En En Amendments

European Parliament 2014-2019

Committee on Industry, Research and Energy

2018/0254(COD)

14.9.2018

AMENDMENTS 99 - 457

Draft report Zdzisław Krasnodębski (PE625.510v01-00)

Establishing the European Defence Fund

Proposal for a regulation (COM(2018)0476 – C8-0268/2018 – 2018/0254(COD))

AM\1162781EN.docx PE627.775v01-00

EN United in diversity EN AM_Com_LegReport

PE627.775v01-00 2/186 AM\1162781EN.docx EN Amendment 99 Christelle Lechevalier

Proposal for a regulation –

Proposal for rejection

The European Parliament rejects [the Commission proposal].

Or. fr

Justification

This programme is the industrial component of a desire to establish an illegitimate European defence. The implicit objective is to make our industries and armies interdependent. Without the know-how needed to fully implement military-industrial projects, our nations would be interdependent, to the detriment of non-negotiable national sovereignty in the field of defence. The enormous sums allocated to this project could be saved.

Amendment 100 Rolandas Paksas

Proposal for a regulation –

Proposal for rejection

The European Parliament rejects the Commission proposal.

Or. lt

Amendment 101 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation –

Proposal for rejection

The European Parliament rejects the Commission proposal.

AM\1162781EN.docx 3/186 PE627.775v01-00 EN Or. en

Justification

There are serious doubts about the legal basis for the Programme. The Commission chose art. 173 TFEU as a legal basis for the regulation, together with art. 182, 183 and 184 TFEU. This neglects that the Programme has two different, but in the proposal clearly mentioned, goals, one being the competiveness and innovation capacity of the defence industry, the other being the improvement of the "strategic autonomy" of the Union (art. 3(1)). Art. 173 and the other articles omit the second goal of the programme. As both goals are inextricably linked and none could be identified as inferior, the programme would need to have a dual or different legal basis. This is supported by ECJ ruling C-411/06 which clearly points out that a dual legal basis has to be taken as a starting point when two purposes are equal to each other.

Amendment 102 Rolandas Paksas

Draft legislative resolution Paragraph 1

Draft legislative resolution Amendment

1. Adopts its position at first reading 1. The European Parliament rejects hereinafter set out; the Commission proposal;

Or. en

Amendment 103 Rolandas Paksas

Draft legislative resolution Paragraph 2

Draft legislative resolution Amendment

2. Calls on the Commission to refer 2. Calls on the Commission to the matter to Parliament again if it withdrawn its proposal; replaces, substantially amends or intends to substantially amend its proposal;

Or. en

Amendment 104 Neoklis Sylikiotis, Marisa Matias, Miguel Viegas, João Ferreira, João Pimenta Lopes, Sofia Sakorafa, Xabier Benito Ziluaga, Sabine Lösing, Cornelia Ernst

PE627.775v01-00 4/186 AM\1162781EN.docx EN Proposal for a regulation Title 0

Text proposed by the Commission Amendment

Proposal for a Rejects the proposal for a REGULATION OF THE EUROPEAN REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL PARLIAMENT AND OF THE COUNCIL establishing the European Defence Fund establishing the European Defence Fund (Text with EEA relevance) (Text with EEA relevance)

Or. en

Justification

The prior aim of the regulation is the development of EU - defence capabilities in the framework of CSDP/CFSP. According to Article 41 (2) TEU any expenditure arising from actions having military or defence implications must not be charged to the Union budget. Therefor the legal reference to Article 173(3), 182(4) and the second paragraph of 188 TFEU must not apply. The establishment of the Defence Fund will further militarise the European Union and its policies and contradicts the Union as peace maker and mediator in conflicts.

Amendment 105 Gunnar Hökmark

Proposal for a regulation Recital 1

Text proposed by the Commission Amendment

AM\1162781EN.docx 5/186 PE627.775v01-00 EN equipment. This Fund would complement and to promote the Member States’ joint national funding already used for this purchase and maintenance of defence purpose and should act as an incentive for equipment. This Fund would complement Member States to cooperate and invest national funding already used for this more in defence. The Fund would support purpose and should act as an incentive for cooperation during the whole cycle of Member States to cooperate and invest defence products and technologies. more in defence. The Fund would support cooperation during the whole cycle of defence products and technologies.

Or. en

Amendment 106 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 1

Text proposed by the Commission Amendment

(1) In the European Defence Action (1) In the European Defence Action Plan, adopted on 30 November 2016, the Plan, adopted on 30 November 2016, the Commission committed to complement, Commission committed to complement, leverage and consolidate collaborative leverage and consolidate collaborative efforts by Member States in developing efforts by Member States in developing defence technological and industrial defence technological and industrial capabilities to respond to security capabilities to respond to security challenges, as well as to foster a challenges, as well as to foster a competitive, innovative and efficient competitive, innovative and efficient European defence industry. It proposed in European defence industry. It proposed in particular to launch a European Defence particular to launch a European Defence Fund (the 'Fund') to support investments in Fund (the 'Fund') to support investments in joint research and the joint development of joint research and the joint development of defence products and technologies, thus defence products and technologies, thus fostering synergies and cost-effectiveness, fostering synergies and cost-effectiveness, and to promote the Member States’ joint and to promote the Member States’ joint purchase and maintenance of defence purchase and maintenance of defence equipment. This Fund would complement equipment. This Fund would complement national funding already used for this national funding already used for this purpose and should act as an incentive for purpose and should act as an incentive for Member States to cooperate and invest Member States to cooperate. The Fund more in defence. The Fund would support would support cooperation during the cooperation during the whole cycle of whole cycle of defence products and defence products and technologies. technologies, as well as conversion from military to civil production.

Or. en

PE627.775v01-00 6/186 AM\1162781EN.docx EN Amendment 107 Rolandas Paksas

Proposal for a regulation Recital 1

Text proposed by the Commission Amendment

Or. lt

Amendment 108 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 2

Text proposed by the Commission Amendment

(2) The Fund would contribute to the (2) The Fund would contribute to the establishment of a strong, competitive and establishment of a strong, integrated and

AM\1162781EN.docx 7/186 PE627.775v01-00 EN innovative defence industrial and innovative defence industrial and technological base and go hand in hand technological base, as well as to efficiency with the Union's initiatives towards a more gains enabling the reduction of the integrated European Defence Market and overall defence spending in the Union, in particular, the two Directives6 on while at the same time ensuring the procurement and on EU transfers in the necessary defence capabilities to perform defence sector adopted in 2009. the essential core tasks of collective defence, crisis management and cooperative security. The Fund would go hand in hand with the Union's initiatives towards a more integrated European Defence Market and in particular, the two Directives6 on procurement and on EU transfers in the defence sector adopted in 2009. ______6 Directive 2009/43/EC of the European 6 Directive 2009/43/EC of the European Parliament and of the Council, simplifying Parliament and of the Council, simplifying terms and conditions of transfers of terms and conditions of transfers of defence-related products within the defence-related products within the Community, OJ L 146, 10.6.2009, p. 1; Community, OJ L 146, 10.6.2009, p. 1; Directive 2009/81/EC of the European Directive 2009/81/EC of the European Parliament and of the Council on the Parliament and of the Council on the coordination of procedures for the award of coordination of procedures for the award of certain works contracts, supply contracts certain works contracts, supply contracts and service contracts by contracting and service contracts by contracting authorities or entities in the fields of authorities or entities in the fields of defence and security, OJ L 216, 20.8.2009, defence and security, OJ L 216, 20.8.2009, p. 76. p. 76.

Or. en

Amendment 109 Gunnar Hökmark

Proposal for a regulation Recital 3

Text proposed by the Commission Amendment

PE627.775v01-00 8/186 AM\1162781EN.docx EN enhancing the competitiveness, innovation, enhancing the competitiveness, innovation efficiency and autonomy of the Union's and efficiency of the Union's defence defence industry thereby contributing to industry through the development of the Union's strategic autonomy by capabilities and strategic capacity in supporting the cross border cooperation Europe, thereby contributing to the between Member States and between Union's strategic autonomy, which is enterprises, research centres, national further enhanced by strengthened administrations, international organisations relations with strategic partners, by and universities, in the research phase and supporting the cross border cooperation in the development phase of defence between Member States and between products and technologies. To achieve enterprises, research centres, national more innovative solutions and an open administrations, international organisations internal market, the Fund should support and universities, and, where appropriate, the cross-border participation of defence cooperation with third countries, in the small and medium sized enterprises research phase and in the development (SMEs) and middle capitalisation phase of defence products and companies (mid-caps). technologies. To achieve more innovative solutions and an open internal market, the Fund should support the cross-border participation of defence small and medium sized enterprises (SMEs) and middle capitalisation companies (mid-caps).

Or. en

Amendment 110 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 3

Text proposed by the Commission Amendment

AM\1162781EN.docx 9/186 PE627.775v01-00 EN and universities, in the research phase and States and between enterprises, research in the development phase of defence centres, national administrations, products and technologies. To achieve international organisations and universities, more innovative solutions and an open in the research phase and in the internal market, the Fund should support development phase of defence products the cross-border participation of defence and technologies. small and medium sized enterprises (SMEs) and middle capitalisation companies (mid-caps).

Or. en

Amendment 111 Edouard Martin, Clare Moody, Miroslav Poche, Carlos Zorrinho

Proposal for a regulation Recital 3

Text proposed by the Commission Amendment

(3) Following an integrated approach (3) Following an integrated approach and in order to contribute to the and in order to contribute to the enhancement of the competitiveness and enhancement of the competitiveness and innovation capacity of the Union's defence innovation capacity of the Union's defence industry, a European Defence Fund should industry, a European Defence Fund should be established. The Fund should aim at be established. The Fund should aim at enhancing the competitiveness, innovation, enhancing the competitiveness, innovation, efficiency and autonomy of the Union's efficiency, environmental performance defence industry thereby contributing to and technological and industrial the Union's strategic autonomy by autonomy of the Union's defence industry supporting the cross border cooperation thereby contributing to the Union's between Member States and between strategic autonomy by supporting the cross enterprises, research centres, national border cooperation between Member States administrations, international organisations and between enterprises, research centres, and universities, in the research phase and national administrations, international in the development phase of defence organisations and universities, in the products and technologies. To achieve research phase and in the development more innovative solutions and an open phase of defence products and internal market, the Fund should support technologies. To achieve more innovative the cross-border participation of defence solutions and an open internal market, the small and medium sized enterprises Fund should support the cross-border (SMEs) and middle capitalisation participation of defence small and medium companies (mid-caps). sized enterprises (SMEs) and middle capitalisation companies (mid-caps).

Or. en

PE627.775v01-00 10/186 AM\1162781EN.docx EN Amendment 112 Răzvan Popa

Proposal for a regulation Recital 3

Text proposed by the Commission Amendment

(3) Following an integrated approach 3. Following an integrated approach and in order to contribute to the and in order to contribute to the enhancement of the competitiveness and enhancement of the competitiveness and innovation capacity of the Union's defence innovation capacity of the Union's defence industry, a European Defence Fund should industry, a European Defence Fund should be established. The Fund should aim at be established. The Fund should aim at enhancing the competitiveness, innovation, enhancing the competitiveness, innovation, efficiency and autonomy of the Union's efficiency and autonomy of the Union's defence industry thereby contributing to defence industry thereby contributing to the Union's strategic autonomy by the Union's strategic autonomy by supporting the cross border cooperation supporting the cross border cooperation between Member States and between between Member States and between enterprises, research centres, national enterprises, research centres, national administrations, international organisations administrations, international organisations and universities, in the research phase and and universities, in the research phase and in the development phase of defence in the development phase of defence products and technologies. To achieve products and technologies. To achieve more innovative solutions and an open more innovative solutions and an open internal market, the Fund should support internal market, the Fund should support the cross-border participation of defence the cross-border participation of defence small and medium sized enterprises small and medium sized enterprises (SMEs) and middle capitalisation (SMEs) and middle capitalisation companies (mid-caps). companies, which could generate job creation.

Or. ro

Amendment 113 Françoise Grossetête, Christian Ehler, Massimiliano Salini, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Recital 3

Text proposed by the Commission Amendment

AM\1162781EN.docx 11/186 PE627.775v01-00 EN innovation capacity of the Union's defence innovation capacity of the Union's defence industry, a European Defence Fund should industry, a European Defence Fund should be established. The Fund should aim at be established. The Fund should aim at enhancing the competitiveness, innovation, enhancing the competitiveness, innovation, efficiency and autonomy of the Union's efficiency and technological and defence industry thereby contributing to industrial autonomy of the Union's the Union's strategic autonomy by defence industry thereby contributing to supporting the cross border cooperation the Union's strategic autonomy by between Member States and between supporting the cross border cooperation enterprises, research centres, national between Member States and between administrations, international organisations enterprises, research centres, national and universities, in the research phase and administrations, international organisations in the development phase of defence and universities, in the research phase and products and technologies. To achieve in the development phase of defence more innovative solutions and an open products and technologies. To achieve internal market, the Fund should support more innovative solutions and an open the cross-border participation of defence internal market, the Fund should support small and medium sized enterprises the cross-border participation of defence (SMEs) and middle capitalisation small and medium sized enterprises companies (mid-caps). (SMEs) and middle capitalisation companies (mid-caps).

Or. en

Amendment 114 Clare Moody, Theresa Griffin

Proposal for a regulation Recital 3

Text proposed by the Commission Amendment

PE627.775v01-00 12/186 AM\1162781EN.docx EN in the development phase of defence in the research phase and in the products and technologies. To achieve development phase of defence products more innovative solutions and an open and technologies. To achieve more internal market, the Fund should support innovative solutions and an open internal the cross-border participation of defence market, the Fund should support the cross- small and medium sized enterprises border participation of defence small and (SMEs) and middle capitalisation medium sized enterprises (SMEs) and companies (mid-caps). middle capitalisation companies (mid- caps).

Or. en

Amendment 115 Christelle Lechevalier

Proposal for a regulation Recital 3

Text proposed by the Commission Amendment

(3) Following an integrated approach (3) Following an integrated approach and in order to contribute to the and in order to contribute to the enhancement of the competitiveness and enhancement of the competitiveness and innovation capacity of the Union's defence innovation capacity of the Union's defence industry, a European Defence Fund should industry, a European Defence Fund should be established. The Fund should aim at be established. The Fund should aim at enhancing the competitiveness, innovation, enhancing the competitiveness, innovation, efficiency and autonomy of the Union's efficiency and autonomy of the Union's defence industry thereby contributing to defence industry thereby contributing to the Union's strategic autonomy by the strategic autonomy of the Member supporting the cross border cooperation States of the Union by supporting the cross between Member States and between border cooperation between Member States enterprises, research centres, national and between enterprises, research centres, administrations, international organisations national administrations, international and universities, in the research phase and organisations and universities, in the in the development phase of defence research phase and in the development products and technologies. To achieve phase of defence products and more innovative solutions and an open technologies. To achieve more innovative internal market, the Fund should support solutions and an open internal market, the the cross-border participation of defence Fund should support the cross-border small and medium sized enterprises participation of defence small and medium (SMEs) and middle capitalisation sized enterprises (SMEs) and middle companies (mid-caps). capitalisation companies (mid-caps).

Or. fr

AM\1162781EN.docx 13/186 PE627.775v01-00 EN Amendment 116 Gunnar Hökmark

Proposal for a regulation Recital 3 a (new)

Text proposed by the Commission Amendment

(3a) Whereas European security is dependent on strong and robust relations with strategic partners around the world; and whereas the Programme should enhance the competitiveness of the European defence industrial market by further strengthening partnerships through research and development, thereby promoting European strategic capacity and capability.

Or. en

Amendment 117 Gunnar Hökmark

Proposal for a regulation Recital 4

Text proposed by the Commission Amendment

(4) The research phase is a crucial (4) The research phase is a crucial element as it conditions the capacity of the element as it conditions the capacity of the European industry and the autonomy of European industry to retain and develop its the European industry to develop products global competitiveness and the industry to and the independence of Member States as develop products and the independence of defence end-users. The research phase Member States as defence end-users. The linked to the development of defence research phase linked to the development capabilities may include significant risks, of defence capabilities may include in particular related to the low level of significant risks, in particular related to the maturity and the disruption of low level of maturity and the disruption of technologies. The development phase, technologies. The development phase, which follows the research and technology which follows the research and technology phase, also entails significant risks and phase, also entails significant risks and costs that hamper the further exploitation costs that hamper the further exploitation of the results of research and adversely of the results of research and adversely impact the competitiveness and innovation impact the competitiveness and innovation of the Union's defence industry. of the Union's defence industry.

PE627.775v01-00 14/186 AM\1162781EN.docx EN Or. en

Amendment 118 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 5

Text proposed by the Commission Amendment

(5) The Fund should not support pure (5) The Fund should not support pure basic research which should instead be basic research which should instead be supported through other schemes but may supported through other schemes but may include defence oriented basic research include defence oriented basic research likely to form the basis of the solution to likely to form the basis of the solution to recognised or expected problems or recognised or expected problems or possibilities. possibilities, dual-use research and research on conversion from military to civil production.

Or. en

Amendment 119 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Recital 7

Text proposed by the Commission Amendment

(7) In order to ensure that the Union's (7) In order to ensure that the Union's and its Member States' international and its Member States' international obligations are respected in the obligations are respected in the implementation of this Regulation, actions implementation of this Regulation, actions relating to products or technologies the use, relating to products or technologies the use, development or production of which are development or production of which are prohibited by international law should not prohibited by international law should not receive funding under the Fund. In this receive funding under the Fund. In this respect, the eligibility of actions related to respect, the eligibility of actions related to new defence products or technologies, new defence products or technologies, in such as those that are specifically designed particular those that are specifically to carry out lethal strikes without any designed to carry out lethal strikes without human control over the engagement any human control over the engagement decisions, should also be subject to decisions, should not be allowed until the developments in international law. adoption of an international, binding convention for their prohibition.

AM\1162781EN.docx 15/186 PE627.775v01-00 EN All actions, may they relate to new or more traditional defence products or technologies, should be ethically screened by a mixed, gender-balanced group of experts. Additional ethical screening in the course of any action could be activated by MEPs.

Or. en

Amendment 120 Rolandas Paksas

Proposal for a regulation Recital 7

Text proposed by the Commission Amendment

(7) In order to ensure that the Union's (7) In order to ensure that the Union's and its Member States' international and its Member States' international obligations are respected in the obligations are respected in the implementation of this Regulation, actions implementation of this Regulation, actions relating to products or technologies the use, relating to products or technologies the use, development or production of which are development or production of which are prohibited by international law should not prohibited by international law should not receive funding under the Fund. In this receive funding under the Fund. respect, the eligibility of actions related to new defence products or technologies, such as those that are specifically designed to carry out lethal strikes without any human control over the engagement decisions, should also be subject to developments in international law.

Or. lt

Amendment 121 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 7

Text proposed by the Commission Amendment

PE627.775v01-00 16/186 AM\1162781EN.docx EN (7) In order to ensure that the Union's (7) In order to ensure that the Union's and its Member States' international and its Member States' international obligations are respected in the obligations are respected in the implementation of this Regulation, actions implementation of this Regulation, actions relating to products or technologies the use, relating to products or technologies the use, development or production of which are development or production of which are prohibited by international law should not prohibited by international law should not receive funding under the Fund. In this receive funding under the Fund. In this respect, the eligibility of actions related to respect, the eligibility of actions related to new defence products or technologies, such new defence products or technologies, such as those that are specifically designed to as those that are specifically designed to carry out lethal strikes without any human carry out lethal strikes without any human control over the engagement decisions, control over the engagement decisions, should also be subject to developments in should also be subject to developments in international law. international law and should be excluded from Union funding.

Or. en

Amendment 122 Edouard Martin, Martina Werner, Carlos Zorrinho

Proposal for a regulation Recital 7 a (new)

Text proposed by the Commission Amendment

(7a) Regarding exports of products which would be the result of research or development actions of the Programme, particular attention should be paid to article 7 of the Arms Trade Treaty which provides that even if the export is not prohibited, exporting State Parties shall, in an objective and non-discriminatory manner and taking into account relevant factors, assess the potential that the conventional arms or items: (a) would contribute to or undermine peace and security;(b) could be used to: (i) commit or facilitate a serious violation of international humanitarian law;(ii) commit or facilitate a serious violation of international human rights law;(iii) commit or facilitate an act constituting an offense under international conventions or protocols relating to terrorism to which

AM\1162781EN.docx 17/186 PE627.775v01-00 EN the exporting State is a Party; or(iv) commit or facilitate an act constituting an offense under international conventions or protocols relating to transnational organized crime to which the exporting State is a Party.

Or. en

Amendment 123 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 9

Text proposed by the Commission Amendment

(9) As the objective of the Fund is to (9) As the objective of the Fund is to support the competitiveness and innovation support the integration, efficiency and of the Union defence industry by innovation and alleviating any potential leveraging and complementing negative effects of the integration of the collaborative defence research and Union defence industry by leveraging and technology activities and de-risking the complementing collaborative defence development phase of cooperative projects, research and technology activities and actions related to the research and alleviating some of the risk of the development of a defence product or development phase of cooperative projects, technology should be eligible to benefit actions related to the research and from it. This will also apply to the upgrade, development of a defence product or including the interoperability thereof, of technology, as well as those aiming at existing defence products and technologies. conversion from military to civil production should be eligible to benefit from it. This will also apply to the upgrade, including the interoperability thereof, of existing defence products and technologies.

Or. en

Amendment 124 Edouard Martin, Miroslav Poche, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Recital 9

Text proposed by the Commission Amendment

PE627.775v01-00 18/186 AM\1162781EN.docx EN (9) As the objective of the Fund is to (9) As the objective of the Fund is to support the competitiveness and support the competitiveness, innovation innovation of the Union defence industry and industrial autonomy of the Union by leveraging and complementing defence industry by leveraging and collaborative defence research and complementing collaborative defence technology activities and de-risking the research and technology activities and de- development phase of cooperative projects, risking the development phase of actions related to the research and cooperative projects, actions related to the development of a defence product or research and development of a defence technology should be eligible to benefit product or technology should be eligible to from it. This will also apply to the upgrade, benefit from it. This will also apply to the including the interoperability thereof, of upgrade, including the interoperability existing defence products and technologies. thereof, of existing defence products and technologies.

Or. en

Amendment 125 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Given that the Fund aims (10) Given that the Fund aims particularly at enhancing cooperation particularly at enhancing cooperation between legal entities and Member States between legal entities and Member States across Europe, an action should be eligible across Europe, an action should be eligible for funding only if it is undertaken by a for funding only if it is undertaken by a cooperation of at least three legal entities cooperation of at least four legal entities based in at least three different Member based in at least three different Member States and/or associated countries. At least States and/or associated countries. At least three of these legal eligible entities four of these legal eligible entities established in at least two different established in at least two different Member States and/or associated countries Member States and/or associated countries should not be effectively controlled, should not be effectively controlled, directly or indirectly, by the same entity or directly or indirectly, by the same entity or should not control each other. In order to should not control each other. In order to boost the cooperation between Member boost the cooperation between Member States the Fund may support joint pre- States the Fund may support joint pre- commercial procurement . commercial procurement; This rule shall not apply to actions in support of conversion from military to civil production.

Or. en

AM\1162781EN.docx 19/186 PE627.775v01-00 EN Amendment 126 Fabio Massimo Castaldo

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Given that the Fund aims (10) Given that the Fund aims particularly at enhancing cooperation particularly at enhancing cooperation and between legal entities and Member States competitiveness between legal entities and across Europe, an action should be eligible Member States across Europe, an action for funding only if it is undertaken by a should be eligible for funding only if it is cooperation of at least three legal entities undertaken by a cooperation of at least based in at least three different Member three legal entities based in at least three States and/or associated countries. At least different Member States and/or associated three of these legal eligible entities countries. At least three of these legal established in at least two different eligible entities established in at least two Member States and/or associated countries different Member States and/or associated should not be effectively controlled, countries should not be effectively directly or indirectly, by the same entity or controlled, directly or indirectly, by the should not control each other. In order to same entity or should not control each boost the cooperation between Member other. In order to boost the cooperation States the Fund may support joint pre- between Member States the Fund may commercial procurement . support joint pre-commercial procurement .

Or. it

Amendment 127 Fabio Massimo Castaldo

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

PE627.775v01-00 20/186 AM\1162781EN.docx EN established in at least two different established in at least three different Member States and/or associated countries Member States and/or associated countries should not be effectively controlled, should not be effectively controlled, directly or indirectly, by the same entity or directly or indirectly, by the same entity or should not control each other. In order to should not control each other. In order to boost the cooperation between Member boost the cooperation between Member States the Fund may support joint pre- States the Fund may support joint pre- commercial procurement . commercial procurement .

Or. en

Amendment 128 David Borrelli

Proposal for a regulation Recital 10

Text proposed by the Commission Amendment

(10) Given that the Fund aims (10) Given that the Fund aims particularly at enhancing cooperation particularly at enhancing cooperation between legal entities and Member States between legal entities and Member States across Europe, an action should be eligible across Europe, an action should be eligible for funding only if it is undertaken by a for funding only if it is undertaken by a cooperation of at least three legal entities cooperation of at least three legal entities based in at least three different Member based in at least three different Member States and/or associated countries. At least States and/or associated countries. At least three of these legal eligible entities three of these legal eligible entities established in at least two different established in at least three different Member States and/or associated countries Member States and/or associated countries should not be effectively controlled, should not be effectively controlled, directly or indirectly, by the same entity or directly or indirectly, by the same entity or should not control each other. In order to should not control each other. In order to boost the cooperation between Member boost the cooperation between Member States the Fund may support joint pre- States the Fund may support joint pre- commercial procurement . commercial procurement.

Or. it

Amendment 129 Christelle Lechevalier

Proposal for a regulation Recital 12

AM\1162781EN.docx 21/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

(12) As the Fund aims at enhancing the (12) As the Fund aims at enhancing the competitiveness, efficiency and autonomy competitiveness, efficiency and autonomy of the Union's defence industry, only of the Union's defence industry, only entities established in the Union or entities established in the Union should in associated countries and not subject to principle be eligible for support. control by non-associated third countries Additionally, in order to ensure the or non-associated third country entities protection of essential security and defence should in principle be eligible for support. interests of the Union and its Member Additionally, in order to ensure the States, the infrastructure, facilities, assets protection of essential security and defence and resources used by the recipients and interests of the Union and its Member their subcontractors in actions supported by States, the infrastructure, facilities, assets the Fund should not be located on the and resources used by the recipients and territory of non-associated third countries. their subcontractors in actions supported by the Fund should not be located on the territory of non-associated third countries.

Or. fr

Amendment 130 Patrizia Toia

Proposal for a regulation Recital 12

Text proposed by the Commission Amendment

(12) As the Fund aims at enhancing the (12) As the Fund aims at enhancing the competitiveness, efficiency and autonomy competitiveness, efficiency and autonomy of the Union's defence industry, only of the Union's defence industry, only entities established in the Union or entities established in the Union or associated countries and not subject to associated countries and not subject to control by non-associated third countries or control by non-associated third countries. non-associated third country entities Additionally, in order to ensure the should in principle be eligible for support. protection of essential security and defence Additionally, in order to ensure the interests of the Union and its Member protection of essential security and defence States, the infrastructure, facilities, assets interests of the Union and its Member and resources used by the recipients and States, the infrastructure, facilities, assets their subcontractors in actions supported by and resources used by the recipients and the Fund should not be located on the their subcontractors in actions supported by territory of non-associated third countries. the Fund should not be located on the territory of non-associated third countries.

