France says ‘non’ to loosening rules for arms exports in Europe

Paris: Paris has raised its voice against any revision of the current EU rules on export control for defence gear within the bloc, sources with knowledge of the plans told Euractiv.

To reduce administrative burdens and speed up weapons production, the Commission proposed facilitating the movement of defence components across EU countries, regulated by the intra-EU transfer directive, by easing national export control rules.

After a first unsuccessful attempt two years ago, the EU executive proposed a change to the rules once again as part of the European Defence Industry Programme. The EDIP’s job is to subsidise arms production and procurement on the continent in a bid to ramp up the European military-industrial complex long term.

But one year into the negotiations on EDIP, and just a few weeks before closing the debates, Paris is still opposed to loosening the rules on export controls, sources told Euractiv.

According to the clause in the EDIP, Paris would relinquish its current national obligation to oversee the journey of the defence product it sells within the European Union.

At present, when a French company sells a product deemed “sensitive” to another EU country (for instance, Germany), the French government must approve the sale, as it does with any other defence product. Then, if Germany wants to include the component into another product and re-sell it to Sweden, Germany is obliged to seek France’s approval.

But the EDIP clause bypasses France’s approval of the re-sale: Germany could re-sell sensitive products bought from France to Sweden, without Paris’ approval first.

France argues this new provision goes beyond what’s currently outlined in the Intra-EU transfers of defence-related products, which is silent on this specific matter. Plus, it effectively strips France of its right to know where critical components end up, the French contend.

Although Paris has argued against the clause, it is unclear for now whether they will win the battle.

Changing the text is an option. But with a bigger fight looming over whether non-EU countries can benefit from the EU’s defence scheme, Paris might have to pick its battles and let this one go, an insider told Euractiv.

The country is already fighting a solo battle against opening EU funds to foreign companies manufacturing their equipment in Europe – especially missiles – or to companies that don’t have the right to alter products according to specific needs, or whose products come with restrictions of use.

All other EU countries are in favour of keeping their options open, especially when it comes to highly critical products, such as ammunition and missiles.

Paris’ campaign against a change to the rules on intra-EU defence exports doesn’t end there.

The country wants to stop the Commission from launching a revision of the directive altogether. Any revision would lead either to stricter or looser rules, and doubtless hours of negotiations over many technical and highly political issues related to national prerogative over the sale of weapons.

But the EU executive has already announced its intention to do so.