Challenges and opportunities for the Defence Economy in Portugal and in Europe were the motto of the seminar organised on 24 May by idD Portugal Defence under the Portuguese Presidency of the European Union.
Read idD Portugal Defence’s non-paper on the “Future of the European Defence Economy and the role of Defence Industries”

idD Portugal Defence launches debate in Europe: greater space for SMEs in the defence ecosystem

idD Portugal Defence boosted this priority on the presidency’s agenda, being particularly relevant for Portugal due to the focus placed on the need to give greater prominence to SMEs in the defence ecosystem, creating opportunities for national industry and academia, generating qualified employment and wealth by increasing the weight of solutions and technologies with high added value and military and civil dual use, while allowing Europe to reinforce its logistical and operational independence.

The debate was attended by representatives from several countries from academia, industry, NATO, European institutions, the Armed Forces and the Government.

Thierry Breton highlights EDF role in ensuring European strategic autonomy

During the opening session, the European Commissioner for the Internal Market, Thierry Breton, highlighted the role of the Defence Industry in the ambition of European strategic autonomy, highlighting the imperative for Europe to lead and control the development of the state of the art in terms of defence, capabilities and technology, reducing its external dependence. In this regard, he alluded to the European Defence Fund (EDF) as part of the solution, as it is expected, for the first time in the EU, to finance a complete cycle of development of state-of-the-art defence capabilities, in the amount of 8 billion euros, which is estimated to boost an investment of around 40 to 50 billion euros for all types of companies within Europe, whether start-ups, SMEs or large companies, creating a truly European supply chain.

Defence depends on a structured and competitive European industry, stresses João Cravinho

The Minister of National Defence, João Gomes Cravinho, highlighted that the European security and defence policy and strategic autonomy depend on a structured and competitive European defence industry, capable of responding to a volatile security environment. For the government official, the current moment presents itself as a unique opportunity for reindustrialisation efforts and for a new paradigm, with resilience being a priority that requires the management of critical supply chains for defence: “it is a strategic opportunity for the Portuguese SMEs t0 integrate into the European defence economy value chains and develop new areas of activity.”

Marco Capitão Ferreira presents strong DTIB advantages for defence and economy

Marco Capitão Ferreira, Chairman of idD Portugal Defence, highlighted the importance of a strong DTIB both for European security, as this base allows Member States to maintain crucial industrial skills and capabilities for defence and security of supply, as well as for the economy, as this sector has the potential to promote the development of state-of-the-art technology, to stimulate innovation and dual-use applications, creating value and highly qualified employment. The importance of ensuring a “level playing field” for SMEs was also highlighted, generating equal opportunities for companies and countries. The Portuguese Defence Economy ecosystem comprises a diversified range of companies, technology centres and training entities, covering around 40 sectors of activity that promote synergies of military and civil dual-use.

More innovation and concerted action to overcome crises

The first panel of the seminar contributed to a better understanding of gaps and potential ways to overcome crises, namely: changes in procurement processes and in terms of R&D; need to act in unison to achieve technological advantage and strategic autonomy; the need for the EU and NATO to act coherently and quickly; and the importance of involving SMEs and enabling them for innovation.

The second panel allowed the discussion of gaps and opportunities within the European defence industries, issues that will continue to be worked on by the Slovenian Presidency, highlighting the need to work together, to have equal and fair access to opportunities and the need for improvement in R&D investments.

The importance of SMEs and clusters for better capabilities and economic impact

The afternoon sessions recognized the importance of SMEs and the role of clusters in improving both capacities and economic development. They also contributed to understanding the need for a joint effort by the civil and military sectors to achieve technological advantage, guaranteeing the security of the Member States.

Throughout the day, the European Defence Technological and Industrial Base (EDTIB) and the role of SMEs were promoted, as well as a common approach, through an inclusive, balanced and fair methodology for accessing opportunities. The event sought to improve understanding of the Defence Economy and its impact on the ecosystem.

Jiří Šedivý commits to idD Portugal Defence’s position on Defence Economy

The closing session was attended by the Executive Director of the European Defence Agency (EDA), Jiří Šedivý, who pointed to the current moment in the defence sphere, which is guided by European initiatives to foster capacity development and by a renewed commitment of the Member States in cooperation in matters of security and defence. It highlighted some relevant developments such as the completion of the first Coordinated Annual Review on Defence (CARD), the Strategic Review of PESCO and the launch of the first EDF Annual Work Program which, taken together, are part of a coherent structure with a view to the realisation of European defence cooperation and the joint development of capabilities.

It ended with the promotion of the idD Portugal Defence non-paper on the Future of the European Defence Economy and the role of the Defence Industry, committing itself, in accordance with the recommendations, to assume, through the EDA, a more predominant role in strengthening EDTIB, in promoting a close dialogue with industry to support capacity building and innovative solutions.