Or. en

PE627.775v01-00 22/186 AM\1162781EN.docx EN Justification

There is no reason to discriminate industries controlled by entities based in countries outside the EU, compared to those controlled by entities based in EU countries, provided that the national legislation in the Member States gives adequate and uniform guarantees on the subject of control and therefore of European security protection, on the basis of common standards to be defined in the context of the current legislative procedure.

Amendment 131 Angelo Ciocca (ENF)

Proposal for a regulation Recital 12

Text proposed by the Commission Amendment

(12) As the Fund aims at enhancing the (12) As the Fund aims at enhancing the competitiveness, efficiency and autonomy competitiveness, efficiency, synergies and of the Union's defence industry, only autonomy of the defence industry of the entities established in the Union or Union and the Member States, only associated countries and not subject to entities established in the Union or control by non-associated third countries or associated countries and not subject to non-associated third country entities control by non-associated third countries should in principle be eligible for support. should in principle be eligible for support. Additionally, in order to ensure the Additionally, in order to ensure the protection of essential security and defence protection of essential security and defence interests of the Union and its Member interests of the Union and its Member States, the infrastructure, facilities, assets States, the infrastructure, facilities, assets and resources used by the recipients and and resources used by the recipients and their subcontractors in actions supported by their subcontractors in actions supported by the Fund should not be located on the the Fund should not be located on the territory of non-associated third countries. territory of non-associated third countries.

Or. it

Amendment 132 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 12

Text proposed by the Commission Amendment

(12) As the Fund aims at enhancing the (12) As the Fund aims at enhancing the competitiveness, efficiency and autonomy integration, interoperability, efficiency of the Union's defence industry, only and autonomy of the Union's defence

AM\1162781EN.docx 23/186 PE627.775v01-00 EN entities established in the Union or industry, only entities established in the associated countries and not subject to Union or associated countries and not control by non-associated third countries or subject to control by non-associated third non-associated third country entities should countries or non-associated third country in principle be eligible for support. entities should in principle be eligible for Additionally, in order to ensure the support. Additionally, in order to ensure protection of essential security and defence the protection of essential security and interests of the Union and its Member defence interests of the Union and its States, the infrastructure, facilities, assets Member States, the infrastructure, and resources used by the recipients and facilities, assets and resources used by the their subcontractors in actions supported by recipients and their subcontractors in the Fund should not be located on the actions supported by the Fund should not territory of non-associated third countries. be located on the territory of non- associated third countries.

Or. en

Amendment 133 Massimiliano Salini

Proposal for a regulation Recital 12

Text proposed by the Commission Amendment

(12) As the Fund aims at enhancing the (12) As the Fund aims at enhancing the competitiveness, efficiency and autonomy competitiveness, efficiency and autonomy of the Union's defence industry, only of the Union's defence industry, only entities established in the Union or entities established in the Union or associated countries and not subject to associated countries and not subject to control by non-associated third countries or control by non-associated third countries non-associated third country entities should in principle be eligible for support. should in principle be eligible for support. Additionally, in order to ensure the Additionally, in order to ensure the protection of essential security and defence protection of essential security and defence interests of the Union and its Member interests of the Union and its Member States, the infrastructure, facilities, assets States, the infrastructure, facilities, assets and resources used by the recipients and and resources used by the recipients and their subcontractors in actions supported by their subcontractors in actions supported by the Fund should not be located on the the Fund should not be located on the territory of non-associated third countries. territory of non-associated third countries.

Or. en

Amendment 134

PE627.775v01-00 24/186 AM\1162781EN.docx EN Olle Ludvigsson

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) In certain circumstances, if this is (13) In that perspective, legal entities necessary for achieving the objectives of established in the Union that are controlled the action, it should be possible to by a non-associated third country or a non- derogate from the principle that recipients associated third country entity can be and their subcontractors should not be eligible if relevant conditions relating to subject to control by non-associated third the security and defence interests of the countries or non-associated third country Union and its Member States are fulfilled. entities. In that perspective, legal entities The participation of such entities should established in the Union that are controlled not contravene the objectives of the Fund. by a non-associated third country or a non- associated third country entity can be eligible if relevant and strict conditions relating to the security and defence interests of the Union and its Member States are fulfilled. The participation of such entities should not contravene the objectives of the Fund. Applicants should provide all relevant information about the infrastructure, facilities, assets and resources to be used in the action.

Or. en

Amendment 135 Massimiliano Salini

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

AM\1162781EN.docx 25/186 PE627.775v01-00 EN associated third country or a non- associated third country can be eligible if associated third country entity can be relevant and strict conditions relating to the eligible if relevant and strict conditions security and defence interests of the Union relating to the security and defence and its Member States are fulfilled. interests of the Union and its Member Given the sensitive and strategic nature of States are fulfilled. The participation of the defence sector, Member States such entities should not contravene the should implement measures at objectives of the Fund. Applicants should the national level that serve to guarantee provide all relevant information about the a uniform degree of oversight over the infrastructure, facilities, assets and functioning of beneficiaries operating in resources to be used in the action. this field, whether they are controlled by an entity established within the European Union or in a third country. In all cases, the participation of such entities should not contravene the objectives of the Fund. Applicants should provide all relevant information about the infrastructure, facilities, assets and resources to be used in the action.

Or. en

Amendment 136 Patrizia Toia

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) In certain circumstances, if this is (13) In certain circumstances, if this is necessary for achieving the objectives of necessary for achieving the objectives of the action, it should be possible to derogate the action, it should be possible to derogate from the principle that recipients and their from the principle that recipients and their subcontractors should not be subject to subcontractors should not be subject to control by non-associated third countries or control by non-associated third countries or non-associated third country entities. In non-associated third country entities. In that perspective, legal entities established that perspective, legal entities established in the Union that are controlled by a non- in the Union that are controlled by a non- associated third country or a non- associated third country can be eligible if associated third country entity can be relevant and strict conditions relating to the eligible if relevant and strict conditions security and defence interests of the Union relating to the security and defence and its Member States are fulfilled. Given interests of the Union and its Member the strategic relevance and sensitivity of States are fulfilled. The participation of the defence sector, Member States should such entities should not contravene the apply at national level measures that objectives of the Fund. Applicants should guarantee a uniform degree of control

PE627.775v01-00 26/186 AM\1162781EN.docx EN provide all relevant information about the over the functioning of beneficiaries infrastructure, facilities, assets and operating in this domain, whether they resources to be used in the action. are controlled by an entity established in the European Union or in a third country. In all cases, the participation of such entities should not contravene the objectives of the Fund. Applicants should provide all relevant information about the infrastructure, facilities, assets and resources to be used in the action.

Or. en

Justification

Amendment 137 Angelo Ciocca (ENF)

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) In certain circumstances, if this is (13) In certain circumstances, if this is necessary for achieving the objectives of necessary for achieving the objectives of the action, it should be possible to derogate the action, it should be possible to derogate from the principle that recipients and their from the principle that recipients and their subcontractors should not be subject to subcontractors should not be subject to control by non-associated third countries or control by non-associated third countries or non-associated third country entities. In non-associated third country entities. In that perspective, legal entities established that perspective, legal entities established in the Union that are controlled by a non- in the Union that are controlled by a non- associated third country or a non- associated third country or a non- associated third country entity can be associated third country entity can be eligible if relevant and strict conditions eligible if relevant and strict conditions relating to the security and defence relating to the security and defence interests of the Union and its Member interests of the Union and its Member States are fulfilled. The participation of States are fulfilled. The participation of such entities should not contravene the such entities should not contravene the objectives of the Fund. Applicants should objectives of the Fund. Applicants should provide all relevant information about the provide all relevant information about the

AM\1162781EN.docx 27/186 PE627.775v01-00 EN infrastructure, facilities, assets and infrastructure, facilities, assets and resources to be used in the action. resources to be used in the action. Member States may apply measures to ensure a uniform level of control over the activities of the beneficiaries.

Or. it

Amendment 138 Gunnar Hökmark

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

(13) In certain circumstances, if this is (13) For the purpose of promoting the necessary for achieving the objectives of competitiveness of the European defence the action, it should be possible to derogate industrial market, it should be possible to from the principle that recipients and their derogate from the principle that recipients subcontractors should not be subject to and their subcontractors should not be control by non-associated third countries or subject to control by non-associated third non-associated third country entities. In countries or non-associated third country that perspective, legal entities established entities. In that perspective, legal entities in the Union that are controlled by a non- established in the Union that are controlled associated third country or a non- by a non-associated third country or a non- associated third country entity can be associated third country entity can be eligible if relevant and strict conditions eligible if relevant conditions relating to relating to the security and defence the security and defence interests of the interests of the Union and its Member Union and its Member States are fulfilled. States are fulfilled. The participation of The participation of such entities should such entities should not contravene the not contravene the objectives of the Fund. objectives of the Fund. Applicants should provide all relevant information about the infrastructure, facilities, assets and resources to be used in the action.

Or. en

Amendment 139 Edouard Martin, Martina Werner, Carlos Zorrinho

Proposal for a regulation Recital 13

PE627.775v01-00 28/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

(13) In certain circumstances, if this is (13) In certain circumstances, if this is necessary for achieving the objectives of critical for achieving the objectives of the the action, it should be possible to derogate action, it should be possible to derogate from the principle that recipients and their from the principle that recipients and their subcontractors should not be subject to subcontractors should not be subject to control by non-associated third countries or control by non-associated third countries or non-associated third country entities. In non-associated third country entities. In that perspective, legal entities established that perspective, legal entities established in the Union that are controlled by a non- in the Union that are controlled by a non- associated third country or a non- associated third country or a non- associated third country entity can be associated third country entity can be eligible if relevant and strict conditions eligible if relevant and strict conditions relating to the security and defence relating to the security and defence interests of the Union and its Member interests of the Union and its Member States are fulfilled. The participation of States are fulfilled. The participation of such entities should not contravene the such entities should not contravene the objectives of the Fund. Applicants should objectives of the Fund. Applicants should provide all relevant information about the provide all relevant information about the infrastructure, facilities, assets and infrastructure, facilities, assets and resources to be used in the action. resources to be used in the action, and demonstrate that their input could not be brought by European entities.

Or. en

Amendment 140 Fabio Massimo Castaldo

Proposal for a regulation Recital 13

Text proposed by the Commission Amendment

AM\1162781EN.docx 29/186 PE627.775v01-00 EN relating to the security and defence relating to the security and defence interests of the Union and its Member interests of the Union and its Member States are fulfilled. The participation of States are fulfilled, based on the such entities should not contravene the guarantees provided by the Member States objectives of the Fund. Applicants should themselves. The participation of such provide all relevant information about the entities should not contravene the infrastructure, facilities, assets and objectives of the Fund. Applicants should resources to be used in the action. provide all relevant information about the infrastructure, facilities, assets and resources to be used in the action.

Or. it

Amendment 141 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 14

Text proposed by the Commission Amendment

(14) If a consortium wishes to (14) If a consortium wishes to participate in an eligible action and the participate in an eligible action and the financial assistance of the Union is to take financial assistance of the Union is to take the form of a grant, the consortium should the form of a grant, the consortium should appoint one of its members as a appoint one of its members as a coordinator who will be the principal point coordinator who will be the principal point of contact. of contact and who shall regularly report back to the EU institutions on the status of the action funded under the Programme.

Or. en

Amendment 142 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 15

Text proposed by the Commission Amendment

PE627.775v01-00 30/186 AM\1162781EN.docx EN States or associated countries, the States or associated countries, the Commission should inform the project Commission should inform the project manager prior to executing the payment to manager prior to executing the payment to the recipient so that the project manager the recipient so that the project manager can ensure that the time-frames are can ensure that the time-frames are respected by the recipients. Under certain respected by the recipients. The project circumstances, the project manager could manager should provide the Commission provide the Commission with its with its observations on the progress of the observations on the progress of the action action so that the Commission can validate so that the Commission can validate whether the conditions to proceed to the whether the conditions to proceed to the payment are fulfilled. payment are fulfilled.

Or. en

Amendment 143 Christelle Lechevalier

Proposal for a regulation Recital 15

Text proposed by the Commission Amendment

(15) In case a development action (15) In case a development action supported by the Fund is managed by a supported by the Fund is managed by a project manager appointed by Member project manager appointed by Member States or associated countries, the States, the Commission should inform the Commission should inform the project project manager prior to executing the manager prior to executing the payment to payment to the recipient so that the project the recipient so that the project manager manager can ensure that the time-frames can ensure that the time-frames are are respected by the recipients. Under respected by the recipients. Under certain certain circumstances, the project manager circumstances, the project manager could could provide the Commission with its provide the Commission with its observations on the progress of the action observations on the progress of the action so that the Commission can validate so that the Commission can validate whether the conditions to proceed to the whether the conditions to proceed to the payment are fulfilled. payment are fulfilled.

Or. fr

Amendment 144 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation

AM\1162781EN.docx 31/186 PE627.775v01-00 EN Recital 18

Text proposed by the Commission Amendment

(18) Given the specificities of the (18) Given the specificities of the defence industry where demand comes defence industry with its high almost exclusively from Member States fragmentation and resulting inefficiency and associated countries, which also across Member States, the possibility to control all acquisition of defence-related apply for financial support from the fund products and technologies, including will foster a more effective use of defence exports, the functioning of the defence spending as incentivising cross-border sector is unique and does not follow the cooperation and the development of conventional rules and business models common prototypes will reduce that govern more traditional markets. fragmentation. To achieve the objectives Industry therefore cannot undertake of the Fund, notably to incentivise substantial self-funded defence Research cooperation between companies from and Development (R&D) projects and different Member States and associated Member States and associated countries countries, and taking into account the normally fully fund all R&D cost. To specifics of the defence sector, up to 60% achieve the objectives of the Fund, notably of the eligible costs should be covered for to incentivise cooperation between actions that take place ahead of the companies from different Member States development of prototypes phase. and associated countries, and taking into account the specifics of the defence sector, up to totality of the eligible costs should be covered for actions that take place ahead of the development of prototypes phase.

Or. en

Amendment 145 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 20

Text proposed by the Commission Amendment

(20) For actions beyond the prototype (20) For actions beyond the prototype phase, funding up to 80% should be phase, funding up to 60% should be foreseen. These actions which are closer to foreseen. These actions which are closer to product and technology finalisation may product and technology finalisation may still involve substantial costs. still involve substantial costs.

Or. en

PE627.775v01-00 32/186 AM\1162781EN.docx EN Amendment 146 Dominique Riquet, Pavel Telička

Proposal for a regulation Recital 21

Text proposed by the Commission Amendment

(21) Stakeholders in the defence sector (21) Stakeholders in the defence sector are facing specific indirect costs, such as are facing specific indirect costs, such as costs for security. Furthermore, costs for security. Furthermore, stakeholders are working in a specific stakeholders are working in a specific market where they – without any demand market where they – without any demand on the buyers' side – cannot recover the on the buyers' side – cannot recover the research and development costs like in the research and development costs like in the civilian sector. Therefore, it is justified to civilian sector. Therefore, it is justified to allow a flat rate of 25 % as well as the allow a flat rate of 25 % as well as the possibility, on a project base, to charge possibility, on a project base, to charge indirect costs calculated in accordance with indirect costs calculated in accordance with the usual accounting practises of the usual accounting practises of beneficiaries if these practises are accepted beneficiaries if these practises are accepted by their national authorities under by their national authorities. comparable national funding schemes, which have been communicated to the Commission. The authorising officer responsible should justify its decision to accept indirect eligible costs beyond the flat rate of 25 % in the work programme or in the call for proposals.

Or. fr

Amendment 147 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 22

Text proposed by the Commission Amendment

(22) In order to ensure that the funded (22) In order to ensure that the funded actions will contribute to the actions will contribute to the integration, competitiveness and efficiency of the interoperability and efficiency of the European defence industry, it is important European defence industry, it is important that Member States already intend to that Member States already intend to jointly procure the final product or use the jointly procure the final product or use the technology, notably through joint cross- technology, notably through joint cross-

AM\1162781EN.docx 33/186 PE627.775v01-00 EN border procurement, where Member States border procurement, where Member States jointly organise their procurement jointly organise their procurement procedures in particular with the use of a procedures in particular with the use of a central purchasing body. central purchasing body.

Or. en

Amendment 148 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) The promotion of innovation and (23) The promotion of innovation and technological development in the Union technological development in the Union defence industry should take place in a defence industry should serve the security manner coherent with the security and and defence interests of the Union. Taking defence interests of the Union. into account the specific nature of the Accordingly, the action's contribution to defence sector, any action in the field of those interests and to the defence research defence industry should be closely and capability priorities commonly agreed coordinated and be coherent with the by Member States should serve as an foreign and security policies and priorities award criterion. Within the Union, of the Union. Accordingly, the action's common defence research and capability contribution to those interests and to the shortfalls are identified in the Common defence research and capability priorities Security and Defence Policy (CSDP) commonly agreed by Member States in framework notably through Overarching line with Union policies and political Strategic Research Agenda and the priorities should serve as an award Capability Development Plan. Other Union criterion. Within the Union, common processes such as the Coordinated Annual defence research and capability shortfalls Review on Defence and the Permanent are identified in the Common Security and Structured Cooperation will support the Defence Policy (CSDP) framework notably implementation of relevant priorities through Overarching Strategic Research through identifying and taking forward Agenda and the Capability Development opportunities for enhanced cooperation Plan. Other Union processes such as the with a view to fulfilling the EU level of Coordinated Annual Review on Defence ambition on security and defence. Where and the Permanent Structured Cooperation appropriate, regional and international will support the implementation of relevant priorities, including those in the North priorities through identifying and taking Atlantic Treaty Organisation context, may forward opportunities for enhanced also be taken into account if they are in line cooperation with a view to fulfilling the with Union priorities and do not prevent EU level of ambition on security and any Member State or an associated country defence. Where appropriate, regional and from participating, while also taking into international priorities, including those in account that unnecessary duplication the North Atlantic Treaty Organisation

PE627.775v01-00 34/186 AM\1162781EN.docx EN should be avoided. context, may also be taken into account if they are in line with Union priorities and do not prevent any Member State or an associated country from participating, while also taking into account that unnecessary duplication should be avoided.

Or. en

Amendment 149 Christelle Lechevalier

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) The promotion of innovation and (23) The promotion of innovation and technological development in the Union technological development in the Union defence industry should take place in a defence industry should take place in a manner coherent with the security and manner coherent with the security and defence interests of the Union. defence interests of the Union. Accordingly, the action's contribution to Accordingly, the action's contribution to those interests and to the defence research those interests and to the defence research and capability priorities commonly agreed and capability priorities commonly agreed by Member States should serve as an by Member States should serve as an award criterion. Within the Union, award criterion. Within the Union, common defence research and capability common defence research and capability shortfalls are identified in the Common shortfalls are identified in the Common Security and Defence Policy (CSDP) Security and Defence Policy (CSDP) framework notably through Overarching framework notably through Overarching Strategic Research Agenda and the Strategic Research Agenda and the Capability Development Plan. Other Union Capability Development Plan. Other Union processes such as the Coordinated Annual processes such as the Coordinated Annual Review on Defence and the Permanent Review on Defence and the Permanent Structured Cooperation will support the Structured Cooperation will support the implementation of relevant priorities implementation of relevant priorities through identifying and taking forward through identifying and taking forward opportunities for enhanced cooperation opportunities for enhanced cooperation with a view to fulfilling the EU level of with a view to fulfilling the EU level of ambition on security and defence. Where ambition on security and defence. Where appropriate, regional and international appropriate, regional and international priorities, including those in the North priorities may also be taken into account if Atlantic Treaty Organisation context, may they are in line with Union priorities and also be taken into account if they are in line do not prevent any Member State or an with Union priorities and do not prevent associated country from participating, any Member State or an associated country while also taking into account that

AM\1162781EN.docx 35/186 PE627.775v01-00 EN from participating, while also taking into unnecessary duplication should be avoided. account that unnecessary duplication should be avoided.

Or. fr

Amendment 150 Fabio Massimo Castaldo

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) The promotion of innovation and (23) The promotion of innovation and technological development in the Union technological development in the Union defence industry should take place in a defence industry should take place in a manner coherent with the security and manner coherent with the security and defence interests of the Union. defence interests of the Union and of the Accordingly, the action's contribution to Member States. Accordingly, the action's those interests and to the defence research contribution to those interests and to the and capability priorities commonly agreed defence research and capability priorities by Member States should serve as an commonly agreed by Member States award criterion. Within the Union, should serve as an award criterion. Within common defence research and capability the Union, common defence research and shortfalls are identified in the Common capability shortfalls are identified in the Security and Defence Policy (CSDP) Common Security and Defence Policy framework notably through Overarching (CSDP) framework notably through Strategic Research Agenda and the Overarching Strategic Research Agenda Capability Development Plan. Other Union and the Capability Development Plan. processes such as the Coordinated Annual Other Union processes such as the Review on Defence and the Permanent Coordinated Annual Review on Defence Structured Cooperation will support the and the Permanent Structured Cooperation implementation of relevant priorities will support the implementation of relevant through identifying and taking forward priorities through identifying and taking opportunities for enhanced cooperation forward opportunities for enhanced with a view to fulfilling the EU level of cooperation with a view to fulfilling the ambition on security and defence. Where EU level of ambition on security and appropriate, regional and international defence. Where appropriate, regional and priorities, including those in the North international priorities, including those in Atlantic Treaty Organisation context, may the North Atlantic Treaty Organisation also be taken into account if they are in line context, may also be taken into account if with Union priorities and do not prevent they are in line with Union priorities and any Member State or an associated country do not prevent any Member State or an from participating, while also taking into associated country from participating, account that unnecessary duplication while also taking into account that should be avoided. unnecessary duplication should be avoided.

PE627.775v01-00 36/186 AM\1162781EN.docx EN Or. it

Amendment 151 Christian Ehler, Michael Gahler

Proposal for a regulation Recital 23

Text proposed by the Commission Amendment

(23) The promotion of innovation and (23) The promotion of innovation and technological development in the Union technological development in the Union defence industry should take place in a defence industry should take place in a manner coherent with the security and manner coherent with the security and defence interests of the Union. defence interests of the Union. Accordingly, the action's contribution to Accordingly, the action's contribution to those interests and to the defence research those interests and to the defence research and capability priorities commonly agreed and capability priorities commonly agreed by Member States should serve as an by Member States should serve as an award criterion. Within the Union, award criterion. Within the Union, common defence research and capability common defence research and capability shortfalls are identified in the Common shortfalls are identified in the Common Security and Defence Policy (CSDP) Security and Defence Policy (CSDP) framework notably through Overarching framework notably through the Capability Strategic Research Agenda and the Development Mechanism (CDM). Other Capability Development Plan. Other Union processes such as the Coordinated Union processes such as the Coordinated Annual Review on Defence and the Annual Review on Defence and the Permanent Structured Cooperation will Permanent Structured Cooperation will support the implementation of relevant support the implementation of relevant priorities through identifying and taking priorities through identifying and taking forward opportunities for enhanced forward opportunities for enhanced cooperation with a view to fulfilling the cooperation with a view to fulfilling the EU level of ambition on security and EU level of ambition on security and defence. Where appropriate, regional and defence. Where appropriate, regional and international priorities, including those in international priorities, including those in the North Atlantic Treaty Organisation the North Atlantic Treaty Organisation context, may also be taken into account if context, may also be taken into account if they are in line with Union priorities and they are in line with Union priorities and do not prevent any Member State or an do not prevent any Member State or an associated country from participating, associated country from participating, while also taking into account that while also taking into account that unnecessary duplication should be avoided. unnecessary duplication should be avoided.

Or. en

AM\1162781EN.docx 37/186 PE627.775v01-00 EN Amendment 152 Rolandas Paksas

Proposal for a regulation Recital 24

Text proposed by the Commission Amendment

(24) Eligible actions developed in the Deleted. context of Permanent Structured Cooperation (PESCO) in the institutional framework of the Union should ensure enhanced cooperation between legal entities in the different Member States on a continuous basis and thus directly contribute to the aims of the Fund. If selected, such projects should thus be eligible for an increased funding rate.

Or. lt

Amendment 153 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 25

Text proposed by the Commission Amendment

(25) The Commission will take into (25) The Commission will take into account the other activities financed under account the other activities financed under the Horizon Europe Framework the Horizon Europe Framework programme in order to avoid unnecessary programme in order to avoid unnecessary duplication and ensure the cross- duplication, ensure the cross-fertilisation fertilisation between civil and defence between civil and defence research and research. ensure that Horizon Europe remains a purely civil research programme.

Or. en

Amendment 154 Fabio Massimo Castaldo

Proposal for a regulation Recital 25

PE627.775v01-00 38/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

(25) The Commission will take into (25) The Commission will take into account the other activities financed under account the other activities financed under the Horizon Europe Framework the Horizon Europe Framework programme in order to avoid unnecessary programme in order to avoid unnecessary duplication and ensure the cross- duplication and ensure the cross- fertilisation between civil and defence fertilisation and synergies between civil research. and defence research.

Or. it

Amendment 155 Dominique Riquet, Pavel Telička

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

(27) An integrated approach should be (27) An integrated approach should be ensured by bringing together activities ensured by bringing together activities covered by the Preparatory Action on covered by the Preparatory Action on Defence Research launched by the Defence Research launched by the Commission within the meaning of Article Commission within the meaning of Article [58 (2) (b)] of Regulation (EU, Euratom) [58 (2) (b)] of Regulation (EU, Euratom) 2018/…of the European Parliament and of 2018/…of the European Parliament and of the Council (the ‘Financial Regulation’) the Council (the ‘Financial Regulation’) and the European Defence Industrial and the European Defence Industrial Development Programme established by Development Programme established by Regulation (EC) No … of the European Regulation (EC) No … of the European Parliament and of the Council and to Parliament and of the Council and to harmonise the conditions for participation, harmonise the conditions for participation, to create a more coherent set of to create a more coherent set of instruments, to increase the innovative, instruments, to increase the innovative, collaborative and economic impact, while collaborative and economic impact, while avoiding unnecessary duplication and avoiding unnecessary duplication and fragmentation. With this integrated fragmentation. With this integrated approach, the Fund would also contribute approach, the Fund would also contribute to a better exploitation of the results of to a better exploitation of the results of defence research, covering the gap between defence research, covering the gap between research and development taking into research and development taking into account the specificities of the defence account the specificities of the defence sector, and promoting all forms of sector, and promoting all forms of innovation, including disruptive innovation innovation, and as positive spillover where possible failure should be accepted. effects can be expected, where applicable,

AM\1162781EN.docx 39/186 PE627.775v01-00 EN in the civil field, including disruptive innovation where possible failure should be accepted.

Or. fr

Amendment 156 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 27

Text proposed by the Commission Amendment

(27) An integrated approach should be (27) An integrated approach should be ensured by bringing together activities ensured by bringing together activities covered by the Preparatory Action on covered by the Preparatory Action on Defence Research launched by the Defence Research launched by the Commission within the meaning of Article Commission within the meaning of Article [58 (2) (b)] of Regulation (EU, Euratom) [58 (2) (b)] of Regulation (EU, Euratom) 2018/…of the European Parliament and of 2018/…of the European Parliament and of the Council (the ‘Financial Regulation’) the Council (the ‘Financial Regulation’) and the European Defence Industrial and the European Defence Industrial Development Programme established by Development Programme established by Regulation (EC) No … of the European Regulation (EC) No … of the European Parliament and of the Council and to Parliament and of the Council and to harmonise the conditions for participation, harmonise the conditions for participation, to create a more coherent set of to create a more coherent set of instruments, to increase the innovative, instruments, to increase the innovative, collaborative and economic impact, while collaborative and economic impact, while avoiding unnecessary duplication and avoiding unnecessary duplication and fragmentation. With this integrated fragmentation. With this integrated approach, the Fund would also contribute approach, the Fund would also contribute to a better exploitation of the results of to a better exploitation of the results of defence research, covering the gap between defence research, covering the gap between research and development taking into research and development taking into account the specificities of the defence account the specificities of the defence sector, and promoting all forms of sector, and promoting all forms of innovation, including disruptive innovation innovation, including disruptive innovation where possible failure should be accepted. where possible failure should be accepted and conversion from military to civil production.

