union has not changed. NATO provides a hybrid threats will identify how we interact with each other if European Union and platform for transatlantic cooperation and our nations come under attack. cooperation between I welcome more cooperation within To project stability, we both agreed to do more to foster Europe. The United Kingdom will continue the resilience of our partners, including by strengthening the EU and NATO” to play an essential role in NATO – and maritime capacity. To strengthen our own defence hence in Euro-Atlantic security. capabilities, we will expand our coordination on cyber defence, and train our cooperation through linked exercises. The EU Global Strategy calls for EU defence We will also expand our cooperation in the Mediterranean cooperation to become ‘the norm’. How can NATO Sea, which will make us more effective in tackling illegal support the EU in the enhancement of defence migration, terrorism and other challenges. We agreed, in cooperation in Europe? principle, on a possible NATO role in the Central Mediterranean, I welcome the EU Global Strategy. It highlights the to complement or support the EU’s . importance of a strong European Union and cooperation At Warsaw, I also shared with the President of the between the EU and NATO. For decades, NATO has European Commission NATO’s baseline requirements for provided a framework and standards for strengthening national resilience on issues such as energy security, food defence cooperation, ensuring that Allied forces can work and water supplies and continuity of government, to enable together seamlessly. This also helps strengthen the better coordination. capacities of those Allies who are members of the So at Warsaw, we set out clear ambitions for the future of European Union. I also want to underline that increased our relationship with the European Union. The Summit should defence spending is important for European Allies indeed be remembered as the moment when we took our because without more investments in our security, we will cooperation to a new level. © NATO ©

EUROPEAN DEFENCE MATTERS Issue 11 2016 23

IN THE SPOTLIGHT

cooperation on strategic communications will be a priority. NATO and the EU share twenty-two members, and more than four hundred and fifty million citizens. It is therefore essential that we do not duplicate our efforts and work together to make the most efficient use of our resources.

Both sides also urge to invest the necessary “political capital and resources” to make the Joint Declaration a success. Do you see that the political willingness to

© NATO advance in this domain is in place? How do we ensure an ambitious implementation? President of the European Council Donald Tusk, NATO Secretary General Jens Stoltenberg and President of the European Commission Jean-Claude Juncker at the Signing Ceremony of the EU-NATO Joint Declaration Yes, there is more political willingness than ever before. It is important to remember that we have At the signing of the EU-NATO Joint Declaration, you concluded more formal arrangements between our said the agreement would allow both organisations to organisations in the past six months than in the previous “make the most efficient use of their resources”. thirteen years. This speaks volumes of the progress we Where do you see the biggest potential for are making. complementarity and additional added value? To ensure the implementation of our Joint Declaration, I would like to see more progress in the areas of NATO and EU staff will work together to develop concrete maritime security and countering hybrid threats. Both proposals and coordination mechanisms. NATO staff will areas offer new opportunities for enhanced cooperation. report their progress to Foreign Ministers by December On maritime security, we can build on our effective this year. cooperation in the Aegean to cut the lines of human trafficking. At Warsaw, we agreed on a In the Warsaw Summit conclusions (par.124), NATO “We will also expand possible NATO role in the Central Mediterranean. recognises the importance of a stronger and more our cooperation in the This could complement or support the EU’s capable European defence which will lead to a Operation Sophia, providing a range of stronger NATO and foster an equitable sharing of the Mediterranean Sea, capabilities, including Intelligence, Surveillance burden, benefits and responsibilities of Alliance which will make us and Reconnaissance. If requested by the membership. In view of this, how could we enhance more effective in European Union, the Alliance is also ready to the present relationship on both sides of the Atlantic, tackling illegal contribute to the capacity building of the Libyan which is purely doctrinal and operational, into also an coastguard and navy. industrial and technological one? migration, terrorism On countering hybrid threats, we have made Through our Joint Declaration at Warsaw, we agreed to and other challenges” great progress. We are sharing more information facilitate a stronger defence industry and greater and have developed Playbooks to increase our industrial cooperation within Europe and across resilience to hybrid attacks. But we can do more. Our Joint the Atlantic. NATO staff, together with the staff of the Declaration sets out our ambition to work together on European External Action Service, will now work on analysis, prevention and early detection of hybrid threats. concrete options for implementation. We expect to review Timely information sharing between staffs and progress later this year.

Joint EU-NATO Declaration Signed in the margins of the July NATO Summit in Warsaw, the EU-NATO Joint Declaration is meant to reinvigorate and enhance cooperation between the two organisations. “We believe that the time has come to give new impetus and new substance to the NATO-EU strategic partnership”, European Commission President Jean-Claude Juncker, European Council President Donald Tusk and NATO Secretary General Jens Stoltenberg state in the Joint Declaration. The cooperation established more than 15 years ago between NATO and the EU already contributed to this end “but in light of the common challenges we are now confronting, we have to step-up our efforts”, they said. “We need new ways of working together and a new level of ambition. A stronger NATO and a stronger EU are mutually reinforcing. Together they can better provide security in Europe and beyond”. The EEAS and the NATO International Staff, together with Commission services, have been tasked to “develop concrete options for implementation, including appropriate staff coordination mechanisms” to be presented by December 2016. On the EU side, HR/VP Federica Mogherini will steer and coordinate this work. www.consilium.europa.eu/en/press/press-releases/2016/07/08-eu--joint-declaration/

