European Commission and OCCAR sign agreement to bolster EU defence cooperation

By Defence Industry Europe

The European Commission, represented by the Directorate-General for Defence Industry and Space (DG DEFIS), and the Organisation for Joint Armament Cooperation (OCCAR) have signed a landmark Financial Framework Partnership Agreement (FFPA). This agreement represents a significant step toward the European Union’s goal of a stronger, more unified defence sector, simplifying the implementation of EU defence projects under indirect management.

 

In a formal ceremony, the FFPA was co-signed by DG DEFIS Director-General Timo Pesonen and OCCAR Director Joachim Sucker, representing Executive Vice-President Margrethe Vestager. This agreement establishes a structured framework for collaboration between the European Commission and OCCAR, setting the stage for more efficient cooperation in European defence programmes.

 

Streamlining EU defence project management

The FFPA aims to enhance the process of transferring EU-funded defence projects to OCCAR under indirect management, a model that has already demonstrated success through the European Defence Industrial Development Programme (EDIDP) and the European Defence Fund (EDF). To date, OCCAR has managed six major EU-funded projects, representing an investment of €442 million, with an additional high-value project expected to be added soon.

As the first entity entrusted by DG DEFIS to manage EU-funded defence actions through this partnership framework, OCCAR will streamline procedures for future European Defence Programmes. This efficiency boost is expected to significantly benefit new and upcoming defence projects, allowing smoother transitions and clearer pathways for EU initiatives.

 

A Structured framework for future programmes

The agreement will also cover upcoming defence projects funded by the EDF and other European defence initiatives that can leverage OCCAR’s indirect management capabilities. It includes comprehensive procedures for coordinating projects, providing DG DEFIS with a standardized framework to stabilize contractual terms and administrative structures.

Under the FFPA, the European Commission will have observer status in OCCAR-led projects related to entrusted EU tasks, ensuring transparency and accountability. This arrangement aligns management practices with strategic goals, enabling both parties to maintain high standards across all projects.

 

 

Efficiency gains for EU defence initiatives

To apply the FFPA effectively, individual Contribution Agreements will need to be signed for each project. These agreements will use templates developed jointly by DEFIS and OCCAR, reducing administrative steps and expediting processes that previously required prolonged negotiations. The agreement’s streamlined approach is expected to facilitate the faster deployment of EU resources, enhancing the Commission’s strategic oversight while OCCAR handles operational execution.

This framework aligns grant agreements with procurement contracts more effectively, creating a seamless coordination process that enhances both speed and resource management. This collaborative approach will allow OCCAR to manage complex procurement while DG DEFIS focuses on strategic project supervision.

 

Strengthening European defence capabilities

The FFPA formalizes a well-established partnership that has already demonstrated success with major projects like ESSOR and MALE RPAS under EDIDP, and EPC, EU HYDEF, E-NACSOS, and HYDIS² under EDF. With this agreement, the partnership is poised to expand, strengthening Europe’s defence capabilities and strategic autonomy amidst evolving global security challenges.

DG Pesonen expressed gratitude to the teams at DG DEFIS and OCCAR, commending their work in achieving this significant agreement. “This agreement is testament to the spirit of collaboration that exists between OCCAR and DEFIS. I am confident that this partnership will continue to flourish, supporting Europe’s capacity to meet its future defence needs with efficiency, transparency, and excellence.”

OCCAR-EA Director Joachim Sucker echoed this sentiment, highlighting the impact of the agreement on European defence strategy. “This agreement not only significantly enhances our ability to cooperate with one another but proves that strategic European Defence policy can be turned into tangible technologies and capabilities of European origin. OCCAR is determined to continue on this path, further strengthening and contributing, as a key bridgebuilder, for European Defence in Europe and beyond.”

 

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