Or. en

PE627.775v01-00 40/186 AM\1162781EN.docx EN Amendment 157 Rolandas Paksas

Proposal for a regulation Recital 28

Text proposed by the Commission Amendment

(28) The policy objectives of this Fund Deleted. will be also addressed through financial instruments and budgetary guarantees under the policy window(s) [...] of the InvestEU Fund.

Or. lt

Amendment 158 Edouard Martin, Martina Werner, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Recital 31

Text proposed by the Commission Amendment

(31) The Commission should establish (31) The Commission should establish annual or multiannual work programmes in annual or multiannual work programmes in line with the objectives of the Fund. The line with the objectives of the Fund. The Commission should be assisted in the Commission should be assisted in the establishment of the work programme by a establishment of the work programme by a committee of Member States. In order to committee of Member States. In order to benefit from its expertise in the defence benefit from its expertise in the defence sector, the European Defence Agency will sector, the European Defence Agency will be given the status of an observer in the be given the status of an observer in the committee. Given the specificities of the committee. Given the specificities of the defence area, the European External Action defence area, the European External Action Service should also assist in the committee Service should also assist in the committee of Member States. of Member States. The European Parliament may send representatives to the committee.

Or. en

Amendment 159 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 31

AM\1162781EN.docx 41/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

(31) The Commission should establish (31) The Commission should establish annual or multiannual work programmes in annual or multiannual work programmes in line with the objectives of the Fund. The line with the objectives of the Fund. The Commission should be assisted in the Commission should be assisted in the establishment of the work programme by a establishment of the work programme by a committee of Member States. In order to committee of Member States and benefit from its expertise in the defence representatives from the European sector, the European Defence Agency will Parliament. In order to benefit from its be given the status of an observer in the expertise in the defence sector, the committee. Given the specificities of the European Defence Agency will be given defence area, the European External Action the status of a participant in the Service should also assist in the committee committee. Given the specificities of the of Member States. defence area, the European External Action Service should also participate in the committee of Member States.

Or. en

Amendment 160 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 33

Text proposed by the Commission Amendment

(33) In order to support an open deleted internal market, participation of cross- border SMEs and mid-caps, either as members of consortia or as subcontractors, should be encouraged.

Or. en

Amendment 161 Fabio Massimo Castaldo

Proposal for a regulation Recital 33

Text proposed by the Commission Amendment

(33) In order to support an open internal (33) In order to support an open internal

PE627.775v01-00 42/186 AM\1162781EN.docx EN market, participation of cross-border SMEs market, participation of cross-border SMEs and mid-caps, either as members of and mid-caps, either as members of consortia or as subcontractors, should be consortia or as subcontractors, should be encouraged. encouraged, by providing – as already done in the EDIDP – for specific funding for SMEs, especially if they are involved in cross-border cooperation.

Or. it

Amendment 162 Fabio Massimo Castaldo

Proposal for a regulation Recital 34

Text proposed by the Commission Amendment

(34) The Commission should endeavour (34) The Commission should endeavour to maintain dialogue with Member States to maintain dialogue with Member States, and industry to ensure the success of the with the military component as regards Fund. technical aspects, and with industry to ensure the success of the Fund, ensuring that the final products developed are of concrete benefit to end-users.

Or. it

Amendment 163 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 34

Text proposed by the Commission Amendment

(34) The Commission should endeavour (34) The Commission should endeavour to maintain dialogue with Member States to maintain dialogue with Member States, and industry to ensure the success of the the European Parliament, defence experts Fund. from academia, trade unions and industry to ensure the success of the Fund.

Or. en

AM\1162781EN.docx 43/186 PE627.775v01-00 EN Amendment 164 Fabio Massimo Castaldo

Proposal for a regulation Recital 36

Text proposed by the Commission Amendment

(36) The Financial Regulation applies to (36) The Financial Regulation applies to the Fund, unless otherwise specified. It the Fund. It lays down rules on the lays down rules on the implementation of implementation of the Union budget, the Union budget, including the rules on including the rules on grants, prizes, grants, prizes, procurement, financial procurement, financial assistance, financial assistance, financial instruments and instruments and budgetary guarantees. budgetary guarantees.

Or. it

Amendment 165 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 40

Text proposed by the Commission Amendment

(40) Pursuant to paragraph 22 and 23 of (40) Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better the Inter-institutional agreement for Better Law-Making of 13 April 2016, there is a Law-Making of 13 April 2016, there is a need to evaluate this regulation on the basis need to evaluate this regulation on the basis of information collected through specific of information collected through specific monitoring requirements, while avoiding monitoring requirements, while avoiding overregulation and administrative burdens, overregulation and administrative burdens, in particular on Member States. These in particular on Member States. These requirements, where appropriate, can requirements, where appropriate, can include measurable indicators, as a basis include measurable indicators, as a basis for evaluating the effects of the regulation for evaluating the effects of the regulation on the ground. The Commission should on the ground. The Commission should carry out an interim evaluation no later carry out an interim evaluation at the end than four years after the start of the Fund of every financial year after the start of the implementation and a final evaluation at Fund implementation and a final evaluation the end of the implementation period of the at the end of the implementation period of Fund, examining the financial activities in the Fund, examining the financial activities terms of financial implementation results in terms of financial implementation results and to the extent possible at that point in and to the extent possible at that point in time, results and impact. This report should time, results and impact. This report should also analyse the cross-border participation also analyse the cross-border participation

PE627.775v01-00 44/186 AM\1162781EN.docx EN of SMEs and mid-caps in projects of SMEs and mid-caps in projects supported by the Fund as well as the supported by the Fund as well as the participation of SMEs and mid-caps to the participation of SMEs and mid-caps to the global value chain. The Commission may global value chain. The Commission may also propose amendments to this also propose amendments to this Regulation to react on possible Regulation to react on possible developments during the implementation developments during the implementation of the Fund. of the Fund.

Or. en

Amendment 166 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 40 a (new)

Text proposed by the Commission Amendment

(40a) The Commission, when monitoring and controlling the export of arms and technologies produced with funding from the European Union to countries other than NATO, EU and NATO equivalent countries shall be assisted by a supervisory board made up of the European Parliament, Commission, European External Action Service and EU Member States (hereafter referred to as the Supervisory Body).

Or. en

Amendment 167 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 41

Text proposed by the Commission Amendment

AM\1162781EN.docx 45/186 PE627.775v01-00 EN Sustainable Development Goals, this Fund Sustainable Development Goals, this Fund will contribute to mainstream climate will contribute to mainstream climate action in the Union's policies and to the action in the Union's policies and to the achievement of an overall target of 25 % of achievement of an overall target of 25 % of the EU budget expenditures supporting the EU budget expenditures supporting climate objectives. Relevant actions will be climate objectives. Relevant actions will be identified during the Fund's preparation identified during the Fund's preparation and implementation, and reassessed in the and implementation, and reassessed in the context of its mid-term evaluation. context of its mid-term evaluation. As military bases are amongst the biggest energy consumers and increasingly affected by the effects of climate change, the fund should pay special attention to incorporating climate action into its portfolio by awarding climate sensitive projects with greater financial support.

Or. en

Amendment 168 Edouard Martin, Clare Moody, Carlos Zorrinho

Proposal for a regulation Recital 41

Text proposed by the Commission Amendment

(41) Reflecting the importance of (41) Reflecting the importance of tackling climate change in line with the tackling climate change in line with the Union's commitments to implement the Union's commitments to implement the Paris Agreement and the United Nations Paris Agreement and the United Nations Sustainable Development Goals, this Fund Sustainable Development Goals, this Fund will contribute to mainstream climate will contribute to mainstream climate action in the Union's policies and to the action in the Union's policies and to the achievement of an overall target of 25 % of achievement of an overall target of 25 % of the EU budget expenditures supporting the EU budget expenditures supporting climate objectives. Relevant actions will be climate objectives by including the identified during the Fund's preparation environmental impact reduction as a goal and implementation, and reassessed in the and award criteria for the Fund. . context of its mid-term evaluation. Relevant actions will be identified during the Fund's preparation and implementation, and reassessed in the context of its mid- term evaluation.

Or. en

PE627.775v01-00 46/186 AM\1162781EN.docx EN Amendment 169 Clare Moody, Theresa Griffin

Proposal for a regulation Recital 41

Text proposed by the Commission Amendment

(41) Reflecting the importance of (41) Reflecting the importance of tackling climate change in line with the tackling climate change in line with the Union's commitments to implement the Union's commitments to implement the Paris Agreement and the United Nations Paris Agreement and the United Nations Sustainable Development Goals, this Fund Sustainable Development Goals, this Fund will contribute to mainstream climate will contribute to mainstream climate action in the Union's policies and to the action in the Union's policies and to the achievement of an overall target of 25 % of achievement of an overall target of 25 % of the EU budget expenditures supporting the EU budget expenditures supporting climate objectives. Relevant actions will be climate objectives by including the identified during the Fund's preparation environmental impact reduction as a goal and implementation, and reassessed in the and award criteria for the Fund. Relevant context of its mid-term evaluation. actions will be identified during the Fund's preparation and implementation, and reassessed in the context of its mid-term evaluation.

Or. en

Amendment 170 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 42

Text proposed by the Commission Amendment

(42) As the Fund supports only the (42) The Union should have ownership research and development phases of or intellectual property rights (IPRs) over defence products and technologies, in the products or technologies resulting from principle the Union should not have the funded actions. ownership or intellectual property rights (IPRs) over the products or technologies resulting from the funded actions unless the Union assistance is provided through procurement. However, for research actions, interested Member States and associated countries should have the possibility to use the results of funded

AM\1162781EN.docx 47/186 PE627.775v01-00 EN actions and participate in follow-up cooperative development and therefore derogations to that principle should be allowed.

Or. en

Amendment 171 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Recital 43

Text proposed by the Commission Amendment

(43) The Union financial support should (43) The Union financial support will not affect the transfer of defence-related affect the transfer of defence-related products within the Union in accordance products within the Union in accordance with Directive 2009/43/CE of the with Directive2009/43/CE of the European European Parliament and the Council15 , Parliament and the Council15 , as well as nor the export of products, equipment or the export of products, equipment or technologies. technologies. The Commission when monitoring and controlling the export of arms and technologies produced with financial assets from the Fund shall be assisted by a supervisory body made up of the European Parliament, European Commission, European External Action Service and EU Member States (hereafter referred to as the Supervisory Body). ______15 Directive 2009/43/EC of the European 15 Directive 2009/43/EC of the European Parliament and the Council of 6 May 2009 Parliament and the Council of 6 May 2009 simplifying terms and conditions of simplifying terms and conditions of transfers of defence-related products within transfers of defence-related products within the Community (OJ L 146, 10.6.2009, p. the Community (OJ L 146, 10.6.2009, p. 1). 1).

Or. en

Amendment 172 Edouard Martin

Proposal for a regulation

PE627.775v01-00 48/186 AM\1162781EN.docx EN Recital 43

Text proposed by the Commission Amendment

(43) The Union financial support should (43) The Union financial support should not affect the transfer of defence-related not affect the transfer of defence-related products within the Union in accordance products within the Union in accordance with Directive 2009/43/CE of the European with Directive 2009/43/CE of the European Parliament and the Council15 , nor the Parliament and the Council15. export of products, equipment or technologies. ______15 Directive 2009/43/EC of the European 15 Directive 2009/43/EC of the European Parliament and the Council of 6 May 2009 Parliament and the Council of 6 May 2009 simplifying terms and conditions of simplifying terms and conditions of transfers of defence-related products within transfers of defence-related products within the Community (OJ L 146, 10.6.2009, p. the Community (OJ L 146, 10.6.2009, p. 1). 1).

Or. en

Amendment 173 Edouard Martin, Clare Moody, Răzvan Popa, Eugen Freund

Proposal for a regulation Recital 43 a (new)

Text proposed by the Commission Amendment

(43a) Entities which have been found guilty in a court of law of a criminal offence such as, but not limited to, bribing official or breaching EU restrictive measures, should not be eligible for funding. The Commission may decide that any such entity, or an entity where senior executives have been found guilty, shall be barred from applying for funding for a period of no less than 36 months following conviction. The Commission shall maintain a publicly accessible database of all barred undertakings. Where an entity is under a credible and relevant investigation for a criminal offence, the Commission should reserve the right to await the outcome of the

AM\1162781EN.docx 49/186 PE627.775v01-00 EN investigation before awarding funding.

Or. en

Amendment 174 Clare Moody, Theresa Griffin

Proposal for a regulation Recital 43 a (new)

Text proposed by the Commission Amendment

Or. en

Amendment 175 Clare Moody, Theresa Griffin

Proposal for a regulation Recital 43 b (new)

Text proposed by the Commission Amendment

(43b) The Fund should support industry best practice in corporate governance and procurement practices. This should include the possibility for anonymous and

PE627.775v01-00 50/186 AM\1162781EN.docx EN confidential whistleblowing, through hotlines operated by third parties and with procedures in place to prevent retaliation. The award procedure should reflect these corporate governance standards with the goal of raising corporate accountability standards in the European defence sector.

Or. en

Amendment 176 Edouard Martin, Clare Moody, Carlos Zorrinho, Eugen Freund

Proposal for a regulation Recital 43 b (new)

Text proposed by the Commission Amendment

(43b) The Fund should support industry best practice in corporate governance and procurement practices. This should include the possibility for anonymous and confidential whistleblowing, through hotlines operated by third parties and with procedures in place to prevent retaliation. The award procedure should reflect these corporate governance standards with the goal of raising corporate accountability standards in the European defence sector.

Or. en

Amendment 177 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 2 – paragraph 1 – point 1 a (new)

Text proposed by the Commission Amendment

(1a) 'conversion' means the translation of military structures, products or production lines into civilian usage;

Or. en

AM\1162781EN.docx 51/186 PE627.775v01-00 EN Amendment 178 Gunnar Hökmark

Proposal for a regulation Article 3 – paragraph 1

Text proposed by the Commission Amendment

1. The general objective of the Fund is 1. The general objective of the Fund is to foster the competitiveness, efficiency to foster the competitiveness and and innovation capacity of the European innovation capacity of the defence industry defence industry, by supporting in Europe, and to foster an efficient collaborative actions and cross-border development of capacities and capabilities cooperation between legal entities on the European defence industrial throughout the Union, including SMEs and market, thus contributing to increasing mid-caps as well as fostering the better the Union´s global relevance in the field exploitation of the industrial potential of of security and defence, by supporting innovation, research and technological collaborative actions and cross-border development, at each stage of the industrial cooperation between legal entities life cycle, thus contributing to the Union throughout the Union, including SMEs and strategic autonomy. The Fund should also mid-caps and, where appropriate, with contribute to the freedom of action of the strategic partners outside the Union, as Union and its autonomy, in particular in well as fostering the better exploitation of technological and industrial terms. the industrial potential of innovation, research and technological development, at each stage of the industrial life cycle, thus contributing to the Union strategic capacity and global competitiveness of the European market. The Fund should also contribute to the freedom of action of the Union and its autonomy, in particular in technological and industrial terms.

Or. en

Amendment 179 Christian Ehler, Michael Gahler

Proposal for a regulation Article 3 – paragraph 1

Text proposed by the Commission Amendment

1. The general objective of the Fund is 1. The general objective of the Fund is to foster the competitiveness, efficiency to enable the Union to apply its

PE627.775v01-00 52/186 AM\1162781EN.docx EN and innovation capacity of the European competence to define and implement a defence industry, by supporting common foreign and security policy, collaborative actions and cross-border including the progressive framing of a cooperation between legal entities common defence policy, and to foster the throughout the Union, including SMEs and competitiveness, efficiency and innovation mid-caps as well as fostering the better capacity of the European defence industry, exploitation of the industrial potential of by supporting collaborative actions and innovation, research and technological cross-border cooperation between legal development, at each stage of the industrial entities throughout the Union, including life cycle, thus contributing to the Union SMEs and mid-caps as well as fostering the strategic autonomy. The Fund should also better exploitation of the industrial contribute to the freedom of action of the potential of innovation, research and Union and its autonomy, in particular in technological development, at each stage technological and industrial terms. of the industrial life cycle, thus contributing to the Union strategic autonomy. The Fund should also contribute to the freedom of action of the Union and its autonomy, in particular in technological and industrial terms.

Or. en

Amendment 180 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 3 – paragraph 1

Text proposed by the Commission Amendment

1. The general objective of the Fund is 1. The general objective of the Fund is to foster the competitiveness, efficiency to contribute to the political priorities and innovation capacity of the European under the CFSP/CSDP framework, and to defence industry, by supporting foster the integration, interoperability, collaborative actions and cross-border efficiency and innovation capacity, cooperation between legal entities especially in cyber-defence, of the throughout the Union, including SMEs European defence industry, by supporting and mid-caps as well as fostering the better collaborative actions and cross-border exploitation of the industrial potential of cooperation between legal entities innovation, research and technological throughout the Union, as well as fostering development, at each stage of the industrial the better exploitation of the industrial life cycle, thus contributing to the Union potential of innovation, research and strategic autonomy. The Fund should also technological development, at each stage contribute to the freedom of action of the of the industrial life cycle, thus Union and its autonomy, in particular in contributing to the Union strategic technological and industrial terms. autonomy. The Fund should also contribute to the freedom of action of the Union and

AM\1162781EN.docx 53/186 PE627.775v01-00 EN its autonomy, in particular in technological and industrial terms.

Or. en

Amendment 181 Fabio Massimo Castaldo

Proposal for a regulation Article 3 – paragraph 1

Text proposed by the Commission Amendment

1. The general objective of the Fund is 1. The general objective of the Fund is to foster the competitiveness, efficiency to foster the competitiveness, efficiency, and innovation capacity of the European inclusivity and innovation capacity of the defence industry, by supporting European defence industry, by supporting collaborative actions and cross-border collaborative actions and cross-border cooperation between legal entities cooperation between legal entities throughout the Union, including SMEs and throughout Europe, including SMEs and mid-caps as well as fostering the better mid-caps, as well as fostering the better exploitation of the industrial potential of exploitation of the industrial potential of innovation, research and technological innovation, research and technological development, at each stage of the industrial development, at each stage of the industrial life cycle, thus contributing to the Union life cycle, thus contributing to the Union strategic autonomy. The Fund should also strategic autonomy thanks to the contribute to the freedom of action of the development of more advanced military Union and its autonomy, in particular in capabilities. The Fund should also technological and industrial terms. contribute to the freedom of action of the Union and its autonomy, in particular in technological, industrial and defence terms.

Or. it

Amendment 182 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 3 – paragraph 1

Text proposed by the Commission Amendment

1. The general objective of the Fund is (Does not affect the English version.) to foster the competitiveness, efficiency

PE627.775v01-00 54/186 AM\1162781EN.docx EN and innovation capacity of the European defence industry, by supporting collaborative actions and cross-border cooperation between legal entities throughout the Union, including SMEs and mid-caps as well as fostering the better exploitation of the industrial potential of innovation, research and technological development, at each stage of the industrial life cycle, thus contributing to the Union strategic autonomy. The Fund should also contribute to the freedom of action of the Union and its autonomy, in particular in technological and industrial terms.

Or. fr

Amendment 183 Françoise Grossetête, Sven Schulze, Christian Ehler, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 3 – paragraph 1

Text proposed by the Commission Amendment

1. The general objective of the Fund is 1. The general objective of the Fund is to foster the competitiveness, efficiency to foster the competitiveness, efficiency and innovation capacity of the European and innovation capacity of the European defence industry, by supporting defence industry, by supporting collaborative actions and cross-border collaborative actions and cross-border cooperation between legal entities cooperation between legal entities throughout the Union, including SMEs and throughout the Union, including SMEs and mid-caps as well as fostering the better mid-caps as well as fostering the better exploitation of the industrial potential of exploitation of the industrial potential of innovation, research and technological innovation, research and technological development, at each stage of the industrial development, at each stage of the industrial life cycle, thus contributing to the Union life cycle, thus contributing to the Union strategic autonomy. The Fund should also strategic autonomy. The Fund shall contribute to the freedom of action of the contribute to the freedom of action of the Union and its autonomy, in particular in Union and its autonomy, in particular in technological and industrial terms. technological and industrial terms.

Or. en

AM\1162781EN.docx 55/186 PE627.775v01-00 EN Amendment 184 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 3 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) support collaborative research (a) support highly efficient projects that could significantly boost the collaborative research projects; performance of future capabilities, aiming at maximising innovation and introducing new defence products and technologies, including disruptive ones;

Or. en

Amendment 185 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 3 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) support collaborative research (a) support collaborative research projects that could significantly boost the projects that could significantly boost the performance of future capabilities, aiming performance of future capabilities, aiming at maximising innovation and introducing at maximising innovation and integration, new defence products and technologies, and introducing new defence products and including disruptive ones; technologies, including disruptive ones;

Or. en

Amendment 186 Edouard Martin, Miroslav Poche, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 3 – paragraph 2 – point a

Text proposed by the Commission Amendment

PE627.775v01-00 56/186 AM\1162781EN.docx EN at maximising innovation and introducing capabilities, aiming at maximising new defence products and technologies, innovation and introducing new defence including disruptive ones; products and technologies, including disruptive ones;

Or. en

Amendment 187 Gunnar Hökmark

Proposal for a regulation Article 3 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) support collaborative development (b) support collaborative development projects of defence products and projects of defence products and technologies consistent with defence technologies consistent with defence capability priorities commonly agreed by capability priorities commonly agreed by Member States within the framework of Member States within the framework of the Common Foreign and Security Policy, the Common Foreign and Security Policy, thus contributing to greater efficiency of thereby contribute to a more competitive defence spending within the Union, European defence market capable of achieving greater economies of scale, attracting investments and knowledge, reducing the risk of unnecessary greater efficiency of defence spending duplication and as such reducing the within the Union, achieving greater fragmentation of defence products and economies of scale and enhanced technologies throughout the Union. international cooperation with strategic Ultimately, the Fund will lead to greater partners, reducing the risk of unnecessary interoperability between Member States' duplication and as such reducing the capabilities. fragmentation of defence products and technologies throughout the Union. Ultimately, the Fund will lead to greater interoperability between Member States' capabilities.

Or. en

Amendment 188 Edouard Martin, Miroslav Poche, Carlos Zorrinho

Proposal for a regulation Article 3 – paragraph 2 – point b

AM\1162781EN.docx 57/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

(b) support collaborative development (b) support collaborative development projects of defence products and projects of defence products and technologies consistent with defence technologies consistent with defence capability priorities commonly agreed by capability priorities commonly agreed by Member States within the framework of Member States within the framework of the Common Foreign and Security Policy, the Common Foreign and Security Policy thus contributing to greater efficiency of and in particular in the context of the defence spending within the Union, CDP of the Common Security and achieving greater economies of scale, Defence Policy, thus contributing to reducing the risk of unnecessary greater efficiency of defence spending duplication and as such reducing the within the Union, achieving greater fragmentation of defence products and economies of scale, reducing the risk of technologies throughout the Union. unnecessary duplication and as such Ultimately, the Fund will lead to greater reducing the fragmentation of defence interoperability between Member States' products and technologies throughout the capabilities. Union. Ultimately, the Fund will lead to greater interoperability between Member States' capabilities and the acquisition of European equipment by Member States.

Or. en

Amendment 189 Christian Ehler, Michael Gahler

Proposal for a regulation Article 3 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) support collaborative development (b) support collaborative development projects of defence products and projects of defence products and technologies consistent with defence technologies consistent with defence capability priorities commonly agreed by capability priorities commonly agreed by Member States within the framework of Member States within the framework of the Common Foreign and Security Policy, the Common Foreign and Security Policy thus contributing to greater efficiency of and in particular in the context of the defence spending within the Union, Capability Development Mechanism achieving greater economies of scale, (CDM), thus contributing to greater reducing the risk of unnecessary efficiency of defence spending within the duplication and as such reducing the Union, achieving greater economies of fragmentation of defence products and scale, reducing the risk of unnecessary technologies throughout the Union. duplication and as such reducing the Ultimately, the Fund will lead to greater fragmentation of defence products and interoperability between Member States' technologies throughout the Union.

PE627.775v01-00 58/186 AM\1162781EN.docx EN capabilities. Ultimately, the Fund will lead to greater interoperability between Member States' capabilities.

Or. en

Amendment 190 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 3 – paragraph 2 – point b

Text proposed by the Commission Amendment b) support collaborative development b) support collaborative development projects of defence products and projects of defence products and technologies consistent with defence technologies consistent with defence capability priorities commonly agreed by capability priorities commonly agreed by Member States within the framework of Member States within the framework of the Common Foreign and Security Policy, the Common Foreign and Security Policy, thus contributing to greater efficiency of thus contributing to greater efficiency of defence spending within the Union, defence spending within the Union, achieving greater economies of scale, achieving greater economies of scale, reducing the risk of unnecessary reducing the risk of unnecessary duplication and as such reducing the duplication and as such reducing the fragmentation of defence products and fragmentation of defence products and technologies throughout the Union. technologies throughout the Union. The Ultimately, the Fund will lead to greater Fund will also have to lead to greater interoperability between Member States' interoperability between Member States' capabilities. capabilities, while promoting the standardisation of military systems.

Or. fr

Amendment 191 Fabio Massimo Castaldo

Proposal for a regulation Article 3 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) support collaborative development (b) support, from a European projects of defence products and standpoint, collaborative development technologies consistent with defence projects of defence products and

AM\1162781EN.docx 59/186 PE627.775v01-00 EN capability priorities commonly agreed by technologies consistent with defence Member States within the framework of capability priorities commonly agreed by the Common Foreign and Security Policy, Member States within the framework of thus contributing to greater efficiency of the Common Foreign and Security Policy, defence spending within the Union, thus contributing to greater efficiency of achieving greater economies of scale, defence spending within the Union, reducing the risk of unnecessary achieving greater economies of scale, duplication and as such reducing the reducing the risk of unnecessary fragmentation of defence products and duplication and as such reducing the technologies throughout the Union. fragmentation of defence products and Ultimately, the Fund will lead to greater technologies throughout the Union. interoperability between Member States' Ultimately, the Fund will lead to greater capabilities. interoperability between Member States' capabilities.

Or. it

Amendment 192 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 3 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) support collaborative development (b) support highly efficient projects of defence products and collaborative development projects of technologies consistent with defence defence products and technologies capability priorities commonly agreed by consistent with defence capability priorities Member States within the framework of commonly agreed by Member States the Common Foreign and Security Policy, within the framework of the Capability thus contributing to greater efficiency of Development Plan (CAP), thus defence spending within the Union, contributing to greater efficiency of achieving greater economies of scale, defence spending within the Union, reducing the risk of unnecessary achieving greater economies of scale, duplication and as such reducing the reducing the risk of unnecessary fragmentation of defence products and duplication and as such reducing the technologies throughout the Union. fragmentation of defence products and Ultimately, the Fund will lead to greater technologies throughout the Union. interoperability between Member States' Ultimately, the Fund shall seek greater capabilities. interoperability between Member States' capabilities..

