Strong backing for opening of EU arms industry 

The idea that a non-binding code of conduct would be the fastest way forward to boost competition in the hitherto sheltered sector of defence procurement, have proven to be true. 

Launched in September 2005, 22 EU member states have now signed up to the code of conduct. Only Spain, Hungary and Denmark have opted out. Because on national security concerns, the defence equipment sector have so far been excluded from the overall rule of barrier free trade in the European single market.

European Defence Agency Chief Executive Nick Witney, who has led the effort, said: "This regime will create new opportunities for companies across Europe, strengthen our defence technological and industrial base and offer better value for money to the armed forces and to taxpayers." 

The key operational element is that defence equipment contracts will now be posted on an electronic bulletin board, which will be operated by the EDA, which will  set transparent criteria for selecting bidders and awarding contracts.

In parallel with this effort, the Commission consults with stakeholders in order to produce a communication on the defence industry before the end of 2006.