“Future defence budgets should be approached carefully”

 

How will the Covid-19 crisis impact defence spending, planning and capability development in Member States?

COVID-19 is an unprecedented global crisis that has affected every aspect of our society. Much has been already said about the short and long-term consequences of the pandemic on our everyday life and the economy, but we must not forget the security and defence dimension. The Armed Forces have provided various support from the very outbreak of the pandemic, from the provision of field hospitals, medical staff and expertise to the transport of patients, logistics and more. This support was of crucial importance in providing fast, professional and reliable support to civilian structures, both at national and multinational level. Among other means of support, as part of the Homeland Security System, the Croatian Armed Forces provided and set up the expeditionary camp and a communications tunnel adjacent to the Dubrava Clinical Hospital in Zagreb with the capacity to treat 220 critically ill patients. The role and capacities of the defence sector should therefore remain in our focus when designing future actions to tackle the consequences of the pandemic. Of course, when it comes to prioritisation, there are areas such as health and jobs that ask for a more urgent response. However, our decisions on future defence budgets should be carefully approached in order to avoid long-term negative consequences for the defence sector. Moreover, we should use this situation to further identify and prioritise capabilities that could be improved and developed to address these and possible similar future challenges.

What effect could it have on EU defence cooperation?

Since 2016, we made huge steps forward in EU defence, including by launching initiatives such as PESCO, EDF and military mobility. The current crisis should not lower our ambitions. Rather, we should see it as an opportunity to further explore our cooperation opportunities and thus take EU defence cooperation to a new level. As I said, the use of military assets in countering the pandemic covers a wide range of actions at national and multinational level. The cooperation was crucial in order to establish safe transport corridors, organise repatriation flights and bring our civilian and military staff safely home. In case of Croatia, one example among many is the strategic lift we organised for our military personnel returning from Afghanistan, when we also provided transport for partner countries of Albania, North Macedonia and Montenegro. Also, the Croatian Government organised the transport for Croatian and German medical teams and medical equipment to NATO’s enhanced Forward Presence (eFP) mission in Lithuania. There are numerous other cases of similar cooperation which show coordinated efforts are a key element in prevailing this crisis. Unfortunately, like other areas, the defence sector will also feel the negative impact of the pandemic. To what extent remains yet to be seen. However, in our best interest we should try to ensure adequate resources and find novel approaches to maintain the momentum in EU defence cooperation.

What in your view are the most urgent steps to be taken to really unlock the potential of EU defence cooperation?
I strongly believe there is no other way than to continue developing and improving our defence cooperation. This is the only meaningful way to improve our defence capabilities. The threats we are facing are common to all of us and they know no borders. The COVID-19 pandemic is clear evidence on how quickly a crisis can escalate and change every segment of our life, and the defence sector is no exception to that. We can only win this fight if we cooperate and coordinate our efforts timely and in solidarity. This crisis is affecting us all; by using our defence capabilities jointly, we can complement our national efforts and r use our resources smartly and in the best interest of our citizens. One of the major priorities of the Croatian EU Presidency in the area of defence is to promote defence industry with a focus on cross border and small and medium-sized enterprises’ cooperation. Together with EDA, we were planning to organise a high-level conference "Unlocking the Potential of European Defence Cooperation: New opportunities for an Enhanced European Defence Industry". The conference was originally to take place in March in Zagreb but due to the COVID-19 pandemic we had to postpone it, most probably until 2021. Its main objective is to discuss the potential of European defence cooperation through existing and future mechanisms as well as to encourage the involvement of SMEs in developing new and innovative defence technologies and capabilities. It will be also an opportunity to exchange views on best practices in developing and implementing collaborative projects, especially in the context of the EDF.

 

 

What is Croatia's assessment of the implementation of the new EU defence tools (CARD, PESCO, EDF) so far?

One of the key priorities of the EU, as outlined in the 2016 Global Strategy, is to protect its citizens. In order to be able to fulfil this priority and to respond to new emerging security threats, several EU defence initiatives were launched. It is evident that none of the Member States can face challenges such as illegal migration, hybrid and cyber threats, terrorist threats and climate change alone. Tools such as PESCO, CARD, EDF and military mobility are the right answer to enhance EU defence cooperation and respond to existing or emerging crises, including the COVID-19 pandemic. We have managed to create a unique defence cooperation platform: from defence planning through CARD and the Capability Development Plan, strengthening defence cooperation and efforts with PESCO to enhancing and developing necessary defence capabilities through PESCO projects and EDF. In order to complete this cycle our efforts should now focus on implementation and concrete results, quality over quantity and on cooperation in order to avoid duplications, especially with NATO.