Or. en

PE627.775v01-00 60/186 AM\1162781EN.docx EN Amendment 193 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 3 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) support collaborative development (b) support collaborative development projects of defence products and projects of defence products and technologies consistent with defence technologies consistent with defence capability priorities commonly agreed by capability priorities commonly agreed by Member States within the framework of Member States within the framework of the Common Foreign and Security Policy, the Common Foreign and Security Policy, thus contributing to greater efficiency of thus contributing to greater efficiency of defence spending within the Union, defence spending within the Union, achieving greater economies of scale, achieving greater economies of scale, reducing the risk of unnecessary eliminating the risk of unnecessary duplication and as such reducing the duplication and as such reducing the fragmentation of defence products and fragmentation of defence products and technologies throughout the Union. technologies throughout the Union. Ultimately, the Fund will lead to greater Ultimately, the Fund will lead to greater interoperability between Member States' interoperability between Member States' capabilities. capabilities.

Or. en

Amendment 194 Fabio Massimo Castaldo

Proposal for a regulation Article 3 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(ba) encourage European cooperation on research and the defence industry by involving three or more Member States and three or more companies, as specified in Article 11(4).

Or. it

Amendment 195 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

AM\1162781EN.docx 61/186 PE627.775v01-00 EN Proposal for a regulation Article 3 – paragraph 2 – point b a (new)

Text proposed by the Commission Amendment

(ba) contribute to innovative conversion of military to civilian production;

Or. en

Amendment 196 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 3 – paragraph 2 – point b b (new)

Text proposed by the Commission Amendment

(bb) foster efficiency gains for the overall reduction of costs for defence;

Or. en

Amendment 197 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

1. The financial envelope for the 1. The financial envelope for the implementation of the European Defence implementation of the European Defence Fund for the period 2021 – 2027 shall be Fund for the period 2021 – 2027 shall be EUR 13 000 000 000 in current prices. EUR 13 000 000 000 in current prices. Spending from the EU budget shall be compensated by savings in national defence budgets.

Or. en

PE627.775v01-00 62/186 AM\1162781EN.docx EN Amendment 198 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

1. The financial envelope for the 1. The financial envelope for the implementation of the European Defence implementation of the European Defence Fund for the period 2021 – 2027 shall be Fund for the period 2021 – 2027 shall be EUR 13 000 000 000 in current prices. EUR 11 453 000 000 in constant prices. This financial envelope shall be additional to pre-existing MFF headings.

Or. en

Amendment 199 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 4 – paragraph 1

Text proposed by the Commission Amendment

Or. en

Justification

While the Commission proposes to strongly increase investments in military technology for the 2021-2027 financial framework, EU budget funds for civilian conflict prevention and crisis response are reduced to a financial volume, which is less than 50% of what was available during the 2014-2020 MFF. The current proposal of the Commission of EUR 1 Billion for EU civilian conflict and crisis response in the context of the NDICI draft regulation needs a sharp increase to EUR 3.5 Billion. In a similar vein and because of the multiple crisis around in Europe’ neighbourhood,, EU budget resources for civilian CSDSP missions need to be increased by EUR 0.5 Billion. Consequently the amount of paragraph 2 (a) is reduced by EUR 1 Billion and the amount of paragraph 2 (b) by EUR 3 Billion.

AM\1162781EN.docx 63/186 PE627.775v01-00 EN Amendment 200 Edouard Martin

Proposal for a regulation Article 4 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) up to EUR 4 100 000 000 for (a) EUR 3 612 100 000 for research research actions; actions (constant prices);

Or. en

Amendment 201 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 4 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) up to EUR 4 100 000 000 for (a) up to EUR 6 500 000 000 for research actions; research actions;

Or. en

Amendment 202 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 4 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) up to EUR 4 100 000 000 for (a) up to EUR 3 100 000 000 for research actions; research actions;

Or. en

Justification

PE627.775v01-00 64/186 AM\1162781EN.docx EN available during the 2014-2020 MFF. The current proposal of the Commission of EUR 1 Billion for EU civilian conflict and crisis response in the context of the NDICI draft regulation needs a sharp increase to EUR 3.5 Billion. In a similar vein and because of the multiple crisis around in Europe’ neighbourhood,, EU budget resources for civilian CSDSP missions need to be increased by EUR 0.5 Billion. Consequently the amount of paragraph 2 (a) is reduced by EUR 1 Billion and the amount of paragraph 2 (b) by EUR 3 Billion.

Amendment 203 Edouard Martin

Proposal for a regulation Article 4 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) up to EUR 8 900 000 000 for (b) EUR 7 840 900 000 for development actions. development actions (constant prices).

Or. en

Amendment 204 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 4 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) up to EUR 8 900 000 000 for (b) up to EUR 6 500 000 000 for development actions. development actions.

Or. en

Amendment 205 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 4 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) up to EUR 8 900 000 000 for (b) up to EUR 5 900 000 000 for

AM\1162781EN.docx 65/186 PE627.775v01-00 EN development actions. development actions.

Or. en

Justification

Amendment 206 Edouard Martin, Martina Werner

Proposal for a regulation Article 4 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. In order to respond to unforeseen circumstances or to new developments and needs, the Commission may, within the annual budgetary procedure, deviate from the amounts referred to in paragraph 2 by a maximum of 10%.

Or. en

Amendment 207 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 4 – paragraph 3

Text proposed by the Commission Amendment

3. The amount referred to in deleted paragraph 1 may be used for technical and administrative assistance for the implementation of the Fund, such as

PE627.775v01-00 66/186 AM\1162781EN.docx EN preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems.

Or. en

Amendment 208 Edouard Martin

Proposal for a regulation Article 4 – paragraph 3

Text proposed by the Commission Amendment

3. The amount referred to in 3. The amount referred to in paragraph 1 may be used for technical and paragraph 1 may be used for technical and administrative assistance for the administrative assistance for the implementation of the Fund, such as implementation of the Fund, such as preparatory, monitoring, control, audit and preparatory, monitoring, control, audit and evaluation activities including corporate evaluation activities including corporate information technology systems. information technology systems. This amount shall not exceed 5% of the value of the financial envelope referred in paragraph 1.

Or. en

Amendment 209 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 4 – paragraph 4

Text proposed by the Commission Amendment

4. Up to 5 % of the financial deleted envelope referred to in paragraph 1 shall be devoted to support disruptive technologies for defence.

Or. en

AM\1162781EN.docx 67/186 PE627.775v01-00 EN Amendment 210 Françoise Grossetête, Sven Schulze, Christian Ehler, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 4 – paragraph 4

Text proposed by the Commission Amendment

4. Up to 5 % of the financial envelope 4. At least 5 % of the financial referred to in paragraph 1 shall be devoted envelope referred to in paragraph 1 shall be to support disruptive technologies for devoted to support disruptive technologies defence. for defence.

Or. en

Amendment 211 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 4 – paragraph 4

Text proposed by the Commission Amendment

4. Up to 5 % of the financial envelope 4. Up to 10 % of the financial referred to in paragraph 1 shall be devoted envelope referred to in paragraph 1 shall be to support disruptive technologies for devoted to support disruptive technologies defence. for defence.

Or. fr

Amendment 212 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 4 – paragraph 4

Text proposed by the Commission Amendment

4. Up to 5 % of the financial envelope 4. Up to 25 % of the financial referred to in paragraph 1 shall be devoted envelope referred to in paragraph 1 shall be to support disruptive technologies for devoted to support cyber-defence. defence.

Or. en

PE627.775v01-00 68/186 AM\1162781EN.docx EN Amendment 213 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 4 – paragraph 4 a (new)

Text proposed by the Commission Amendment

4a. At least 25 % of the financial envelope referred to in paragraph 1 shall be devoted to fostering conversion from military to civil production.

Or. en

Amendment 214 Edouard Martin, Martina Werner

Proposal for a regulation Article 4 – paragraph 5

Text proposed by the Commission Amendment

5. Resources allocated to Member deleted States under shared management may, at their request, be transferred to the Fund. The Commission shall implement those resources directly in accordance with Article [62(1)(a)] of the Financial Regulation. Where possible those resources shall be used for the benefit of the Member State concerned.

Or. en

Amendment 215 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 4 – paragraph 5

Text proposed by the Commission Amendment

AM\1162781EN.docx 69/186 PE627.775v01-00 EN 5. Resources allocated to Member deleted States under shared management may, at their request, be transferred to the Fund. The Commission shall implement those resources directly in accordance with Article [62(1)(a)] of the Financial Regulation. Where possible those resources shall be used for the benefit of the Member State concerned.

Or. en

Amendment 216 Françoise Grossetête, Sven Schulze, Pilar del Castillo Vera

Proposal for a regulation Article 4 – paragraph 5

Text proposed by the Commission Amendment

Or. en

Amendment 217 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 4 – paragraph 5

Text proposed by the Commission Amendment

5. Resources allocated to Member 5. Resources allocated to Member States under shared management may, at States under shared management may, at their request, be transferred to the Fund. their request, be transferred to the Fund. The Commission shall implement those The Commission shall implement those resources directly in accordance with resources directly in accordance with

PE627.775v01-00 70/186 AM\1162781EN.docx EN Article [62(1)(a)] of the Financial Article [62(1)(a)] of the Financial Regulation. Where possible those Regulation. Those resources shall be used resources shall be used for the benefit of for the benefit of the Member State the Member State concerned. concerned.

Or. fr

Amendment 218 Edouard Martin

Proposal for a regulation Article 5 – paragraph 1

Text proposed by the Commission Amendment

The Fund shall be open to the European The Fund shall be open to the European Free Trade Association (EFTA) members Free Trade Association (EFTA) members which are members of the European which are members of the European Economic Area (EEA), in accordance with Economic Area (EEA), in accordance with the conditions laid down in the EEA the conditions laid down in the EEA agreement. agreement. Any financial contribution to the programme based on this article shall constitute assigned revenue in accordance with Article [21(5)] of the Financial Regulation.

Or. en

Amendment 219 Clare Moody, Theresa Griffin

Proposal for a regulation Article 5 – paragraph 1

Text proposed by the Commission Amendment

The Fund shall be open to the European The Fund shall be open to the European Free Trade Association (EFTA) members Free Trade Association (EFTA) members which are members of the European which are members of the European Economic Area (EEA), in accordance with Economic Area (EEA), in accordance with the conditions laid down in the EEA the conditions laid down in the EEA agreement. agreement. The Fund shall also be open to countries with which the EU has signed a security treaty including on defence industry collaboration.

AM\1162781EN.docx 71/186 PE627.775v01-00 EN Or. en

Amendment 220 Olle Ludvigsson

Proposal for a regulation Article 5 – paragraph 1

Text proposed by the Commission Amendment

Or. en

Amendment 221 Gunnar Hökmark

Proposal for a regulation Article 5 – paragraph 1

Text proposed by the Commission Amendment

Or. en

Amendment 222 Olle Ludvigsson

Proposal for a regulation Article 6 – paragraph 1

PE627.775v01-00 72/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

1. The Commission shall award 1. The Commission shall award funding through open and public funding for support to, but not limited to, consultations on the areas of intervention disruptive technologies for defined in the work programmes. defence through open and public consultations on the areas of intervention defined in the work programmes.

Or. en

Amendment 223 Christian Ehler, Michael Gahler

Proposal for a regulation Article 6 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission shall award 1. The Commission shall award funding through open and public funding through open and public consultations on the areas of intervention consultations on the areas of intervention defined in the work programmes. defined in the work programmes taking into consideration the Capability Development Mechanism (CDM).

Or. en

Amendment 224 David Borrelli

Proposal for a regulation Article 6 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission shall award 1. The Commission shall award funding through open and public funding through open and public consultations on the areas of intervention consultations on the areas of intervention defined in the work programmes. defined in the work programmes and after seeking the opinion of the European Parliament.

Or. it

AM\1162781EN.docx 73/186 PE627.775v01-00 EN Amendment 225 Fabio Massimo Castaldo

Proposal for a regulation Article 6 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission may, on a case by 2. The Commission may, on a case by case basis, find the most appropriate form case basis, find the most appropriate form of funding to finance innovative solutions. of funding to finance disruptive technologies.

Or. it

Amendment 226 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 6 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission may, on a case by 2. The Commission shall define, on a case basis, find the most appropriate form case by case basis, the most appropriate of funding to finance innovative solutions. form of funding to finance innovative solutions.

Or. fr

Amendment 227 Edouard Martin, Eugen Freund

Proposal for a regulation Article 7 – paragraph 1

Text proposed by the Commission Amendment

1. Actions carried out under the Fund 1. Actions carried out under the Fund shall comply with ethical principles and shall comply with ethical principles and relevant national, Union and international relevant national, Union and international legislation. legislation, notably the Arms Trade Treaty which was ratified by all the EU Member-

PE627.775v01-00 74/186 AM\1162781EN.docx EN States.

Or. en

Amendment 228 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 7 – paragraph 2

Text proposed by the Commission Amendment

2. Proposals shall be systematically deleted screened to identify those actions raising complex or serious ethics issues and submit them to an ethics assessment. Ethics screenings and assessments shall be carried out by the Commission with the support of experts on defence ethics. The Commission shall ensure the transparency of the ethics procedures as much as possible.

Or. fr

Amendment 229 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 7 – paragraph 2

Text proposed by the Commission Amendment

2. Proposals shall be systematically 2. All proposals shall be screened to identify those actions raising systematically screened ex-ante to identify complex or serious ethics issues and those actions raising complex or serious submit them to an ethics assessment. Ethics ethics issues and submit them to an ex-ante screenings and assessments shall be carried ethics impact assessment. This review out by the Commission with the support of must extend beyond the narrow confines experts on defence ethics. The of privacy and data protection take into Commission shall ensure the transparency account the broader societal impacts of of the ethics procedures as much as the underlying security R&D agenda. possible. Proposals that raise substantial ethical and/or societal impact concerns must be

AM\1162781EN.docx 75/186 PE627.775v01-00 EN subject to enhanced scrutiny and control. In particular each project under that call will be subject to ethical review. Ethics screenings and assessments shall be carried out by the Commission with the support of independent experts with various background, including from civil society. The Commission shall ensure the transparency of the ethics procedures and report every six months to the European Parliament..

Or. en

Justification

This Programme will support R&D of technology designed to end the lives of human beings. It is therefore imperative to implement the highest possible standards as regards ethical review and transparency. In this respect, it is unacceptable that the Commission only consults "experts on defence ethics".

Amendment 230 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Article 7 – paragraph 2

Text proposed by the Commission Amendment

2. Proposals shall be systematically 2. Proposals shall be systematically screened to identify those actions raising screened to identify those actions raising complex or serious ethics issues and complex or serious ethics issues and submit them to an ethics assessment. Ethics submit them to an ethics assessment. Ethics screenings and assessments shall be carried screenings and assessments shall be carried out by the Commission with the support of out by the Commission with the support of experts on defence ethics. The Commission experts on defence ethics, selected on a shall ensure the transparency of the ethics gender-balanced basis, whose list is public procedures as much as possible. and updated regularly. These experts shall represent a diversity of opinions in the military, technology and civil protection fields (including medical staff). The Commission shall ensure the transparency of the ethics procedures and the experts shall collectively publish an annual report on the ethical issues they had to debate and assess.

PE627.775v01-00 76/186 AM\1162781EN.docx EN Or. en

Amendment 231 Françoise Grossetête, Christian Ehler, Massimiliano Salini, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Article 7 – paragraph 2

Text proposed by the Commission Amendment

2. Proposals shall be systematically 2. Proposals shall be systematically screened to identify those actions raising screened to identify those actions raising complex or serious ethics issues and complex or serious ethics issues and submit them to an ethics assessment. Ethics submit them to an ethics assessment. Ethics screenings and assessments shall be carried screenings and assessments shall be carried out by the Commission with the support of out by the Commission with the support of experts on defence ethics. The Commission experts on defence ethics. All experts shall shall ensure the transparency of the ethics be required to be validated by the Member procedures as much as possible. States that has issued their security clearance. The appropriate security clearance shall be required before appointment. The Commission shall ensure the transparency of the ethics procedures as much as possible.

Or. en

Amendment 232 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 7 – paragraph 2

Text proposed by the Commission Amendment

2. Proposals shall be systematically 2. Proposals shall be systematically screened to identify those actions raising screened to identify those actions raising complex or serious ethics issues and complex or serious ethics issues and submit them to an ethics assessment. Ethics submit them to an ethics assessment. Ethics screenings and assessments shall be carried screenings and assessments shall be carried out by the Commission with the support of out by the Commission with the support of experts on defence ethics. The Commission experts on defence ethics. They can be shall ensure the transparency of the ethics invoked by the European Parliament in procedures as much as possible. case its majority suspects an ethical issue with an action. The Commission shall

AM\1162781EN.docx 77/186 PE627.775v01-00 EN ensure the transparency of the ethics procedures.

Or. en

Amendment 233 David Borrelli

Proposal for a regulation Article 7 – paragraph 2

Text proposed by the Commission Amendment

2. Proposals shall be systematically 2. Proposals shall be systematically screened to identify those actions raising screened to identify those actions raising complex or serious ethics issues and complex or serious ethics issues and submit them to an ethics assessment. Ethics submit them to an ethics assessment. Ethics screenings and assessments shall be carried screenings and assessments shall be carried out by the Commission with the support of out by the Commission with the support of experts on defence ethics. The Commission experts on defence ethics, after seeking the shall ensure the transparency of the ethics opinion of the European Parliament. The procedures as much as possible. Commission shall ensure the transparency of the ethics procedures.

Or. it

Amendment 234 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 7 – paragraph 3

Text proposed by the Commission Amendment

3. Entities participating in the action deleted shall obtain all approvals or other mandatory documents from the relevant national, local ethics committees or other bodies such as data protection authorities before the start of the relevant activities. Those documents shall be kept on file and provided to the Commission.

Or. fr

PE627.775v01-00 78/186 AM\1162781EN.docx EN Amendment 235 Clare Moody, Theresa Griffin

Proposal for a regulation Article 7 – paragraph 3 a (new)

Text proposed by the Commission Amendment

3a. Entities participating in the action shall demonstrate to the Commission that they have robust corporate governance standards including anonymised whistleblowing channels operated by a third party. Entities, or their senior executives, which have been found guilty of a criminal offence in a court of law may be barred from applying to the Fund for a period of no less than 36 months starting on the date of criminal conviction.

Or. en

Justification

In order to ensure that EU funds are not allocated to companies guilty of corruption anywhere in the world, the Commission should include this as a precondition of funding. Based on the US system of suspension and debarment, the EU could use this Fund to driver a higher standard of corporate governance.

Amendment 236 Edouard Martin, Clare Moody, Eugen Freund

Proposal for a regulation Article 7 – paragraph 3 a (new)

Text proposed by the Commission Amendment

AM\1162781EN.docx 79/186 PE627.775v01-00 EN may be barred from applying to the Fund fora period of no less than 36 months starting on the date of criminal conviction.

Or. en

Amendment 237 Edouard Martin, Carlos Zorrinho, Eugen Freund

Proposal for a regulation Article 7 – paragraph 3 b (new)

Text proposed by the Commission Amendment

3b. An Ethics conformity certificate shall be published by the Commission for each project.

Or. en

Amendment 238 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 7 – paragraph 4

Text proposed by the Commission Amendment

4. If appropriate, ethics checks shall deleted be carried out by the Commission during the implementation of the action. For serious or complex ethics issues, the checks shall be carried out by the Commission with the support of experts on defence ethics.

Or. fr

Amendment 239 Gunnar Hökmark

Proposal for a regulation

PE627.775v01-00 80/186 AM\1162781EN.docx EN Article 7 – paragraph 4

Text proposed by the Commission Amendment

Or. en

Amendment 240 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 7 – paragraph 4

Text proposed by the Commission Amendment

Or. en

Amendment 241 Edouard Martin, Carlos Zorrinho, Eugen Freund

Proposal for a regulation Article 7 – paragraph 4

Text proposed by the Commission Amendment

4. If appropriate, ethics checks shall 4. Ethics checks shall be carried be carried out by the Commission during during the implementation of the action, at the implementation of the action. For the Commission's discretion or upon serious or complex ethics issues, the request of the European Parliament. checks shall be carried out by the Those checks shall be carried out by the Commission with the support of experts on Commission with the support of experts on

AM\1162781EN.docx 81/186 PE627.775v01-00 EN defence ethics. defence ethics.

Or. en

Amendment 242 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 7 – paragraph 5

Text proposed by the Commission Amendment

5. Actions which are not ethically deleted acceptable may be rejected or terminated at any time.

Or. fr

Amendment 243 Edouard Martin, Carlos Zorrinho, Eugen Freund

Proposal for a regulation Article 7 – paragraph 5

Text proposed by the Commission Amendment

5. Actions which are not ethically 5. Actions which are not ethically acceptable may be rejected or terminated at acceptable may be rejected or terminated at any time. any time. The termination of an action shall request a majority vote of the European Parliament.

Or. en

Amendment 244 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 7 – paragraph 5

Text proposed by the Commission Amendment

5. Actions which are not ethically 5. Actions which are not ethically

PE627.775v01-00 82/186 AM\1162781EN.docx EN acceptable may be rejected or terminated at acceptable shall be rejected or terminated any time. as soon as the ethical unacceptability is detected.

Or. en

Amendment 245 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 7 – paragraph 5

Text proposed by the Commission Amendment

5. Actions which are not ethically 5. Actions which are not ethically acceptable may be rejected or terminated acceptable shall not be eligible. at any time.

Or. en

Amendment 246 Fabio Massimo Castaldo

Proposal for a regulation Article 8 – paragraph 1

Text proposed by the Commission Amendment

1. The Fund shall be implemented in 1. The Fund shall be implemented by direct management in accordance with the the Commission as provided for by Financial Regulation. Regulation (EU, Euratom)No 966/2012 in direct or indirect management entrusting budget implementation tasks to the entities listed in point (c) of Article 58(1) of that Regulation.

Or. en

Amendment 247 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 8 – paragraph 1

AM\1162781EN.docx 83/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

1. The Fund shall be implemented in 1. The Fund shall be implemented in direct management in accordance with the direct management by the Commission in Financial Regulation. accordance with the Financial Regulation.

Or. fr

Amendment 248 Edouard Martin, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 8 – paragraph 2

Text proposed by the Commission Amendment

2. The Fund may provide funding in 2. The Fund may provide funding in any of the forms laid down in the Financial the forms of grants, prizes and Regulation, in particular grants, prizes procurement as laid down in the Financial and procurement. It may also provide Regulation. It may also provide financing financing in the form of financial in the form of financial instruments within instruments within blending operations. blending operations by providing the non- repayable forms of support to blending operations.

Or. en

Amendment 249 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 9

Text proposed by the Commission Amendment

Article 9 deleted Cumulative, complementary and combined funding 1. An action that has received a contribution from another Union programme may also receive a contribution under the Fund, provided that the contributions do not cover the

PE627.775v01-00 84/186 AM\1162781EN.docx EN same costs. The rules of each contributing Union programme/Fund shall apply to its respective contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action and the support from the different Union programmes may be calculated on a pro- rata basis in accordance with the documents setting out the conditions for support. 2. Actions awarded a Seal of Excellence certification, or which comply with the following cumulative, comparative, conditions: (a) they have been assessed in a call for proposals under the Fund; (b) they comply with the minimum quality requirements of that call for proposals; (c) they may not be financed under that call for proposals due to budgetary constraints, may receive support from the European Regional Development Fund, the Cohesion Fund, the European Social Fund or the European Agricultural Fund for Rural Development, in accordance with paragraph 5 of Article [65] of Regulation (EU) XX [Common Provisions Regulation] and Article [8] of Regulation (EU) XX [Financing, management and monitoring of the Common Agricultural Policy], provided that such actions are consistent with the objectives of the programme concerned. The rules of the Fund providing support shall apply.

Or. en

Justification

There should be limits to EU military spending. It is unacceptable to militarise various EU civilian programmes 2021-2027

Amendment 250 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

AM\1162781EN.docx 85/186 PE627.775v01-00 EN Proposal for a regulation Article 9 – paragraph 2

Text proposed by the Commission Amendment

2. Actions awarded a Seal of deleted Excellence certification, or which comply with the following cumulative, comparative, conditions: (a) they have been assessed in a call for proposals under the Fund; (b) they comply with the minimum quality requirements of that call for proposals; (c) they may not be financed under that call for proposals due to budgetary constraints, may receive support from the European Regional Development Fund, the Cohesion Fund, the European Social Fund or the European Agricultural Fund for Rural Development, in accordance with paragraph 5 of Article [65] of Regulation (EU) XX [Common Provisions Regulation] and Article [8] of Regulation (EU) XX [Financing, management and monitoring of the Common Agricultural Policy], provided that such actions are consistent with the objectives of the programme concerned. The rules of the Fund providing support shall apply.

Or. en

Amendment 251 Jens Geier, Martina Werner, Arne Lietz, Constanze Krehl

Proposal for a regulation Article 9 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) they have been assessed in a call deleted for proposals under the Fund;

PE627.775v01-00 86/186 AM\1162781EN.docx EN Or. en

Amendment 252 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 9 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) they comply with the minimum deleted quality requirements of that call for proposals;

Or. en

Amendment 253 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 9 – paragraph 2 – point c

Text proposed by the Commission Amendment

Or. en

Amendment 254 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 9 – paragraph 2 – subparagraph 1

Text proposed by the Commission Amendment may receive support from the European deleted Regional Development Fund, the Cohesion Fund, the European Social Fund or the European Agricultural Fund for Rural Development, in accordance with paragraph 5 of Article [65] of

AM\1162781EN.docx 87/186 PE627.775v01-00 EN Regulation (EU) XX [Common Provisions Regulation] and Article [8] of Regulation (EU) XX [Financing, management and monitoring of the Common Agricultural Policy], provided that such actions are consistent with the objectives of the programme concerned. The rules of the Fund providing support shall apply.

Or. en

Amendment 255 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Title 1 – chapter 3 – title

Text proposed by the Commission Amendment

GRANTS ELIGIBILITY AND GRANTS

Or. en

Amendment 256 Gunnar Hökmark

Proposal for a regulation Article 10 – paragraph 1

Text proposed by the Commission Amendment

1. Applicants and their subcontractors 1. Applicants and their shall be eligible for funding provided that subcontractors shall be eligible for funding they are established in the Union or in an provided that the applicants are established associated country, have their executive in the Union or in an associated country, management structures in the Union or in have their executive management an associated country and are not structures in the Union or in an associated controlled by a non-associated third country and are not, for the purpose of an country or by a non-associated third action funded under the Programme, country entity. controlled by a non-associated third country or by a non-associated third country entity.

Or. en

PE627.775v01-00 88/186 AM\1162781EN.docx EN Amendment 257 Edouard Martin

Proposal for a regulation Article 10 – paragraph 1

Text proposed by the Commission Amendment

1. Applicants and their subcontractors 1. Applicants and their subcontractors shall be eligible for funding provided that shall be eligible for funding provided that they are established in the Union or in an they are established in the Union or in an associated country, have their executive associated country as laid down in Article management structures in the Union or in 5, have their executive management an associated country and are not structures in the Union or in an associated controlled by a non-associated third country under Article 5, and are not country or by a non-associated third controlled by a non-associated third country entity. country or by a non-associated third country entity.

Or. en

Amendment 258 Françoise Grossetête, Pilar del Castillo Vera

Proposal for a regulation Article 10 – paragraph 1

Text proposed by the Commission Amendment

1. Applicants and their subcontractors 1. Applicants and subcontractors shall be eligible for funding provided that involved in the action shall be eligible for they are established in the Union or in an funding provided that they are established associated country, have their executive in the Union or in an associated country, management structures in the Union or in have their executive management an associated country and are not structures in the Union or in an associated controlled by a non-associated third country and are not controlled by a non- country or by a non-associated third associated third country or by a non- country entity. associated third country entity.

