ANNUAL REPORT 2019

1 © EDA The Agency’s activity portfolio grew further in 2019, also reflecting the central role EDA plays for the well-functioning and FOREWORD coherence of the EU defence tools OLLI RUUTU ACTING CHIEF EXECUTIVE

The year 2019 was a significant and Armament & Planning Directorate Head of Agency coherence report memorable year for the European (CAP), Research, Technology & presented in summer 2019. Defence Agency, in many respects. Innovation Directorate (RTI) – have already contributed to improving A significant part of the Agency’s Internally, it was one of reflection EDA’s service to Member States, work in 2019 was devoted to and adjustment to the evolving for instance with the creation of developing the Strategic Context environment. The Agency’s 15th a dedicated PESCO unit. Agile and Cases (SCC) which will inform and anniversary, celebrated with flexible, the Agency has the ability guide the implementation of the EU stakeholders and partners at a to quickly adapt to new require- Capability Development Priorities special ceremony held in June, ments; it will continue do so in approved in 2018. The Agency also provided an ideal moment to the future whenever the need for made sure activities developed look back at recent develop- further adjustments may occur. by Member States within NATO ments and achievements, but were correctly reflected in the SCC, also to reflect on the many Meanwhile, the Agency’s activity to further enhance coherence of challenges ahead. Among the portfolio grew further over the past output of EU and NATO defence latter are the consolidation and twelve months, also reflecting planning processes. Needless to proper implementation of the EU the central role EDA plays for the say, the SCC will remain high on defence cooperation tools: the functioning and coherence of the EDA’s work agenda in 2020. Coordinated Annual Review on EU defence tools. It now functions Defence (CARD), the Permanent as the platform for reviewing and The same can be said about Structured Cooperation (PESCO) consolidating the EU Capability PESCO whose implementation and the Development Priorities, as CARD made important headway in 2019, (EDF). To ensure that EDA can and PESCO secretariats, together with EDA support and expertise continue to deliver on its imple- with the European External provided at different levels. First, mentation roles in all three of Action Service (EEAS) including in the assessment and prepa- them, a number of organisa- the EU Military Staff (EUMS), and ration of the third wave of 13 tional adjustments became it supports the EDF precursor additional PESCO projects adopted operational in 2019. Since then, programmes. The Agency’s in November. Then, in the evalu- the three renamed and restruc- contribution to ensuring overall ation of Member States’ National tured operational directorates coherence and added value of Implementation Plans (NIP). And – Industry, Synergies & Enablers the three initiatives was explicitly finally, in offering expertise, advice Directorate (ISE), Capability, recognised in the first HR/VP/ and administrative support to

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END OF 2019, EDA MANAGED Over 113 200 ad hoc R&T activities related and capability to capability programmes/ development, projects R&T and industry

Member States for the devel- planning, research and stand- exemption for projects to which opment and implementation of ardisation to development, EDA adds value has increased agreed PESCO projects. The fact procurement and training. By the exponentially producing savings that the Agency has already been end of 2019, 30 new R&T projects in 2019 of €12 million. Progress solicited to support five running were under negotiation with a was also made on our ambition PESCO projects (two of them as view to being added to EDA’s to increase : the Agency’s ad-hoc projects) bodes existing portfolio of 42 ongoing Agency’s first annual progress well for the future. ad hoc R&T projects, repre- report was presented to the senting an overall value of some Steering Board and no less than Another milestone in 2019 was the €258 million. Altogether, at the 25 Member States joined the launch of the first full CARD cycle, end of 2019, the Agency managed new programme on Cross-Border after a first test run completed in 113 ad hoc R&T and capability Movement Permissions. 2018. The Agency started bilateral programmes and projects as dialogues with all Member States well as over 200 other activities The Agency also continued to which are expected to last well related to capability development, play its role as interface towards into 2020 when, together with research and technology and the wider EU policies for Member EEAS and EUMS, it will prepare defence industry. Going forward, States, further broadened its a first assessment of the state the Agency will continue with its working relations with the of play and future trends in flexible “à la carte” approach which and other capability development. As best fits Member States’ needs. EU agencies and pursued its Jorge Domecq, the previous engagement with other stake- Chief Executive who led the Important headway was also holders and third parties. Agency over the past five years made on new enablers and expressed it, CARD will have a incentives for defence cooper- The Europe of Defence is taking very important role to play as a ation. I want to highlight the shape. We are on the right track, “pathfinder” for future collabo- finalisation of the work on the though the journey is still long. To rative projects. Cooperative Financial Mechanism get there, EDA’s unique expertise (CFM) for which the first Member as an enabler and facilitator of Simultaneously, the Agency States signed the programme collaborative technology and continued to support Member arrangement in 2019, as did the capability development will be States in strengthening their European Investment Bank (EIB) even more needed in the future defence capabilities – from in December. The use of VAT than today.

