Brussels, 14th of November
2024 — The European Commission, represented by Directorate-General
for Defence Industry and Space (DG DEFIS),
and the Organisation for Joint Armament
Cooperation (OCCAR) have signed a Financial Framework Partnership
Agreement (FFPA), marking a significant step forward in the European
Union's vision for a stronger and more unified European defence landscape. This
landmark agreement, a result of extensive collaboration and negotiations
between the two organizations, will streamline the implementation of EU defence
projects under indirect management.
In the presence of DG DEFIS’
Director-General Timo Pesonen and OCCAR Director Joachim Sucker, the agreement was
co-signed on behalf of Executive Vice-President Margrethe Vestager. This
agreement formalizes the working procedures between the European Commission and
OCCAR, laying a robust foundation for future cooperation in European Defence
Programmes.
A Milestone in European Defence
Collaboration
The new FFPA aims to simplify and
synchronize processes for transferring EU-funded defence projects to OCCAR
under indirect management, an arrangement that has seen considerable success
with projects under both the European Defence Industrial Development Programme
(EDIDP) and the European
Defence Fund (EDF). To date, OCCAR has been entrusted with the management
of six major projects, representing a total EU funding investment of €442
million. Another high-impact project, valued at over €150 million, is slated
for inclusion shortly.
This agreement makes OCCAR the first
entity formally entrusted by DG DEFIS to manage EU-funded defence actions under
such a partnership framework. Through this FFPA, the procedures governing
indirect management of EU-funded defence initiatives will be streamlined,
improving efficiency across the board for all future European Defence
Programmes that adopt this model.
Strengthening the Framework for Future
Defence Programs
A major highlight of the agreement is
its forward-looking structure, which will not only encompass projects funded by
the European Defence Fund (EDF) but also apply to future European
Defence Industrial Programmes where indirect management by OCCAR is
feasible. The agreement provides for close coordination between DG DEFIS and
OCCAR, establishing a foundation of standardized procedures that will stabilize
contractual terms for future projects.
One essential aspect of the FFPA is
that it guarantees observer status for the European Commission in
OCCAR-led projects, specifically for activities directly tied to the
implementation of entrusted tasks. This arrangement ensures transparency and
alignment, helping to maintain high standards in both project management and
strategic oversight.
Streamlining Project Implementation for
Greater Efficiency
To implement the FFPA in practice,
specific Contribution Agreements will need to be signed between the Commission
and OCCAR for each project. However, the efficiency gains expected under this
agreement are significant. Contribution Agreements will now follow templates
co-developed by DEFIS and OCCAR, reducing administrative overhead and
expediting the signing process, which has traditionally required time-consuming
negotiation for each new project.
By entrusting OCCAR with the
responsibility for project implementation, the EU is also creating smoother
coordination pathways between its grant agreements and any associated
procurement contracts. This approach supports faster and more efficient
deployment of EU resources, with OCCAR managing complex procurement and project
execution, while DG DEFIS focuses on strategic oversight.
Building on Proven Success in European
Defence Projects
The FFPA formalizes an already
successful partnership that has produced impressive results under the European
Defence Industrial Development Programme (EDIDP) and the European Defence
Fund (EDF). Notable projects under OCCAR’s management include ESSOR, MALE
RPAS under EDIDP, and EPC, EU HYDEF, E-NACSOS, and HYDIS²
under EDF, with more significant projects expected in the near future.
With the FFPA in place, the partnership
will continue to evolve, creating new opportunities to bolster Europe’s
strategic autonomy and defence capabilities in an increasingly complex security
landscape.
A Commitment to Excellence in the EU
Defence Industry
Among his remarks, DG Pesonen thanked
the dedicated teams at DG DEFIS and OCCAR who made this landmark agreement a
reality, emphasizing the importance of cooperation in achieving EU defence industrial
ambitions.
“This agreement is testament to the
spirit of collaboration that exists between OCCAR and DEFIS. I am confident
that this partnership will continue to flourish, supporting Europe's capacity
to meet its future defence needs with efficiency, transparency, and excellence."
OCCAR-EA Director, Joachim Sucker
further added:
“This agreement not only significantly
enhances our ability to cooperate with one another, but more importantly, this
agreement between the European Union and OCCAR, proves that strategic European
Defence policy can be turned into tangible technologies and capabilities of
European origin. OCCAR is determined to continue on this path, further
strengthening and contributing, as a key bridgebuilder, for European Defence in
Europe and beyond.
With the signing of the FFPA, DG DEFIS
and OCCAR embark on a strengthened path of cooperation, laying the groundwork
for enhanced capabilities and a secure, autonomous Europe. This partnership
will play a pivotal role in the years to come, as Europe rises to meet the
challenges of a rapidly evolving global defence landscape.