Or. en

Amendment 259 David Borrelli

AM\1162781EN.docx 89/186 PE627.775v01-00 EN Proposal for a regulation Article 10 – paragraph 1

Text proposed by the Commission Amendment

1. Applicants and their subcontractors 1. Applicants and their subcontractors shall be eligible for funding provided that shall be eligible for funding provided that they are established in the Union or in an they are established in the Union or in an associated country, have their executive associated country, have their executive management structures in the Union or in management structures in the Union or in an associated country and are not an associated country and are not controlled by a non-associated third controlled by a non-associated third country or by a non-associated third country. country entity.

Or. it

Amendment 260 Angelo Ciocca

Proposal for a regulation Article 10 – paragraph 1

Text proposed by the Commission Amendment

1. Applicants and their subcontractors 1. Applicants and their subcontractors shall be eligible for funding provided that shall be eligible for funding provided that they are established in the Union or in an they are established in the Union or in an associated country, have their executive associated country, have their executive management structures in the Union or in management structures in the Union or in an associated country and are not an associated country and are not controlled by a non-associated third controlled by a non-associated third country or by a non-associated third country. country entity.

Or. it

Amendment 261 Patrizia Toia

Proposal for a regulation Article 10 – paragraph 1

Text proposed by the Commission Amendment

PE627.775v01-00 90/186 AM\1162781EN.docx EN 1. Applicants and their subcontractors 1. Applicants and their subcontractors shall be eligible for funding provided that shall be eligible for funding provided that they are established in the Union or in an they are established in the Union or in an associated country, have their executive associated country, have their executive management structures in the Union or in management structures in the Union or in an associated country and are not an associated country and are not controlled by a non-associated third controlled by a non-associated third country or by a non-associated third country. country entity.

Or. en

Justification

Amendment 262 Massimiliano Salini

Proposal for a regulation Article 10 – paragraph 1

Text proposed by the Commission Amendment

1. Applicants and their subcontractors 1. Applicants and their subcontractors shall be eligible for funding provided that involved in the action shall be eligible for they are established in the Union or in an funding provided that they are established associated country, have their executive in the Union or in an associated country, management structures in the Union or in have their executive management an associated country and are not structures in the Union or in an associated controlled by a non-associated third country and are not controlled by a non- country or by a non-associated third associated third country. country entity.

Or. en

Amendment 263 David Borrelli

Proposal for a regulation Article 10 – paragraph 1 a (new)

AM\1162781EN.docx 91/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

1a. In order to ensure the protection of the Union’s security interests, all beneficiaries shall be subject to measures established at national level in such a way as to ensure, in a uniform manner, the highest degree of control over the operation of the beneficiary. Those provisions shall apply to beneficiaries controlled by an entity established in the Union or by an entity established in a third country.

Or. it

Amendment 264 Massimiliano Salini

Proposal for a regulation Article 10 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. All beneficiaries shall be subject to appropriate measures codified at the national level, which serve to best guarantee a uniform degree of control over the functioning of the beneficiaries themselves, so as to ensure the safeguard of the Union's security interests. This shall apply to beneficiaries controlled both by an entity established in the European Union as well as to those controlled by an entity established in a third country.

Or. en

Amendment 265 Patrizia Toia

Proposal for a regulation Article 10 – paragraph 1 a (new)

PE627.775v01-00 92/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

1a. In order to ensure the safeguarding of the Union’s security interests, all beneficiaries shall be subject to appropriate measures, established at the national level, which are able to best guarantee a uniform degree of control over the functioning of the beneficiary itself. This shall apply both to beneficiaries controlled by an entity established in the European Union and to those controlled by an entity established in a third country

Or. en

Justification

Amendment 266 Gunnar Hökmark

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country or a non- associated third country entity may be associated third country entity shall be eligible for funding if this is necessary for eligible for funding if this is necessary for achieving the objectives of the action and achieving the objectives of the action and provided that its participation will not put provided that guarantees approved by the at risk the security interests of the Union Member State in which it is established in and its Member States. In order to ensure accordance with its national procedures protection of the security interests of the are made available to the Commission. Union and its Member States, the call for Those guarantees may refer to the proposals shall require the applicant to undertaking's executive management provide information demonstrating structure established in the Union. If

AM\1162781EN.docx 93/186 PE627.775v01-00 EN notably that: deemed to be appropriate by the Member State in which the undertaking is established, those guarantees may also refer to specific governmental rights in the control over the undertaking. The guarantees shall provide the assurances that the involvement in an action of such an undertaking would not contravene the security and defence interests of the Union and its Member States as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the TEU, or the objectives set out in Article 3. The guarantees shall also comply with the provisions of Article 12. The guarantees shall in particular substantiate that, for the purpose of the action, measures are in place to ensure that:

Or. en

Justification

Amendment to align the text with the corresponding article of the Regulation establishing the European Defence Industrial Development Programme, adopted by the European Parliament on July 3, 2018 and published in the Official Journal on August 7, 2018.

Amendment 267 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country or a non- associated third country entity may be associated third country entity shall be eligible for funding if this is necessary for eligible for funding provided that achieving the objectives of the action and guarantees approved by the Member State provided that its participation will not put in which it is established in accordance at risk the security interests of the Union with its national procedure are made and its Member States. In order to ensure available to the Commission. Those protection of the security interests of the guarantees may refer to the undertaking’s

PE627.775v01-00 94/186 AM\1162781EN.docx EN Union and its Member States, the call for executive managements proposals shall require the applicant to structure established in the Union. If provide information demonstrating deemed appropriate by the Member State notably that: in which the undertaking is established, those guarantees may also refer to specific governmental rights in the control over the undertaking. The guarantees shall provide assurances that the involvement in an action of such an undertaking would not contravene the security and defence interests of the Union and its Member States as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the TEU, or the objectives set out in Article 3. The guarantees shall in particular substantiate that, for the purpose of the action, measures are in place to ensure that:

Or. en

Amendment 268 Fabio Massimo Castaldo

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant or a subcontractor involved in associated country and controlled by a non- the action established in the Union or in an associated third country or a non- associated country and controlled by a non- associated third country entity may be associated third country or a non- eligible for funding if this is necessary for associated third country entity may achieving the objectives of the action and constitute an eligible entity for funding if provided that its participation will not put this is necessary for achieving the at risk the security interests of the Union objectives of the action and provided that and its Member States. In order to ensure its participation will not put at risk the protection of the security interests of the security and defence interests of the Union Union and its Member States, the call for and its Member States, or the objective set proposals shall require the applicant to out in Article 3. In order to ensure provide information demonstrating notably protection of the security interests of the that: Union and its Member States, the call for proposals shall require the applicant to provide information or guarantees

AM\1162781EN.docx 95/186 PE627.775v01-00 EN approved by the Member State, in which the applicant is located, substantiating notably that:

Or. en

Amendment 269 Françoise Grossetête, Pilar del Castillo Vera

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established and having its associated country and controlled by a non- executive management structure in the associated third country or a non- Union or in an associated country and associated third country entity may be controlled by a non-associated third eligible for funding if this is necessary for country or a non-associated third country achieving the objectives of the action and entity may be eligible for funding if this is provided that its participation will not put necessary for achieving the objectives of at risk the security interests of the Union the programme and provided that its and its Member States. In order to ensure participation will not put at risk the protection of the security interests of the security interests of the Union and its Union and its Member States, the call for Member States. In order to ensure proposals shall require the applicant to protection of the security interests of the provide information demonstrating Union and its Member States, the call for notably that: proposals shall require the applicant to commit to implement measures before the beginning of the action ensuring that:

Or. en

Amendment 270 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

PE627.775v01-00 96/186 AM\1162781EN.docx EN non-associated third country or a non- associated third country or a non- associated third country entity may be associated third country entity may be eligible for funding if this is necessary for eligible for funding if it has been proven achieving the objectives of the action and that no provider can be found within the provided that its participation will not put Union and if this is necessary for at risk the security interests of the Union achieving the objectives of the action and and its Member States. In order to ensure provided that its participation will not put protection of the security interests of the at risk the security interests of the Union Union and its Member States, the call for and its Member States. In order to ensure proposals shall require the applicant to protection of the security interests of the provide information demonstrating notably Union and its Member States, the call for that: proposals shall require the applicant to provide information demonstrating notably that:

Or. en

Amendment 271 Miroslav Poche

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country or a non- associated third country entity may be associated third country entity may be eligible for funding if this is necessary for eligible for funding provided that its achieving the objectives of the action and participation will not put at risk the provided that its participation will not put security interests of the Union and its at risk the security interests of the Union Member States. In order to ensure and its Member States. In order to ensure protection of the security interests of the protection of the security interests of the Union and its Member States, the call for Union and its Member States, the call for proposals shall require the applicant to proposals shall require the applicant to provide information demonstrating notably provide information demonstrating notably that: that:

Or. en

Amendment 272 Angelo Ciocca

AM\1162781EN.docx 97/186 PE627.775v01-00 EN Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country may be eligible for associated third country entity may be funding if this is necessary for achieving eligible for funding if this is necessary for the objectives of the action and provided achieving the objectives of the action and that its participation will not put at risk the provided that its participation will not put security interests of the Union and its at risk the security interests of the Union Member States. In order to ensure and its Member States. In order to ensure protection of the security interests of the protection of the security interests of the Union and its Member States, the call for Union and its Member States, the call for proposals shall require the applicant to proposals shall require the applicant to provide information demonstrating notably provide information demonstrating notably that: that:

Or. it

Amendment 273 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country or a non- associated third country entity may be associated third country entity may be eligible for funding if this is necessary for eligible for funding if this is essential for achieving the objectives of the action and achieving the objectives of the action and provided that its participation will not put provided that its participation will not put at risk the security interests of the Union at risk the security interests of the Union and its Member States. In order to ensure and its Member States. In order to ensure protection of the security interests of the protection of the security interests of the Union and its Member States, the call for Union and its Member States, the call for proposals shall require the applicant to proposals shall require the applicant to provide information demonstrating notably undertake to take action demonstrating that: notably that:

PE627.775v01-00 98/186 AM\1162781EN.docx EN Or. fr

Amendment 274 Massimiliano Salini

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country may be eligible for associated third country entity may be funding if this is necessary for achieving eligible for funding if this is necessary for the objectives of the action and provided achieving the objectives of the action and that its participation will not put at risk the provided that its participation will not put security interests of the Union and its at risk the security interests of the Union Member States. In order to ensure and its Member States. In order to ensure protection of the security interests of the protection of the security interests of the Union and its Member States, the call for Union and its Member States, the call for proposals shall require the applicant to proposals shall require the applicant to provide information demonstrating notably provide information demonstrating notably that: that:

Or. en

Amendment 275 Patrizia Toia

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country may be eligible for associated third country entity may be funding if this is necessary for achieving eligible for funding if this is necessary for the objectives of the action and provided achieving the objectives of the action and that its participation will not put at risk the provided that its participation will not put security interests of the Union and its at risk the security interests of the Union Member States. In order to ensure and its Member States. In order to ensure protection of the security interests of the

AM\1162781EN.docx 99/186 PE627.775v01-00 EN protection of the security interests of the Union and its Member States, the call for Union and its Member States, the call for proposals shall require the applicant to proposals shall require the applicant to provide information demonstrating notably provide information demonstrating notably that: that:

Or. en

Amendment 276 Clare Moody, Theresa Griffin

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

2. By derogation from paragraph 1, an 2. By derogation from paragraph 1, an applicant established in the Union or in an applicant established in the Union or in an associated country and controlled by a non- associated country and controlled by a non- associated third country or a non- associated third country or a non- associated third country entity may be associated third country entity shall be eligible for funding if this is necessary for eligible for funding if this is necessary for achieving the objectives of the action and achieving the objectives of the action and provided that its participation will not put provided that its participation will not put at risk the security interests of the Union at risk the security interests of the Union and its Member States. In order to ensure and its Member States. In order to ensure protection of the security interests of the protection of the security interests of the Union and its Member States, the call for Union and its Member States, the call for proposals shall require the applicant to proposals shall require the applicant to provide information demonstrating notably provide information demonstrating notably that: that:

Or. en

Amendment 277 Edouard Martin, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 10 – paragraph 2 – introductory part

Text proposed by the Commission Amendment

PE627.775v01-00 100/186 AM\1162781EN.docx EN associated third country or a non- associated third country or a non- associated third country entity may be associated third country entity may be eligible for funding if this is necessary for eligible for funding if this is critical for achieving the objectives of the action and achieving the objectives of the action and provided that its participation will not put provided that its participation will not put at risk the security interests of the Union at risk the security interests of the Union and its Member States. In order to ensure and its Member States. In order to ensure protection of the security interests of the protection of the security interests of the Union and its Member States, the call for Union and its Member States, the call for proposals shall require the applicant to proposals shall require the applicant to provide information demonstrating notably provide information demonstrating notably that: that:

Or. en

Amendment 278 Miroslav Poche

Proposal for a regulation Article 10 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) the control over the applicant will (a) the control over the applicant will not be exercised in a manner that restricts not be exercised in a manner that restricts in any way its ability to perform and in any way its ability to perform and complete the action; complete the action or that no restrictions are imposed by non-associated third countries or by non-associated third country entities on applicant´s infrastructure, facilities, assets, resources, intellectual property or know-how needed for the purpose of the action;

Or. en

Amendment 279 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 2 – point a

Text proposed by the Commission Amendment

(a) the control over the applicant will (a) the control over the applicant is not

AM\1162781EN.docx 101/186 PE627.775v01-00 EN not be exercised in a manner that restricts exercised in a manner that restricts in any in any way its ability to perform and way its ability to perform and complete the complete the action; action;

Or. en

Amendment 280 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 10 – paragraph 2 – point b

Text proposed by the Commission Amendment

b) the access by non-associated third b) the access by non-associated third countries or by non-associated third countries or by non-associated third country entities to classified and non- country entities to classified and non- classified sensitive information relating to classified sensitive information relating to the action will be prevented; and the the action will be prevented for non- persons involved in the action will have classified sensitive information subject to national security clearance issued by a the provisions of Article [30(1)(d)] of this Member State or associated country; Regulation for classified information; and the persons involved in the action will have national security clearance issued by a Member State or associated country;

Or. fr

Amendment 281 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) the access by non-associated third (b) the access by non-associated third countries or by non-associated third countries or by non-associated third country entities to classified and non- country entities to classified and non- classified sensitive information relating to classified sensitive information relating to the action will be prevented; and the the action is prevented; and the persons persons involved in the action will have involved in the action will have national national security clearance issued by a security clearance issued by a Member Member State or associated country; State or associated country, where appropriate;

PE627.775v01-00 102/186 AM\1162781EN.docx EN Or. en

Amendment 282 Esther de Lange

Proposal for a regulation Article 10 – paragraph 2 – point c

Text proposed by the Commission Amendment

(c) the results of the action shall (c) the results of the action shall remain within the beneficiary and shall not remain within the beneficiary and shall not be subject to control or restrictions by non- be subject to control or restrictions by non- associated third countries or other non- associated third countries or other non- associated third country entities during the associated third country entities and action and for a specified period after its cannot be exported or given access completion; outside the Union without the approval of the Member State the undertaking is established in and if it would contravene the security and defence interests of the Union and its Member States, during the action and for a specified period after its completion;

Or. en

Amendment 283 Françoise Grossetête, Pilar del Castillo Vera

Proposal for a regulation Article 10 – paragraph 2 – point c

Text proposed by the Commission Amendment

(c) the results of the action shall (c) the results of the action shall remain within the beneficiary and shall not remain within the beneficiary and shall not be subject to control or restrictions by non- be subject to control or restrictions by non- associated third countries or other non- associated third countries or other non- associated third country entities during the associated third country entities and action and for a specified period after its cannot be exported or given access completion; outside the Union without the approval of the Member State in which the undertaking is established in, during the action and after its completion;

AM\1162781EN.docx 103/186 PE627.775v01-00 EN Or. en

Amendment 284 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 10 – paragraph 2 – point c

Text proposed by the Commission Amendment

c) the results of the action shall c) the results of the action shall remain within the beneficiary and shall not remain within the beneficiary and shall not be subject to control or restrictions by non- be subject to control or restrictions by non- associated third countries or other non- associated third countries and shall not be associated third country entities during the made available outside the Union without action and for a specified period after its the approval of the Member State in completion; which the undertaking is established or other non-associated third country entities during the action and for a specified period after its completion;

Or. fr

Amendment 285 Gunnar Hökmark

Proposal for a regulation Article 10 – paragraph 2 – point c

Text proposed by the Commission Amendment

Or. en

Amendment 286 Edouard Martin, Carlos Zorrinho, Răzvan Popa

PE627.775v01-00 104/186 AM\1162781EN.docx EN Proposal for a regulation Article 10 – paragraph 2 – point c a (new)

Text proposed by the Commission Amendment

(ca) the non-associated third country or third country entity provides a technological and/or industrial input which could not be supplied by a European entity.

Or. en

Amendment 287 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 3

Text proposed by the Commission Amendment

3. All infrastructure, facilities, assets 3. All infrastructure, facilities, assets and resources used in actions financed and resources used in actions financed under the Fund shall be located on the under the Fund shall be located on the territory of the Union or associated territory of the Union or associated countries. Furthermore, when performing countries. an eligible action, beneficiaries and their subcontractors shall cooperate only with legal entities established in the Union or in an associated country and not controlled by non-associated third countries or non-associated third country entities.

Or. en

Amendment 288 Françoise Grossetête, Esther de Lange, Pilar del Castillo Vera

Proposal for a regulation Article 10 – paragraph 3

Text proposed by the Commission Amendment

3. All infrastructure, facilities, assets 3. All infrastructure, facilities, assets and resources used in actions financed and resources used in actions financed

AM\1162781EN.docx 105/186 PE627.775v01-00 EN under the Fund shall be located on the under the Fund shall be located on the territory of the Union or associated territory of the Union or associated countries. Furthermore, when performing countries and shall not be subject to any an eligible action, beneficiaries and their control or restriction by a non-associated subcontractors shall cooperate only with third country or by a non-associated third legal entities established in the Union or in country entity. Furthermore, when an associated country and not controlled by performing an eligible action, beneficiaries non-associated third countries or non- and their subcontractors shall cooperate associated third country entities. only with legal entities established in the Union or in an associated country and not controlled by non-associated third countries or non-associated third country entities.

Or. en

Amendment 289 Patrizia Toia

Proposal for a regulation Article 10 – paragraph 3

Text proposed by the Commission Amendment

3. All infrastructure, facilities, assets 3. All infrastructure, facilities, assets and resources used in actions financed and resources used in actions financed under the Fund shall be located on the under the Fund shall be located on the territory of the Union or associated territory of the Union or associated countries. Furthermore, when performing countries. Furthermore, when performing an eligible action, beneficiaries and their an eligible action, beneficiaries and their subcontractors shall cooperate only with subcontractors shall cooperate only with legal entities established in the Union or in legal entities established in the Union or in an associated country and not controlled an associated country. by non-associated third countries or non- associated third country entities.

Or. en

Amendment 290 Angelo Ciocca

Proposal for a regulation Article 10 – paragraph 3

PE627.775v01-00 106/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

3. All infrastructure, facilities, assets 3. All infrastructure, facilities, assets and resources used in actions financed and resources used in actions financed under the Fund shall be located on the under the Fund shall be located on the territory of the Union or associated territory of the Union or associated countries. Furthermore, when performing countries. Furthermore, when performing an eligible action, beneficiaries and their an eligible action, beneficiaries and their subcontractors shall cooperate only with subcontractors shall cooperate only with legal entities established in the Union or in legal entities established in the Union or in an associated country and not controlled by an associated country and not controlled by non-associated third countries or non- non-associated third countries. associated third country entities.

Or. it

Amendment 291 Massimiliano Salini

Proposal for a regulation Article 10 – paragraph 3

Text proposed by the Commission Amendment

3. All infrastructure, facilities, assets 3. All infrastructure, facilities, assets and resources used in actions financed and resources used in actions financed under the Fund shall be located on the under the Fund shall be located on the territory of the Union or associated territory of the Union or associated countries. Furthermore, when performing countries. Furthermore, when performing an eligible action, beneficiaries and their an eligible action, beneficiaries and their subcontractors shall cooperate only with subcontractors shall cooperate only with legal entities established in the Union or in legal entities established in the Union or in an associated country and not controlled by an associated country and not controlled by non-associated third countries or non- non-associated third countries. associated third country entities.

Or. en

Amendment 292 Françoise Grossetête, Esther de Lange, Pilar del Castillo Vera

Proposal for a regulation Article 10 – paragraph 4

AM\1162781EN.docx 107/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

4. By derogation from the paragraph 3 4. By derogation from the paragraph beneficiaries and subcontractors involved 3, if there are no competitive substitutes in the action may use their assets, readily available in the Union, infrastructure, facilities and resources beneficiaries and subcontractors involved located or held on the territory of a non- in the action may use their assets, associated third country if this is necessary infrastructure, facilities and resources for achieving the objectives of an action located or held on the territory of a non- and provided that this will not put at risk associated third country if this is necessary the security of the Union and its Member for achieving the objectives of an action States. Under the same conditions, when provided that this will not contravene the performing an eligible action, beneficiaries security and defence interests of the Union and their subcontractors may cooperate and its Member States and the objectives with an entity established in a non- of the programme. Under the same associated third country. The costs related conditions, when performing an eligible to the use of such infrastructure, facilities, action, beneficiaries and their assets or resources and to such cooperation subcontractors may cooperate with an shall not be eligible under the Fund. entity established in a non-associated third country. The costs related to the use of such infrastructure, facilities, assets or resources and to such cooperation shall not be eligible under the Fund.

Or. en

Amendment 293 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 4

Text proposed by the Commission Amendment

PE627.775v01-00 108/186 AM\1162781EN.docx EN associated third country. The costs related entity established in a non-associated third to the use of such infrastructure, facilities, country. Such cooperation shall be assets or resources and to such cooperation consistent with the objectives set out in shall not be eligible under the Fund. Article 3. The costs related to the use of such infrastructure, facilities, assets or resources and to such cooperation shall not be eligible under the Fund.

Or. en

Amendment 294 Gunnar Hökmark

Proposal for a regulation Article 10 – paragraph 4

Text proposed by the Commission Amendment

4. By derogation from the paragraph 3 4. By derogation from the paragraph 3 beneficiaries and subcontractors involved beneficiaries and subcontractors involved in the action may use their assets, in the action may use their assets, infrastructure, facilities and resources infrastructure, facilities and resources located or held on the territory of a non- located or held on the territory of a non- associated third country if this is necessary associated third country if no competitive for achieving the objectives of an action alternatives are available in the Union and provided that this will not put at risk and provided that this will not put at risk the security of the Union and its Member the security of the Union and its Member States. Under the same conditions, when States. When performing an eligible action, performing an eligible action, beneficiaries beneficiaries and their subcontractors may and their subcontractors may cooperate cooperate with an entity established in a with an entity established in a non- non-associated third country provided that associated third country. The costs related such cooperation is consistent with the to the use of such infrastructure, facilities, objectives set out in Article 3. The costs assets or resources and to such cooperation related to the use of such infrastructure, shall not be eligible under the Fund. facilities, assets or resources and to such cooperation shall not be eligible under the Fund.

Or. en

Amendment 295 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 10 – paragraph 4

AM\1162781EN.docx 109/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

4. By derogation from the paragraph 3 4. By derogation from the paragraph 3 beneficiaries and subcontractors involved beneficiaries and subcontractors involved in the action may use their assets, in the action may use their assets, infrastructure, facilities and resources infrastructure, facilities and resources located or held on the territory of a non- located or held on the territory of a non- associated third country if this is necessary associated third country if this is essential for achieving the objectives of an action for achieving the objectives of an action and provided that this will not put at risk and provided that this will not put at risk the security of the Union and its Member the security of the Union and its Member States. Under the same conditions, when States. Under the same conditions, when performing an eligible action, beneficiaries performing an eligible action, beneficiaries and their subcontractors may cooperate and their subcontractors may cooperate with an entity established in a non- with an entity established in a non- associated third country. The costs related associated third country. The costs related to the use of such infrastructure, facilities, to the use of such infrastructure, facilities, assets or resources and to such cooperation assets or resources and to such cooperation shall not be eligible under the Fund. shall not be eligible under the Fund.

Or. fr

Amendment 296 Françoise Grossetête, Pilar del Castillo Vera

Proposal for a regulation Article 10 – paragraph 5

Text proposed by the Commission Amendment

5. In order to ensure protection of the 5. In order to ensure protection of the security interests of the Union and its security interests of the Union and its Member States, the call for proposals or Member States, the call for proposals or grant agreement shall specify further grant agreement shall specify further conditions. These conditions shall relate, in conditions, in addition to those mentioned particular to the provisions on ownership in Article 10. These conditions shall relate, of results of the action and access to in particular to the provisions on ownership classified and non-classified sensitive of results of the action and access to information and to guarantees on security classified and non-classified sensitive of supply. information and to guarantees on security of supply.

Or. en

PE627.775v01-00 110/186 AM\1162781EN.docx EN Amendment 297 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 5

Text proposed by the Commission Amendment

5. In order to ensure protection of the 5. In order to ensure protection of the security interests of the Union and its security interests of the Union and its Member States, the call for proposals or Member States, the call for proposals or grant agreement shall specify further grant agreement may specify further conditions. These conditions shall relate, in conditions. These conditions shall relate, in particular to the provisions on ownership particular to the provisions on ownership of results of the action and access to of results of the action and access to classified and non-classified sensitive classified and non-classified sensitive information and to guarantees on security information and to guarantees on security of supply. of supply.

Or. en

Amendment 298 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 6

Text proposed by the Commission Amendment

6. Applicants shall provide all deleted relevant information necessary for the assessment of the eligibility criteria and the conditions referred to in paragraphs 1 to 4.

Or. en

Amendment 299 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 7

Text proposed by the Commission Amendment

7. Applications which require the 7. Applications which require the

AM\1162781EN.docx 111/186 PE627.775v01-00 EN verifications under paragraph 2 or verifications under paragraph 2 or paragraph 4 may only be submitted with paragraph 4 may only be granted funds the agreement of the Member State or with the approval or verification of the associated country in which the applicant is Member State or associated country in established. which the applicant is established.

Or. en

Amendment 300 Olle Ludvigsson

Proposal for a regulation Article 10 – paragraph 8

Text proposed by the Commission Amendment

8. In the event of a change during the 8. In the event of a change during the implementation of an action which might implementation of an action which might question the fulfilment of those criteria and question the fulfilment of those criteria and conditions, the beneficiary shall inform the conditions, the beneficiary shall inform the Commission, which shall assess whether Commission, which shall ask the Member those criteria and conditions are still met state, where the beneficiary is established, and address the potential impact on the to verify whether those criteria and funding of the action. conditions are still met and address the potential impact on the funding of the action.

Or. en

Amendment 301 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 10 – paragraph 8

Text proposed by the Commission Amendment

8. In the event of a change during the 8. In the event of a change during the implementation of an action which might implementation of an action which might question the fulfilment of those criteria and question the fulfilment of those criteria and conditions, the beneficiary shall inform the conditions, the beneficiary shall inform the Commission, which shall assess whether Commission, which shall assess whether those criteria and conditions are still met those criteria and conditions are still met and address the potential impact on the and address the potential impact funding of the action. (suspension, cancellation) on the funding

PE627.775v01-00 112/186 AM\1162781EN.docx EN of the action.