EUROPEAN DEFENCE MATTERS Issue 11 2016 25 OPINION Circular Economy matters

Jyrki Katainen, European Commission Vice-President for Jobs, Growth, Investment and Competitiveness, shares with European Defence Matters his analysis about the importance of the ‘circular economy’ concept (which, in a nutshell, aims at closing the loop of product lifecycles through greater recycling and re-use of materials) for the defence sector and how it can help to improve the European defence industry’s competitiveness

nd of June, HRVP Federica Mogherini and waste management. understood that the ‘old fashioned linearity’ of presented the new EU Global Our Circular Economy Action Plan, published business models and products will soon add to Strategy, aiming at setting out the in December 2015, aims at introducing these operational risks. They are therefore integrating EEuropean Union's strategic security principles along the entire value chain, therefore resource efficiency and circularity logic more and foreign policy priorities. The addressing all industrial sectors. systematically in their production processes. Commission is also working on adopting the Defence industries are no different – Positive developments are also noticeable European Defence Action Plan (EDAP) by the end resource efficiency, security of supplies are as in the military sector where the efforts of the of this year, which will turn these objectives into much, if not more, important to defence European Defence Agency have already concrete EU military capability priorities. industries than to the civilian sector. The materialised beyond expectations. Very Strengthening Europe's security capabilities transposition of the circular economy principles concrete examples include the EDA's Energy is a challenge that requires strategic planning in the defence sector can benefit the European and Environment Programme which supports and an efficient use of resources. Existing industry and economy in many ways. Member States Armed Forces through the projects or initiatives taken by the European Optimising the use of existing resources, introduction of low-carbon and energy-efficient Defence Agency (EDA) already prove how the encouraging developing new materials, and actions in the fields of capability, armaments implementation of the circular economy promoting the use of secondary raw materials and research perspectives; or, the ‘Go Green’ principles in the field of defence can help will create new incentives to innovate. And we project which encourages Armed Forces of achieve this objective. Yet, increasing transfers are not talking only about big manufactories seven Member States to produce their own of knowledge between the civilian and the here – defence supply chain includes plenty of electricity from renewable sources, thus military sectors and integrating a longer-term SMEs and midcaps. This will in turn contribute generating additional revenue for defence perspective in the production process could to preserving and creating new jobs. In an budgets. bring even further benefits. environment of reduced government public spending, the focus on waste reduction will also Well-planned dual-use research is essential Modernising and improving the help the industry reduce its costs, and improve to fully benefit from Circular Economy competitiveness of the defence sector its competitiveness and efficiency targets. initiatives through the Circular Economy Many civilian businesses have already The defence sector could also reap the Modernising our economy is a priority for this Commission. We believe that the future of competitiveness lies in advanced manufacturing and smart and sustainable value chains. Since this Commission took office, we have therefore made every effort to ensure that Europe's industries – and in particular SMEs – can benefit from a growth-friendly framework. This means not only facilitating investments into innovation, but also supporting new technological solutions and new business models which implement circular economy principles by suggesting more sustainable production, consumption © European Union

26 www.eda.europa.eu OPINION

“Modernising our economy is a priority for this Commission. We believe that the future of competitiveness lies in advanced manufacturing and smart and sustainable value chains”

© European Union benefits of the R&I dimension of our Circular means that lifecycle assessment will need to could also accelerate the development of new Economy Action Plan. Through the initiative be considered if civilian use is being planned technologies and materials, hence providing ‘Industry 2020 in the circular economy’, the at the end of service life in the defence sector. better equipment for our troops. European Commission will grant over EUR 650 Here again, some practical examples Development opportunities exist and the million in 2016-2017 to research and innovation. already exist. Building upon years of successful Commission has set the ground for investment Undoubtedly, the emergence of a growth- dual use research in materials and into innovation to take off. But to fully reap friendly framework, as attested by the recent nanotechnology sciences, the EDA's CapTech these benefits, a long-term perspective will need launch of ‘Innovation Deals’, could have a Materials & Structures now embraces new to be factored in at early stages of the positive impact on investment into innovation advanced materials with extremely interesting production process – including in tendering and and may create other positive spill-overs in the features for defence. Among them, smart design phases. defence sector. For these spill-overs to materials are expected to be further developed, The circular economy is a long-term materialise, knowledge transfers between the allowing not only reductions in weight or challenge which requires comprehensive civilian and the military sectors are fundamental. increased strength, but also self-repairing or handling at every stage of the process. I have The EDA has already carried out considerable condition monitoring of deployed personnel. complete confidence that the defence sector work to encourage synergies between civil and However, challenges remain in the price of will naturally integrate this approach, and military policy initiatives, in areas such as the these products or in the complexity associated appreciate its interests in this development. Single European Sky, Energy Efficiency, Maritime with the repairing and disassembling Security Strategy, Space, etc. processes. This is precisely where encouraging dual research and development activities could Jyrki Katainen is currently Vice New opportunity for the EDA be mutually beneficial by providing the President of the European Commission The Circular Economy Package provides a necessary resources for the industry to responsible for Jobs, Growth, Investment and Competitiveness. He joined the college in July new opportunity for the EDA to use its enriched embrace the circular economy principles 2014 as Vice-President for Economic and stakeholder network and experience in already in the design phase. Monetary Affairs and the euro. Before that he identifying mutual benefits to broaden this The implementation of the Circular Economy served as Prime Minister of Finland (2011- cooperation. The participation of the defence Action Plan presents numerous opportunities for 2014) and Minister of Finance (2007-2011). sector in the transfer or knowledge to and from the defence sector. Taking this new approach More details about the Commission’s Circular the civilian industries on the recycling, could help the industry modernise and become Economy Strategy can be found here: remanufacturing, or reparability aspects in both more efficient and more competitive. Better http://ec.europa.eu/environment/circular- defence industries will be key to ensure the integrating innovation principles through a economy/index_en.htm success of this process. In concrete terms, this deepened collaboration with the civilian sector

EUROPEAN DEFENCE MATTERS Issue 11 2016 27 OPINION

“82% (of recently surveyed Europeans) want greater EU involvement in fighting terrorism, 66% want the EU to intervene more in security and defence policy”

28 www.eda.europa.eu OPINION Why European defence research is vital By Jorge Domecq – Chief Executive of the European Defence Agency

