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Fact sheet

EDA’s Pooling & Sharing Context Over the past decade, European defence budgets have been declining steadily1. The current financial crisis is exacerbating the situation and resulting in further deep cuts. European armed forces have increased their international cooperation for the development of defence capabilities. However, a number of capability gaps continue to exist, as illustrated by the recent operation in Libya. There is also overcapacity in certain areas at the European level, for which there is scope for rationalisation.

What is Pooling & Sharing “Pooling & Sharing” is a EU-led concept which refers to initiatives and projects to pool and share more military capabilities among EU Member States. As stated in the German-Swedish Food for Thought Paper on European Imperative Intensifying Military Cooperation in Europe “Ghent Initiative” (November 2010), “the goal of the initiative is to preserve and enhance national operational capabilities – with improved effect, sustainability, interoperability and cost efficiency as a result”. The utilisation of Pooling and Sharing as a means of addressing the impact of the financial crisis on European defence capability has become a major theme of capabilities work in both the European Union and NATO.

Non-duplication and link to operational needs EDA is working closely with NATO in order to seek synergies with the respective work-strands and avoid unnecessary duplication. The overall objective is to facilitate European capability improvement by addressing Europe’s defence capability shortfalls, some of which have been recently illustrated in the operation in Libya. With Member States’ support and through staff-to-staff contacts, the Agency will continue to ensure that all efforts will be deconflicted and complementary with activities undertaken in the NATO framework.

The creation of EDA in 2004 initiated a systematic European approach to collaborative defence capability development, offering a forum for identifying and satisfying operational requirements and supporting the European defence technological and industrial base. Within the Agency’s framework, the Member States initiate capability development programmes, with the Agency providing expertise, legal and administrative support to Member States’ initiatives (e.g. helicopter training, the counter-IED laboratory, and the European Air Transport Fleet).

Background: Ghent summit & EDA’s work EDA has been working on P&S for more than two years. The focus has been on identifying and pursuing practical solutions towards delivery and to provide an analytical overview, including enablers and potential obstacles to P&S. EDA’s recent work follows the Ghent2 initiative, where defence ministers have agreed to draw up an inventory 1

Defence Expenditure and Investment: 2008 to 2010

- In the two years following the economic crisis, the overall defence expenditure of the 26 EDA pMS decreased by almost 4% (or 5% if we look at real variation by taking inflation into account). The steepest fall happened in 2009 since from a value of € 201.4 billion in 2008 the 26 pMS aggregated defence expenditure decreased to € 194.0 billion in 2009 (3.7%). The decrease between 2009 and 2010 was much smaller amounting only to € 0.5 billion (-0,2%). Source: EDA Defence Data - 2

Ghent Ministerial Meeting, Belgium Presidency,

September 2010.

Fact sheet

of projects where they could cooperate by sharing and pooling military capabilities in order to avoid duplication and cut costs. Ghent initiative is recognised as a starting point for Pooling & Sharing, being the “wake-up call”, the origin of a “political momentum” for Pooling & Sharing. On 23 May 2011, the EDA Steering Board tasked the Agency to “produce, in close cooperation with the EUMC and other EU actors, proposals on how European Pooling & Sharing could be taken forward. The Steering Board1 of 30 November 2011, further to its tasking of 23 May, endorsed the EDA analysis and the report on the way ahead on Pooling & Sharing, including the opportunities identified . The report presented key findings of the Agency’s analysis on Pooling & Sharing; it proposed a twin-track approach of quick wins and longer term operational requirements, as well as an analysis on enablers and obstacles. On the latter,it highlighted that further work was required on incentives, including financial, and on models and legal frameworks. It drew on the work of senior level experts2 who have supported EDA through their expertise and discussions with highlevel officials. Ministers endorsed the 11 Pooling & Sharing opportunities3 identified by the report and welcomed the commitments by certain Member States to their implementation as projects and programs. They tasked EDA to propose models for cooperation drawing on best practice, and examine ways to improve the use of existing 1

The Steering Board, composed of the participating

Member States' Defence Ministers plus a representative from the Commission (without voting rights), is EDA’s governing body. It represents the decision-making level in the capitals. Each year, at least two Ministerial Steering Board meetings take place - plus several at sub-ministerial level. The Ministerial Steering Board is chaired by the Head of the Agency, Ms. Catherine Ashton, and it usually takes place in Brussels, normally back-to-back with the half-yearly meetings of the Foreign Affairs Council in Defence Ministers’ formation. 2