Or. fr

Amendment 302 Clare Moody, Theresa Griffin

Proposal for a regulation Article 10 – paragraph 9

Text proposed by the Commission Amendment

9. For the purpose of this Article, 9. For the purpose of this Article, subcontractors means subcontractors with a subcontractors means subcontractors with a direct contractual relationship to a direct contractual relationship to a beneficiary, other subcontractors to which beneficiary, other subcontractors to which at least 10% of the total eligible costs of at least 10% of the total eligible costs of the action is allocated, and subcontractors the action is allocated, and subcontractors which may require access to classified which may require access to highly information according to Commission classified information according to Decision (EU, Euratom) 2015/444 in order Commission Decision (EU, Euratom) to carry out the action. 2015/444 in order to carry out the action.

Or. en

Justification

In the defence sector, nearly all information is 'classified'. A more appropriate standard is restricting this to 'highly classified'

Amendment 303 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 11 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. Only research and development actions shall be eligible for funding under this Programme as far as it is provided, that identical or similar national or bilateral research and developments actions are terminated prior to the launch of the action(s) under this Programme. A

AM\1162781EN.docx 113/186 PE627.775v01-00 EN maximum of 75% of the amounts referred to in paragraph 2 (a) and 2(b) under Article 4 shall be available for such actions

Or. en

Justification

It is imperative that this Programme significantly reduces duplication within the European defence sector, which is one of the main causes for the very high inefficiency rate. Via this pre-condition there is the guarantee that the same, or similar projects are not being conducted in parallel, while both using tax payers money

Amendment 304 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 11 – paragraph 2

Text proposed by the Commission Amendment

2. The Fund shall provide support for 2. The Fund shall provide support for actions covering both new and upgrade of actions covering both new and upgrade of existing products and technologies where existing products and technologies where the use of pre-existing information needed the use of pre-existing information or to perform the upgrade is not subject, technologies needed to perform the directly or indirectly to a restriction by upgrade is not subject, directly or indirectly non-associated third countries or non- to a restriction by non-associated third associated third country entities. countries or non-associated third country entities.

Or. fr

Amendment 305 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) activities aiming to create, underpin (a) activities aiming to create, underpin and improve new knowledge and defence and improve new knowledge and defence technology which can achieve significant technology which can achieve significant effects in the area of defence or which aim

PE627.775v01-00 114/186 AM\1162781EN.docx EN effects in the area of defence; at supporting undertakings in their conversion from military to civil production;

Or. en

Amendment 306 Miroslav Poche

Proposal for a regulation Article 11 – paragraph 3 – point c

Text proposed by the Commission Amendment

(c) studies, such as feasibility studies (c) studies, such as feasibility studies to explore the feasibility of a new or to explore the feasibility of a new or improved technology, product, process, improved technology; service, solution or statistics on the defence industry and projects to pilot the collection of data;

Or. en

Amendment 307 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 11 – paragraph 3 – point c

Text proposed by the Commission Amendment c) studies, such as feasibility studies c) studies, such as feasibility studies to explore the feasibility of a new or to explore the feasibility of a new or improved technology, product, process, improved technology, product, process, service, solution or statistics on the service, solution; defence industry and projects to pilot the collection of data;

Or. fr

Amendment 308 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

AM\1162781EN.docx 115/186 PE627.775v01-00 EN Proposal for a regulation Article 11 – paragraph 3 – point c

Text proposed by the Commission Amendment

(c) studies, such as feasibility studies (c) studies, such as studies on to explore the feasibility of a new or conversion from military to civil improved technology, product, process, production or feasibility studies to explore service, solution or statistics on the defence the feasibility of a new or improved industry and projects to pilot the collection technology, product, process, service, of data; solution or statistics on the defence industry and projects to pilot the collection of data;

Or. en

Amendment 309 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 11 – paragraph 3 – point c

Text proposed by the Commission Amendment

(c) studies, such as feasibility studies (c) studies, such as feasibility studies to explore the feasibility of a new or to explore the feasibility of a new or improved technology, product, process, improved technology, product, process, service, solution or statistics on the service, solution; defence industry and projects to pilot the collection of data;

Or. en

Justification

The possibility to fund projects on statistics on the defence industry and projects to pilot the collection of data should be written in Article 35 of the Regulation.

Amendment 310 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 3 – point d

Text proposed by the Commission Amendment

PE627.775v01-00 116/186 AM\1162781EN.docx EN (d) the design of a defence product, (d) the design of a defence product, tangible or intangible component or tangible or intangible component or technology as well as the definition of the technology as well as the definition of the technical specifications on which such technical specifications on which such design has been developed which may design has been developed which may include partial tests for risk reduction in an include partial tests for risk reduction in an industrial or representative environment; industrial or representative environment or a product supporting the conversion from military to civil production;

Or. en

Amendment 311 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 3 – point e

Text proposed by the Commission Amendment

(e) the development of a model of a (e) the development of a model of a defence product, tangible or intangible defence product, tangible or intangible component or technology, which can component or technology, which can demonstrate the element's performance in demonstrate the element's performance in an operational environment (system an operational environment (system prototype); prototype) or a model of a product supporting the conversion from military to civil production;

Or. en

Amendment 312 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 3 – point f

Text proposed by the Commission Amendment

(f) the testing of a defence product, (f) the testing of a defence product, tangible or intangible component or tangible or intangible component or technology; technology or the testing of a product supporting the conversion from military to civil production;

AM\1162781EN.docx 117/186 PE627.775v01-00 EN Or. en

Amendment 313 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 3 – point g

Text proposed by the Commission Amendment

(g) the qualification of a defence (g) the qualification of a defence product, tangible or intangible component product or a product supporting the or technology. Qualification is the entire conversion from military to civil process of demonstrating that the design of production, tangible or intangible a defence product, tangible or intangible component or technology. Qualification is component or technology meets the the entire process of demonstrating that the specified requirements. This process design of a defence product, tangible or provides objective evidence by which intangible component or technology meets particular requirements of a design are the specified requirements. This process demonstrated to have been achieved; provides objective evidence by which particular requirements of a design are demonstrated to have been achieved;

Or. en

Amendment 314 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 3 – point h

Text proposed by the Commission Amendment

(h) the certification of a defence (h) the certification of a defence product, tangible or intangible component product or a product supporting the or technology. Certification is the process conversion from military to civil according to which a national authority production, tangible or intangible certifies that the defence product, tangible component or technology. Certification is or intangible component or technology the process according to which a national complies with the applicable regulations; authority certifies that the defence product, tangible or intangible component or technology complies with the applicable regulations;

Or. en

PE627.775v01-00 118/186 AM\1162781EN.docx EN Amendment 315 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 3 – point i

Text proposed by the Commission Amendment

(i) the development of technologies or (i) the development of technologies or assets increasing efficiency across the life assets increasing efficiency across the life cycle of defence products and cycle of defence products and technologies technologies; or supporting the conversion from military to civil production;

Or. en

Amendment 316 Edouard Martin, Clare Moody, Carlos Zorrinho, Răzvan Popa, Eugen Freund

Proposal for a regulation Article 11 – paragraph 3 – point i

Text proposed by the Commission Amendment

(i) the development of technologies or (i) the development of technologies or assets increasing efficiency across the life assets increasing efficiency and reducing cycle of defence products and the environmental impact across the life technologies; cycle of defence products and technologies;

Or. en

Amendment 317 Clare Moody, Theresa Griffin

Proposal for a regulation Article 11 – paragraph 3 – point i

Text proposed by the Commission Amendment

AM\1162781EN.docx 119/186 PE627.775v01-00 EN technologies; technologies;

Or. en

Justification

The Commission has stated that the Fund contributes to climate mainstreaming and yet there is no obligation in the Commission proposal around reducing the environmental impact of the military. This need not come at the cost of defence equipment performance. In order to fully mainstream the EU's commitments on climate change the Fund should promote programmes that reduce the environmental impact of the military.

Amendment 318 Miroslav Poche

Proposal for a regulation Article 11 – paragraph 3 – point j

Text proposed by the Commission Amendment

(j) dissemination activities, deleted networking events and awareness-raising activities.

Or. en

Amendment 319 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 11 – paragraph 3 – point j

Text proposed by the Commission Amendment

j) dissemination activities, j) dissemination activities and networking events and awareness-raising awareness-raising activities. activities.

Or. fr

Amendment 320 Edouard Martin

PE627.775v01-00 120/186 AM\1162781EN.docx EN Proposal for a regulation Article 11 – paragraph 3 a (new)

Text proposed by the Commission Amendment

3a. Where an action covers research and development activities, Title III shall apply for the action.

Or. en

Amendment 321 Françoise Grossetête, Sven Schulze, Esther de Lange, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. Unless otherwise provided for in the work programme referred to in Article the work programme referred to in Article 27, the action shall be undertaken in a 27, the action shall be undertaken in a cooperation of at least three legal entities cooperation of at least three legal entities which are established in at least three which are established in at least three different Member States and/or associated different Member States and/or associated countries. At least three of these eligible countries. At least three of these eligible entities established in at least two Member entities established in at least two Member States and/or associated countries shall not, States and/or associated countries shall not, during the whole implementation of the during the whole implementation of the action, be effectively controlled, directly or action, be effectively controlled, directly or indirectly, by the same entity, and shall not indirectly, by the same entity, and shall not control each other. control each other. If the cooperation includes at least one legal entity from an associated country, at least two legal entities from two different Member States shall participate.

Or. en

Amendment 322 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation

AM\1162781EN.docx 121/186 PE627.775v01-00 EN Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. The action shall be undertaken in a the work programme referred to in Article cooperation of at least three legal entities 27, the action shall be undertaken in a which are established in at least three cooperation of at least three legal entities different Member States and/or associated which are established in at least three countries. The eligible entities shall not, different Member States and/or associated during the whole implementation of the countries. At least three of these eligible action, be effectively controlled, directly or entities established in at least two Member indirectly, by the same entity, and shall not States and/or associated countries shall control each other. not, during the whole implementation of the action, be effectively controlled, directly or indirectly, by the same entity, and shall not control each other.

Or. en

Justification

In order to be a truly European programme the 3 undertakings from 3 Member States formula should under no circumstances be watered down. This applies also to so called disruptive technologies.

Amendment 323 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. Unless otherwise provided for in the work programme referred to in Article the work programme referred to in Article 27, the action shall be undertaken in a 27, the action shall be undertaken in a cooperation of at least three legal entities cooperation of at least four legal entities which are established in at least three which are established in at least three different Member States and/or associated different Member States and/or associated countries. At least three of these eligible countries. At least four of these eligible entities established in at least two Member entities established in at least two Member States and/or associated countries shall not, States and/or associated countries shall not, during the whole implementation of the during the whole implementation of the action, be effectively controlled, directly or action, be effectively controlled, directly or indirectly, by the same entity, and shall not indirectly, by the same entity, and shall not control each other. control each other. This rule shall not apply to actions in support of conversion

PE627.775v01-00 122/186 AM\1162781EN.docx EN from military to civil production.

Or. en

Amendment 324 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. Unless otherwise provided for in the work programme referred to in Article the work programme referred to in Article 27, the action shall be undertaken in a 27, the action shall be undertaken in a cooperation of at least three legal entities cooperation of at least three legal entities which are established in at least three which are established in at least two different Member States and/or associated Member States. These entities shall not, countries. At least three of these eligible during the whole implementation of the entities established in at least two Member action, be effectively controlled, directly or States and/or associated countries shall indirectly, by the same entity, and shall not not, during the whole implementation of control each other. the action, be effectively controlled, directly or indirectly, by the same entity, and shall not control each other.

Or. fr

Amendment 325 David Borrelli

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. The action shall be undertaken in a the work programme referred to in Article cooperation of at least three legal entities 27, the action shall be undertaken in a which are established in at least three cooperation of at least three legal entities different Member States and/or associated which are established in at least three countries. At least three of these eligible different Member States and/or associated entities established in at least three countries. At least three of these eligible Member States and/or associated countries entities established in at least two Member shall not, during the whole implementation States and/or associated countries shall not, of the action, be effectively controlled,

AM\1162781EN.docx 123/186 PE627.775v01-00 EN during the whole implementation of the directly or indirectly, by the same entity, action, be effectively controlled, directly or and shall not control each other. indirectly, by the same entity, and shall not control each other.

Or. it

Amendment 326 Angelo Ciocca

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. The action shall be undertaken in a the work programme referred to in Article cooperation of at least three legal entities 27, the action shall be undertaken in a which are established in at least three cooperation of at least three legal entities different Member States and/or associated which are established in at least three countries. At least three of these eligible different Member States and/or associated entities established in at least two Member countries. At least three of these eligible States and/or associated countries shall not, entities established in at least two Member during the whole implementation of the States and/or associated countries shall not, action, be effectively controlled, directly or during the whole implementation of the indirectly, by the same entity, and shall not action, be effectively controlled, directly or control each other. indirectly, by the same entity, and shall not control each other.

Or. it

Amendment 327 Massimiliano Salini

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

PE627.775v01-00 124/186 AM\1162781EN.docx EN countries. At least three of these eligible States and/or associated countries shall not, entities established in at least two Member during the whole implementation of the States and/or associated countries shall not, action, be effectively controlled, directly or during the whole implementation of the indirectly, by the same entity, and shall not action, be effectively controlled, directly or control each other. indirectly, by the same entity, and shall not control each other.

Or. en

Amendment 328 Edouard Martin

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. The action shall be undertaken in a the work programme referred to in Article cooperation of at least three legal entities 27, the action shall be undertaken in a which are established in at least three cooperation of at least three legal entities different Member States and/or associated which are established in at least three countries. At least three of these eligible different Member States and/or associated entities established in at least two Member countries. At least three of these eligible States and/or associated countries shall not, entities established in at least two Member during the whole implementation of the States and/or associated countries shall not, action, be effectively controlled, directly or during the whole implementation of the indirectly, by the same entity, and shall not action, be effectively controlled, directly or control each other. indirectly, by the same entity, and shall not control each other.

Or. en

Amendment 329 Patrizia Toia

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

AM\1162781EN.docx 125/186 PE627.775v01-00 EN cooperation of at least three legal entities different Member States and/or associated which are established in at least three countries. At least three of these eligible different Member States and/or associated entities established in at least two Member countries. At least three of these eligible States and/or associated countries shall not, entities established in at least two Member during the whole implementation of the States and/or associated countries shall not, action, be effectively controlled, directly or during the whole implementation of the indirectly, by the same entity, and shall not action, be effectively controlled, directly or control each other. indirectly, by the same entity, and shall not control each other.

Or. en

Justification

Any derogation to the principle of the three entities goes against the first aim of the Fund, namely the promotion of cooperation between a growing number of Member States.

Amendment 330 Fabio Massimo Castaldo

Proposal for a regulation Article 11 – paragraph 4

Text proposed by the Commission Amendment

4. Unless otherwise provided for in 4. Actions as referred to in paragraph the work programme referred to in Article 3 shall be undertaken in a cooperation of at 27, the action shall be undertaken in a least three legal entities which are cooperation of at least three legal entities established in at least three different which are established in at least three Member States and/or associated countries. different Member States and/or associated At least three of these eligible entities countries. At least three of these eligible established in at least three Member States entities established in at least two Member and/or associated countries shall not, States and/or associated countries shall not, during the whole implementation of the during the whole implementation of the action, be effectively controlled, directly or action, be effectively controlled, directly or indirectly, by the same entity, and shall not indirectly, by the same entity, and shall not control each other. control each other.

Or. en

Amendment 331 Massimiliano Salini

PE627.775v01-00 126/186 AM\1162781EN.docx EN Proposal for a regulation Article 11 – paragraph 5

Text proposed by the Commission Amendment

5. Paragraph 4 shall not apply to for deleted actions referred to in points c) and j) of paragraph 3 and to actions referred to in Article 6.

Or. en

Amendment 332 Patrizia Toia

Proposal for a regulation Article 11 – paragraph 5

Text proposed by the Commission Amendment

5. Paragraph 4 shall not apply to for deleted actions referred to in points c) and j) of paragraph 3 and to actions referred to in Article 6.

Or. en

Justification

See above.

Amendment 333 Angelo Ciocca (ENF)

Proposal for a regulation Article 11 – paragraph 5

Text proposed by the Commission Amendment

5. Paragraph 4 shall not apply to for deleted actions referred to in points c) and j) of paragraph 3 and to actions referred to in Article 6.

Or. it

AM\1162781EN.docx 127/186 PE627.775v01-00 EN Amendment 334 David Borrelli

Proposal for a regulation Article 11 – paragraph 5

Text proposed by the Commission Amendment

5. Paragraph 4 shall not apply to for deleted actions referred to in points c) and j) of paragraph 3 and to actions referred to in Article 6.

Or. it

Amendment 335 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 11 – paragraph 5

Text proposed by the Commission Amendment

5. Paragraph 4 shall not apply to for 5. Paragraph 4 shall not apply to for actions referred to in points c) and j) of actions referred to in points c) and j) of paragraph 3 and to actions referred to in paragraph 3. Article 6.

Or. en

Justification

In order to be a truly European programme the 3 undertakings from 3 Member States formula should under no circumstances be watered down. This applies also to so called disruptive technologies.

Amendment 336 Edouard Martin, Martina Werner, Carlos Zorrinho

Proposal for a regulation Article 11 – paragraph 6

PE627.775v01-00 128/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

6. Actions for the development of 6. Actions for the development of products and technologies the use, products and technologies the use, development or production of which is development, production or trade of which prohibited by applicable international law is prohibited by applicable international shall not be eligible. law shall not be eligible.

Or. en

Amendment 337 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 11 – paragraph 6 a (new)

Text proposed by the Commission Amendment

6a. 6 a. Actions which contribute in parts or entirely (parts and components including software, artificial intelligence features, and any relevant dual-use technologies), directly or indirectly to the following technologies shall be excluded the Programme: (a) Weapons of mass destruction and related warhead and missile technology; (b) Cluster munitions and related aspects in line with the Convention on Cluster Munitions; (c) Anti-personal landmines and related aspects in line with the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti- Personnel Mines and their Destruction; (d) Incendiary weapons including white phosphorus; (e) Depleted uranium ammunitions; (f) Lethal autonomous weapons without meaningful human control over the critical functions of selecting and attacking individual targets; (g) Small and light weapons (SALW)

AM\1162781EN.docx 129/186 PE627.775v01-00 EN mainly developed for export purposes, i.e. where no Member State has expressed a requirement for the action to be carried out.

Or. en

Amendment 338 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Article 11 – paragraph 6 a (new)

Text proposed by the Commission Amendment

6a. Actions for the development of products and technologies which could serve the following purposes shall not be eligible: (i) commit or facilitate a serious violation of international humanitarian law; (ii) commit or facilitate a serious violation of international human rights law; (iii) commit or facilitate an act constituting an offense under international conventions or protocols relating to terrorism ; (iv) commit or facilitate an act constituting an offense under international conventions or protocols relating to transnational organized crime.

Or. en

Amendment 339 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 6 a (new)

Text proposed by the Commission Amendment

6a. Actions in relation to products listed in Annex A shall not be funded.

PE627.775v01-00 130/186 AM\1162781EN.docx EN Actions in relation to products listed in Annex B shall not be funded if they are developed mainly for export purposes.

Or. en

Amendment 340 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 11 – paragraph 6 b (new)

Text proposed by the Commission Amendment

6b. Actions which contribute directly or indirectly to the production of armed unmanned aerial vehicles or their parts, including components, software, artificial intelligence features, and any relevant dual-use technologies shall be excluded so long as no Council Decision on the use of such new military technology exists which upholds international human rights law and international humanitarian law and which addresses issues such as a legal framework, proportionality, protection of civilians and transparency.

Or. en

Amendment 341 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Article 11 – paragraph 6 b (new)

Text proposed by the Commission Amendment

6b. Conversely, actions for the development of products and technologies aiming at the prevention, annulation or mitigation of the effects on human victims of military conducts contrary to international law, shall be encouraged.

AM\1162781EN.docx 131/186 PE627.775v01-00 EN Or. en

Amendment 342 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 11 – paragraph 6 b (new)

Text proposed by the Commission Amendment

6b. The action shall be in line with the tasks referred to in Article 42 TEU for peace keeping, conflict prevention and strengthening international security in accordance with the principles of the United Nations Charter.

Or. en

Amendment 343 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 12 – paragraph 1

Text proposed by the Commission Amendment

1. Grants may be awarded without a deleted call for proposals to legal entities identified in the work programme in accordance with Article [195(e)] of the Financial Regulation.

Or. en

Justification

There should always be a call for proposal for grants. This increases transparency in the defence sector

Amendment 344 David Borrelli

PE627.775v01-00 132/186 AM\1162781EN.docx EN Proposal for a regulation Article 12 – paragraph 1

Text proposed by the Commission Amendment

1. Grants may be awarded without a 1. Grants may be awarded without a call for proposals to legal entities identified call for proposals to legal entities identified in the work programme in accordance with in the work programme in accordance with Article [195(e)] of the Financial Article [195(e)] of the Financial Regulation Regulation. and subject to the positive opinion of the European Parliament.

Or. it

Amendment 345 Fabio Massimo Castaldo

Proposal for a regulation Article 12 – paragraph 1

Text proposed by the Commission Amendment

1. Grants may be awarded without a 1. In the implementation of the call for proposals to legal entities Programme, Union funding shall be identified in the work programme in granted following competitive calls issued accordance with Article [195(e)] of the in accordance with Regulation (EU, Financial Regulation. Euratom) No 966/2012 and Delegated Regulation (EU) No1268/2012.

Or. en

Amendment 346 Angelo Ciocca

Proposal for a regulation Article 12 – paragraph 1

Text proposed by the Commission Amendment

1. Grants may be awarded without a 1. Grants may be awarded, subject to call for proposals to legal entities identified a call for proposals, to legal entities in the work programme in accordance with identified in the work programme in Article [195(e)] of the Financial accordance with Article [195(e)] of the Regulation. Financial Regulation.

AM\1162781EN.docx 133/186 PE627.775v01-00 EN Or. it

Amendment 347 Edouard Martin, Miroslav Poche, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 12 – paragraph 3

Text proposed by the Commission Amendment

3. For the award of funding for 3. For the award of funding for development actions, the Commission shall development actions, the Commission shall act by means of implementing acts act by means of delegated acts. adopted in accordance with the procedure referred to in Article 28 paragraph 2.

Or. en

Amendment 348 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 13 – paragraph 1 – point c

Text proposed by the Commission Amendment

(c) contribution to the competitiveness (c) contribution to the integration and of the European defence industry, in efficiency of the European defence particular by creating new market industry, in particular by creating new opportunities and accelerating the growth market opportunities and accelerating the of companies throughout the Union; growth of companies throughout the Union;

Or. en

Amendment 349 Edouard Martin, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 13 – paragraph 1 – point c a (new)

Text proposed by the Commission Amendment

PE627.775v01-00 134/186 AM\1162781EN.docx EN (ca) contribution to the industrial autonomy of the European defence industry by enhancing defence technologies or products in line with defence capability priorities agreed by Member States within the framework of the Common Foreign and Security Policy;

Or. en

Amendment 350 Françoise Grossetête, Christian Ehler, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Article 13 – paragraph 1 – point c a (new)

Text proposed by the Commission Amendment

(ca) contribution to the industrial and technological autonomy of the Union by enhancing defence technologies or products in line with defence capability priorities agreed by Member States within the framework of the Common Foreign and Security Policy;

Or. en

Amendment 351 Edouard Martin, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 13 – paragraph 1 – point d

Text proposed by the Commission Amendment

(d) contribution to the security and (d) contribution to the security and defence interests of the Union in line with defence interests of the Union in line with the priorities referred to in Article 3 the priorities referred to in Article 3 paragraph 2 and, where appropriate, paragraph 2 and, where appropriate, regional and international cooperative regional and international cooperative agreements; agreements, provided that they serve the Union’s security and defence interests and do not exclude the participation of any Member State;

AM\1162781EN.docx 135/186 PE627.775v01-00 EN Or. en

Amendment 352 Françoise Grossetête, Sven Schulze, Pilar del Castillo Vera

Proposal for a regulation Article 13 – paragraph 1 – point d

Text proposed by the Commission Amendment

Or. en

Amendment 353 David Borrelli

Proposal for a regulation Article 13 – paragraph 1 – point d – point i (new)

Text proposed by the Commission Amendment

i) number of Member States and/or associated countries involved;

Or. it

Amendment 354 Fabio Massimo Castaldo

Proposal for a regulation Article 13 – paragraph 1 – point d a (new)

Text proposed by the Commission Amendment

(da) number of countries and companies involved;

PE627.775v01-00 136/186 AM\1162781EN.docx EN Or. it

Amendment 355 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 13 – paragraph 1 – point e

Text proposed by the Commission Amendment

(e) contribution to the creation of new (e) contribution to the creation of new cross-border cooperation between legal cross-border cooperation between legal entities, in particular for SMEs which are entities; established in Member States and/or associated countries other than those where the entities in the consortium which are not SMEs are established;

Or. en

Amendment 356 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 13 – paragraph 1 – point e

Text proposed by the Commission Amendment

(e) contribution to the creation of new (e) contribution to the creation of new cross-border cooperation between legal cross-border cooperation between legal entities, in particular for SMEs which are entities, in particular for SMEs; established in Member States and/or associated countries other than those where the entities in the consortium which are not SMEs are established;

Or. en

Amendment 357 Edouard Martin, Clare Moody, Martina Werner, Carlos Zorrinho

Proposal for a regulation Article 13 – paragraph 1 – point e a (new)

AM\1162781EN.docx 137/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

(ea) contribution to reducing the environmental impact of defence products, providing innovative solutions enabling the phase out of environmentally harmful substances where possible;

Or. en

Amendment 358 Clare Moody, Theresa Griffin

Proposal for a regulation Article 13 – paragraph 1 – point e a (new)

Text proposed by the Commission Amendment

(ea) contribution to reducing the environmental impact of defence products, providing innovative solutions enabling the phase out of environmentally harmful substances where possible;

Or. en

Justification

Amendment 359 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 13 – paragraph 1 – point e a (new)

Text proposed by the Commission Amendment

(ea) contribution to the conversion from excess military to civil production;

PE627.775v01-00 138/186 AM\1162781EN.docx EN Or. en

Amendment 360 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 13 – paragraph 1 – point f a (new)

Text proposed by the Commission Amendment

(fa) contribution to reducing or eliminating the European defence industry’s dependence on technologies or products controlled and/or subject to authorisation by a third country or one of its entities;

Or. fr

Amendment 361 Edouard Martin, Clare Moody, Carlos Zorrinho

Proposal for a regulation Article 13 – paragraph 1 – point f a (new)

Text proposed by the Commission Amendment

(fa) appropriate transparency and accountability provisions among contractors and sub-contractors shall be considered one of the criteria.

Or. en

Amendment 362 Clare Moody, Theresa Griffin

Proposal for a regulation Article 13 – paragraph 1 – point f a (new)

Text proposed by the Commission Amendment

(fa) Appropriate transparency and accountability provisions among

AM\1162781EN.docx 139/186 PE627.775v01-00 EN contractors and sub-contractors shall be considered one of the criteria.

Or. en

Amendment 363 Fabio Massimo Castaldo

Proposal for a regulation Article 13 – paragraph 1 – point f a (new)

Text proposed by the Commission Amendment

(fa) environmental sustainability and environmental impact. (This amendment should be letter g))

Or. it

Amendment 364 Fabio Massimo Castaldo

Proposal for a regulation Article 13 – paragraph 1 – subparagraph 1 (new)

Text proposed by the Commission Amendment

research spin-offs in the civilian sector, subject of course to confidentiality requirements. (It should be letter h))

Or. it

Amendment 365 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 13 – paragraph 2

Text proposed by the Commission Amendment

PE627.775v01-00 140/186 AM\1162781EN.docx EN 2. Under points (d) of paragraph 1, deleted regional and international priorities may be taken into account, in particular to avoid unnecessary duplication, provided they serve the Union's security and defence interests and do not exclude the participation of any Member State.