Research matters. Let’s take one example: Galileo. In 2003 the European Union and agreed to launch this ambitious project. Inspired by the genius of one of Europe’s finest thinkers, Galileo aimed not only to propel Europe to the top of the €175 billion global satellite navigation system market. But also to benefit European services and users, boost innovation and create jobs

ts applications are staggering: they no longer be looked at simply from a national using the EU budget for defence, something range from search and rescue perspective. Cooperation in defence is not an that was unthinkable as recently as three services, through scientific research, abstract concept. Just like Galileo, European years ago! Ito positioning services (GPS) as used in defence is stronger than the sum of its parts. Capability programmes entrusted to the cars but also aviation, maritime, rail, and This means greater cooperation in defence European Defence Agency are a start but we even pedestrian traffic. Galileo ensures that innovation, in cutting-edge capabilities, in need to look at the longer-term development if Europe is independent in its access to research and technology. And it needs to we want to retain Europe’s ability to be a satellite signals. Putting the programme in happen now. credible security provider that relies on state- place has not been easy from a political or of-the-art cutting-edge technologies. And we economic point of view. But the advantages need to do it now. Capability development – innovation, skills, jobs, growth, and takes time. Using EU budget for defence R&T independence – have made this worthwhile. should by no means replace national efforts Galileo demonstrates what team work is but it will help to generate critical mass, to about: exploiting the strengths of individual network European research entities, and very elements for achieving common goals. This importantly to increase interoperability and recipe for success should now be applied to standards. Besides, we know that research in European defence. defence has concrete and profitable spill-over Today, the European Union faces a effects for everyday life like the Internet or GPS. plethora of challenges. The growing R&T is not nice-to-have. It is an essential scepticism regarding its objectives, financial prerequisite to develop the capabilities of the uncertainty and threats to its security require future and thus to provide for our citizen’s © ESA–M. Pedoussaut, 2015 a fundamental debate on the future of a security. It also underpins Europe’s strategic strong Europe. 82% of respondents to a Following a call by European leaders, the autonomy, boosts its industry, creates jobs Europe-wide survey1 have confirmed they European Commission has recently proposed and stimulates growth. Commitment by the want greater involvement of the European to invest €90 million in defence research European institutions, Member States and Union in the fight against terrorism; 66% want between 2017 and 2019. This may be modest industry are required to make it happen. But the Union to intervene more in security and when compared to the latest US defence a fully activated and properly resourced defence policy. The recently published EU innovation initiative of some $18 billion or even Preparatory Action is an opportunity we Global Strategy highlighted the increasingly the Galileo programme which requires cannot miss. The European Parliament and blurred lines between internal and external investment of around €5 billion. But it is a Council of the EU will be asked to approve this security. Defence does not live in a bubble. It start; and an important one. It is also, for the crucial step during their budget decisions. I is inextricably linked to security and EU, a revolution. For the first time in its history, sincerely hope they do so. prosperity. So Europe needs to be a reliable the EU is paving the way through this so 1. Special Eurobarometer of the European Parliament, security provider for its partners while at the called Preparatory Action for a substantive published in June 2016: same time protecting its citizens. defence research programme in the next http://www.europarl.europa.eu/atyourservice/en/2016062 3PVL00111/Europeans-in-2016-Perceptions-and- In order to achieve this goal, defence can multiannual financial framework. This means expectations-fight-against-terrorism-and-radicalisation

EUROPEAN DEFENCE MATTERS Issue 11 2016 29 IN THE FIELD Sustaining Europe’s Armed Forces Energy efficiency, renewables and environmental protection are probably not the first attributes springing to people’s minds when they think of the military. Times are changing though: with Member States’ Armed Forces being among the largest energy consumers in Europe and energy becoming an Achilles heel of military operations if incorrectly managed, the impact of energy consumption on defence budgets and military effectiveness is growing drastically

n contrast to industry and the wider is dependent on imports of fossil fuels. Military their impact on desertification, land degradation, public sector, European Armed Forces are vehicles, ships and aircraft consuming less fuel and water and food scarcity. This is also likely to not yet subject to binding obligations or the ability to use renewable energy sources impact on where Armed Forces are deployed Iunder EU law for the simple reason that, at to operate military infrastructures, platforms and and the way in which they operate in the future. the explicit request of Member States, systems can save huge amounts of money. Operating in increasingly hostile environments they are exempt from the main EU directives Diversifying energy supplies while increasing could increase energy demand and trigger the applicable in this domain such as Energy alternative energy sources in the overall energy need for new advanced materials to cope with Efficiency Directive, the Renewable Energy mix will reduce defence budgets exposure to the tougher conditions, shaping our capability Directive, the Energy Performance in Buildings risks of future price instability. Finances saved requirements. budgets. Directive and the Energy in Transport Directive. on energy expenditure can be channelled to Notwithstanding, there are multiple reasons other military tasks. Therefore, to improve High potential why energy matters for the military. security of supply and reduce operational Against this backdrop, the enormous Starting with the most important: expenditures, Armed Forces have a strong potential of energy efficiency, energy operational advantage. Operational energy interest in reducing their fossil fuel dependent management and renewable energies in the required for training, moving and sustaining footprint. military has been increasingly recognized and military forces and weapons platforms for followed by action over the past few years, military operations is a fundamental enabler of nationally (by the Armed Forces themselves) but military action – as essential to mission also on a wider European level. accomplishment as food, water and In 2011, the European Defence Agency (EDA) ammunition. The more military equipment and confirmed fuel and energy as one of the top ten logistics are energivorous, the more complex capability development priorities and started and costlier it becomes to move them to where implementing the first projects under the they are needed most, especially in the last ‘Military Green’ umbrella (see details below). tactical mile of resupply or in hostile In its 2013 Communication ‘Towards a more environments subject to ambush. competitive and efficient defence and security Therefore, energy efficiency is critically sector’, the European Commission noticed that important to improving military capabilities, unit the defence sector could become a “frontrunner” autonomy and operational resilience on the Thirdly, making defence more in the deployment of emerging technologies battlefield. This does not apply just to the design environmentally resilient also pays off for under the Strategic Energy Technology (SET) of platforms and when they are used on Member States on a political level: they are plan to promote innovative and low-carbon deployed operations. In keeping with the adage allowed to account energy savings achieved energy technologies. The Commission also ‘we train as we fight’, it is imperative that military within their defence and security sector decided at that time to set up a consultation forces operate in an energy-efficient manner at against their global CO2 emission reduction mechanism with Member States on renewables home to transfer that skill to operations obligations, even if the military sector is not and energy efficiency in the defence sector – conducted in overseas theatres; there is also subject to such obligations. A strong incentive an initiative which led in 2015 to the setting up of scope for increased use of synthetic training for voluntary action. the ‘Consultation Forum on Sustainable Energy environments to save energy. Looking further ahead, the EU Global in the Defence and Security Sector’ (CF SEDSS) Cost-savings are a second important Strategy sets out that climate change and – the European Commission’s flagship initiative argument in favour of increased energy energy insecurity endanger our people and on energy and defence, organized and efficiency, especially in times when Ministries of territory, while wider environmental stresses managed by the EDA. Defence are cash-strapped anyway and the EU could exacerbate potential conflict, in light of Mindsets in the military have thus started to

