The package, presented on 5 December, contains the following three elements:
- A Communication with recommendations for fostering the competitiveness of the sector;
- a Directive on defence procurement to enhance openness and intra-European competition in the national defence market; and;
- a Directive on intra-EU transfers of defence products.
The proposed new legislation should contribute to "creating a genuine European market in this sector without sacrificing member states' control over their essential defence and security interests", the Commission said.
Current EU procurement rules were "ill-suited to most defence and security equipment", according to the Commission.
The Commission expressed its hope that the proposal would "pave the way for increasing industrial cooperation and optimising supply chains" and make a "crucial contribution to a more competitive European industrial and technological defence industrial base".
Industry Commissioner Günter Verheugen described the opening of the internal market for defence products as "fundamental to establishing Europe's autonomy in this field".
Internal Market Commissioner Charlie McCreevy added: "Introducing transparent and competitive procurement rules […] is crucial for the establishment of a common defence market [...] to the benefit of all: armed forces, taxpayers and industries."
"If Europe is serious about a common security and defence policy, it also needs a common arms market", said Alexander Graf Lambsdorff, a Liberal Democrat member of the security and defence subcommittee in the European Parliament
The AeroSpace and Defence Industries Association lauded the package as a "significant step towards a European defence equipment market".
The European Defence Agency highlighted the Commission's efforts to promote competition as "one key tool in a larger set" that must also include initiatives on security of supply and security of information.
The Commission's initiative complements the Code of Conduct on Defence Procurement launched in July 2006, which covers contracts placed outside of EU internal market directives.