Or. en

Amendment 366 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 14 – paragraph 1

Text proposed by the Commission Amendment

1. The Fund may finance up to 100% 1. The Fund may finance up to 60% of of the eligible costs of an action without the eligible costs of an action without prejudice to the co-financing principle. prejudice to the co-financing principle.

Or. en

Amendment 367 Françoise Grossetête, Sven Schulze, Christian Ehler, Massimiliano Salini

Proposal for a regulation Article 14 – paragraph 1

Text proposed by the Commission Amendment

1. The Fund may finance up to 100% 1. The Fund shall finance 100% of the of the eligible costs of an action without eligible costs of an action without prejudice to the co-financing principle. prejudice to the co-financing principle.

Or. en

Amendment 368 Fabio Massimo Castaldo

Proposal for a regulation Article 14 – paragraph 1 a (new)

AM\1162781EN.docx 141/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

1a. At least 10% of the overall budget of the development actions shall benefit the crossborder participation of SMEs.

Or. en

Amendment 369 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 14 – paragraph 2 – point b

Text proposed by the Commission Amendment

(b) for actions defined in Article 11(3) (b) for actions defined in Article 11(3) f) to h) the financial assistance of the Fund f) to h) the financial assistance of the Fund shall not exceed 80% of the eligible costs shall not exceed 60% of the eligible costs of the action. of the action.

Or. en

Amendment 370 Pilar del Castillo Vera

Proposal for a regulation Article 14 – paragraph 3 – introductory part

Text proposed by the Commission Amendment

3. For development actions the 3. The funding rate for development funding rate shall be increased in the actions enhancing Member State and following cases: cross-border cooperation shall be increased in the following cases:

Or. en

Amendment 371 Dominique Riquet, Pavel Telička

Proposal for a regulation

PE627.775v01-00 142/186 AM\1162781EN.docx EN Article 14 – paragraph 3 – introductory part

Text proposed by the Commission Amendment

3. For development actions the 3. For development actions the funding rate shall be increased in the funding rate shall be increased, without following cases: being allowed to exceed the total eligible cost, in the following cases:

Or. fr

Amendment 372 Christelle Lechevalier

Proposal for a regulation Article 14 – paragraph 3 – point a

Text proposed by the Commission Amendment a) an action developed in the context deleted of the Permanent Structured Cooperation as established by Council Decision (CFSP) 2017/2315 of 11 December 2017, it may benefit from a funding rate increased by an additional 10 percentage points;

Or. fr

Amendment 373 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 14 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) a consortium shall benefit from a deleted funding rate increased by the percentage points equivalent to the percentage of the total eligible costs allocated to SMEs established in a Member State or an associated country other than those in which the consortium members that are not SMEs are established in;

AM\1162781EN.docx 143/186 PE627.775v01-00 EN Or. en

Amendment 374 Françoise Grossetête, Esther de Lange, Sven Schulze

Proposal for a regulation Article 14 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) a consortium shall benefit from a (b) a consortium shall benefit from a funding rate increased by the percentage funding rate increased by the percentage points equivalent to the percentage of the points equivalent to the half of the total eligible costs allocated to SMEs percentage of the total eligible costs established in a Member State or an allocated to SMEs; if SME's are associated country other than those in established in a Member State or an which the consortium members that are not associated country other than those in SMEs are established in; which the consortium members that are not SMEs are established in, the consortium will benefit from a funding rate increased by 10% of the total eligible costs allocated to those mid-caps;

Or. en

Amendment 375 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 14 – paragraph 3 – point c

Text proposed by the Commission Amendment

(c) a consortium shall benefit from a deleted funding rate increased by the percentage points equivalent to the quarter of the percentage of the total eligible costs allocated to mid-caps established in a Member State or an associated country other than those in which the other consortium members that are not SMEs or mid-caps are established in;

Or. en

PE627.775v01-00 144/186 AM\1162781EN.docx EN Amendment 376 Françoise Grossetête, Esther de Lange, Sven Schulze

Proposal for a regulation Article 14 – paragraph 3 – point c

Text proposed by the Commission Amendment

(c) a consortium shall benefit from a (c) a consortium shall benefit from a funding rate increased by the percentage funding rate increased by the percentage points equivalent to the quarter of the points equivalent to the quarter of the percentage of the total eligible costs percentage of the total eligible costs allocated to mid-caps established in a allocated to mid-caps; if mid-caps are Member State or an associated country established in a Member State or an other than those in which the other associated country other than those in consortium members that are not SMEs or which the other consortium members that mid-caps are established in; are not SMEs or mid-caps are established in, the consortium will benefit from a funding rate increased by 5% of the total eligible costs allocated to those mid-caps;

Or. en

Amendment 377 Françoise Grossetête, Sven Schulze, Massimiliano Salini

Proposal for a regulation Article 14 – paragraph 3 – point d

Text proposed by the Commission Amendment

(d) the overall increase in the funding (d) the overall increase in the funding rate of an action shall not exceed 30 rate of an action shall not exceed 20 percentage points. percentage points.

Or. en

Amendment 378 Pilar del Castillo Vera

Proposal for a regulation Article 14 – paragraph 3 – point d

AM\1162781EN.docx 145/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

(d) the overall increase in the funding (d) the overall increase in the funding rate of an action shall not exceed 30 rate of an action shall not exceed 35 percentage points. percentage points.

Or. en

Amendment 379 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 16 – paragraph 1

Text proposed by the Commission Amendment

1. Indirect eligible costs shall be 1. Indirect eligible costs shall be determined by applying a flat rate of 25 % determined by applying a flat rate of 25 % of the total direct eligible costs, excluding of the total direct eligible costs, including direct eligible costs for subcontracting, direct eligible costs for subcontracting. financial support to third parties and any unit costs or lump sums which include indirect costs.

Or. fr

Amendment 380 Fabio Massimo Castaldo

Proposal for a regulation Article 16 – paragraph 1

Text proposed by the Commission Amendment

1. Indirect eligible costs shall be 1. Where appropriate indirect eligible determined by applying a flat rate of 25 % costs shall be determined by applying a flat of the total direct eligible costs, excluding rate of 25 % of the total direct eligible direct eligible costs for subcontracting, costs, excluding direct eligible costs for financial support to third parties and any subcontracting, financial support to third unit costs or lump sums which include parties and any unit costs or lump sums indirect costs. which include indirect costs.

Or. en

PE627.775v01-00 146/186 AM\1162781EN.docx EN Amendment 381 Fabio Massimo Castaldo

Proposal for a regulation Article 16 – paragraph 1

Text proposed by the Commission Amendment

1. Indirect eligible costs shall be 1. Indirect eligible costs shall be determined by applying a flat rate of 25 % determined on a case by case basis , of the total direct eligible costs, excluding excluding direct eligible costs for direct eligible costs for subcontracting, subcontracting, financial support to third financial support to third parties and any parties and any unit costs or lump sums unit costs or lump sums which include which include indirect costs. indirect costs.

Or. en

Amendment 382 Françoise Grossetête, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Article 16 – paragraph 1

Text proposed by the Commission Amendment

1. Indirect eligible costs shall be 1. Indirect eligible costs shall be determined by applying a flat rate of 25 % determined by applying a flat rate of 25 % of the total direct eligible costs, excluding of the total direct eligible costs, including direct eligible costs for subcontracting, costs for subcontracting but excluding financial support to third parties and any financial support to third parties and any unit costs or lump sums which include unit costs or lump sums which include indirect costs. indirect costs.

Or. en

Amendment 383 Olle Ludvigsson

Proposal for a regulation Article 16 – paragraph 2

Text proposed by the Commission Amendment

2. Where appropriate, indirect deleted eligible costs beyond the flat rate of 25 %

AM\1162781EN.docx 147/186 PE627.775v01-00 EN may be determined in accordance with the beneficiary's usual cost accounting practices on the basis of actual indirect costs provided that these cost accounting practices are accepted by national authorities under comparable funding schemes in accordance with Article [185] of the Financial Regulation and communicated to the Commission.

Or. en

Amendment 384 David Borrelli

Proposal for a regulation Article 16 – paragraph 2

Text proposed by the Commission Amendment

2. Where appropriate, indirect 2. Indirect eligible costs shall be eligible costs beyond the flat rate of 25 % determined in accordance with the may be determined in accordance with the beneficiary's usual cost accounting beneficiary's usual cost accounting practices on the basis of actual indirect practices on the basis of actual indirect costs provided that these cost accounting costs provided that these cost accounting practices are accepted by national practices are accepted by national authorities under comparable funding authorities under comparable funding schemes in accordance with Article [185] schemes in accordance with Article [185] of the Financial Regulation and of the Financial Regulation and communicated to the Commission. communicated to the Commission. Should the beneficiary not be able to calculate indirect eligible costs on the basis of cost accounting practices referred to in Article 16(1), indirect eligible costs may be determined by applying a flat rate of 25% of the total direct eligible costs, excluding direct eligible costs for subcontracting, financial support to third parties and may unit costs or lump sums which include direct costs. This will be allowed when the beneficiary is an SME or in the absence of accepted practices at national level.

Or. en

PE627.775v01-00 148/186 AM\1162781EN.docx EN Amendment 385 Françoise Grossetête, Christian Ehler, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Article 16 – paragraph 2

Text proposed by the Commission Amendment

2. Where appropriate, indirect 2. As an alternative, indirect eligible eligible costs beyond the flat rate of 25 % costs may be determined in accordance may be determined in accordance with the with the beneficiary's usual cost accounting beneficiary's usual cost accounting practices on the basis of actual indirect practices on the basis of actual indirect costs provided that these cost accounting costs provided that these cost accounting practices are accepted by national practices are accepted by national authorities. authorities under comparable funding schemes in accordance with Article [185] of the Financial Regulation and communicated to the Commission.

Or. en

Amendment 386 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 16 – paragraph 2

Text proposed by the Commission Amendment

2. Where appropriate, indirect 2. Indirect eligible costs may be eligible costs beyond the flat rate of 25 % determined in accordance with the may be determined in accordance with the beneficiary's usual cost accounting beneficiary's usual cost accounting practices on the basis of actual indirect practices on the basis of actual indirect costs provided that these cost accounting costs provided that these cost accounting practices are accepted by national practices are accepted by national authorities under comparable funding authorities under comparable funding schemes. schemes in accordance with Article [185] of the Financial Regulation and communicated to the Commission.

Or. fr

Amendment 387

AM\1162781EN.docx 149/186 PE627.775v01-00 EN Angelo Ciocca

Proposal for a regulation Article 16 – paragraph 2

Text proposed by the Commission Amendment

Or. it

Amendment 388 Fabio Massimo Castaldo

Proposal for a regulation Article 16 – paragraph 2

Text proposed by the Commission Amendment

2. Where appropriate, indirect 2. When an ad-hoc evaluation of the eligible costs beyond the flat rate of 25 % indirect eligible costs cannot be made the may be determined in accordance with the flat rate of 25 % may be applied in beneficiary's usual cost accounting accordance with the beneficiary's usual practices on the basis of actual indirect cost accounting practices on the basis of costs provided that these cost accounting actual indirect costs provided that these practices are accepted by national cost accounting practices are accepted by authorities under comparable funding national authorities under comparable schemes in accordance with Article [185] funding schemes in accordance with of the Financial Regulation and Article [185] of the Financial Regulation communicated to the Commission. and communicated to the Commission.

Or. en

Amendment 389 Massimiliano Salini

PE627.775v01-00 150/186 AM\1162781EN.docx EN Proposal for a regulation Article 16 – paragraph 2

Text proposed by the Commission Amendment

Or. en

Amendment 390 Massimiliano Salini

Proposal for a regulation Article 16 – paragraph 2 – subparagraph 1 (new)

Text proposed by the Commission Amendment

Should the beneficiary not be able to calculate indirect eligible costs on the basis of cost accounting practices referred to in Article 16(1), indirect eligible costs may be determined by applying a flat rate of 25 % of the total direct eligible costs, excluding direct eligible costs for subcontracting, financial support to third parties and any unit costs or lump sums which include indirect costs. This will be allowed when the beneficiary is an SME or in the absence of accepted practices at national level.

Or. en

Amendment 391

AM\1162781EN.docx 151/186 PE627.775v01-00 EN Dominique Riquet, Pavel Telička

Proposal for a regulation Article 17 – paragraph 1 – introductory part

Text proposed by the Commission Amendment

1. For grants awarded to actions 1. For grants awarded to actions referred to Article 11(3)(e) and other referred to Article 11(3)(e) and other actions where Member States and/or actions where Member States and/or associated countries finance the major part associated countries finance more than of the budget, the Commission may use: 50% of the budget, the Commission may use:

Or. fr

Amendment 392 Olle Ludvigsson

Proposal for a regulation Article 20 – paragraph 1

Text proposed by the Commission Amendment

Where necessary for the protection of the Where necessary for the protection of the essential security interest of the Union and essential security interest of the Union and its Member States, the Commission shall its Member States, the Commission shall set the requisite eligibility conditions set the requisite eligibility conditions applicable to the procurement or prizes applicable to the procurement or prizes financed by the Fund. Particular regard financed by the Fund. Those conditions shall be had, for that purpose, to the need shall be included in the documents relating for recipients to be established in the to the procurement or prize, as applicable, Union or in associated countries, to and shall apply to the full life cycle of the commit to carry out any relevant activities resulting contract. inside the Union and not to be effectively controlled by non-associated third countries or non-associated third country' entities. Those conditions shall be included in the documents relating to the procurement or prize, as applicable, and shall apply to the full life cycle of the resulting contract.

Or. en

PE627.775v01-00 152/186 AM\1162781EN.docx EN Amendment 393 Françoise Grossetête, Sven Schulze, Pilar del Castillo Vera

Proposal for a regulation Article 20 – paragraph 1

Text proposed by the Commission Amendment

Where necessary for the protection of the For the protection of the essential security essential security interest of the Union and interest of the Union and its Member its Member States, the Commission shall States, the Commission shall set the set the requisite eligibility conditions requisite eligibility conditions applicable to applicable to the procurement or prizes the procurement or prizes financed by the financed by the Fund. Particular regard Fund. Particular regard shall be had, for shall be had, for that purpose, to the need that purpose, to the need for recipients to for recipients to be established in the Union be established in the Union or in associated or in associated countries, to commit to countries, to commit to carry out any carry out any relevant activities inside the relevant activities inside the Union and not Union and not to be effectively controlled to be effectively controlled by non- by non-associated third countries or non- associated third countries or non-associated associated third country' entities. Those third country' entities. Those conditions conditions shall be included in the shall be included in the documents relating documents relating to the procurement or to the procurement or prize, as applicable, prize, as applicable, and shall apply to the and shall apply to the full life cycle of the full life cycle of the resulting contract. resulting contract.

Or. en

Amendment 394 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Article 21 – paragraph 1

Text proposed by the Commission Amendment

Blending operations decided under this Blending operations decided under this Fund shall be implemented in accordance Fund shall be implemented in accordance with the [InvestEU regulation] and Title X with the [InvestEU regulation] and Title X of the Financial Regulation. of the Financial Regulation. The amount of expenditure from this programme to be blended with a financial instrument shall be non-refundable.

Or. en

AM\1162781EN.docx 153/186 PE627.775v01-00 EN Amendment 395 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 22 – paragraph 1

Text proposed by the Commission Amendment

1. The results of the actions shall be 1. The Union institutions, bodies, owned by the beneficiaries generating offices or agencies enjoy, for the duly them. Where legal entities jointly generate justified purpose of developing, results, and where their respective implementing and monitoring Union contribution cannot be ascertained, or policies or programmes, access rights where it is not possible to separate such solely to the results of a beneficiary that joint results, the legal entities shall have has received Union funding. Such access joint ownership of the results. rights are limited to non-commercial and non-competitive use. Such access is to be granted on a royalty-free basis. With regard to results which are generated by beneficiaries that have received funding under the Programme, the agreement between the Commission and the beneficiary shall provide that the Commission may object to transfers of ownership or to grants of a licence to third parties established in a third country not associated with the Programme, if it considers that the grant or transfer is inconsistent with ethical principles of the EU Common Position on arms exports or security considerations. Where appropriate, the agreement between the Commission and the beneficiary will provide that the Commission is to be notified at least six months in advance of any such transfer of ownership or grant of a licence. Non-compliance with these provisions will be subject to measures stipulated in Regulation (EU, Euratom)No966/2012 and Regulation (EU) No 1268/2012.

Or. en

Amendment 396 Françoise Grossetête, Massimiliano Salini, Pilar del Castillo Vera, Sven Schulze

PE627.775v01-00 154/186 AM\1162781EN.docx EN Proposal for a regulation Article 22 – paragraph 1

Text proposed by the Commission Amendment

1. The results of the actions shall be 1. The results of the actions shall be owned by the beneficiaries generating owned by the beneficiaries generating them. Where legal entities jointly generate them. Where legal entities jointly generate results, and where their respective results, and where their respective contribution cannot be ascertained, or contribution cannot be ascertained, or where it is not possible to separate such where it is not possible to separate such joint results, the legal entities shall have joint results, the legal entities shall have joint ownership of the results. joint ownership of the results. The joint owners will establish an agreement regarding the allocation and terms of exercise of that joint ownership in accordance with their obligations under the grant agreement.

Or. en

Justification

This change is taken from the Preparatory Action on Defence Research.

Amendment 397 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 22 – paragraph 1

Text proposed by the Commission Amendment

1. The results of the actions shall be 1. The results of the actions shall be owned by the beneficiaries generating owned by the beneficiaries generating them. Where legal entities jointly generate them. Where legal entities jointly generate results, and where their respective results, and where their respective contribution cannot be ascertained, or contribution cannot be ascertained, or where it is not possible to separate such where it is not possible to separate such joint results, the legal entities shall have joint results, the legal entities shall have joint ownership of the results. joint ownership of the results, unless specifically provided otherwise by agreement between the legal entities.

Or. fr

AM\1162781EN.docx 155/186 PE627.775v01-00 EN Amendment 398 Miroslav Poche

Proposal for a regulation Article 22 – paragraph 2

Text proposed by the Commission Amendment

2. If Union assistance is provided in 2. If Union assistance is provided in the form of public procurement, results the form of public procurement, results shall be owned by the Union. Member shall be owned by the Union. Member States and associated countries shall enjoy States and associated countries shall enjoy access rights to the results, free of charge, access rights to the results, free of charge, upon their explicit request. upon their explicit request. Where beneficiaries in an action have jointly generated results, and where their respective contribution to the joint results cannot be ascertained, or where it is not possible to separate such joint results for the purpose of applying for, obtaining or maintaining the relevant intellectual property rights protection, they will have joint ownership of those results. The joint owners will establish an agreement regarding the allocation and terms of exercise of that joint ownership in accordance with their obligations under the grant agreement.

Or. en

Justification

The original COMM proposal would go step aside from the usual practice. The proposed approach is in line with the logic already used under PADR.

Amendment 399 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 22 – paragraph 3

Text proposed by the Commission Amendment

3. If justified the grant agreement 3. The grant agreement may require may require that the results of actions that the results of actions receiving support receiving support from the Fund shall not from the Fund shall not be subject to any be subject to any control or restriction, control or restriction, directly or indirectly

PE627.775v01-00 156/186 AM\1162781EN.docx EN directly or indirectly through one or more through one or more intermediate legal intermediate legal entities, including in entities, including in terms of technology terms of technology transfer by a non- transfer by a non-associated third country associated third country or by a non- or by a non-associated third country entity, associated third country entity. unless provided for in the grant agreement.

Or. fr

Amendment 400 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 22 – paragraph 3

Text proposed by the Commission Amendment

3. If justified the grant agreement 3. The results of actions receiving may require that the results of actions support from the Fund shall not be subject receiving support from the Fund shall not to any control or restriction, directly or be subject to any control or restriction, indirectly through one or more directly or indirectly through one or more intermediate legal entities, including in intermediate legal entities, including in terms of technology transfer by a non- terms of technology transfer by a non- associated third country or by a non- associated third country or by a non- associated third country entity. associated third country entity.

Or. en

Justification

The goal is to align with Article 25, paragraph 2. Research and development actions should have same requirements concerning the results of actions.

Amendment 401 Miroslav Poche

Proposal for a regulation Article 22 – paragraph 3

Text proposed by the Commission Amendment

AM\1162781EN.docx 157/186 PE627.775v01-00 EN directly or indirectly through one or more intermediate legal entities, including in intermediate legal entities, including in terms of technology transfer by a non- terms of technology transfer by a non- associated third country or by a non- associated third country or by a non- associated third country entity. associated third country entity.

Or. en

Justification

Alignment with para 25.

Amendment 402 Miroslav Poche

Proposal for a regulation Article 22 – paragraph 4

Text proposed by the Commission Amendment

4. The grant agreement shall, if 4. The grant agreement shall, if justified, lay down the right of the justified, lay down the right of the Commission to be notified of and object to Commission to be notified of and object to the transfer of ownership to results or to the transfer of ownership to results or to the granting of a license regarding results the granting of a license regarding results to a non-associated third country or a non- to a non-associated third country or a non- associated third country entity. Such associated third country entity. Such transfers shall not contravene the defence transfers shall not contravene the defence and security interests of the Union and its and security interests of the Union and its Member States or the objectives of this Member States or the objectives of this Regulation as set out in Article 3. Regulation as set out in Article 3, otherwise it will necessitate reimbursement of the funding provided under the Programme.

Or. en

Justification

Alignment with Art 25, para 3; alignment with Art 12, para 4 EDIDP.

Amendment 403 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 22 – paragraph 4

PE627.775v01-00 158/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

4. The grant agreement shall, if (Does not affect the English version.) justified, lay down the right of the Commission to be notified of and object to the transfer of ownership to results or to the granting of a license regarding results to a non-associated third country or a non- associated third country entity. Such transfers shall not contravene the defence and security interests of the Union and its Member States or the objectives of this Regulation as set out in Article 3.

Or. fr

Amendment 404 Françoise Grossetête, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Article 22 – paragraph 7

Text proposed by the Commission Amendment

7. The beneficiaries shall grant deleted access rights to their results on a royalty- free basis to the Union institutions, bodies or agencies, for duly justified purpose of developing, implementing and monitoring Union policies or programmes. Such access rights shall be limited to non- commercial and non-competitive use.

Or. en

Amendment 405 Françoise Grossetête, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Article 22 – paragraph 7 a (new)

Text proposed by the Commission Amendment

7a. Any two or more Member States or associated countries that, multilaterally or

AM\1162781EN.docx 159/186 PE627.775v01-00 EN within the frame of an EU organisation, jointly have concluded one or several contracts with one or more participants to further develop together results obtained within the frame of a specific action that has received funding under a grant agreement for a research action on defence, shall enjoy access rights to the results of the action that are owned by such participant(s) and are necessary for the execution of the contract(s). Such access rights shall be granted on a royalty-free basis and under specific conditions aimed at ensuring that those rights will be used only for the purpose of the contract(s) and that appropriate confidentiality obligations will be in place

Or. en

Justification

It is taken from the PADR (Article 43).

Amendment 406 Olle Ludvigsson

Proposal for a regulation Article 22 – paragraph 8

Text proposed by the Commission Amendment

8. Specific provisions regarding 8. Specific provisions regarding ownership, access rights and licensing shall ownership, access rights and licensing shall be laid down in the grant agreements and be laid down in the grant agreements and contracts regarding pre-commercial contracts regarding pre-commercial procurement to ensure maximum uptake of procurement to ensure maximum uptake of the results and to avoid any unfair the results and to avoid any unfair advantage. The contracting authorities shall advantage. The contracting authorities shall enjoy at least royalty-free access rights to enjoy at least royalty-free access rights to the results for their own use and the right to the results for their own use and the right to grant, or require the recipients to grant, grant, or require the recipients to grant, non-exclusive licences to third parties to non-exclusive licences to third parties to exploit the results under fair and exploit the results under fair and reasonable conditions without any right to reasonable conditions without any right to sub-license. All Member States and sub-license, upon their explicit request. associated countries shall have royalty-free All Member States and associated

PE627.775v01-00 160/186 AM\1162781EN.docx EN access to the special report. If a contractor countries shall have royalty-free access to fails to commercially exploit the results the special report, upon their explicit within a given period after the pre- request. If a contractor fails to commercial procurement as identified in commercially exploit the results within a the contract, it shall transfer any ownership given period after the pre-commercial of the results to the contracting authorities. procurement as identified in the contract, it shall transfer any ownership of the results to the contracting authorities.

Or. en

Amendment 407 Christian Ehler, Michael Gahler

Proposal for a regulation Article 22 a (new)

Text proposed by the Commission Amendment

Article 22 a In order to respond to increased instability and conflicts in the Union's neighbourhood and to new security risks and geopolitical threats, Member States and the EU institutions need to identify common risks and threats and define common security interests, strategies and required capabilities which could be identified via an EU White Book on Security and Defence as well as via established procedures such as the Capability Development Mechanism (CDM);

Or. en

Amendment 408 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Article 23 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) at least two Member States and/or (a) at least two Member States and/or

AM\1162781EN.docx 161/186 PE627.775v01-00 EN associated countries intend to procure the associated countries provide guarantees to final product or use the technology in a procure the final product or use the coordinated way, including joint technology in a coordinated way, including procurement; joint procurement;

Or. en

Amendment 409 Olle Ludvigsson

Proposal for a regulation Article 23 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) at least two Member States and/or (a) at least two Member States and/or associated countries intend to procure the associated countries intend to procure the final product or use the technology in a final product or use the technology in a coordinated way, including joint coordinated way, this may include joint procurement; procurement;

Or. en

Amendment 410 David Borrelli

Proposal for a regulation Article 23 – paragraph 3 – point a

Text proposed by the Commission Amendment

(a) at least two Member States and/or (a) at least three Member States and/or associated countries intend to procure the associated countries intend to procure the final product or use the technology in a final product or use the technology in a coordinated way, including joint coordinated way, including joint procurement; procurement;

Or. it

Amendment 411 Olle Ludvigsson

Proposal for a regulation

PE627.775v01-00 162/186 AM\1162781EN.docx EN Article 23 – paragraph 3 – point b

Text proposed by the Commission Amendment

(b) the action is based on common (b) the action is based on technical specifications jointly agreed by harmonised technical specifications jointly the Member States and/or associated agreed by the Member States and/or countries which co-finance the action. associated countries which co-finance the action.

Or. en

Amendment 412 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 24 – paragraph 1 – point a

Text proposed by the Commission Amendment

(a) the contribution to increasing (a) the contribution to increasing efficiency across the life cycle of defence efficiency across the life cycle of defence products and technologies, including cost- products and technologies, including cost- effectiveness and the potential for effectiveness and the potential for synergies in the procurement and synergies in the procurement and maintenance process and disposal maintenance process and disposal processes; processes, as well as conversion from excess military to civil production;

Or. en

Amendment 413 Françoise Grossetête, Sven Schulze, Pilar del Castillo Vera

Proposal for a regulation Article 24 – paragraph 1 – point b

Text proposed by the Commission Amendment

(b) the level of cooperation between (b) the quality of the industrial set-up Members States in the eligible action. and governance of programme management.