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change with energy efficiency and sustainable role in contributing to EU energy and penetration of energy management systems management increasingly being seen as environmental goals. implementation into the European defence strategic goals. "Some of the world’s most In 2014, this led to the establishment of a community remains low. At the request of several efficient militaries are progressively replacing dedicated EDA Energy & Environment Working Member States, the Energy & Environment (EnE) expensive fossil fuels with power generated by Group. The approach is the following: understand working group and EDA’s Education, Training and solar panels, wind turbines and rechargeable the strategic drivers for the military, define the Exercises unit (ETE) developed a comprehensive batteries. This is not only about more reliable on- scope of the challenge through data collection EnMS Training course which will be offered site energy generation. It's also about making it and analysis, educate and inform, focus on towards the end of 2016, early 2017, to educate safer and cheaper for troops to complete their efficiency gains, then on the scope for alternative and assist them in applying a systems approach missions", EU Commissioner for Energy and energy sources. to energy management at an operational level Climate Action, Miguel Arias Cañete, stated at the based on the ISO 50001 standard. The course will opening plenary session of the Consultation Lack of military energy data capture include classroom based learning, supplemented Forum last January in Brussels. To date there has been no global capture of by ongoing mentoring to support Member States “Sustainable energy use starts at home. This energy usage in the military at a European level; in applying EnMS principles in their own armed is true for individuals as well as for the armed statistics are based on interpretation and forces. forces”, adds Jorge Domecq, the EDA’s Chief estimations. Member States individually have Executive. “The energy bill for Europe’s armed data available and work has recently begun in the Smart Energy Camp Technical Demonstrator forces amounts to billions of euros. The EU EDA on a data collection, analysis & sharing EDA’s Smart Camp Technical Demonstrator legislation in place for energy efficiency, (DCAS) activity. This aims to collect information project analyses the benefits of integrating new renewable energy and energy performance in from Member States, at a macro and non- technologies into traditional power grids for buildings can certainly improve the armed forces’ sensitive level, on the significant energy users of deployed camps. As part of the project, energy energy output. Ultimately this will not only benefit energy and fuel sources in the military. The data management equipment was installed in October their environmental footprint but will also result in will be used to define the scale and complexity of 2015 at the European Union’s Training Mission considerable savings”. the challenge facing the sector and assist (EUTM) in Mali; it is the first time a technical Examples of how Armed Forces can become Member States in setting priority areas for demonstrator is used in a truly operational, more energy-efficient and environmentally- attention in terms of R&D, procurement, design multinational deployed camp. The main objectives friendly include deploying troops to low-footprint, and operational control over the coming years. of project (the first test phase of which was low-energy camps and developing energy concluded in March 2016) are: efficient, self-sufficient operating bases - Energy Management Systems (EnMS) • to test and verify the efficiency of various domains in which the EDA has already initiated Proactive energy management is not yet types of flexible, combat suitable concrete projects. universal across the European defence sector photovoltaic panels in specific climatic and improvements will not only enhance military conditions and test the integration of EDA: from ‘Military Green’ to the Consultation capability and reduce financial and operational renewables with battery storage in a Forum risks, but also strengthen the competitiveness of deployment scenario; In 2011 the EDA spearheaded the first the technological and industrial base. Although European targeted approach to managing energy Energy Management Systems (EnMS) have grown in the military with its innovative initiative, ‘Military in importance and some Member States have Green’. Combining the EU military concept for adopted international standards, wide scale Environmental Protection and Energy Efficiency, national armed forces priorities and EU directives, Military Green defined the concept, the principles and responsibilities to meet the military’s energy and environmental challenges. It attempted to bring all stakeholders together to establish a common understanding of the defence sector’s