2 3 EDA developed Strategic Context Cases (SCC) for each JOINT of the 11 EU Capability PRIORITISATION Development Priorities

IMPLEMENTING THE EUROPEAN CAPABILITY DEVELOPMENT PRIORITIES

The year 2019 was an important As a first implementation step, to close identified capability implementation year for the 11 EU the Agency developed Strategic gaps and face the new security Capability Development Priorities Context Cases (SCC) for each challenges. The Agency also ran approved in 2018 as part of the of the priorities, which were staff to staff meetings with NATO revised Capability Development endorsed by the Steering Board in to ensure activities developed Plan (CDP) and covering the Capability Directors’ composition by participating Member States following domains: Enabling in June 2019. The SCC give an within NATO are correctly capabilities for cyber responsive overview of the current situation reflected. The work continues in operations; Space-based in the given capability domain 2020: in February, EDA presented information and communication and indicate possibilities for to the Steering Board part two of services; Information superiority; cooperation, accompanied by the SCC containing roadmaps of Ground combat capabilities; roadmaps with objectives and ongoing capability development Enhanced logistic and medical milestones. Each SCC provides activities and possible new ones supporting capabilities; Naval thus guidance where and how which, subject to the necessary manoeuvrability; Underwater possible cooperation between ad-hoc decisions by Member control contributing to resilience Member States could contribute States, could be taken forward at sea; Air superiority; Air to address existing capability in the Agency framework. The mobility; Integration of military air gaps and improve the coherence SCC are living documents capabilities in a changing aviation of the European capability and will be updated by EDA sector; Cross-domain capabilities landscape. To prepare the SCC, over time, also on the basis of contributing to achieve EU’s level EDA worked closely with Member Member States’ feedback, to of ambition. States, the EUMC, the EUMS make sure they always reflect and European industry which the latest developments in the was consulted to collect their implementation of each and views on technological solutions every priority.

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OVERARCHING STRATEGIC KEY STRATEGIC RESEARCH AGENDA (OSRA) ACTIVITIES (KSA)

2019 saw also important the Agency supported its Member Throughout 2019, the Agency implementation work delivered on States in the implementation continued identifying Key Strategic the revised Overarching Strategic of the TBBs by developing a Activities (KSA), i.e. critical skills, Research Agenda (OSRA) which total of 65 detailed technology areas of know-how and industrial was validated by the EDA Steering roadmaps. These roadmaps will capacities deemed essential Board in January 2019. The new not only help national Ministries of to underpin Europe’s strategic OSRA is set to guide and inform Defence to engage in cooperative autonomy. It did so by analysing all relevant European funding ad-hoc R&T projects but also the industrial dimension of instruments and collaborative inform funding decisions in the identified capability and research European defence research future European Defence Fund. priorities before determining in activities, be it at multinational which area the European defence level, in the EDA framework technological and industrial base or under EU-funded research needs to be reinforced. As a result, frameworks. Practically speaking, a total of 16 KSA reports were the revised OSRA identified produced in 2019, in consultation a total of 139 R&T areas, the 139 with Member States and industrial so-called Technology Building The revised OSRA identified stakeholders. Additional reports Blocks (TBBs), in which European 139 R&T areas in which will follow in 2020. cooperation would yield added- European cooperation value to support the development would yield added-value of defence capabilities. In 2019,

4 5 EDA continued to support Member States with the development of their PESCO projects, providing JOINT DEFENCE expertise, advice PLANNING & and administrative COOPERATION support

PERMANENT STRUCTURED COOPERATION (PESCO)

As part of the PESCO secretariat administrative support. At the (together with the EEAS, including end of 2019, five PESCO projects the EUMS), the Agency assisted were receiving dedicated support participating Member States by the Agency, in the areas of in preparing the third wave of Chemical, Biological, Radiological 13 additional PESCO projects and Nuclear defence (CBRN), adopted in November 2019, Maritime Mine Counter Measures, notably through the assessment Deployable Modular Underwater of project proposals on the Intervention Capability Package basis of agreed criteria and (Divepack), European Secure PESCO the organisation of dedicated Software defined Radio (ESSOR) workshops with Member States’ and Cyber Rapid Response Teams The Agency assisted experts. The Secretariat further and Mutual Assistance in Cyber participating Member provided Member States with Security (CRRT). For two of them, States in preparing feedback on the PESCO National CBRN and Divepack, EDA was the third wave of 13 Implementation Plans (NIP). EDA asked to take the project forward additional PESCO also continued to support Member as an Agency activity, in line with projects adopted in States with the development the PESCO commitment to use EDA November 2019 of their PESCO projects, as the European forum for project providing expertise, advice and capability development.

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SUPPORT TO THE EUROPEAN DEFENCE FUND (EDF)

EDA pursued its work and support 2019. The PADR continued in 2019 of EDIDP projects. The Agency activities related to the two with calls for proposals issued also provides its views and dimensions (research, capability) related to research projects in expertise to the EDIDP Programme of the future European Defence the domains of Electromagnetic Committee, in line with the EDIDP Fund (EDF). As regards research, Spectrum Dominance, Future regulation. In 2019, EDA has also the way towards a European Disruptive Defence Technologies set up an EDIDP/EDF ‘Marketplace’ defence research programme and Unmanned Systems. The to provide Member States with under the EU’s next Multiannual biggest PADR cooperation project an informal framework for the Financial Framework (2021- running so far, OCEAN2020, was preparation and consolidation 2027) is being paved by the the subject of a life demonstration of EDIDP/EDF projects. The ongoing Preparatory Action on in November 2019 with assets Marketplace provides Member Defence Research (PADR) which is deployed in the Mediterranean States with an opportunity to implemented by EDA on the basis Sea. Regarding the capability present and informally exchange of a Delegation Agreement signed dimension of the EDF and on project proposals and ideas in with the European Commission in its precursor, the European view of the EDIDP/EDF calls. The May 2017. The PADR was preceded Defence Industrial Development Marketplace is being tested in by the Pilot Project (PP), the first Programme (EDIDP), EDA preparation for the second year of EU-funded defence research continued in 2019 to support EDIDP (2020) and the first year of activity, which was concluded in Member States in the preparation the EDF (2021).