General Vincenzo Camporini, Mr Eero Lavonen, Mr

Francois Lureau and General Mats Nilsson, plus Dr Hilmar Linnenkamp, who has also supported the Agency in developing its report. 3

Helicopter training, Air to Air Refuelling, Medical

Support, Training, European SATCOM Procurement Cell ESCPC) (and Maritime Surveillance, Intelligence Surveillance and Reconnaissance, Future Military SATCOM, Smart Munitions, and Naval Logistics).

instruments for facilitating Pooling & Sharing (Capability Development Plan, the Collaborative Database). They also tasked EDA to prepare an overview of the consequences of individual budget cuts on the overall European defence effort in order to identify further possibilities for Pooling & Sharing and provide a further analysis on incentives for European cooperation, including national experiences and best practices on “Save and Reinvest”.Ministers agreed to evaluate progress at the next meeting of the Steering Board in spring 2012, and regularly thereafter, with a view to establishing further commitments to Pooling & Sharing.

The March 2012 EDA Steering Board in Ministers of Defence formation Seven of the Pooling & Sharing opportunities endorsed in November 2011 have made good progress. They represent European solutions to European capability requirements (eg Helicopter training, Air to Air Refuelling, Medical Support, Training, European SATCOM Procurement Cell (ESCPC) and Maritime Surveillance). • Helicopter Training Programme (HTP): the driver of this program has been the need to prepare European helicopter crews for the demands of current operations. Through the pooling and sharing of expertise over 150 crews have been trained. Concept is proven and the program keeps delivering. Moreover, in January 2012, a cutting-edge training simulator was proven through training Czech and German crews who are planned to deploy to Afghanistan. EDA will organise two Exercises in 2012: HOT BLADE 12, hosted by Portugal, and GREEN BLADE 12, hosted by Belgium.

Fact sheet

• MARSUR: As a component part of the overall Intelligence Surveillance and Reconnaissance capability, the production of a comprehensive picture of the maritime situation is a key requirement for both deployed operations and security of the home base. It is also an area where major synergies can be achieved through the military and civilian authorities exchanging information. The links with the EU Commission and Agencies, and maritime organisations worldwide, have been enhanced through 6 pMS (ES, FI, FR, IT, SE, UK) linking their national systems through an EDA developed interface. This initial network has fifteen Member States utilising the network. The project has been launched with Finland as lead nation; and ten of the nations utilising it are expected to invest in further network development. • ESCPC: The ESCPC “pilot” program is designed to prove that pooling demand will reduce both costs (10% estimate) and ensure better availability (security of supply and rapid access) for commercial communication satellite bandwith used by military. Four of the five contributing Member States have signed the Programme Arrangement for the European SATCOM Procurement Cell. Others have expressed interest in joining following contract signature. • Medical Field Hospitals: The provision of medical capability is a fundamental enabler for any military operation and deployable medical capability is both scarce and expensive. It is an ideal capability for European Pooling and Sharing due to commonly recognized civilian qualifications and it is very much a “dual use” civ/ mil capability that can be utilized in humanitarian operations. Medical Field Hospitals moves on apace with the participation of ten Member States and Italy as lead nation. The concept prepared by Italy for the deployable modular multi-national field hospital has been endorsed and will allow for a flexible and broad participation of Member States; and work on the Common Staff Requirement has commenced. The assembly of the capability package, including procurement of assets, is on track for 2014. Ministers are expected to sign a Declaration of Intent for the Establishment of Multinational Modular Medical Units on 22 March. • Air to Air Refuelling (AAR): AAR is a critical enabler for air power projection and it is required to enable anything beyond short range air combat operations. A unique force multiplier, it is a fundamental capability embedded in modern aircraft design, not just in combat aircraft, but across the full spectrum of air platforms – including in the