EUROPEAN DEFENCE MATTERS Issue 11 2016 31 IN THE FIELD

• to test ‘demand management’ technology and its impact on inhabitants; • to collect reliable data for analysis and sharing with MS and to develop benchmarks for planning support tools for CSDP operations. BAE Systems (UK) are the contractor for this project (see interview below) . Positive results have been collected, showing savings of between 33% up to 60% of energy in the test building, with the potential of possible savings informatics, conservation, sustainability and • to identify applicable funding streams for of up to 75% with additional technical technological innovation point of view. such projects and give a tailored information interventions. For the first phase which kicked off in regarding access to EU funding. Member States are now considering a September 2016, the EDA provides funding to The work is carried out in three parallel second research phase including an upscaling conduct workshops and analysis of water working groups each with a particular focus: of the equipment installed to provide more management technology for fixed military i)“Energy Management” deals with the Energy renewable power to the camp, water installations on a chosen military site in each Efficiency Directive, data collection and analysis, management technologies, waste management Member State. The second phase will involve and with EnMS; ii) “Energy Efficiency” focuses on technologies including waste to energy implementation of the most suitable identified key articles of the Energy Efficiency and Energy conversion, and further efficiency measures. interventions. Performance in Buildings directives, the Alternatively, some Member States have technology side of energy in buildings and fixed expressed an interest to trial the equipment in Consultation Forum infrastructure, renovation of existing buildings as their national deployed camps. Since 2015, the EDA’s Energy & Environment well as on heating and air conditioning Working Group has been the umbrella for the inspection schemes and technical building Smart Blue Water Camps Consultation Forum for Sustainable Energy in the systems requirements, and their applicability to Existing civil and military water Defence and Security Sector. The Consultation the defence sector; iii) “Renewable Energy” deals management infrastructure is facing pressure Forum is a European Commission (DG Energy) with the application of Renewable Energy due to climatic changes and limited new initiative managed by the EDA. It brings together Systems (RES) in the military, national RES investment. Military installations are so far experts from the defence and energy sectors to action plans, decentralisation and the use of among the least acknowledged elements in share information and best practice on RES at military sites, and technologies in the water cycle management. improving energy management, efficiency and area of solar, wind, biomass, geothermal and Acknowledging water as a critical resource the use of renewable energy in the military. small Hydro as well as with fuel cells, storage throughout Europe, including for their Armed The Consultative Forum’s objectives are: and smart grids. Forces, six EDA Member States – Greece, Cyprus, • to assess ways and means of how to best Spain, Portugal, Ireland and Italy - have recently implement existing EU energy legislation in Protection of Critical Infrastructure committed to participating in a novel water the military and defence domain Recently the Consultation Forum topics management project: the ‘Smart Blue Water • to stimulate collaborative sustainable energy have been extended to exchanges of Camps project’ (SBWC). It examines water projects in the defence sector experience on the Protection of Critical management on defence lands from a hydro- Infrastructure (PCEI). This implies sharing expertise on the analysis of criticalities and the interdependencies for the protection of the energy infrastructure against man-made and “We expect tangible results” natural hazards. In May 2016, the EDA held an initial meeting The Italian MoD is the latest newcomer in EDA’s Smart Blue Water to exchange views with national Camps project which it joined last August. “We did so because we representatives and the Commission’s DG strongly believe in European defence cooperation, especially in energy and environment- Energy on the need to explore PCEI from a related domains where we all have similar problems. So, why not explore common solutions military point of view and to assess how the together?”, Lt Colonel Vincenzo Mauro, Italian project point of contact, told us. “We also EU energy legislation on European critical expect tangible results for our military operations and exercises, such as a reduction in (energy) infrastructures can be applied by the water and energy consumption which will also result in operational advantages because it defence sector. will reduce the logistic burden of operations”. Smart water management in field camps is not The Consultation Forum takes place in a a topic previously explored in such detail by the Italian MoD on a national basis. “Given that series of five plenary meetings over two years; the project deals with less sensitive security questions, it allows for a very open cooperation two of which have been successfully which should allow us to achieve maximum results”, Lt Colonel Mauro said. completed. The first meeting was held in Brussels in January 2016 and the second meeting in Dublin in June 2016. The third plenary

32 www.eda.europa.eu IN THE FIELD

meeting takes place in Italy from 22nd - 24th military energy management challenges. The EDA’s Energy and Environment November 2016; two further meetings will be programme will continue to serve as a platform held in 2017. The way ahead for Member States willing to deal in a The Consultation Forum is being carried Richard Brewin, EDA’s Energy and collaborative way with energy and environment- forward with the participation of 27 EU Member Environment Systems Project Officer concludes related challenges in the defence sector. States including (which is not a that: “Understanding and managing energy Working group meetings are scheduled for this member of the EDA) as well as Norway and alongside other existing and emerging risks autumn to discuss the next phase of the Smart which shows the critical including climate change, resource depletion, Camp Technical Demonstrator project, for importance of energy efficiency to European and security of supply considerations will help instance. It is also planned to consider the Ministries of Defence. The final deliverable will shape our future capability requirements and scope for and benefits of the circular economy be a guidance document which all Member maintain military capability to the required as well as sustainable procurement to States can use to find practicable solutions to levels of effectiveness”. Europe’s military organizations.

Four Questions To... Jon Woodman of BAE Systems (UK) What kind of new initiatives or measures would the industry like to see in order to accelerate the energy transition in the European BAE Systems are very active in developing energy-related products. defence? Would you say that it is nowadays a commercial ‘must’ for a Industry is involved in working groups and forums across Europe defence producer to ‘think green’? and beyond often at its own expense because it believes in the Emissions targets mean that governments and their militaries are products it has developed and the potential for the military sector being driven to reduce their carbon footprint. Initially this focused on to embrace it. For me on the surface there appears to be duplicated their fixed infrastructure and what they can do within their research either at multi-national organization level or across homebases. Operational energy largely avoided the need to be too nations. What would be really good is mapping out all of this great concerned with how much pollution they are producing, but things research, modelling and trials and then overlaying it onto a plan of are changing. Training facilities often located within home nations national procurement cycles. If industry can see the end game mean that they have to abide by local laws and regulations so they they will happily play along but without the vision of what it is need products and equipment that will meet those guidelines. Given round the corner it makes investment decisions hard to justify. We the tight budgets for equipment and the need for standardization, need smarter requirement setting by the military, greater visibility those ‘eco-friendly’ operational platforms start to form the backbone of information to the user and a willingness by the military to of the deployed operational force. Whilst industry is developing accept that if you want this new technology then you will have to greener products there is more that could be done through better step away from the ‘one size fits all’ mantra of the diesel genset requirements setting, e.g. better range doesn’t have to mean a larger generation. fuel tank. I don’t think it is yet a ‘must’ but it will be soon. How do you see the Smart Energy Camp deployed in Mali develop What are the biggest obstacles for expanding smart energy in the near future? management in the military sector? I would like to see it develop into a Net Zero Camp demonstration Finance. Most of the smart energy technologies you see being site. Moving away from individual technology ‘trials’, as we know discussed in the military sector are all commercially available and in they all work, and pulling together a suite of technologies that some cases deployed on a large scale. The military often sees itself when installed together will drive the camp as a ‘special case’ and therefore believes it has to provide to the holy grail of zero emissions. demonstrable evidence of the savings that can be achieved using different technologies. These technologies are supported by Jon Woodman, business cases developed over the years and proven through Business Development Manager at BAE commercial installations. There is no need to repeat them because Systems Energy Solutions & Services, is the installation is surrounded by razor wire and guarded 24/7. They the project lead for the EDA Smart Camp need funding to get them installed and start saving money so it can Technical Demonstrator Project. Over the be re-directed. Unfortunately reducing emissions doesn’t immediately last 9 years he has worked on similar link to supporting the operational need and there are long programmes for the UK MoD leading procurement cycles and a nervousness on relying on ‘new’ trials in Wales, Cyprus and Kenya as well as carrying out technology. Work needs to be done in ruggedizing some detailed studies into the suitability of technologies for technologies for military use but this should be a simple process and deployed camp operations. BAE Systems was selected as the Industry lead for the EDA Smart Camp Technical Demonstrator could easily result in smart energy systems being deployed sooner Project in Mali following the tender in late 2014. rather than later.