6 7 EDA continued its work on improving military mobility with Member States

COORDINATED ANNUAL REVIEW ON DEFENCE (CARD)

Building on the lessons identified are expected to last until March during the 2018 CARD trial run 2020. As a result of these bilateral and based on the revised CARD dialogues, EDA, together with methodology agreed by the EDA the EEAS including the EUMS, will Steering Board in June 2019, the elaborate an assessment of the state Agency launched the first full of play and future trends in capability CARD cycle in September 2019. development to inform Ministers in The first full CARD EDA is currently in the process the EDA Steering Board in November cycle was launched in of conducting bilateral dialogues 2020, including on potential future September 2019 with all Member States which defence cooperation. © ThalesAleniaSpace

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MILITARY MOBILITY

In May 2019, the EDA Steering Board addressing legal constraints and digitalisation, making use of the welcomed the Agency’s first Annual taking into account the transport development of a Military Customs Progress Report on Military Mobility. of dangerous goods, possibly System. The work builds on existing EDA continued its work on improving leading to pre-authorisation of military mobility-related EDA projects military mobility with Member States movement both in surface and such as the Multimodal Transport and in close coordination with air domain. In the frame of the Hub (M2TH) and Diplomatic EEAS, EUMS, EUMC, the Commission second EDA ad-hoc programme on Clearances, and two studies (DG MOVE, DG TAXUD) and other Customs, the EDA Steering Board on dangerous goods and legal relevant stakeholders, notably agreed on the new EU form 302 for aspects conducted in spring 2019. NATO. 25 Member States joined the military use regarding customs- Within the M2TH, Member States new ad-hoc programme on “Cross related activities. The form was have developed the Technical Border Movement Permissions” submitted to the Commission (DG Arrangement providing for simplified which focuses on Member States’ TAXUD) in September 2019, and procedures for border crossing. movement approval procedures, the next foreseen step is customs

8 9 EDA developed a common definition, taxonomy SUPPORTING and glossary TECHNOLOGY of Artificial & CAPABILITY Intelligence in DEVELOPMENT defence

CYBER DEFENCE

EDA pursued its work on the in November a multinational conducting the Comprehensive Cyber Ranges Federation project cyber ranges federation Cyber Senior decision-making in which 11 Member States demonstration exercise held and Cyber Operational Planning federate their national cyber in Helsinki. In April, the Agency (Cyber Phalanx) exercises on ranges and thereby improve their launched the contractual work demand, and further contributed respective cyber defence training on the Cyber Defence Situation to the Cyber Education, Training, capabilities. In cooperation with Awareness Package Rapid Exercise and Evaluation (ETEE) the Finnish Ministry of Defence Research Prototype (CySAP- platform within the European and the European Space Agency RRP) project. EDA continued Security and Defence College. (ESA), the Agency also organised to support Member States in

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ARTIFICIAL INTELLIGENCE (AI) AIR-TO-AIR REFUELLING (AAR)

AI for research and development activities in the AI and defence EDA continued its support to the of future capability systems and domain, including developing a Multinational MRTT Fleet (MMF) concepts is reflected across common narrative, definition, programme which now consists the EU Capability Development taxonomy and glossary of AI in of five countries (, Priorities adopted in 2018. defence. A dedicated AI Action Luxembourg, , , Following Steering Board taskings Plan is under preparation for ) and so far resulted in in February and June 2019, EDA endorsement in 2020. the common procurement and has considerably stepped up its operation of 8 tanker aircraft in total. EDA co-organised a joint AAR Conference in Europe with

NATO in October 2019. © Airbus

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EUROPEAN MALE RPAS

EDA continued to contribute to the States. The remaining training address the threats to deployed preparation of the development programme, to be implemented European armed forces from phase of the European Medium jointly with the European Air hostile mini-UAVs, EDA organised Altitude Long Endurance Group, is scheduled to continue a C-UAV workshop in December Remotely Piloted Aircraft System until 2021 and will address 2019 with the EUMS and the (MALE RPAS) programme and increasingly complex missions. Military Planning and Conduct to support air traffic integration Initial scoping work commenced Capability (MPCC) to share activities. The MALE RPAS Training on new initiatives covering information and explore synergies Technology Demonstrator (RTTD) RPAS contracted services and on operational and capability project reached full maturity and Countering Unmanned Aerial aspects related to Air Superiority. is now deployed in 10 Member Vehicles (C-UAV). In order to

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The Agency contributed to the MALE RPAS development phase and supported air traffic integration

COMMUNICATION AND INFORMATION SYSTEMS (CIS)

