See inside a $340 million Boeing military transport jet that keeps American troops and supplies moving around the world

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  22 mai 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

  State, DoD Letter Warns European Union to Open Defense Contracts, Or Else

  By PAUL MCLEARY Europe has bristled at a letter sent to the EU from the Pentagon and State Department, which says proposed EU defense programs are unfair to the US defense industry. WASHINGTON: Pentagon and State Department officials have told the European Union they're “deeply concerned” over plans to potentially exclude US defense firms from competing for billions worth of new arms deals, suggesting the US could slap restrictions on buying European defense equipment in retaliation. At issue is the proposed $14 billion European Defence Fund, and a host of procurement programs under the the Permanent Structured Cooperation, or PESCO, the European economic alliance is undertaking. While the May 1 letter from Ellen Lord, Pentagon procurement chief, and Andrea Thompson, State's undersecretary for arms control and international security, expressed general support for the EU initiatives, it made clear the US would like to see significant changes in the draft language before the 28-country bloc votes on them as early as next month. The language in both documents, the US argues, feature intellectual property and export control restrictions that would act as “poison pills” to “effectively preclude participation by any company that uses U.S.-origin technology.” Overall, Lord and Thompson write, the conditions outlined in the EDF and PESCO documents “represent a dramatic reversal of the last three decades of increased integration of the transatlantic defense sector.” If the restrictions are kept in place, the US officials warn, “it is clear that similar reciprocally imposed U.S. restrictions would not be welcomed by our European partners and Allies, and we would not relish having to consider them in the future.” But EU officials defended their efforts this week. Asked about the US letter, an EU spokesperson replied in an email that the EDF and PESCO will “complement and strengthen NATO,” at a time in which the Trump administration has made that a key policy goal, and “enable Europe to shoulder its fair share of the burden and responsibility for global security.” But it's clear the letter has rankled the Europeans. “The EU has an open and competitive defense procurement framework, in fact more so than the US procurement market,” the spokesperson wrote. “In the EU, there is no ‘Buy European Act.' 81 percent of the total value of international defense contracts in Europe go to US firms. The US defense market is three to four times larger than that of the EU, and yet imports from the EU are marginal for the US, while EU imports from the US are significant.” The official said that American companies with subsidiaries in the EU will remain eligible for funding under the EDF subject to security conditions “which are similar – in fact less restrictive – to the ones that EU companies face in the US.” The EU's High Representative Federica Mogherini told reporters Tuesday that PESCO projects aren't meant to be a vehicle to increase transAtlantic ties, and the EU will gladly continue doing business with non-EU defense companies. The program “is not defined to be an instrument for partnership,” she said. “It does not substitute other partnerships, including in the defense industry and research that we have already in place and that are essential for us,” she added. For years, non-NATO countries like Sweden and Finland have drawn closer to NATO and have increased ties with US defense firms while also building their own domestic defense capabilities, though the relationship hasn't always been smooth. While the US government is concerned over US companies being excluded, the PESCO effort has been developed explicitly to bolster the ability of European countries to produce their own weapons systems, cyber capabilities, and surveillance technologies. So-called “third states” — non EU members — may ask to participate in PESCO projects, but all of the member states must vote to allow them in. Lord and Thompson argue that walling-off EU projects from NATO efforts would lead to duplication and waste, while decreasing interoperability between the EU and NATO. It could also “potentially tum the clock back to the sometimes divisive discussions about EU defense initiatives that dominated our exchanges 15 years ago.” In the end, the US letter is just the latest turn in what has been a complex, up and down relationship between the US and Europe under the Trump administration. The president has loudly condemned Washington's closest allies in Europe for not spending enough on their own defense, while threatening to pull out of NATO. At the same time, the US has increased troop levels in Europe and pumped over $11 billion into the European Deterrence Initiative over the past two years, in an effort to upgrade US and allied basing, increase joint exercises, and modernize equipment on the continent to counter the Russian threat. https://breakingdefense.com/2019/05/state-dod-letter-warns-european-union-to-open-defense-contracts-or-else/

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  25 mai 2021 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

  Biden defense budget, coming Friday, is under pressure from both sides

  Details of President Joe Biden’s first defense budget won’t be out until Friday, but lawmakers on the left and right have already drawn out their lines for the battle ahead.