EUROPEAN DEFENCE MATTERS Issue 11 2016 33 IN THE FIELD Building Open System Architecture for military land vehicles The more military equipment is built on open-source technical standards, the more interoperable and flexible it is, especially when deployed in multinational operations. This applies in particular to electronic networked mission systems installed in manned or unmanned military land vehicles. Rather than developing bespoke systems designed for specific tasks and vehicle types, the future lies in Open System Architectures able to integrate multiple subsystems

he trend towards systems based capabilities. Ensuring full data-exchange provides a significant operational advantage. on open reference architecture is interoperability between all types of land “A vehicle crew’s situational awareness expands amplified by an increasing need for vehicles involved in an operation with the help greatly with far more possibilities for data Tmilitary land vehicles, especially of integrated mission systems has become exchange. In addition to that, the mission armoured fighting vehicles (AFVs), crucial, both from an operational and system equipment can be reconfigured and to be equipped with networked information economic (cost saving) point of view. upgraded much easier and quicker in the field, technology providing them with optimal with logistics and training being much simplified situational awareness and combat Operational benefits and significant too”, explains Marek Kalbarczyk, Project Officer cost savings for Land Systems Technologies at the European Relying on a modular fleet of Defence Agency (EDA). configurable, interconnected land Thanks to open-source technology vehicles capable of standards “the operational efficiency and exchanging data and effectiveness in a networked environment can information irrespective be improved drastically with no significant cost of the size and increase”, he says. A vehicle equipped with an composition of the open mission system can be easily adapted to operation, obviously new emerging technologies by simply adding, replacing or upgrading sub-systems. In the

“The overall costs savings of creating open-source technical standards are significant” Marek Kalbarczyk Project Officer for Land Systems Technologies, EDA

34 www.eda.europa.eu IN THE FIELD

same way, specific mission tasks can be carried expert panel (CapTech) on ‘Ground Systems’ for a future new study which could built on the out and unexpected problems mastered during identified system architecture and integration as two previous LAVOSAR studies to identify areas an operation by simply adjusting the military a defence technology gap and recommended to where standardisation of a vehicle mission land vehicles’ sub-systems accordingly. “The address this topic. The initial idea and ambition system electronic architecture would prove whole logistics task is greatly simplified and the was to define a specific European standard for beneficial to all nations. The EDA also continues exchange of spare sub-systems across various an open-architecture mission systems. To this to support NATO standardisation activities. types of vehicles, even among different end, participating EDA Member States launched European Armed Forces participating in a joint the ‘Land Vehicle with Open System Architecture’ Industry participation is crucial mission, is possible”, explains Peter Round, the (LAVOSAR I) study which was carried out in 2013 Work on LAVOSAR I and II were guided by a EDA’s Capability, Armament & Technology to define a comprehensive reference open multi-national team of experts and industrialists Director. architecture for military land vehicles with focus led by a Rheinmetall Defence Electronics as The economic benefits are self-evident too. on their mission systems and to propose it as a prime contractor. They range from cost savings in the reference solution for developing and As Dr. Norbert Härle (Rheinmetall Defence procurement phase of vehicle systems (due to implementing future mission systems.. Electronics GmbH) explains, “Open System reduced prices as a result of increased Architectures are preparing the future for competition) to reduced training and LAVOSAR I and II networked sub-systems which provides the maintenance costs and longer vehicle life cycles However, since most of the EDA’s Member functionality and performance of a fully thanks to regular, low-cost system updates and States participating in that project are also NATO integrated and comprehensive system providing upgradings. “The overall costs savings of Member States, and in order to avoid while still being modular and flexible.” creating open-source technical standards are unnecessary duplication, it was significant”, underlines Mr Kalbarczyk. Based on decided within the EDA not to “Without a standardized Open a theoretical multinational buy of 800 vehicles, it proceed with developing a Architecture, it will not be can be estimated that total life-cycle cost separate European standard but possible to comply with current savings over 25 years would amount to 17% to support NATO’s STANAG and upcoming user needs…” compared with buying vehicles based on activities instead, in order to Dr. Norbert Härle, Rheinmetall proprietary standards. Additionally, there would establish a single common open Defence, Mission Equipment – also be economies for in-service vehicles: standard for military land vehicles Head of Innovations and savings of up to 10% of the original fleet and their mission systems. Patents purchase price could be generated by doing As a consequence, the EDA updates with parts and functionalities designed has since then actively supported NATO Generic For a military vehicle mission system, according to open-source standards, he says. Vehicle Architecture (NGVA) standardization by currently several separate and individual sub- providing key inputs to STANAG 4754 or its systems are used which do not share Avoiding duplication: EDA supports NATO potential future developments. For example, information between them and are difficult to standardisation work NGVA Data Infrastructure Allied Engineering operate. “Especially with the high demand on With this in mind, efforts to promote open Publication (AEP) used several parts including better performing, more flexible, and increasingly architecture systems were undertaken already NGVA Data Infrastructure Layer View/ IT-based mission systems, an Open Architecture several years ago at various levels across Network Topology/interfacing network to other approach is necessary to make such systems Europe. services and gateways provided by LAVOSAR I. operatable, to manage complexity, to make them In 2011, the UK Ministry of Defence (MoD) The study has also provided NATO with affordable and to enable innovation”, he states. mandated open architecture for new land verification and validation concepts and Dr Härle claims that “without a standardized vehicles through the so-called UK Defence guidelines, safety criteria concepts and crew Open Architecture, it will not be possible to Standard 23-09 ‘Generic Vehicle Architecture’ terminal software architecture. comply with current and upcoming user needs (GVA). The UK initiative subsequently triggered A second EDA study on ‘Electronic and to keep up with technical possibilities as similar activities within NATO and the EDA. Reference Open Architecture Standard for a they are offered for other application areas on It was the Military Vetronics Association Modern Integrated Electronic Mission System in the civil market with reasonable development (MILVA) - an association of government agencies Military Land Vehicles’ (LAVOSAR II) was carried and integration costs and for a reasonably and industries promoting Vehicle Electronics out in 2015 and completed this year. It extended priced system”. Such standardisation is only (Vetronics) in the military environment in close the model defined by LAVOSAR I and provided possible in close cooperation between Industry co-operation with NATO - which took the lead in further new areas for NGVA future developments and NATO which represents the international e l c i