The Governmental Satellite access requirements for satellite opportunities in the area of Space Communications Pooling and communications. The Agency Based Earth Observation. Moreover, Sharing Demonstration project acted as facilitator in support of in October, the Agency completed entered its operational phase Ministries of Defence under the a joint study with ESA on Earth and yielded its first benefits by European Global Navigation Satellite Observation requirements. The delivering satellite capacities from Systems (EGNSS) programme, implementation of EDA’s Geospatial one Member State’s resources increasing cooperation with the Information to Support Decision- to other Member States. Other European Commission. The Agency Making in Operations (GISMO) Satcom activities carried forward pursued its work on common staff project made headway in 2019 as in 2019 include the EU SatCom requirements and a business case its Geohub geospatial information Market project and the Agency’s for the Earth Observation capability software achieved Full Operational support to Member States for the requirements for 2025-2030 which Capability at the HQ of Operation

establishment of security and will allow to identify cooperative Sophia in Rome. © iStock

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MARITIME SURVEILLANCE MARITIME (MARSUR) WARFARE

In 2019, EDA continued to support Following a formal request from Member States with the further the project coordinator, EDA rollout of MARSUR, seeking provided support to the PESCO complementarity and synergies project on Maritime (semi) MARSUR with the Commission’s Common Autonomous Systems for Mine Information Sharing Environment Countermeasures (MAS MCM). The MARSUR Networking (CISE). It implemented MARSUR The Agency continued to engage Community enhanced its phase 2 (MARSUR II) and prepared in capability development efforts to integrate the a future extension of the activities for maritime mine MARSUR technology into programme (MARSUR III), in order counter measures, in addition national systems to further improve the provision of to collaborative research and a common European recognised technology projects, with a focus maritime picture. The MARSUR on unmanned maritime systems. Networking Community enhanced its efforts to integrate the MARSUR technology into national systems. EDA supported the further development of MARSUR technology in view of achieving full operational capability.

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COUNTER-IMPROVISED ANTI-TANK MEDICAL EXPLOSIVE DEVICES (IED) SYSTEMS SUPPORT

Following its inauguration in 2018, EDA further advanced in the study Following the signature of the the European Centre for Manual of operational requirements for programme arrangement in 2018, Neutralisation Capabilities (ECMAN) the future generation of anti-tank the Multinational Medical Modular developed through an EDA project weapon systems (beyond 2030). Unit (M3U) project entered its involving seven participating Results are expected to facilitate operational stage in 2019. Along Member States, organised six the joint development of a new with the Multinational Medical major training and education generation of missile systems Treatment Facility and training activities as well as research and to reduce existing capability activities, it aims at addressing development. The two available shortfalls in the area of anti-tank. the harmonisation of standards, Joint Deployable Exploitation and procedures, legislation, Analysis Laboratories (JDEAL), credentials and equipment. also set up under the auspices of EDA, were used in two major C-IED exercises in 2019. Other activities included the deployment of a mobile training team and the launch of a Smart Future C-IED Field Laboratory project. © iStock

14 15 €258M 30 new research projects were under negotiation at the end of 2019 with a view of being added STIMULATING R&T to EDA’s portfolio of 42 ongoing AND INNOVATION R&T projects worth €258 million

CAPABILITY AND TECHNOLOGY PREPARATORY ACTION ON GROUPS (CAPTECHS) DEFENCE RESEARCH (PADR)

In 2019, Member States continued EDA pursued the PADR project, which was launched in to bring additional ad hoc research implementation on behalf of the 2018 with a budget of €35 million and technology (R&T) projects into European Commission, in line and 42 beneficiaries in 15 Member EDA, taking benefit of the Agency’s with the delegation agreement States, a large-scale technology expertise and incentives. By the signed in May 2017. Following two demonstration was organised end of the year, 30 such new R&T successful rounds of PADR calls by EDA, Commission and the projects were under negotiation for proposals in 2017 and 2018, consortium in November 2019. The with a view to being added to EDA’s and in compliance with the work upgrade of unmanned assets and existing portfolio of 42 ongoing programme for 2019, the third and their integration into a common ad hoc R&T projects, representing last batch of calls for proposals network to deliver increased an overall value of some €258 was published in March 2019 maritime situational awareness million. Simultaneously, in 2019, with a focus on three domains: has further advanced throughout the Agency’s CapTechs have all electromagnetic spectrum the year. The validation of the undergone a systematic review dominance, future disruptive Generic Open Soldier System to ensure high quality output and defence technologies, as well as Reference Architecture (GOSSRA) alignment with EDA’s prioritisation unmanned systems. Meanwhile, project, launched in 2017, started work being done through the CDP several previously launched with a test and demonstration and the specific SCC, as well as PADR projects delivered results in campaign, to be concluded

© Airbus OSRA and KSA. 2019. As regards the OCEAN2020 in 2020.

