Europe wants to strengthen its defense skills. The Safe instrument (“Security measures for Europe”), a limited emergency instrument, enables the EU member states to accept up to 150 billion ꞓ on loans from the EU budget in order to finance national investments to strengthen the European defense industry. Today the EU committee of the Federal Council With an expert: from the finance and defense ministry.
In addition, the committee dealt with the “Critical Medicines Act” proposed by the EU Commission, which aims to strengthen the security of supply with critical drugs in the EU.
Instrument Safe: Loans for investments in defense capacities
The Instrument SAFE The European Union is intended to enable defense capacities. Loans are planned for procurement of air and rocket defense, artillery systems, rockets and ammunition, drones and drone defense systems, strategic “enabler” and protection of critical infrastructures including space, cyber, artificial intelligence, electronic warfare and military mobility. Procurement should be carried out together by at least two Member States in order to achieve cheap prices and to ensure the interoperability of the systems. The repayments of the funds are scheduled for 2035. The repayments should be completed by 2070. According to the Ministry of Finance, the risk of failure is low, especially since all EU member states are responsible for the EU budget and there is no incentives in this respect not to serve a loan.
From an economic point of view, the instrument is “not interesting” for Austria, said an expert from the Ministry of Finance on the Committee. Austria can currently finance itself more cheaply on the market than the EU. The strengthening of the EU’s willingness and ability to defend it is a pan -European goal and Austria also benefits from measures that support this goal.
An expert from the Ministry of Defense emphasized that the lead in terms of the Safe instrument lies with the Ministry of Finance. The aim of the instrument is to support the Member States in building the defense industry. It is about “preparation for a willingness to defend that hopefully will never be necessary,” said the expert.
Ferdinand emphasized Tiefnig (ÖVP/O) and referred to the protection of the critical infrastructure such as water and power supply. Christoph Thoma (ÖVP/V) said that the Safe instrument was “on the right path” and asked about the associated opportunities for the Austrian defense industry. The Ministry of Department’s expert said that the instrument could contribute to strengthening the business location and the growth of Austrian companies.
Austria must be particularly sensitive and vigilant with regard to its neutrality, emphasized Stefan Schennach (SPÖ/W). He also criticized that the decision about the Safe instrument “passed the EU Parliament” and therefore had no parliamentary basis.
Michael Bernard (FPÖ/N) shared this criticism. The urgent procedure without integrating the European Parliament undermines parliamentary control. From the FPÖ’s point of view, joint procurement is also not compatible with the neutrality of Austria, said Bernard. On the subject of neutrality, the Ministry of Defense expert said that the military neutrality of Austria is always emphasized during negotiations at the European level and noted in the documents.
Bernard also addressed the so -called “alternative clause”. This could enable debts made for defense investments from the Maastricht criteria. The Ministry of Finance expert said that it was not yet decided whether Austria would make use of the alternative clause. It can be assumed that an EU deficit procedure against Austria will be opened.
Marco Schreuder (Greens/W) went into the topic of avoidance of corruption and said that “often interlinks interests”, especially in the area of military expenditure. Among other things, the expert of the Ministry of Finance referred to “enormously strong reporting obligations” for loans from the Safe instrument and emphasized that the European Court of Auditors’ procurement processes were also evident.
Manuela-Anna Sumah-Vospernik (NEOS/W) wanted to know whether Austria could participate in joint procurement, even if it does not take a loan from the Safe instrument. This is possible, according to the Ministry of Finance.
Ensure the availability of critical drugs
The topic in the committee was also the one proposed by the European Commission Critical Medicines Act (CMA). This is intended to strengthen the security of supply with critical drugs in the EU and reduce dependencies on suppliers. The regulation proposal provides to supplement existing measures and to provide a health and industrial policy instrument in order to reduce weaknesses in the supply chains for critical medicinal products. Among other things, the central provisions of the proposal include the award of strategic projects. In the public procurement of critical drugs, the extended best bidder principle should also be used, in which other criteria can also be taken into account in addition to the price.
According to the Ministry of Health, these goals are to be welcomed, since the sustainable containment of pharmaceutical passports and ensuring the supply of drugs can only be effective at EU level. At the same time, the ministry sees “large weaknesses” in the proposed legal act. Because the central financing instruments would be missing and there would be double tracks with existing European crisis instruments.
The basis of the proposal is good, said Sandra Jäckel (FPÖ/V). However, experience would have shown that such measures could be “slightly abused”. She wanted to know whether the regulation provides for the EU to have access to medication camps in Austria.
Andrea Eder-Gitschthaler (ÖVP/s) called the project “worth supporting” and emphasized that it was very important to keep penicillin production in Austria. With regard to the prescription proposal, she underlined that dual tracks with existing institutions should be avoided when creating new bodies.
Claudia Arpa (SPÖ/K) also welcomed the initiative and the associated strengthening of the industrial location. She also raised the question of specific measures to diversify the supply chains.
Marco Schreuder (Greens/W) asked how according to the regulation proposal in practice, a country should determine problems with the availability of a critical drug.
Manuela-Anna Sumah-Vospernik (NEOS/W) pointed out that Austria had already started to set up medication camps. She asked about the classification of national preparation in the EU provisions.
One of the Ministry of Health Expert stated that the proposed regulation does not provide for a medication camp – this is the point of criticism for some Member States. The regulation proposal aims at preventive action and therefore do not contain a plan for the procedure in the event of a crisis. According to the experts With regard to the diversification of the supply chains, it has to address those areas in which there are special difficulties – a supply chain must be “intended from the beginning to finish”. (Conclusion of the Federal Council) Bea