2012 to develop the so-called NATO Generic regarding logistics, maintenance and upgrading, user as well as procurement. h e V

g n Vehicle Architecture (NGVA), better known as training and data exchange mechanisms. “The EDA plays an important role as it i t h g i F ‘Standard Agreement (STANAG) 4754’. The As a next step, the EDA and its participating consolidates a European approach, and, due to y r t n a agreement is currently in the process of being Member States are currently working on a its size, may be more agile”, he explains. “This f n I

a ratified by NATO Member States. follow-on programme called ‘LAnd Vehicle Open way, The EDA can make significant impact to m u P

. l l

Simultaneously, at the EDA, Member States Systems Standardisation (LAVOSS) Study initiate and influence useful NATO a t e m n and industrial experts gathering in a dedicated Programme’. The aim is to select specific topics standardisation”. i e h R

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EUROPEAN DEFENCE MATTERS Issue 11 2016 35 INTERVIEW

“EU-NATO complementarity in capability development remains a crucial issue” C M U E

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36 www.eda.europa.eu INTERVIEW Military capabilities: “Europe still lacks strategic enablers”

Most tangible expression of the EU’s Common Defence and Security Policy, CSDP operations and missions face new challenges as a result of the fast-changing security and defence environment Europe has do deal with. In an exclusive interview, General Mikhail Kostarakos , the Chairman of the European Union Military Committee (EUMC), shares his analysis with European Defence Matters

General Kostarakos, what are in your view there are still significant shortfalls in areas like operations without any major concern, should the main challenges EU CSDP operations air-to-air refuelling and intelligence, command the EU leadership decide so. face in the future? & control and strategic reconnaissance. Clearly, Unfortunately, the so desired European The Common Security and Defence Policy these remain absolute priorities for European strategic autonomy, always speaking strictly (CSDP), as an integral part of the Common capability improvement. Obviously, EU-NATO within the context of CSDP operations, remains Foreign and Security Policy (CFSP), contributes complementarity in capability development an unaccomplished objective. Despite all the to enhancing the security of European citizens remains a crucial issue. efforts made so far, Europe still lacks those and to international peace and stability. This As we speak, the EU runs no less than six strategic enablers that would render it capable was recognized by the Council on 18 May 2015 CSDP-related missions and operations, two of of independently performing the full range of and the EU Council in June 2015. To achieve them executive, the remaining being of an tasks associated with the missions and deepened cooperation with collective defence advisory and training nature. Problems arose in operations it launches. organizations, namely NATO, to further fine-tune the past; they continue to rise, thankfully in a While it is true that duplication of efforts our performance on the ground, to maximize diminishing frequency and of lower severity. The and of capabilities are the contemporary the results of our training missions, they are point we have reached on the learning curve, ‘anathema’ and as such they have to be also among the challenges that we persistently enables us to tackle them in a timely manner avoided, it also goes without saying that face in our effort to become more efficient and and to proceed with our missions before they defending values and enjoying premium to optimize our performance! create further complications. Furthermore, the privileges such as autonomy comes with a Beyond them, the challenge I regard as the so far experienced ‘lack of capabilities’ has cost. This ‘in house’ capabilities development is major one is to identify ways to further never been a ‘no-go’ factor for the EU, in under no circumstances contradictory to the contribute to the EU’s comprehensive Capacity launching an operation or mission that the stated objective of strengthening cooperation Building efforts in the places we are – or will be political leadership regarded as necessary or between the European Union and NATO nor in the future – deployed, assisting the local indispensable. should it be regarded as challenging the security and defence-related Institutions in Alliance's leading role in assuring the territorial taking over the task to provide security by And in the future? integrity of Member-States. themselves to their fellow citizens. It depends on the specifics of the operation On the contrary and being remindful of the we examine, on the region in which it will take fact that the means of both organizations are – To launch CSDP operations and missions, it place, on the mandate and the objectives that for the vast majority of them – nationally owned, requires not only political will but also the we would be tasked with, on the situation on this development will only increase the necessary capabilities. To what extend have the ground and on countless other major or operational flexibility of the Alliance, it will lacking capabilities already become a minor details that have to be included into our facilitate a clear division of the respective roles stumbling block for new EU operations? planning procedures. and it will portray the complementarity of the For every CSDP operation and mission, the Taking into account that our current European Union and NATO. participating countries need to have at their operations and missions are at the lower to disposal the enablers which will allow for their medium end of the military spectrum, we are in With the publication of the new EU Global deployment and sustainment. Unfortunately, position to realize a demand for similar Strategy, do you expect any major strategic

