Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

The next EU multi-annual Financial framework, MFF, will determine the budget spending for the EU for the period from 2021 to 2027.  On 2 May 2018, the European Commission presented its EU budget proposals for the multi-annual financial framework. Included in this, the Commission proposed that a budget of €13 billion over the 7 year period be dedicated to the European defence fund - €4.1 billion to defence research and €8.9 billion to the development of defence capabilities.

There are links between the European Defence Fund and PESCO projects. A project that qualifies for co-funding under the capability window of the defence fund and is also a PESCO project will receive an additional 10% funding under PESCO.

The PESCO projects where Ireland has confirmed our participation relate to the ongoing development of Defence Forces capabilities for peace support and crisis management operations and for domestic operations. Maritime surveillance enhancement will assist the Naval Service in developing capability and capacity both for overseas and domestic operations. The Training Mission Competence Centre will support Ireland's engagement in missions such as the training mission in Mali.

It is envisaged that the European Defence Fund will promote co-operation and cost savings among member states. 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 allow economies of scale, which will enhance the competitiveness of the EU defence industry. The fund will co-ordinate, supplement and amplify national investments in defence. Collaborative projects with significant cross-border participation by small and medium-sized enterprises will be particularly encouraged. This will ensure that the fund remains open to recipients from all member states, regardless of their size and location in the Union.

The MFF process is at a very early stage. The allocation of resources across all of the various EU sectoral funds will be considered in the context of the eventual total agreed budget for the EU.

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