Willie O'Dea (Limerick East, Fianna Fail)

A decision to establish an intergovernmental agency in the field of defence capabilities development, research, acquisition and armaments, known as the European Defence Agency, was formally adopted at the General Affairs and External Relations Council meeting on 12 July 2004. Following an initial start-up phase during 2004, the agency is now operational, with its senior management in place and a budget and work programme for 2005 approved by defence Ministers of the participating member states.

The overall aim of the agency is to assist member states in their efforts to improve European defence capabilities in support of European Security and Defence Policy. To achieve this, the agency has been ascribed four functions relating to, defence capabilities development, armaments co-operation, the European defence technological and industrial base and defence equipment market and research and technology.

The agency will be an important forum by which the EU can seek to improve competitiveness and efficiency in the defence equipment sector which has been notable for fragmentation and duplication. While Ireland is not a major consumer of defence equipment, we should encourage developments which improve market efficiencies or which may yield some economies of scale for equipment procurement for the Defence Forces.

Against this background, at its meeting on 6 July 2004 the Government agreed that Ireland would participate in the framework of the agency. There is no requirement for Dáil approval for participation in the agency, which is an intergovernmental agency within the framework of ESDP. Participation in the framework of the agency does not impose any specific obligations or commitments on Ireland other than a contribution to the budget of the agency. Participation in individual projects of the agency will be a matter for national decision on a case-by-case basis.

National contributions to the budget of the agency are calculated on the basis of the gross national income scale in accordance with Article 28(3) of the Treaty on the European Union. Ireland has paid a contribution of €21,733.07 towards the agency's initial general budget of €2.4 million for 2004. The budget for 2005, estimated at €25 million, includes once-off capital provisions for accommodation and infrastructure items, and means that Ireland's contribution towards the running of the agency will therefore be of the order of €315,000.

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