EUROPEAN DEFENCE MATTERS Issue 11 2016 37 INTERVIEW

“The Global or operational changes in the way CSDP operations and missions are contemplated, Strategy will planned, decided and implemented? affect and The EU Global Strategy, as the HR/VP has change the way stated, "...nurtures the ambition of strategic autonomy for the European Union." This level we manage our of ambition has taken into account the operations and contemporary security environment and missions” reflects the role envisaged for the EU as a © EUMC global actor and a security provider. It also Operation Sophia (EUNAVFOR Med) is the of necessary military capabilities now and portrays the level of engagement the first CSDP operation with an openly in the future? European Union foresees for itself in the coercive mandate which, if implemented, Against the backdrop of a complex and shaping of the future geostrategic would lead the EU to engage in ‘peace rapidly changing geostrategic environment environment in its neighbourhood and beyond enforcement’-type activities. What are the and daunting fiscal constraints, the EU must it, in order to protect and advance its interests. lessons learned so far from this operation ensure that it has the requisite capabilities In this context, the EU Global Strategy will since it reached its full operational and resources to act decisively as a security affect and change the way we manage our capability in July 2015? provider. Otherwise, the Global Strategy will operations and missions. A review of our Operation Sophia (EUNAVFOR Med) has remain an academic exercise and the vision procedures will have to take place and been a perfect test bed for coordination of EU be seen as a credible security provider changes, were needed, will be applied, to among EU actors on the ground. Namely, an will become wishful thinking. ensure that we remain in good shape to EU regional task force on migration has been In this context, the role of the EDA in respond to our role and to contribute to set in Catania under the coordination of ensuring the timely development is the EU's Comprehensive Approach in a Frontex which included EUNAVFOR Sophia, the undoubtedly essential. Although the professional way. Commission’s DG HOME, , the development of military capabilities is European Asylum Support Office (EASO) and primarily a national responsibility and will Do you anticipate more EU operations in the the Italian law enforcement authorities, remain so for the foreseeable future, the new future as a result of the renewed dynamic including the Prosecutor’s Office, Guardia Capability Development Plan (CDP) tool and and security engagement which could Costiera, , Guardia di Finanza. the revitalised Collaborative Data Base result from the EU Global Strategy? UNHCR was also associated with the work (CoDaBa) can help military planners to align The EU Global Strategy provides a of the Task force. planning processes and to identify possible European answer to the deteriorating security CSDP organisational structures and partners in the development of future projects. environment in our neighbourhood and in the cultures have successfully met the demands The new EU Global Strategy could prove to be ‘neighbourhood of our neighbourhood’. The of their ever-changing environment, being a catalyst, leading to improved cooperation increasing geographical proximity of conflict, flexible, adaptable, agile and responsive. The between Member-States in order for the the ongoing occurrences of state fragility as Comprehensive Approach and partnerships identified capabilities for its implementation well as the root causes of these phenomena worked very well avoiding duplications and to be developed. that guarantee the reappearance of the flux developing synergies. It was a clear change of To facilitate matching the EDA's unless addressed with determination: they are mind-set. programmes to the actual needs of Mission the scene setters of a broader European and Operations, I suggested to their respective Union engagement with its geostrategic The EDA is active in supporting CSDP Commanders to visit the EDA upon taking up environment. Whether this engagement missions by offering its resources, their commands to be briefed on the tools incorporates and to what extent each time the expertise, existing projects as well as and services available to them. Feedback military element, remains to be seen. I expect ready-to-use solutions and framework upon the completion of their tour would that, at a different level for each particular contracts. How important is this for EU provide valuable input on how to better steer engagement, the military element will be called operations and which additional role could the efforts and offer better and more relevant to contribute, as the EU's Comprehensive the EDA play in order to ensure availability tools and services to the troops deployed. Approach provides for. This is, after all, the comparative advantage of the European Union. The nature of the contemporary challenges General Mikhail Kostarakos was born in Thessaloniki in 1956. He Europe faces – multifaceted, ambiguous or graduated from the Hellenic Military Academy in 1978 as 2nd Lieutenant in the Artillery and hybrid – calls for responses that address all commanded combat units of both Field and Air Defence Artillery (HAWK Missile system). As of their aspects at the same time in a general Officer he commanded the Brigade level Command at CHIOS island, a Mechanized Infantry Division and the C’ Army Corps and NATO Deployable Corps Greece. He was assigned concerted way. The military can largely as Chief of the Hellenic National Defence General Staff from 2011 to 2015. The EU Foreign contribute to that, taking over a variety of roles. Affairs Council appointed him as the Chairman of the Military Committee effective from 06 And this is thanks to the fact that the military is November 2015. He holds a Political Science degree from the Law Faculty of the University of the most flexible, versatile, available and Athens and a MsC in “Diplomatic and Strategic Studies”. deployable tool in the European toolbox!

38 www.eda.europa.eu Key Quotes Page 13 Page 27 “The only way to achieve the (defence) capability targets “The EDA has already carried will be further cooperation and integration, at two levels. At out considerable work to the EU-level, making full use of the EDA, to acquire the encourage synergies between necessary strategic enablers. And at the level of various civil and military policy clusters of Member States, to create larger deployable initiatives in areas such as the formations through a combination of far-reaching pooling Single European Sky, Energy and specialization ” Efficiency, Maritime Security Prof. Dr. Sven Biscop, Director at the Egmont – Royal Strategy, Space, etc.. The Institute for International Relations in Brussels) Circular Economy Package Page 15 provides a new opportunity for the EDA to use its enriched “Europeans should remain ambitious in their stakeholder network and experience in identifying immediate neighbourhood. In terms of goals, that mutual benefits to broaden this cooperation means the primacy of European power and values ” Jyrki Katainen, Commission Vice-President for Jobs, Growth, (…) The idea of Investment and Competitiveness accommodating revisionist powers and accepting Page 29 different spheres of influence in Europe’s immediate “R&T is not nice-to-have. neighbourhood – let alone in It is an essential Europe itself – should be prerequisite to develop resisted” the capabilities of the Luis Simón, Director of the Brussels future and thus to office of the Royal Elcano Institute provide for our citizen’s security Page 17 ” Jorge Domecq, Chief Executive of the European “The joint venture Defence Agency, EDA between Nexter and KMW is the first step towards a Page 37 strong, durable and independent European The challenge I regard as the major one industry ” “is to identify ways to further contribute to Stéphane Mayer, CEO of Nexter and co-CEO of the the EU’s comprehensive capability newly created KNDS building efforts General Mikhail Ko”starakos, Chairman of the EUMC

Page 23 “Cooperation between NATO and the European Union has become even more important in the wake of the UK (Brexit) referendum ” Jens Stoltenberg, NATO Secretary General

EUROPEAN DEFENCE MATTERS Issue 11 2016 39 IN A CRISIS, HOW FAST CAN WE CLEAR THE WAY FOR HELP?

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