Original text
European Commission - Speech [Check Against Delivery] Speech by Commissioner Kubilius at the Plenary Session of the European Parliament Joint Debate on Defence Strasbourg, 10 March 2026 President, Honourable Members, Thank you for these two important reports I thank the rapporteurs and the shadows for your work. First, Mr Cremer, on breaking down barriers on our EU defence market. We have a unique European Internal M...
European Commission - Speech [Check Against Delivery] Speech by Commissioner Kubilius at the Plenary Session of the European Parliament Joint Debate on Defence Strasbourg, 10 March 2026 President, Honourable Members, Thank you for these two important reports I thank the rapporteurs and the shadows for your work. First, Mr Cremer, on breaking down barriers on our EU defence market. We have a unique European Internal Market of 27 Member States. 450 million people. GDP: 18 trillion euro. One of the biggest markets in the world. But our defence market is fragmented, splintered, divided. Fragmentation is bad for our defence, bad for our competitiveness, stops us from winning the global race to produce at scale and on time. Without a common defence market, industry focuses on export markets. Fragmentation and small scale of industries causes governments to buy defence products outside of Europe. We spend around 50% of our defence and taxpayers' money on the creation of good jobs somewhere else, not in Europe. Why is that? Why is our defence market and defence industry so much fragmented? Because, as you know, the Treaties define that defence is a national prerogative and for years Member States built their defence industry nationally. That is why fragmentation is a legacy of our historical experience. That is why it is not so easy to overcome. You are right to mention the Treaty Article on the security derogation from Single Market rules, Article 346 TFEU. At the moment it is invoked too often! And that is blocking European cooperation. The consequences of that - national barriers and national protectionism, different licenses, different requirements and different standards. Fragmentation stops us from developing joint defence projects. Fragmentation prevents us from standardizing production. It's why we are producing hundreds of different types of weapon systems, when the USA has only 30. It's why our weapon systems lack interoperability. And still our governments like to procure alone. Even though joint procurement brings bigger and longer term contracts, and in this way cuts the prices. A European defence market is a big market, which means big demand, big investments and big production. That is why our debate on a more integrated European market in defence is not a theoretical debate, it's a very practical challenge. If we overcome fragmentation, Defence industry can be the most important driver of competitiveness. Not only for defence but for the whole European economy. Letta and Draghi were very outspoken about that. While developing our defence capabilities, with new funds and new procurement of new weapons, we need also to do everything to overcome fragmentation of our defence market. To strengthen defence industry, and its ability to scale up production. And that's why we must also concentrate our efforts on creating a more integrated European Market in defence with strengthened security of supply. This summer we will present a Strategy for a European Defence Market. We also are revising the Defence Procurement Directive. And we need to find way to incentivize Member States to less often use the security derogation of TFEU Article 346. Also we need to continue to learn the benefits of joint procurement. And of joint development of pan- European defence projects. Or flagship projects, as we call them. And that brings me to the second important issue you raise. Ms Annunziata, I welcome your report on defence flagships. Pan European defence projects that no Member State can build alone, but that defend the whole of Europe. Projects that demand the leadership of Member States, but also funding and support at EU level. Until now we had a very limited experience of success in developing such joint pan-European projects. Much less than in the development of pan-European space projects. That's why the Commission proposed four flagships in our Defence Readiness Roadmap last October: the European Drone Defence Initiative, the Eastern Flank Watch, the European Air Shield and the European Space Shield. Member States are discussing potential others as well, on the Mediterranean and naval challenges. You are right to call for autonomous strategic enablers as a flagship project, since we are heavily dependent on American strategic enablers. I am glad that you also stress the benefits of these flagships for competitiveness. I would add - also for increasing interoperability and for learning how to defend Europe together. Flagships are moving forward. With the European Union support. With money: SAFE loans. And also - by cutting red tape. And with – as you mention – the revolutionary new legal instruments in EDIP: The Structure for European Armament Programmes – SEAP – and the European Defence Projects of Common Interest –EDPCIs. The Cypriot Presidency is now moving work forward on these common defence projects. We have issued a call for expression of interest for EDPCIs. Member States are discussing them and have until 16 March to notify their interest – next Monday. We expect concrete project proposals by the end of the summer. That is how, step-by-step we are learning how to become more united in defence. So thanks again for these two important reports that truly complement each other. Our analysis of problems and solutions is very similar. I am glad you both include Ukraine. Your reports are also important as a message to Europe: we must unite for our defence. We should remember: The US would not be stronger if they replaced their federal defence industry with 50 defence markets and industries on the level of each state. In Europe, fragmentation into 27 defence markets and 27 defence industries also does not bring strength to us. It only weakens us. We must be ambitious for our defence: on defragmentation, on scale, on speed. But if we want speed from industry side, we cannot allow ourselves to discuss and negotiate the Defence Simplification Omnibus for almost a year. Or water it down. If we are serious - we need to show an example of ambitious political speed and scale of our decisions. The Ukrainians are showing us an example of industrial speed and scale. And of the speed of political decisions. Because they are at war. We are not at peace either. But by continuing traditional slow, peace-time decision making, it looks like we are dreaming that peace in Europe is eternal. Such an attitude needs to be radically changed. I know Europe can count on you. SPEECH/26/592
Speech Brief