Seán Crowe (Dublin South West, Sinn Fein)
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47. To ask the Taoiseach and Minister for Defence the matters discussed during the December 2016 meeting of the European Council in Bratislava; and if he stated that Ireland would oppose any drive to allow EU grant aid to fund military armaments research and production, as suggested by the European Commission, or to significantly increase spending on armaments and military technology by member states. [7303/17]

Mick Wallace (Wexford, Independent)
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53. To ask the Taoiseach and Minister for Defence his views on the proposed European Defence Action Plan put forward by the European Commission in November 2016, and in particular the provisions to focus on capability needs and support the European defence industry; his further views on the proposal to allow the use of European Investment Bank finances for investment in the defence industry; his plans to raise any concerns regarding the action plan at an upcoming meeting of the EU Council on defence; and if he will make a statement on the matter. [7137/17]

Paul Kehoe (Wexford, Fine Gael)
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I propose to take Questions Nos. 47 and 53 together.

The College of Commissioners adopted the European Defence Action Plan on 30 November last. This Commission proposal has yet to go through the wide ranging and extensive EU procedures before any part of it becomes a reality.

The aim of the Plan is to explore how EU policies and instruments can ensure that 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 aims to offer supports to SMEs, start-ups and other suppliers to the defence industry. There are also proposals in the Plan to increase transparency in relation to Defence procurement under the existing EU Procurement Directives.

The purpose of the Defence Fund is to promote research and innovation and contribute to the strengthening of the European defence technology and industrial base, and to further stimulate the development of key defence capabilities.

The Taoiseach attended the European Council meeting in Bratislava on 15 December last, where a number of issues including economic and social development, migration, security, Russia and Ukraine, and the situation in Syria were on the agenda. Specifically, in relation to the European Defence Action Plan, the European Council welcomed the Commission’s proposals as its contribution to developing European security and defence policy. The Council stressed the importance of fully involving Member States in the proposals that will be brought forward. In addition, the Commission was invited to make proposals in the first semester of 2017 for the establishment of a European Defence Fund.

The Action Plan proposes that the European Investment Bank may have a role to play in relation to financing certain parts of the European defence supply. The Action Plan notes that the EIB group may already finance investments in research and development by European companies where civilian and dual use technologies are concerned with a view to subsequent commercialisation in civilian applications. The Commission’s Communication also noted that any expansion in the EIB’s current activities in the area could take place within the limitations of the Treaties and subject to the agreement of the EIB’s Governing Bodies.

The most recent European Council in December, invited the European Investment Bank to examine steps with a view to supporting investments in defence research and development activities. I expect that the EIB will now take forward this examination.

For certain member States in the EU, defence is a significant contributor to their economies, representing an EU industry of €100 billion with 1.5 million direct and indirect employees. Ireland does not have an issue with funding of defence research. As I have stated previously to the House, for Ireland to have a well-equipped and capability driven defence forces we must support the funding of defence research. And as we are all aware, Ireland may not have a defence industry but this does not stop Ireland tapping into this funding through our well established dual-use companies and technologies.

I am satisfied that the proposals in the Action Plan fully acknowledge and reaffirm that Defence remains a Member State prerogative. Decisions about expenditure, military capabilities, Research and Technology are matters for Member States.