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  22 septembre 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité, Autre défense

  Germany tries to forge a deal on who can play ball in Europe

  Sebastian Sprenger COLOGNE, Germany — Time is ticking for Germany to find a compromise on letting American, British and other non-European Union countries tap into the bloc's emerging defense cooperation scheme. The government of Chancellor Angela Merkel has taken on the task of sorting out the issue by the end of the year, when Germany's six-month term at the helm of the European Council concludes. “It is an important issue to solve, particularly for close NATO partners,” Karl-Heinz Kamp, special envoy of the political director at the German Ministry of Defence, said during a panel discussion at the annual Defense News Conference this month. The challenge is to find common ground between two camps within the EU: member states seeking ties with outsiders, and those countries who prefer treating the nascent defense agenda as a members-only affair. Poland, Sweden and the Netherlands are leading a group of nations advocating for openness. But France, for example, is pursuing a more restrictive stance, especially toward Turkey and the United States. From the beginning, the Trump administration has eyed the EU's creation of a defense cooperation mechanism, dubbed PESCO, and the proposed multibillion-dollar European Defence Fund with a degree of mistrust. The efforts run the risk of undermining NATO if America and its powerful defense companies are kept out, Washington claims. The tone has softened more recently, however, as officials on both sides of the Atlantic try to broker a compromise. “One of the things that COVID-19 has really brought into sharp focus is the significance of our integrated defense industrial base,” said Gregory Kausner, executive director for international cooperation, who works in the Pentagon for acquisition chief Ellen Lord. At NATO headquarters in Brussels, leaders are striking a similar chord. “We welcome the EU's effort to invest in defense, and I think altogether this is a good-news story. In a way, the more money put into defense, including by EU institutions, the better,” said Camille Grand, the alliance's assistant secretary general for defense investment. “Then there is a second point: that it is important those projects are allowed as full as possible [the] involvement of non-EU allies. Because the reality is indeed that those non-EU allies have strong connections with the European defense market, with the European defense industry,” Grand added. German officials have been optimistic about reaching a compromise since they took on the third-country challenge this summer. That is because their proposal piggybacks on a paper by the previous, Finnish-run presidency that was only narrowly rejected last year. A few modifications would be enough to clinch a deal. According to a German MoD spokesman, officials aim to present a workable solution to defense ministers at an EU foreign affairs council meeting slated for Nov. 20. Poisoned politics The current political context hasn't exactly been helpful for forging a deal. For one, there is the frosty climate between Germany and United States that stems from President Donald Trump's testy relationship with the country, and his assertion that the EU is taking advantage of American taxpayers on trade and defense. That rift makes the proposition of importing the powerful American defense industrial base into the bloc's defense cooperation calculus an uphill battle, especially in the European Parliament, a Brussels-based analyst argued. And Turkey, which is part of NATO but not the EU, is creating the perfect case study against allowing nonmembers into the inner workings of European defense cooperation because of its dispute with Greece and Cyprus over gas reserves in the eastern Mediterranean Sea. “The German government is fairly optimistic that we will be able to find a compromise. The problem is that currently neither the Turkish policy nor the U.S. policy terribly helps to find such a consensus,” Kamp said. “We have a severe problem in NATO with its internal cohesion because some allies have issues with other allies,” he added. “We have a Turkish-French dispute in the Mediterranean and we have a Greek-Turkish dispute. Turkey is not always behaving in — let me say — in the way of an ideal NATO ally, and that just makes things a little bit more difficult.” At the same time, the flareup has yet to touch the ongoing third-party access negotiations, according to officials and analysts. “Concerns over dependencies, intellectual property and security predate the standoff between Greece and Turkey," said Yvonni-Stefania Efstathiou, a Greece-based defense analyst. Meanwhile, Pentagon officials have begun diving into a set of case studies designed to help them think through the nitty-gritty involved in setting up future cooperative programs under an EU umbrella, according to Kausner. “Those case studies illuminate the potential challenges on things such as intellectual property and re-transfer that we feel are still problematic,” the Defense Department official said. Another avenue to glean lessons for a wider EU application lies in the so-called European Defence Industrial Development Programme, or EDIDP, which aims to boost the bloc's defense industry cooperation through all manners of military technology. In June, the European Commission announced 16 projects eligible for funding from a two-year, €500 million (U.S. $593 million) pot. The selection includes “four participants controlled by entities from Canada, Japan and the United States,” the commission statement read. In theory, those projects “demonstrate the possibility to involve EU-based subsidiaries controlled by third countries or third country entities provided they fulfill appropriate security-based guarantees approved by Member States,” the statement noted. The commission has yet to say which participants hail from North America and Japan, and what roles they play, which suggests their integration into the project structure remains unfinished. As officials continue to sort out the details on intellectual property rights, liabilities and consortium structures, for example, a few principles are beginning to take shape. For one, the four non-EU countries in the European Free Trade Association — Iceland, Liechtenstein, Norway and Switzerland — stand to get rights to partake in EU defense projects similar to member states. In addition, officials consider it easier to include British or American companies in projects when they are removed from immediate funding through the European Defence Fund. While European companies have their eyes on possible subsidies from the fund whenever they enter into PESCO agreements, there may not be an automatic funding eligibility for outside participants. https://www.defensenews.com/global/europe/2020/09/21/germany-tries-to-forge-a-deal-on-who-can-play-ball-in-europe/