The European Commission (EC), the executive of the European
Union (EU), on Monday issued a public consultation with a view to
moving up a gear on forging a single market for defense
industry.
"Opening the internal market for defense products would boost
our economy and increase the competitiveness of the European
defence-producing companies," said EC vice-president Gunter
Verheugen.
One option could be to propose a new legal instrument "for
lifting obstacles to trade within the EU thanks to the coordination
of export rules concerning armaments."
The EU arms industry is worth € 70 billion (about US$84 billion)
and employs 770000 people across Europe.
However, the creation of a single market of defence equipment
has been hampered by national red tape and administrative hurdles
to trade.
EU member states are traditionally reluctant to hand over any
defence role to the EU.
And EU internal market exemptions have justified restrictive
national measures to free movement on the ground of national
security.
But the commission considers exemptions do not overlap on
Brussels legislative power to enable the smooth functioning of the
internal market.
"Defence sector is sensitive in member states but the case law
of the European court of justice shows that the principle of free
movement also applies to defence," said an EC spokesman.
The European Defence Agency last November adopted a code of
conduct designed to boost cross-border competition.
The EC believes that a free defence market will secure military
supply within the EU and provide guarantees for the protection of
national security.
Traceability and certification of defence-producing companies
will be organized at EU level to ensure re-exports to third
countries are regulated.
The EC said it aims to define guidelines for a general
communication on the defence industry by the end of 2006.
(Xinhua News Agency April 4, 2006)
