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EU Defence Council assesses progress in PESCO and launches its strategic review

PESCO projects are already producing concrete deliverables in areas such as cyber, unmanned systems, military mobility, chemical, biological, radiological and nuclear surveillance and medical services, among others

EU defence ministers have adopted on 14 November a recommendation assessing the progress made by the 26 participating member states to fulfil the more binding commitments undertaken in the framework of the Permanent Structured Cooperation (PESCO).

The document says that the 26 EU member states participating in the Permanent Structured Cooperation (PESCO) projects have continued to increase their defence expenditures, with 12% growth in 2023 and further increases forecast for 2024-2025.

The document also found that 25% of the total defence expenditure allocated to defence investment in 2022 was used to accelerate the procurement of needed capabilities and the replenishment of stocks with predominantly off-the-shelf procurement in search of immediate solutions.

Through PESCO, the Council assesses the first implications of the Ukrainian war for member states’ security and defence policies, mirrored in some changes in national plans to secure capabilities for high-intensity warfare, including strategic enablers. In the paper, the Council notes higher interest in using the EU capability development tools and initiatives and encourages continued use of the European Defence Agency as the principal European forum for joint capability development.

In its recommendation, the EU body calls for a combined effort to reverse the decline in defence research and technology spending (from 1.7% to 1.1%) and maintain the focus on development and innovation and joint procurement of needed capabilities. It said this will help strike the right balance between long-term innovation for future capabilities and adequate quantities of military equipment and stockpiles, to strengthen the European defence industry.

The paper also calls for a more European collaborative approach in addressing capability gaps and encourages member states to invest more and better by doing it together.

The document encourages participating member states to make further progress in the implementation of the 20 more binding commitments, with a view to fulfilling all of them by 2025, and to use the PESCO framework alongside other defence-related initiatives and processes such as the Capability development Plan (CDP), the Coordinated Annual Review on Defence (CARD) and the European Defence Fund (EDF). Furthermore, they are invited to take forward potential new opportunities in relation to joint procurement under the PESCO framework.

Concerning the 68 ongoing PESCO projects, these are already producing concrete deliverables in areas such as cyber, unmanned systems, military mobility, chemical, biological, radiological and nuclear surveillance and medical services, among others. Several projects have taken measures to rapidly increase the availability and effectiveness of their capabilities in the face of the challenges presented by Russia’s war of aggression against Ukraine. Countering unmanned aerial systems, medical support, and protection of maritime critical infrastructure are some of the examples.

The Defence Council decided to launch the PESCO Strategic Review with a reflection phase. The Strategic Review, which is to be concluded by the end of 2025 at the latest, will provide a major opportunity to shape the future of PESCO and adapt it to the geopolitical context, while keeping up the ambition.

Roundtable - EDA Steering Board. (Council of the EU)

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Publish date

11/15/2023

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