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EDA DEFENCE EXPLOITATION OF DUAL INNOVATION PRIZE USER SYNERGIES

In 2019, EDA organised the 3rd focused on Artificial Intelligence Activities aimed at enhancing edition of its Defence Innovation applications in defence. Following dual-use synergies, including Prize which rewards companies a call for applications and the with European Commission and research entities who subsequent assessment process, services, were pursued on a come up with particularly the Prize was awarded to epic. systematic basis throughout innovative and ground-breaking blue, a Belgian company, for their 2019. Examples of ongoing work technologies, products, idea to use Artificial Intelligence include EDA cooperation with the processes or services applicable to provide commanders of European Commission (DG RTD, in the defence domain. A key military operations with accurate DG HOME, DG CONNECT), the Joint objective of the Prize is to attract and seamless positioning Research Centre (JRC) and the additional innovative R&T actors, data of teams in GNSS-denied European Institute of Innovation such as SMEs and start-ups, to environments. The Prize was and Technology, including in EDA’s R&T working groups and awarded at the EDA Annual the context of the Preparatory CapTechs. The 2019 edition was Conference on 28 November. Action on Defence Research, and with the European Border and Coast Guard Agency (Frontex) on Technology Watch.

16 17 ENABLERS &

INCENTIVES Bundeswher©

COOPERATIVE FINANCIAL MILITARY MECHANISM (CFM) AVIATION STANDARDISATION

2019 saw important progress in In 2019, more national military Following Member States’ approval the setting up of the Agency’s airworthiness/aviation authorities in 2018 of the European Defence Cooperative Financial Mechanism made use of the European Military Standardisation Strategy, the (CFM) designed to overcome Airworthiness Requirements development of a dedicated the recurrent problem of (EMAR) for airworthiness implementation plan made good unsynchronised defence budgets management, aircraft maintenance, progress in 2019. The setting in participating Member States training/licencing and certification up of a European Defence which can hinder or impede the which had previously been Standardisation Committee launch of collaborative defence developed at EDA. The Military is envisaged with a view to projects. To mitigate this problem, Airworthiness Authorities (MAWA) addressing new standardisation the CFM will offer mutual State forum continued to update challenges and enable cooperation to State lending or, alternatively, those requirements, revised the with other institutional and outside support from the European recognition process and developed industrial stakeholders, including Investment Bank (EIB). In 2019, a new airworthiness roadmap. A NATO. Further to the introduction the programme arrangement was central part of the roadmap are the of the Project Standardisation put to interested Member States development and implementation Management Plan (PSMP) as and the EIB for signing. At the of a harmonised European a tool for EDA project officers end of the year, 10 participating Military Airworthiness System. to systematically identify Member States (Belgium, Bulgaria, An important first step has been standardisation needs at the Cyprus, , Greece, Hungary, achieved with the development earliest stages of a project, two Lithuania, the Netherlands, of a so-called ‘Total Aviation pilot projects on Single European Portugal, ) had already signed System’ approach to military Sky ATM Research (SESAR) and it or declared their intention to aviation, aiming at the continuous RPAS demonstrated the tool’s join the programme. Furthermore, improvement of interoperability and viability. Going forward, it will be the EIB signed the programme the efficient use of military assets, applied across all EDA activities, arrangement in December. It will to be followed by the launch of two contributing to regular updates of enter into force at the date of the pilot projects on transport aircraft the European Defence Standards signature of the last country having and RPAS. Reference (EDSTAR) database in declared its intention to join. support of industrial cooperation and Member States’ interoperability.

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10 End of 2019, 10 participating Member States had signed or declared their intention to join the Cooperative Financial Mechanism (CFM)

DEFENCE TEST AND SUPPORT TO CSDP EVALUATION BASE (DTEB) OPERATIONS/MISSIONS

The implementation of EDA’s Participation to the EU SatCom services through the award Test and Evaluation Strategy Market project, which pools of four frameworks contracts continued in 2019. The Agency the demand for SatCom and covering fixed and rotary wing identified required test and communication and information platforms deployed both in Europe evaluation capabilities as part of services and provides CSDP and Africa. The market offering a gap analysis study comparing operations/missions with is for commercially available available European test commercially available capabilities in-theatre aeromedical evacuation capabilities with the requirements to meet the demand, increased to services and has already been derived from the EU Capability 29 members, including 19 Member accessed by Belgium for a Development Priorities. End of States, the Athena mechanism, forthcoming deployment in 2019, the results were being including EU civilian missions Niger. In addition, various other addressed by domain-specific and military operations. During EDA projects (including a human subgroups established within the the first three quarters of 2019, resources management software, DTEB framework. contracted services were in the the MARSUR networking, the range of €14 million, bringing the GeoHub, and Contractor Support total volume of provided services to Operations web platform) are since inception of the project to used by EU military missions and some €47 million. The Agency operations. Work on the Smart has also established a market Camps Technology Demonstrator for AIRMEDEVAC contracted continued in EUTM Mali. © Armed Austrian ©

18 19 The MALE RPAS Training Technology Demonstrator reached full maturity in 2019 and is now deployed in 10 Member States

