Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I am pleased to inform the House that yesterday, at the Foreign Affairs Council meeting in Brussels, Ireland joined the other 24 EU partners in collectively launching PESCO. Joining PESCO does not involve an additional cost to the Exchequer. Additional costs may arise in respect of participation in specific PESCO projects similar to the case where the Defence Forces participate in European Defence Agency projects. As the projects will relate to the ongoing development of Defence Forces capabilities for peace support and crisis management operations, such costs would be incurred in the normal course and will therefore be met from within the Defence Vote.

The Deputy will be aware that the allocations for defence announced in the budget means that Ireland’s total defence expenditure will increase in real terms over the coming three years. It is also expected that sharing the costs of capability development across a number of member states should provide for greater economies of scale in terms of overall defence investment expenditure.

PESCO has been presented to the Council by means of a notification. This notification clearly states that it does not prejudice the security and defence policy of the member states. The notification also states that the member states remain sovereign and that the commitments will be implemented fully in accordance with the treaty, its protocols and the constitutional provisions of the member states. As such the budgetary process and role of Oireachtas in determining the Defence Vote remains untouched.

The European Defence Fund, EDF, and PESCO are separate but complementary initiatives. The EDF will be funded from the EU budget and will not therefore impact on the Defence Vote. The EDF aims to co-ordinate, supplement and amplify national investments in defence.

Additional information not given on the floor of the House

By pooling resources, it is proposed that individual member states can achieve greater output and develop defence technology and equipment that may not be feasible on their own. The fund will also foster innovation and promote a more efficient market within the defence sector, eliminating duplication and fostering greater competitiveness.

Ireland has strongly supported the continued development of the capacity of the EU to contribute to international peace and security through the deployment of capabilities on peace support and crisis management operations under the common security and defence policy, CSDP. Both PESCO and the EDF will enhance and contribute to that EU capacity.

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