Any major adjustments needed, in your view?

There is always room for improvement. The ongoing PESCO Strategic Review is a good opportunity to assess the progress made so far and to identify areas where we could do more and do better, including the implementation of PESCO projects. We see that some projects are performing better than others. Now is a good time to assess our methodology for launching and managing the projects with the aim to improve them in future. The experience from the first EDIDP call will also be relevant for future EDF calls, especially in terms of involving SMEs and encouraging cross border cooperation. One of the most important things in order to deliver desired results is to ensure coherence of our initiatives and tools. One of the first steps is to integrate the EU defence tools into national defence planning, a topic that Member States discussed in February at the workshop that the Croatian Presidency organised with EDA. Another step is of course cooperation at EU level, where tools such as CARD, CDP and PESCO can help Member States identify joint areas for cooperation to develop required capabilities and technologies. In addition, we must not forget the importance of cooperation with strategic partners, especially NATO which is the main framework for common defence. It is clear that any further development of EU defence capabilities contributes to both organisations.

 

 

What is your long-term vision on European defence cooperation? Does Croatia support a genuine European Defence Union?

If we hadn't had a long-term vision of the EU defence cooperation, we wouldn't have launched the current EU initiatives and tools in the first place. If we take a look at PESCO, EDF or military mobility, their guiding principles are cooperation and sharing the same values and interests. This is exactly the idea of a defence union, and in this regard, we are already working like that. Open and constructive dialogue, solidarity and support – these are the elements that we should continue to strive for and which we have been promoting as the EU Presidency. However, and especially in the context of the ongoing crisis, we must not forget the long-term funding. Without adequate resources it will be difficult, if not impossible, to achieve our objectives. We also shouldn’t duplicate capacities that already exist within NATO.

What about EU-NATO cooperation. Are you satisfied with the way the Joint Declaration has been implemented so far?

There is always room for improvement and in this sense, we should continue to strive for even better and more tangible results. But in general, EU-NATO cooperation has made huge progress since the Joint Declaration. This is especially evident in areas such as military mobility, strategic communication and countering hybrid and cyber threats. Here we work both on political and technical levels where experts from both organizations share experiences and best practices. There are also successful examples of operational cooperation, such as in operation Althea under the Berlin Plus arrangement, and between EUNAVFOR MED and NATO’s Sea Guardian operations. In the area of military mobility, we are also closely cooperating to ensure transport infrastructure and procedures that enable us to act swiftly and smoothly. There are areas where we could do more, such as exercises and exchange of information and I am sure that with the current momentum we can improve them as well.

 

In general, it is important that we implement the agreed 74 activities, that we communicate on every level, and that we conduct defence projects that will not lead to duplication but to interoperable capabilities and coherence. This is especially important since NATO is and will remain a cornerstone of the European collective defence. We also need to keep our shared focus on helping our neighbouring partners strengthen their capabilities and resilience, which is especially true for South East Europe as the EU’s immediate neighbourhood.

Croatia is among the smaller EU countries but has a dynamic and growing defence industry, mainly SMEs. How to make sure all Member States - small and big ones - have their role in building the Europe of Defence?

Yes, indeed, we need to give more attention to our SMEs. Let me give you a few successful examples from Croatia. HS Produkt Company has been very successful globally with its polymer-based pistol for the last 20 years. Demining company DOK-ING has become a trendsetter in mine clearance systems. It is represented on almost all continents. Croatian soldiers can provide a first-hand testimony about the quality of and the demand for military helmets by Šestan-Busch Company which are worn by soldiers and members of security forces worldwide. Navy shipbuilding in Croatia is a centuries old tradition. Its current flagship project is the new "Omiš" Class Coastal Patrol Vessel which stands as an example for Croatia’s new navy capacities powered by the country’s defence industry. The vessel was designed by Brodarski institut Company with design upgrades and production by Brodosplit Shipyard. We also believe that the IT industry will become more actively involved in the defence component of the economy in the near future. Croatian SMEs are a good example of how to integrate high-value and technologically advanced solutions into defence sector. At EU level we have established an excellent platform for using the potential of SMEs. Our next step should be to further encourage cross border cooperation and exchange of knowledge and expertise. To improve SMEs’ access to Europe’s defence market and supply chains, we should look into the possibility of making the current procurement regulations for dual use products more flexible.