EDUCATION, TRAINING VAT EXEMPTION AND EXERCISES

Several additional projects and RPAS €265M programmes incorporating The MALE RPAS Training the provisions relating to VAT Technology Demonstrator (RTTD) 27 project exemption were concluded in project reached full maturity arrangements worth 2019. A total of 27 Programme in 2019 and is now deployed €265 million benefited Arrangements benefited from in 10 Member States with first VAT exemption within EDA. exercises covering maritime, from VAT exemption in Considering that the overall value desert and Middle East scenarios 2019, yielding savings of these project is over €265 completed and tested. The for Member States of million, the actual financial benefit remaining training programme, to €12 million of the VAT exemption for Member be implemented jointly with the States stands at €12 million European Air Group, is scheduled (based on the signed contract to continue until 2021 and will values). An updated guide on address increasingly complex VAT exemption was published in missions. Initial scoping work December 2019. commenced on new initiatives covering RPAS contracted services and Counter-UAV. © Leonardo ©

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Fixed-Wing Rotary-Wing Armaments Cooperation In 2019, the European Tactical A total of eight training courses The Agency continued to Airlift Centre (ETAC) made related to Helicopter Tactics and support the European Security further progress towards full Electronic Warfare, one Helicopter and Defence College (ESDC) operational capability which Tactics Symposium and one and Austria (lead nation) with will see it organise European Multinational Helicopter Exercise the delivery of the European Advanced Airlift Tactics Training (‘Dark Blade 2019’) were carried Armaments Cooperation Course, Courses, European Advanced out in 2019, enhancing crews conducted in two modules in Tactical Instructor Courses, as interoperability, their readiness to Brussels in October and in Zagreb well as European Airlift Transport deploy to a variety of operational in November 2019. Trainings on a yearly basis. theatres, and their capability to EDA continued to support the operate in complex and demanding development of a European operational scenarios. Furthermore, Military Transport Pilot Training 14 Member States attended the and common operational first Project Team meeting on the requirements. Within the C27J Multinational Helicopter Training Spartan Cooperation programme, Centre (MHTC) in the Agency in the Agency further assisted the September 2019. The MHTC will be C-27J community and supported hosted by Portugal in the Sintra the improvement of the European Airbase and is expected to achieve Spartan exercises and trainings. initial operational capability in 2022.

20 21 INTERFACE FOR WIDER

EU POLICIES Bundeswher©

CYBER MARITIME

EDA pursued the implementation EDA continued its contribution Mediterranean, was successfully of the quadrilateral cooperation to the implementation of the implemented in March/April 2019. A established with the EU agencies EU Maritime Security Strategy first informal quadrilateral meeting working in the cyber domain Action Plan, in complementarity with the EU agencies in the – the Agency and, where applicable, through maritime domain - the European for Cybersecurity (ENISA), the synergies with the EEAS and the Maritime Safety Agency (EMSA), European Union Agency for Commission. EDA also further the European Fisheries Control Law Enforcement Cooperation developed its cooperation with Agency (EFCA) and Frontex - took (Europol) and the Computer Frontex, with a focus on training as place in November 2019 to discuss Emergency Response Team for well as research & technology. The potential synergies in areas of the EU Institutions, Bodies and first joint pilot course, with a focus common interest, such as maritime Agencies (CERT-EU) – through on the humanitarian crisis in the surveillance, RPAS, or cyber. regular exchanges and meetings. To further implement the Cyber Defence Policy Framework revised in November 2018, the Agency is developing a systems engineering framework for cyber defence and contributed to the report on the implementation of the EU’s Cyber Defence Policy Framework.

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EDA is exploring possible synergies between European space programmes and the new EU Capability Development Priorities with regard to space

RPAS AIR TRAFFIC SINGLE (ATI) SKY (SES) AND SESAR SPACE

EDA continued its support to the In the context of EDA’s SES Military EDA continued to facilitate the accommodation of MALE-type RPAS Aviation Board, the SES Military coordination and harmonisation in non-segregated airspace for the Aviation Action Plan 2019-2020 of Member States’ views and 2020/2025 timeframe, together was approved in February 2019. positions towards European with the European Union Aviation EDA facilitated the inclusion of space programmes. The Safety Agency (EASA), the SESAR military requirements in the annual Agency is exploring possible Joint Undertaking and the European SESAR ATM Master Plan and synergies between European Commission. Together with EASA, participated to the Wise Persons space programmes and the the Agency produced guidelines Group on the future of SES. new EU Capability Development for the accommodation of military Priorities with regard to space, RPAS, identifying best practices in and considers the opportunities current operations, and supported provided by PESCO and EDIDP for the definition of standards and space related defence activities. preparation of relevant flight test scenarios. Through EDA’s industry exchange platform on RPAS ATI, EDA and Member States established a common understanding on the technical enablers (e.g. detect and avoid system, command & control link, automation) allowing for full integration of MALE RPAS into European airspace between 2025

and 2030. Bundeswher©

22 23 Phase 3 of the Consultation Forum for Sustainable Energy in the Defence and Security Sector kicked off in September 2019

ENERGY, ENVIRONMENT

The Agency pursued the Forum for Sustainable Energy in phase of the Defence Energy implementation of activities the Defence and Security Sector Managers Course was concluded related to the REACH Regulation (CF SEDSS) in September, providing and a methodology for the on Chemicals, supporting Member a platform for Ministries of collection and analysis of Member States and defence industry in Defence to cooperate on defence States’ defence energy data was mitigating the related impact energy-related aspects. The New developed. Cross-cutting good on defence. Building on the Energy Storage project made practices regarding the application achievements of the first two progress with the development of circular economy to defence phases (2015-2019), EDA and the of a reference architecture for continued to be analysed in the European Commission launched innovative energy management respective Capability Technology © EDA the third phase of the Consultation in military installations. The pilot groups of the Agency.