Or. en

AM\1162781EN.docx 163/186 PE627.775v01-00 EN Amendment 414 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 25 – paragraph 1

Text proposed by the Commission Amendment

1. The Union shall not own the 1. The Union institutions, bodies, products or technologies resulting from offices or agencies enjoy, for the duly development actions, nor shall it have any justified purpose of developing, intellectual property rights regarding the implementing and monitoring Union results of the actions. policies or programmes, access rights solely to the results of a beneficiary that has received Union funding. Such access rights are limited to non-commercial and non-competitive use. Such access is to be granted on a royalty-free basis. With regard to results which are generated by beneficiaries that have received funding under the Programme, the agreement between the Commission and the beneficiary shall provide that the Commission may object to transfers of ownership or to grants of a licence to third parties established in a third country not associated with the Programme, if it considers that the grant or transfer is inconsistent with ethical principles of the EU Common Position on arms exports or security considerations. Where appropriate, the agreement between the Commission and the beneficiary will provide that the Commission is to be notified at least six months in advance of any such transfer of ownership or grant of a licence. Non-compliance with these provisions will be subject to measures stipulated in Regulation (EU, Euratom )No 966/2012 and Regulation (EU)No 1268/2012.

Or. en

Amendment 415

PE627.775v01-00 164/186 AM\1162781EN.docx EN Françoise Grossetête, Massimiliano Salini, Pilar del Castillo Vera, Sven Schulze

Proposal for a regulation Article 25 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. The results of the actions shall be owned by the beneficiaries generating them. Where legal entities jointly generate results, and where their respective contribution cannot be ascertained, or where it is not possible to separate such joint results, the legal entities shall have joint ownership of the results. The joint owners will establish an agreement regarding the allocation and terms of exercise of that joint ownership in accordance with their obligations under the grant agreement.

Or. en

Justification

This amendment is in accordance with the Article 22.

Amendment 416 Clare Moody, Theresa Griffin

Proposal for a regulation Article 25 – paragraph 2

Text proposed by the Commission Amendment

2. The results of actions receiving 2. The results of actions receiving support from the Fund shall not be subject support from the Fund shall not be subject to any control or restriction by non- to any control or restriction by non- associated third countries or by non- associated third countries or by non- associated third country entities, directly or associated third country entities, directly or indirectly through one or more indirectly through one or more intermediate legal entities, including in intermediate legal entities, including in terms of technology transfer. terms of technology transfer unless this is justified by inclusion of a non-associated third country entity where there is no EU entity alternative.

AM\1162781EN.docx 165/186 PE627.775v01-00 EN Or. en

Justification

Non-associated third country entities' EU based subsidiaries may still participate in the Fund on an exceptional basis where there are no EU alternatives. Those entities should be able to restrict the transfer of technology where justifiable as the effect of not being able to do so may exclude any non EU entity from participating.

Amendment 417 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 25 – paragraph 3

Text proposed by the Commission Amendment

3. With regard to results generated by 3. With regard to results generated by recipients, the Commission shall be recipients, the Commission shall be notified of any transfer of ownership or notified ex-ante, at least six weeks before, grant of a licence to non-associated third of any transfer of ownership or grant of a countries. Such transfer of ownership or licence to non-associated third countries. granting of a licence shall not contravene Such transfer of ownership or granting of a the defence and security interests of the licence shall not contravene the defence Union and its Member States or the and security interests of the Union and its objectives this Regulation as set out in Member States, the eight criteria of Article 3, otherwise it will necessitate Common Position2 008/944/CFSP, reimbursement of the funding provided Regulation (EC)No 428/2009 setting up a under the Fund. Community regime for the control of exports, transfer, brokering and transit of dual-use items, EU restrictive measures in force or the objectives this Regulation as set out in Article 3, otherwise it will, among other measures, necessitate reimbursement of the funding provided under the Fund.

Or. en

Justification

Via this Programme the European Union becomes an actor in the defence sector. As regards transfers of military technology or dual-use technology the Union has to adhere to legally binding regimes whose criteria shall be respected also in the case of the present Programme

PE627.775v01-00 166/186 AM\1162781EN.docx EN Amendment 418 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 25 – paragraph 3

Text proposed by the Commission Amendment

3. With regard to results generated by 3. With regard to results of actions recipients, the Commission shall be covered by this Regulation, the notified of any transfer of ownership or Commission shall be notified of any grant of a licence to non-associated third transfer of ownership or grant of a licence countries. Such transfer of ownership or to non-associated third countries. Such granting of a licence shall not contravene transfer of ownership or granting of a the defence and security interests of the licence shall not contravene the defence Union and its Member States or the and security interests of the Union and its objectives this Regulation as set out in Member States or the objectives this Article 3, otherwise it will necessitate Regulation as set out in Article 3, reimbursement of the funding provided otherwise it will necessitate reimbursement under the Fund. of the funding provided under the Fund.

Or. fr

Amendment 419 Christian Ehler, Michael Gahler

Proposal for a regulation Article 27 – paragraph 1

Text proposed by the Commission Amendment

1. The Fund shall be implemented by 1. The Fund shall be implemented by annual or multi annual work programmes annual or multi annual work programmes established in accordance with Article established in accordance with Article [110] of the Financial Regulation. Work [110] of the Financial Regulation. Work programmes shall set out, where programmes shall set out, where applicable, the overall amount reserved for applicable, the overall amount reserved for blending operations. blending operations. For the establishment of the work programme input from the Capability Development Mechanism (CDM) shall be taken into consideration.

Or. en

Amendment 420

AM\1162781EN.docx 167/186 PE627.775v01-00 EN Edouard Martin, Clare Moody, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 27 – paragraph 1

Text proposed by the Commission Amendment

1. The Fund shall be implemented by 1. The Fund shall be implemented by annual or multi annual work programmes annual or multi annual work programmes established in accordance with Article established in accordance with Article [110] of the Financial Regulation. Work [110] of the Financial Regulation. Work programmes shall set out, where programmes shall set out, where applicable, the overall amount reserved for applicable, the overall amount reserved for blending operations. blending operations. The European Parliament may select a representative group of Members to assist the committee.

Or. en

Amendment 421 Fabio Massimo Castaldo

Proposal for a regulation Article 27 – paragraph 1

Text proposed by the Commission Amendment

1. The Fund shall be implemented by 1. The Fund shall be implemented by annual or multi annual work programmes annual or multi annual work programmes established in accordance with Article established in accordance with Article [110] of the Financial Regulation. Work [110] of the Financial Regulation. Work programmes shall set out, where programmes shall set out, where applicable, the overall amount reserved for applicable, the overall amount reserved for blending operations. blending operations as well as for the crossborder participation of SMEs.

Or. en

Amendment 422 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 27 – paragraph 2

PE627.775v01-00 168/186 AM\1162781EN.docx EN Text proposed by the Commission Amendment

2. The Commission shall adopt the 2. The Commission shall adopt the work programmes by means of work programmes by means of delegated implementing acts in accordance with the acts in accordance with the procedure procedure referred to in Article 28 referred to in Article 28 paragraph 2. The paragraph 2. work programmes shall set out in detail the categories of projects to be included in the Programme as well as the commitment of the Member States for financing their implementation. These work programmes shall be in line with the objectives set out in Article 3.

Or. en

Justification

The European Defence Fund and any measures which might contribute to the development of a European defence market cannot exclude elected members of the European Parliament for a period of 7 years. As in other mature democracies also in the European Union elected members need to have the right to scrutinize the main choices as regards defence programmes. At EU level the legal mechanism to ensure a minimum of parliamentary scrutiny is delegated acts.

Amendment 423 Edouard Martin, Miroslav Poche, Carlos Zorrinho, Răzvan Popa

Proposal for a regulation Article 27 – paragraph 2

Text proposed by the Commission Amendment

Or. en

Amendment 424 Edouard Martin, Carlos Zorrinho

Proposal for a regulation

AM\1162781EN.docx 169/186 PE627.775v01-00 EN Article 27 – paragraph 2 a (new)

Text proposed by the Commission Amendment

2a. Based on the work programmes' elaboration process and in close cooperation with the Committee, the Commission shall carry out an upfront assessment of possible duplication cases with existing capabilities or already funded research or development projects within the EU. Where such duplication cases may occur, no award decision shall be taken on the action in question unless there is an agreement to phase-out the pre-existing technology or equipment, assorted with proper industrial and social transition tools.

Or. en

Amendment 425 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Article 27 – paragraph 2 b (new)

Text proposed by the Commission Amendment

2b. The work programmes shall set out the categories of projects to be funded under the Programme, in line with the defence priorities referred to in Article 3.

Or. en

Amendment 426 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 28 – paragraph 1

Text proposed by the Commission Amendment

PE627.775v01-00 170/186 AM\1162781EN.docx EN 1. The Commission shall be assisted 1. The Commission shall be assisted by a committee within the meaning of by an expert committee selected Regulation (EU) No 182/2011. The transparently and with a balanced European Defence Agency shall be invited participation of defence experts from as an observer to provide its views and academia, research organisations, EU expertise. The European External Action institutions including the European Service shall also be invited to assist. Parliament and think tanks. The European Defence Agency shall be invited as a participant to provide its views and expertise. The European External Action Service shall also be invited to participate.

Or. en

Amendment 427 Clare Moody, Theresa Griffin

Proposal for a regulation Article 28 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission shall be assisted 1. The Commission shall be assisted by a committee within the meaning of by a committee within the meaning of Regulation (EU) No 182/2011. The Regulation (EU) No 182/2011. The European Defence Agency shall be invited European Defence Agency shall be invited as an observer to provide its views and as an observer to provide its views and expertise. The European External Action expertise. The European External Action Service shall also be invited to assist. Service shall also be invited to assist. The European Parliament may select a representative group of Members to assist the committee.

Or. en

Amendment 428 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 28 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission shall be assisted 1. The Commission shall be assisted

AM\1162781EN.docx 171/186 PE627.775v01-00 EN by a committee within the meaning of by a committee within the meaning of Regulation (EU) No 182/2011. The Regulation (EU) No 182/2011. The European Defence Agency shall be invited European Defence Agency, the European as an observer to provide its views and Parliament, civil society and academia expertise. The European External Action shall be invited as an observers to provide Service shall also be invited to assist. their views and expertise. The European External Action Service shall also be invited to assist.

Or. en

Justification

It is of key importance for the emergence of an efficient European defence sector to incorporate minimum transparency requirements

Amendment 429 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 28 – paragraph 1 a (new)

Text proposed by the Commission Amendment

1a. The Commission shall establish an Advisory Group composed of independent experts, academia and civil society organisations to provide advice to the Committee in particular on the compatibility of technology supported by this Programme with a view on moral, ethical and international law obligations of both the Union and its Member States.

Or. en

Amendment 430 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 28 – paragraph 2

Text proposed by the Commission Amendment

PE627.775v01-00 172/186 AM\1162781EN.docx EN 2. Where reference is made to this deleted paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Or. en

Amendment 431 Christian Ehler, Michael Gahler

Proposal for a regulation Article 28 – paragraph 2

Text proposed by the Commission Amendment

2. Where reference is made to this 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. 182/2011 shall apply. Where the Committee delivers no opinion, the Commission shall not adopt the draft implementing act and the third subparagraph of Article 5 (4) of Regulation (EU) No 182/2011 shall apply.

Or. en

Amendment 432 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 29 – paragraph 1

Text proposed by the Commission Amendment

1. The Commission shall appoint 1. The Commission shall appoint independent experts to assist in the independent experts from academia, evaluation of proposals pursuant to Article research organisations and think tanks [237] of the Financial Regulation. It may transparently to assist in the evaluation of also appoint independent experts to advise proposals pursuant to Article [237] of the on or assist with the monitoring of the Financial Regulation. It may also appoint implementation of actions carried out. independent experts to advise on or assist with the monitoring of the implementation of actions carried out. Experts from the defence industry shall not be identified to avoid bias.

AM\1162781EN.docx 173/186 PE627.775v01-00 EN Or. en

Amendment 433 Clare Moody, Theresa Griffin

Proposal for a regulation Article 29 – paragraph 2

Text proposed by the Commission Amendment

2. Independent experts shall be 2. Independent experts shall be Union's citizens identified and selected on Union's citizens identified and selected on the basis of calls for expressions of interest the basis of calls for expressions of interest addressed to relevant organisations such as addressed to relevant organisations such as Ministries of Defence and subordinated Ministries of Defence and subordinated agencies, research institutes, universities, agencies, research institutes, non- business associations or enterprises of the governmental organisations, universities, defence sector with a view to establishing a business associations or enterprises of the list of experts. By derogation from Article defence sector with a view to establishing a [237] of the Financial Regulation, this list list of experts that is gender balanced. By shall not be made public. derogation from Article [237] of the Financial Regulation, this list shall not be made public.

Or. en

Justification

NGOs active in the defence sector, such as those defending the interests of military personnel should also be eligible to contribute potential experts. In addition, the panel of experts should be gender balanced to reflect the important role that women play in peace and security.

Amendment 434 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 29 – paragraph 2

Text proposed by the Commission Amendment

PE627.775v01-00 174/186 AM\1162781EN.docx EN agencies, research institutes, universities, agencies, research institutes, universities, business associations or enterprises of the civil society organisations, business defence sector with a view to establishing a associations or enterprises of the defence list of experts. By derogation from Article sector with a view to establishing a list of [237] of the Financial Regulation, this list experts. In compliance with the Financial shall not be made public. Regulation, this list shall be made public.

Or. en

Justification

The defence sectors in Europe are also highly inefficient because of a lack of transparency. It is of strategic importance to change this situation and to use this opportunity in order to change such structural deficiencies. A future European defence market should be a highly efficient and transparent sector. Information such as the list of experts chosen are of interest to the wider public and cannot be considered an industrial secret.

Amendment 435 Edouard Martin, Carlos Zorrinho, Răzvan Popa, Eugen Freund

Proposal for a regulation Article 29 – paragraph 2

Text proposed by the Commission Amendment

2. Independent experts shall be 2. Independent experts shall be Union's citizens identified and selected on Union's citizens identified and selected on the basis of calls for expressions of interest the basis of calls for expressions of interest addressed to relevant organisations such as addressed to relevant organisations such as Ministries of Defence and subordinated Ministries of Defence and subordinated agencies, research institutes, universities, agencies, research institutes, universities, business associations or enterprises of the non-governmental organisations, business defence sector with a view to establishing a associations or enterprises of the defence list of experts. By derogation from Article sector with a view to establishing a list of [237] of the Financial Regulation, this list experts that is gender balanced. shall not be made public.

Or. en

Amendment 436 Christian Ehler, Michael Gahler

Proposal for a regulation Article 29 – paragraph 2

AM\1162781EN.docx 175/186 PE627.775v01-00 EN Text proposed by the Commission Amendment

2. Independent experts shall be 2. Independent experts shall be Union's citizens identified and selected on identified on the basis of excellence based the basis of calls for expressions of interest on calls for expressions of interest addressed to relevant organisations such as addressed to relevant organisations such as Ministries of Defence and subordinated Ministries of Defence and subordinated agencies, research institutes, universities, agencies, research institutes, universities, business associations or enterprises of the business associations or enterprises of the defence sector with a view to establishing a defence sector with a view to establishing a list of experts. By derogation from Article list of experts. By derogation from Article [237] of the Financial Regulation, this list [237] of the Financial Regulation, this list shall not be made public. shall not be made public.

Or. en

Amendment 437 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 29 – paragraph 3

Text proposed by the Commission Amendment

3. Independent experts shall have the deleted appropriate security clearance issued by a Member State.

Or. en

Justification

As this is a Union programme, only the Commission should verify the credentials of experts.

Amendment 438 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 29 – paragraph 4

Text proposed by the Commission Amendment

4. The Committee referred to in 4. The Committee and the European Article 28 shall be informed annually on Parliament referred to in Article 28 shall

PE627.775v01-00 176/186 AM\1162781EN.docx EN the list of experts. be informed annually on the list of experts

Or. en

Amendment 439 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 29 – paragraph 5

Text proposed by the Commission Amendment

5. Independent experts shall be chosen 5. Independent experts shall be chosen on the basis of their skills, experience and on the basis of their skills, experience and knowledge appropriate to carry out the knowledge appropriate to carry out the tasks assigned to them. tasks assigned to them. The Commission must also ensure that experts do not assess, advise or assist on matters in which they have a conflict of interest.

Or. fr

Amendment 440 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 29 – paragraph 5

Text proposed by the Commission Amendment

5. Independent experts shall be chosen 5. Independent experts shall be chosen on the basis of their skills, experience and only by the European Commission on the knowledge appropriate to carry out the basis of their skills, experience and tasks assigned to them. knowledge appropriate to carry out the tasks assigned to them.

Or. en

Amendment 441 Dominique Riquet, Pavel Telička

Proposal for a regulation

AM\1162781EN.docx 177/186 PE627.775v01-00 EN Article 30 – paragraph 3

Text proposed by the Commission Amendment

3. In order to facilitate exchange of 3. In order to facilitate exchange of sensitive information between the sensitive information between the Commission, the recipients and, where Commission, the recipients and, where applicable the Member states, the applicable the Member states, the Commission shall set up an electronic Commission shall set up a secure exchange system. electronic exchange system.

Or. fr

Amendment 442 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 31 – paragraph 3

Text proposed by the Commission Amendment

3. The Commission shall regularly 3. The Commission shall regularly monitor the implementation of the Fund monitor and evaluate the implementation and annually report on the progress made. of the Fund and annually report to the To this end, the Commission shall put in Parliament and the Council on the place necessary monitoring arrangements. progress made. To this end, the Commission shall put in place necessary monitoring arrangements.

Or. en

Amendment 443 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 31 – paragraph 3

Text proposed by the Commission Amendment

3. The Commission shall regularly 3. The Commission shall regularly monitor the implementation of the Fund monitor the implementation of the Fund and annually report on the progress made. and annually report to the Council and the To this end, the Commission shall put in European Parliament on the progress place necessary monitoring arrangements. made. To this end, the Commission shall put in place necessary monitoring

PE627.775v01-00 178/186 AM\1162781EN.docx EN arrangements.

Or. fr

Amendment 444 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 31 – paragraph 4 – subparagraph 1 (new)

Text proposed by the Commission Amendment

Member States shall report to the Commission or the EU Delegations on their exports of EU-funded defence technologies and equipment to Third Countries on a six-monthly basis. The Commission shall setup a tracking mechanism to verify the end-use and end- users of defence technologies and equipment funded by the Programme and exported to Third Countries and report back to the European Parliament on a yearly basis.

Or. en

Amendment 445 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 32 – paragraph 1

Text proposed by the Commission Amendment

1. Evaluations shall be carried out in a 1. Evaluations shall be carried out timely manner to feed into the decision- annually to feed into the decision-making making process. process.

Or. en

Amendment 446 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

AM\1162781EN.docx 179/186 PE627.775v01-00 EN Proposal for a regulation Article 32 – paragraph 2

Text proposed by the Commission Amendment

2. The interim evaluation of the Fund 2. The interim evaluation of the Fund shall be performed once there is sufficient shall be performed once there is sufficient information available about the information available about the implementation of the Fund, but no later implementation of the Fund at the end of than four years after the start of the Fund every financial year. The interim implementation. The interim evaluation evaluation report will include notably, an report will include notably, an assessment assessment of the governance of the Fund, of the governance of the Fund, implementation rates, project award results implementation rates, project award results including SMEs and mid-caps involvement including SMEs and mid-caps involvement and the degree of their cross-border and the degree of their cross-border participation, information about exports of participation, and funding granted in funded products or technologies, an accordance with Article [195] of the evaluation of the increase in efficiency Financial Regulation by 31 July 2024. The and in the elimination of unnecessary Commission may submit proposals for any duplications, the state of conversion from appropriate amendments to the present military to civil production and funding regulation. granted in accordance with Article [195] of the Financial Regulation by 31 July 2024. The Commission may submit proposals for any appropriate amendments to the present regulation.

Or. en

Amendment 447 Fabio Massimo Castaldo

Proposal for a regulation Article 32 – paragraph 2

Text proposed by the Commission Amendment

PE627.775v01-00 180/186 AM\1162781EN.docx EN including SMEs and mid-caps involvement projects, implementation rates, project and the degree of their cross-border award results including SMEs and mid- participation, and funding granted in caps involvement and the degree of their accordance with Article [195] of the cross-border participation, and funding Financial Regulation by 31 July 2024. The granted in accordance with Article [195] of Commission may submit proposals for any the Financial Regulation by 31 July 2024. appropriate amendments to the present The Commission may submit proposals for regulation. any appropriate amendments to the present regulation.

Or. it

Amendment 448 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Article 32 – paragraph 3

Text proposed by the Commission Amendment

3. At the end of the implementation 3. At the end of the implementation period but no later than four years after the period but no later than four years after the 31 December 2031, a final evaluation of 31 December 2031, a final evaluation of the Fund implementation shall be carried the Fund implementation shall be carried out by the Commission. The final out by the Commission. The final evaluation report shall include the results evaluation report shall include the results of the implementation and to the extent of the implementation and to the extent possible given timing the impact of the possible given timing the impact of the Fund. The report - building on relevant Fund. The report - building on relevant consultations of Member States and consultations of Member States and associated countries and key stakeholders - associated countries and key stakeholders - shall notably assess the progress made shall notably assess the progress made towards the achievement of objectives set towards the achievement of objectives set out in Article 3. It shall also analyse cross out in Article 3. It shall also analyse cross border participation, including of SMEs border participation, including of SMEs and mid-caps in projects implemented and mid-caps in projects implemented under the Fund as well as the integration of under the Fund as well as the integration of SMEs and Mid-caps in the global value SMEs and Mid-caps in the global value chain. The evaluation shall also contain chain. The evaluation shall also contain information on the countries of origin of information on the countries of origin of the recipients and, where possible, the the recipients and, where possible, the distribution of the generated intellectual distribution of the generated intellectual property rights. property rights, as well as about exports of funded products or technologies. It shall further evaluate the increase in efficiency and in the elimination of unnecessary duplications and the state of conversion from military to civil production .

AM\1162781EN.docx 181/186 PE627.775v01-00 EN Or. en

Amendment 449 Dominique Riquet, Pavel Telička

Proposal for a regulation Article 32 – paragraph 3

Text proposed by the Commission Amendment

3. At the end of the implementation 3. At the end of the implementation period but no later than four years after the period but no later than four years after the 31 December 2031, a final evaluation of 31 December 2027, a final evaluation of the Fund implementation shall be carried the Fund implementation shall be carried out by the Commission. The final out by the Commission. The final evaluation report shall include the results evaluation report shall include the results of the implementation and to the extent of the implementation and to the extent possible given timing the impact of the possible given timing the impact of the Fund. The report - building on relevant Fund. The report - building on relevant consultations of Member States and consultations of Member States and associated countries and key stakeholders - associated countries and key stakeholders - shall notably assess the progress made shall notably assess the progress made towards the achievement of objectives set towards the achievement of objectives set out in Article 3. It shall also analyse cross out in Article 3. It shall also analyse cross border participation, including of SMEs border participation, including of SMEs and mid-caps in projects implemented and mid-caps in projects implemented under the Fund as well as the integration of under the Fund as well as the integration of SMEs and Mid-caps in the global value SMEs and Mid-caps in the global value chain. The evaluation shall also contain chain. The evaluation shall also contain information on the countries of origin of information on the countries of origin of the recipients and, where possible, the the recipients and, where possible, the distribution of the generated intellectual distribution of the generated intellectual property rights. property rights.

Or. fr

Amendment 450 Clare Moody, Theresa Griffin

Proposal for a regulation Article 34 – paragraph 1 a (new)

Text proposed by the Commission Amendment

Where a Member State or undertaking invokes national security as a reason for withholding information from OLAF

PE627.775v01-00 182/186 AM\1162781EN.docx EN where there is a risk of fraud or other unlawful activity, the national security concerns shall be interpreted strictly.

Or. en

Justification

There is a risk that defence firms, or the Member States in which they are located, invoke national security reasons for failure to fully cooperate with OLAF. Provided that OLAF is capable of assuring the confidentiality of sensitive military information, these national security concerns should be interpreted strictly to prevent the financial interests of the Union from being abused.

Amendment 451 Edouard Martin, Clare Moody, Eugen Freund

Proposal for a regulation Article 34 – paragraph 1 a (new)

Text proposed by the Commission Amendment

Where a Member State or undertaking invokes national security as a reason for withholding information from OLAF where there is a risk of fraud or other unlawful activity, the national security concerns shall be interpreted strictly.

Or. en

Amendment 452 Françoise Grossetête, Sven Schulze, Massimiliano Salini, Pilar del Castillo Vera

Proposal for a regulation Article 35 – paragraph 2

Text proposed by the Commission Amendment

2. The Commission shall implement 2. The Commission shall implement information and communication actions information and communication actions relating to the Fund, and its actions and relating to the Fund, and its actions and results. Financial resources allocated to the results. Financial resources allocated to the Fund shall also contribute to the corporate Fund shall also contribute to the corporate communication of the political priorities of communication of the political priorities of the Union, as far as they are related to the the Union, as far as they are related to the

AM\1162781EN.docx 183/186 PE627.775v01-00 EN objectives referred to in Article 3. objectives referred to in Article 3, and may be used for projects on statistics on the defence industry and projects to pilot the collection of data.

Or. en

Amendment 453 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 36 – paragraph 1

Text proposed by the Commission Amendment

1. The power to adopt delegated acts 1. The power to adopt delegated acts referred to in Article 31 shall be conferred referred to in Articles 27(2) and 31 shall be on the Commission for an indeterminate conferred on the Commission for an period of time from the date of entry into indeterminate period of time from the date force of this Regulation. of entry into force of this Regulation.

Or. en

Amendment 454 Reinhard Bütikofer on behalf of the Verts/ALE Group

Proposal for a regulation Article 36 – paragraph 5

Text proposed by the Commission Amendment

5. A delegated act adopted pursuant to 5. A delegated act adopted pursuant to Article 31 shall enter into force only if no Articles 27(2) and 31 shall enter into force objection has been expressed either by the only if no objection has been expressed European Parliament or by the Council either by the European Parliament or by the within a period of two months of Council within a period of two months of notification of that act to the European notification of that act to the European Parliament and the Council or if, before the Parliament and the Council or if, before the expiry of that period, the European expiry of that period, the European Parliament and the Council have both Parliament and the Council have both informed the Commission that they will informed the Commission that they will not object. That period shall be extended not object. That period shall be extended by two months at the initiative of the by two months at the initiative of the

PE627.775v01-00 184/186 AM\1162781EN.docx EN European Parliament or of the Council. European Parliament or of the Council.

Or. en

Amendment 455 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Annex I – part 2 – paragraph 2 – subparagraph 1 a (new)

Text proposed by the Commission Amendment

ANNEX A Non eligible products · Weapons of mass destruction and related warhead technologies; · Banned weapons and munitions and weapons not compliant with international humanitarian law; · Fully autonomous weapons that enable strikes to be carried out without meaningful human control as well as IA software, dual-use and military components that leave to the machine the final decision to apply lethal force; · Weapon systems that are not regulated by international legal frameworks that have been ratified by the European Union or all EU member states individually to prevent misuse.

Or. en

Amendment 456 Edouard Martin, Carlos Zorrinho

Proposal for a regulation Annex I – part 2 – paragraph 2 a (new)

Text proposed by the Commission Amendment

Indicator 5: Europeanisation of military equipment:

AM\1162781EN.docx 185/186 PE627.775v01-00 EN Measured by: financial share and geographical spread of Programme- funded projects in terms of European public procurement or potential acquisitions

Or. en

Amendment 457 Jens Geier, Arne Lietz, Martina Werner, Constanze Krehl

Proposal for a regulation Annex I – part 2 – paragraph 2 a (new)

Text proposed by the Commission Amendment

ANNEX B Non eligible products, when they are mainly developed for export purposes: · Small arms and light weapons.

Or. en

PE627.775v01-00 186/186 AM\1162781EN.docx EN