Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I propose to take Question Nos. 34, 53, 54 and 60 together.

As I outlined earlier, the College of Commissioners adopted the European defence action plan on 30 November last. The aim of the plan is to explore how EU policies and instruments can ensure the EU's industrial and skills base will be able to deliver required defence capabilities in view of current and future security challenges. As part of this plan, the Commission has proposed the creation of a European defence fund. In addition, the plan seeks to offer supports to small and medium enterprises, SMEs, start-ups and other suppliers to the defence industry. There are also proposals in the plan to increase transparency in the defence procurement by member states. The purpose of establishing a European defence fund is to promote research and innovation, to contribute to the strengthening of the European defence technological and industrial base and to stimulate further the development of key defence capabilities.

As part of the Foreign Affairs Council held in November, which I attended, the Commissioner for jobs, enterprise and SMEs presented an outline of the European defence action plan to defence Ministers. It should be noted that details contained in the plan, in particular relating to the creation of a European defence fund, are currently simply Commission proposals. They have yet to be fully defined and negotiated with member states. For example, the proposed funding for research and innovation will require agreement on a future EU multi-annual financial framework and then agreement on a defence research budget line by the member states and the European Parliament. In addition, the annual fund of €5 billion envisaged is dependent on member states pooling existing defence expenditures in favour of EU-wide co-operative programmes. There is no guarantee that member states would be prepared to pool resources in this way. As such, there is a lot yet to be worked through before any of these proposals can come into effect.

The proposals in the action plan fully respect the EU treaties and the Lisbon protocols and they pose no challenge to Ireland's traditional policy of military neutrality. There is, therefore, no requirement for me to reconfirm Ireland's neutrality to my European counterparts at this stage. However, this will be kept under review by my Department as the proposals within the action plan become more clearly defined.

I am satisfied that there is also a clear recognition and reaffirmation that defence remains a member state prerogative. There is no change to the status quoin that regard. Decisions about expenditure, military capabilities, research and technology are matters for the member states to decide.

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