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ENGAGEMENT WITH INDUSTRY ACCESS TO EU FUNDING

The Agency’s engagement with Defence Industry Associations. EDA further enhanced its service industry was focused on the At project level, the EDIDP/EDF for defence-related SMEs by capability development process marketplace will be complemented developing a free of charge online (CDP implementation, Strategic by meetings with industry upon tool called ‘IdentiFunding’ which Context Cases), R&T and innovation Member States’ request with allows defence stakeholders prioritisation, Key Strategic a view to further facilitate the to quickly identify existing EU Activities, wider EU policies (SES/ matchmaking among potential funding schemes available for SESAR, REACH) and overall support industry partners and consolidate their defence-related projects. to industry, including small and specific projects. To that effect medium-sized enterprises (SMEs). the Agency also launched a new Close dialogue was held with the electronic platform (B2B Platform). Heads of European and National

24 25 30 EDA contributes to the implementation of 30 out of the 74 common proposals WORKING agreed following the WITH PARTNERS EU-NATO Joint Declaration

ADMINISTRATIVE ARRANGEMENT EUROPEAN SPACE (AA) COUNTRIES AGENCY (ESA)

EDA further developed its relations standardisation and on Single Cooperation with ESA, based on with the four countries having European Sky. Switzerland the Administrative Arrangement concluded an Administrative formally joined several EDA signed in 2011, was mainly Arrangement (AA) with EDA, taking CapTechs and the Multinational focused on the implementation a clear output-oriented approach. Helicopter Training Centre, thereby of established projects in areas Norway continued to engage taking important steps towards such as GOVSATCOM, RPAS, with the Agency’s projects and engaging with the Agency’s Intelligence Surveillance and activities, especially in the area of portfolio more broadly. Serbia also Reconnaissance (ISR), critical research and technology where formally joined the Multinational space technologies and on Norway remains active in all Helicopter Training Centre, as Unmanned Maritime Systems relevant fora. EDA also pursued well as EDA working bodies on (UMS). Two new implementing efforts to implement the AAs standardisation, and participated arrangements on Cyber and CBRN with the other three countries. on ad-hoc basis to the Dark Blade were negotiated. In December, In 2019, Ukraine maintained its exercise 2019, as well as to EDA two new cooperative projects involvement in EDA activities on meetings related to medical. were launched: one related to drones monitoring disaster- stricken regions or toxic spill sites; and another one on the use of Artificial Intelligence for navigating the surface of asteroids or other terra incognita.

26 ANNUAL REPORT 2019 © Bundeswher©

OTHER THIRD OCCAR NATO PARTIES

Cooperation with OCCAR, in the In 2019, EDA further contributed, In September 2019, EDA and the frame of the Administrative through staff-to-staff cooperation European Air Transport Command Arrangement concluded in 2012, with NATO, to the implementation (EATC) signed an Exchange of continued apace throughout of 30 out of the 74 common Letters to formalise existing 2019, notably addressing the set of proposals in the frame cooperation on areas of common Multinational MRTT Fleet (MFF) of the Warsaw and Brussels interest, such as air mobility, military and the European MALE RPAS Joint Declarations. The Agency, aviation, and military mobility. programmes as well as on involved in six out of seven areas Furthermore, in November 2019, standardisation, REACH and of cooperation and focused on EDA and the European Security and Military Airworthiness. defence capability development, Defence College (ESDC) signed an further pursued coherence of Exchange of Letters to structure output between the respective and enhance on-going interactions. projects but also between the The cooperation with the EU EU and NATO defence planning SatCen is increasing within the processes. Progress was also framework of the REACT, GISMO and made in all other areas, notably METEOR projects. The Agency also military mobility, cyber, hybrid, associated Denmark to discussions AAR, military aviation, and within EDA directly related to wider standardisation. EU policies and regulations, and activities for which funding from the EU budget is envisaged (PADR; EDIDP/EDF; SES; Military Mobility; Energy Consultation Forum; REACH). EDA maintained informal contacts on selected topics of mutual interest with the (military mobility, REACH, airworthiness) and with (military mobility).

26 27 IN-HOUSE © EDA

EDA’S 15TH ANNIVERSARY EDA ANNUAL CEREMONY CONFERENCE

In June 2019, EDA celebrated its ‘Taking European Defence (François Bausch of Luxembourg, 15th Anniversary with a ceremony Cooperation to the Next Level - João Gomes Cravinho of Portugal, in its premises attended by the Prospects for the decade ahead’ and Thomas Starlinger of then Head of the Agency, Federica was the topic of the Agency’s Austria), as well as the European Mogherini, high representatives 2019 Annual Conference which Commission’s Brexit Chief from its 27 Member States and took place on 28 November in Negotiator Michel Barnier, the the four associated countries, Brussels and gathered some Chairman of the European Union the Chairman of the EU Military 400 attendees and participants Military Committee, General Committee, Deputy - from national governments, Claudio Graziano, NATO’s Deputy Generals of the EEAS, the armed forces, European and Secretary General for Defence Director General of the EU euro-atlantic institutions, investment, Camille Grand, and Military Staff, several European industry, academia and media. the Chief of Defence of Finland Commissioners and Commission Among the speakers were (representing the then Finnish EU Director-Generals, Executive three acting Defence Ministers Presidency), General Timo Kivinen. Directors and senior officials of all EU institutions and agencies, NATO senior representatives as well representatives from the European defence industry and the media.