near future Unmanned Aerial Vehicles. represents a major opportunity for European cooperation in a European solution. Industry has informally indicated that significant scale savings would be achieved should Member States agree to pool demand around a single aircraft configuration. EDA is developing solutions including a SAC-type model, which would allow for flexibility (solution based on contribution in kind and/or multinational procurement of new tankers), cost-effectiveness (economies of scale through joint acquisition, sharing of infrastructures, maintenance, logistical support and training), and greater interoperability and operational effect (defragmentation of the AAR capacity across Europe based depending on the industrial offer). Moreover, further economies and efficiencies would be achieved through rationalisation, aircraft-basing and providing “AAR Tanker hours” for wider use. At the SB Ministers are expected to endorse a Political Declaration on Air-to-Air Refuelling declaring their willingness to support the development of European air-to-air refuelling capabilities as a matter of urgency to meet national, EU, NATO, and other frameworks’ operational requirements. • Pilot Training and Naval Training have attracted significant interest. All Member States train military pilots, albeit at reducing numbers. Economies of scale, improved interoperability and the enabling of European based solutions are all potential advantages of this initiative. A prerequisite for progress is to standardize aircrew training syllabi in order to enable the overall coherence between regional/cluster solutions. EDA will make proposals on the basis of operational requirements and compliance with Joint Aviation Regulations with a view to a future military pilot licence system. On European Naval Training, work as started with a view to better sharing existing facilities, realising economies and efficiencies, improved use of niche capabilities and civil/military synergies.

Fact sheet

• European Multimodal Transport Hubs has been launched through a study to develop a European concept to increase the efficiency and cost-effectiveness of Europe’s transport assets in support of military, civil and disaster relief operations. The other four opportuninies (Intelligence Surveillance and Reconnaissance, Future Military SATCOM, Smart Munitions, and Naval Logistics) continue to be taken forward by the Agency. In parallel a number of initiatives that Ministers considered at the May 2011 Steering Board have also continued to progress well (eg. Counter-IED, CBRN, Strategic Transportation). These testify to synergy with the CHODs Final Findings on Pooling & Sharing, many of which are now being taken forward within the EDA framework. The EDA’s report also addresses the other Nov 2011 SB taskings.

recommends that these models be examined further for possible extension to other capability areas. Finally the report recommends some regulatory work:

Regarding facilitating Pooling & Sharing, EDA is now looking at Save & Reinvest (maximising savings generated by Member States through Pooling & Sharing defence assets and capabilities by allowing the resultant savings to be retained within defence for defence purposes). While the potential savings that would be generated through Pooling & Sharing are often difficult to quantify, solutions might include sales of surplus equipment/assets or a savings pool mechanism - ring-fence a proportion of direct savings from EDA coordinated Pooling & Sharing for future defence capabilities, including R&T, enabling the funds to be retained within defence for defence purposes, where they could be used to facilitate more Pooling & Sharing projects.

• The harmonisation and rationalisation of European military regulations and procedures would generate efficiencies and economies. The EDA Military Airworthiness Authorities (MAWA) Forum (which is working to deliver harmonised European military airworthiness requirements) is an example of a model that could be used to facilitate the harmonisation of military regulations and procedures in other domains Europe. The model offers the prospect of:

Regarding Pooling & Sharing Models:

EDA’s role: what’s next

• “Cascading” model: collective utilisation of surplus equipment and capabilities. As a first step, EDA proposes the establishment of an electronic market place (EDA-bay) for Member States to publish opportunities for the sale/acquisition of surplus materiel. In order to develop a business case and collect the necessary data, EDA will commence a more systematic investigation of the model together with Member States. • Force Generation and Sustainment Headquarters: merging national headquarters responsible for maintenance and logistics, procedures and regulations, exercises and training, or day-to-day operational control of fleet activity (there are at least two examples: the European Air Transport Command (EATC); and BelgiumNetherlands naval cooperation (Admiral Benelux). EDA

• There are other areas to which this model could be applied. Further examples that EDA is analysing include the certification (clearance) of aircraft receivers from air-to-air refuelling platforms; flight standards; and ammunition.

EDA is a Pooling & Sharing body in action, supporting Member States ambitions and the cooperative business dynamics. Pooling & Sharing is an endeavour requiring long-term commitment. EDA provides an overall framework for Pooling & Sharing opportunities and expertise and advice on financial, legal and contractual issues. The EDA will keep a twin-track approach and facilitate MS efforts to deliver cooperative solutions. Photo credits: Portuguese Airforce - EU NAVFOR - Austrian Airforce Last update: 20/03/2012

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What is Pooling & Sharing Fact sheet EDAhasbeenworkingonP&Sformorethantwoyears. Thefocushasbeenonidentifyingandpur...

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