Siza Vieira emphasizes the need to strengthen value chains in Europe

Closing the day, the Minister of State, Economy and Digital Transition, Pedro Siza Vieira, reflecting on the European debate regarding strategic autonomy, stressed that it is important for Europe to be able to acquire and sustain infrastructure, resources and components critics. At the same time, he praised the European awakening in pursuit of this ambition of strategic autonomy that led to a rethinking of the industry ecosystem, mapping capabilities and identifying development opportunities and, in this way, for the EU to adapt to an ever-changing international landscape. It ended by highlighting the importance of strengthening EDTIB together, with greater investment in R&D, leveraging dual-use technologies and the capacity of the Industry, which, assuming the cooperation and coordination of all Member States, can ensure that the supply chains value operate resiliently across the continent.

The event had an audience of around 50 people at the CCB and more than 100 people online during the day.

08h30: Opening remarks

Marco Capitão Ferreira, Chairman of the Board, IdD – Portugal Defence

Thierry Breton, European Commissioner for Internal Market VTC

João Gomes Cravinho, Minister of Defence of Portugal

 

Press Point

09h-10h15: Is Europe’s Defence vaccinated against crises?

This is an important political moment to ensure that Europe delivers on defence. The panel will discuss current defence initiatives such as PESCO, EDF, CARD, EU-NATO cooperation. The panellists will also exchange views on challenges ahead and opportunities for Europe’s Defence, particularly for the future of the European Defence Industry, taking into account the developments regarding the MFF, Defence budgets, lessons learned from Covid-19, the need for cross-border collaboration, R&D and the role of SMEs.

Moderator: Jamie Shea, Senior Fellow, Friends of Europe

Camille Grand, NATO Assistant Secretary General for Defence Investment VTC

General Claudio Graziano, Chairman, European Union Military Committee

Katarina Engberg, Senior Advisor, Swedish Institute for European Policy Studies VTC

Paulo Lourenço, Director, Nacional Defence Policy, Portuguese Ministry of Defence

François Arbault, Director, Defence Industry, European Commission Directorate-General for Defence Industry and Space VTC

 

Coffee break

 

10h45 – 12h: Wind of change in Europe’s Defence Industry? – A perspective from Industry

This panel will discuss the great momentum for Defence witnessed in the last five years and what it meant for the Defence Industry (with the EU Global Strategy and the European Defence Action Plan, the creation of bold instruments such as PESCO, FED and CARD and more recently, with the creation of Directorate-General for Defence Industry and Space). The panel will share some of Industry’s concerns regarding the current defence investment and R&D investment.

The panellists will also reflect on the challenges ahead and opportunities taking into account the developments regarding MFF, Defence budgets, Covid-19, the need for cross-border collaboration and the role of SMEs.

 

Moderator: Joana Almodovar, Director, Office for Strategy and Studies, Portuguese Ministry of State for the Economy and Digital Transition

Ante Milevoj, Director, Slovenian Defence Industry Cluster VTC

Elīna Egle-Ločmele, CEO, Federation of Security and Defence Industries of Latvia VTC

Marco Capitão Ferreira, Chairman of the Board, idD – Portugal Defence

Ricardo Martí Fluxá, President, Spanish Association of Technology Companies in Defence, Security, Aeronautics and Space VTC

Tuija Karanko, Secretary-General, Association of Finnish Defence and Aerospace Industries VTC

 

Lunch break

 

14h00 – 15h30: EU actions in support of SMEs, Clusters and Regions

This panel will discuss the several available policies, instruments and mechanisms in different EU organisms to support the SMEs, clusters and regions. The panellists will also debate how to bring authorities, clusters and businesses together in order to enhance the European Defence.

Moderator: Eng. José Vale, Director, Innovation and Entrepreneurship, Portuguese Competition and Innovation Agency

António Bob Santos, Portuguese Ministry of Science, Technology and Higher Education

Emilio Fajardo, Director, Industry, Synergies & Enablers Directorate, European Defence Agency

Maria Manuel Leitão Marques, Member of the European Parliament

João Faria, Head of Political Section, European Commission Representation in Portugal

Carmen Sillero, Executive Board Member, European Association of Regional Development Agencies VTC

 

Coffee break

 

15h45 – 17h30: Bridging the gaps: Dual-use equals dual benefits

During this session, the participants will share their experiences, challenges, and successes in the area of dual-use and reflect on how to bridge the gap and explore dual-use opportunities.

Moderator: Raúl Fangueiro, Professor, Minho University

Jean-David Malo, Director, European Innovation Council and SMEs Executive Agency VTC

Vice-Admiral Henrique Gouveia e Melo, Coordinator, COVID-19 Vaccination Plan Task Force, Portuguese General Staff of the Armed Forces

Major-General Jorge Côrte-Real Andrade, Deputy Director of Armament, Portuguese Ministry of Defence

José Neves, President, AED Cluster Portugal

Elodie Viau, Director, Telecommunications and Integrated Applications, European Space Agency VTC

 

17h30 – 19h00: B2B networking

 

19h00: Closing remarks and way ahead

Marco Capitão Ferreira, Chairman of the Board, idD – Portugal Defence

Jiří Šedivý, Chief Executive, European Defence Agency

Pedro Siza Vieira, Minister of State for the Economy and Digital Transition of Portugal