28 ANNUAL REPORT 2019

INTERNAL PROJECT AND PORTFOLIO DATA REORGANISATION MANAGEMENT (PPM) SYSTEM PROTECTION

In January 2019, the Agency After becoming fully operational in Regarding data protection, performed an organisational 2018, the PPM system continued EDA has reflected the key reshuffle with the renaming in 2019 to provide substantial requirements for the protection and restructuring of its three benefits for the Agency’s of personal data in line with the operational Directorates: Member States who can access new Data Protection Regulation Industry, Synergies & Enablers real-time project development applicable to EU institutions, Directorate (ISE), Capability, and management information. bodies and agencies and is Armament & Planning Directorate The system allows Member working towards ensuring full (CAP), Research, Technology & States to have an up-to-date, compliance in line with EDPS Innovation Directorate (RTI). The centralised and holistic view guidelines and recommendations. reorganisation was implemented of the programme and project- The Data Protection Office smoothly and quickly started to related EDA activities in which successfully assisted its deliver on its intended objectives, they are engaged. stakeholders in a large number namely to further increase the of requests relating to data efficiency and readability of the protection. No requests for Agency’s activities and to deliver access to personal data were constantly improving services received from data subjects to Member States in the context in 2019. of the evolving tasks, including with a newly-created dedicated

PESCO unit. © EDA

28 29 ACCESS TO DOCUMENTS

In 2019, the Agency ensured significant increase compared and military matters and Article that its policy on the handling to the 14 requests received in 4(1)(b) – privacy and integrity of of requests for public access 2018. Five of the requests were the individuals in accordance with to documents was made more fully granted. EDA refused access the Union legislation regarding easily accessible to the public to five requests while eight the protection of personal data by creating a dedicated page requests were devoid of purpose and 4(2) first indent – protection on the subject on its public as EDA was not in possession of commercial interests, including website and establishing a of the documents requested. intellectual property rights. All dedicated point of access in line EDA granted partial access in access to documents requests with the European Ombudsman three of the submitted requests. submitted to EDA were received recommendations. Throughout The exception(s) used by the electronically. EDA received two the year, EDA received 21 access Agency in the cases of refusal of confirmatory applications in 2019 to documents requests under partial access were the one set and one European Ombudsman the Regulation for public access out under Article 4 of Regulation complaint relating to an access to to documents – Regulation 1049/2001 and in particular, Article documents request which, at the

© iStock 1049/2001, which represents a 4(1)(a) second indent – defence end of 2019, was still ongoing.

30 ANNUAL REPORT 2019

EDA PORTFOLIO

NUMBER OF PROJECTS, PROGRAMMES AND ACTIVITIES WHICH WERE IN PROGRESS AT YEAR-END 2019

DGET 158 L BU NA IO &T 113 AT D R R AN E Y P IT EDA Staff O IL IES 46 B VIT A A TI D P AC E A S 5 C G CT N E C I J T O O R R H P O 163

D P O (on 31/12/2019)

A

C P

S U

E

S

P

&

O

T

C

T

I

S

R

U

O P P R

E

N

E G

MEMBER STATES’ CONTRIBUTION EDA BUDGET 2019 TO ONGOING AD HOC CAPABILITY AND EDA’s budget consists of the general budget, R&T PROGRAMMES AND PROJECTS the budgets associated with ad hoc projects or (with effect end – 2019, in million Euros)* programmes and budgets resulting from additional revenue for a total budget of €100.7million**

IAL €21 GET €34 ANC 7.17M BUD .7MI FIN IL AL LLI LI R ON N €4 ON NE T €4 UTIO 9.16 E UDGE 2.02 RIB MI G B M T LL OC ILL N IO H IO O IND €40 N D NUE €23 C K .23 E .9 N L IN M A EV 8M * A E I R * I U L IL * L D € L L L R A IN 7. I A I T K 27 O N O V N N S I M O N I I U N L T O L I D I TOTAL I D T TOTAL O N

I D

U N BUDGET

A B €313.83

I €100.7

R MILLION T

N MILLION

O

I

N

C

D

L

U A I S R T

* Where formal agreements have been concluded ** 2019 figures are provisional *** Ad hoc budget figures include only financial contributions directly managed by EDA (44 projects in total)

30 31 QU-AA-20-001-EN-C

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Printed by Paperland in Belgium Luxembourg: Publications Office of the European Union, 2020 © European Union, 2020 Print: QU-AA-20-001-EN-C – ISBN 978-92-95075-51-1 – ISSN 1831-919X – doi: 10.2836/755176 PDF: QU-AA-20-001-EN-N – ISBN 978-92-95075-50-4 – ISSN 2363-4340 – doi:10.2836/535595 ISBN 978-92-95075-51-1 ISBN