Brussels – The first step of the European could be opening EU joint procurements to European countries. As the European Union seeks to accelerate its defence strategy in response to the emerging threats posed by Russia and China, as well as to counter the growing disengagement of the US from Europe, the ReArm Europe plan outlines a major initiative to strengthen partnerships with neighbouring “like minded” countries.
All eyes are on the new €150-billion SAFE instrument (Security Action for Europe), which will support “a significant increase” in Member States’ investments in European defence capabilities. This is because the Regulation on ReArm Europe proposed on 19 March stipulates that contractors involved in the common procurement could also be based in Ukraine, as well as in EEA EFTA States (Iceland, Liechtenstein, and Norway).
Moreover, agreements could be signed with acceding countries, candidate and potential candidates, and other third countries “with whom the Union has entered a Security and Defence Partnership.” EU officials confirmed that partnerships for joint procurements may immediately include a “pool” of six countries – Norway, Albania, Moldova, North Macedonia, Japan, and South Korea. Other candidate countries “may request to join,” while the doors remain closed to the United States and – just for now – the United Kingdom.
Partnerships for ReArm Europe
The proposed Regulation on the SAFE instrument – the only truly new initiative from the European Commission in the entire ReArm Europe plan – is designed to strengthen the European defence industry by encouraging Member States to “buy European” and cooperate on the joint procurement of ammunition, missiles, artillery systems, drones, anti-drone systems, air and missile defence, strategic enablers, space asset protection, critical infrastructure protection, cyber and military mobility, intelligence, and electronic warfare.
When referring to joint procurement – a precondition for financial assistance under the SAFE instrument – this means the acquisition of defence products carried out by at least one Member State receiving financial assistance under this instrument, along with at least one additional country: a EU Member State, a member of the European Free Trade Association that is also part of the European Economic Area, or Ukraine. In other words, Iceland, Liechtenstein, Norway, and Ukraine are treated as equal to any EU Member State when cooperating on collective defence procurement (unlike Switzerland, which is not part of the EEA).
It is explicitly stated that no component shall be sourced from a third country “that contravenes the security and defence interests” of the European Union. As outlined in Article 16, the cost of components originating in the EU,EEA EFTA, or Ukraine “shall not be lower than 65% of the estimated cost of the end product,” meaning that contractors and subcontractors involved in the common procurement must be established within this European area and must not be subject to control by a third country.
The remaining 35% of the estimated cost of the end product can come from bilateral or multilateral agreements with “like-minded countries,” namely acceding countries (Albania, Moldova, Montenegro, North Macedonia, Serbia, and Türkiye), candidate countries (Bosnia and Herzegovina and Georgia) and potential candidates (Kosovo). It may also come from third countries with which the EU has entered a Security and Defence Partnership (Japan and South Korea).
At present, the EU has six Security and Defence Partnership in place: with Albania, Japan, Moldova, North Macedonia, Norway, and South Korea. This pool of six third countries could immediately cooperate with Member States, while all the others – like Montenegro, Serbia, or Türkiye – could potentially join at a later stage through bilateral or multilateral agreements. The United Kingdom is not included in these partnerships, but its status could soon change. “I really hope that, for the summit in May, we can have results” on the Security and Defence partnership, EU High Representative Kaja Kallas confirmed during the press conference.
Under Article 17, it is made clear that bilateral or multilateral agreements shall set out “the conditions and modalities of participation of contractors and subcontractors established in the third country” in the common procurement under the SAFE instrument. This allows the participation of industries from third countries mentioned as potential partners in joint procurements, while respecting the 35% threshold of the estimated cost of the end product.
A deteriorating security context in Europe
The ReArm Europe plan is part of a broader strategy for European defence, as outlined in the White Paper Readiness 2030, presented by the Commission on 19 March. “The international order is undergoing changes of a magnitude not seen since 1945,” warns the document, highlighting the deteriorating security context in Europe.
Russia poses a “major strategic threat on the battlefield,” as it is “the most heavily armed European State by a huge distance” and is now operating under “a war economy.” Meanwhile, the challenge posed by China is described as “systematic,” driven by an “authoritarian and non-democratic” system of government and an approach to trade, investment, and technology designed to achieve “primacy and, in some cases, supremacy.” Moreover, the United States is reducing its historical role as a primary security guarantor in Europe “faster than many had anticipated.”
For these reasons, the EU will prioritise international cooperation and multilateralism “at all levels,” further expanding and refining its “tailored” partnerships with bilateral, regional, and multilateral partners “in a mutually beneficial way.” The text explicitly refers to an “open architecture combined with variable geometry, allowing like-minded partners to participate in cooperative defence projects and initiatives.”
First of all, the United Kingdom is described as an “essential” European ally. Norway is a full partner in EU defence programmes “through its contribution to the EU budget.” Enlargement and neighbouring countries – explicitly mentioning Albania, Iceland, Montenegro, the Republic of Moldova, North Macedonia and Switzerland – can participate in cooperation on security and defence. Türkiye is a candidate country and a “longstanding” partner for the EU, which is why the EU will engage “constructively” to develop a “mutually beneficial” partnership in all areas of common interest.
