The High Representative/Vice President/Head of Agency and the Secretary General of NATO are submitting to the respective Councils in June a progress report on the implementation of the 42 actions. It is a factual account on concrete achievements made so far.  Some specific actions are worth highlighting:

Hybrid threats

EU-NATO cooperation on countering hybrid threats is more important than ever. Ten out of the forty-two proposals are linked to the fight against hybrid threats. EU and NATO, along with Member States and Allies, will contribute to and participate in the activities of the European Centre of Excellence for Countering Hybrid Threats set up in Helsinki.

Better situational awareness is critical for our work to counter hybrid threats effectively. The establishment of the EU Hybrid Fusion Cell and its interaction with the NATO Hybrid Analysis Cell will help us draw up a shared situational picture.

Strategic Communication

Collaboration between strategic communications teams will help convey the message that we stand united, notably in support of our partners and in delivering coordinated messages.

Maritime coordination

Cooperation and coordination between Operations EUNAVFOR Med Sophia and Sea Guardian have been enhanced through regular information sharing and logistical support. This builds on existing cooperation in the Aegean Sea and experience acquired in the Indian Ocean.

Cyber security

Recent coordinated cyber-attacks across the globe demonstrate the need to tackle vulnerabilities of our societies and institutions. The exchange of concepts on the integration of cyber defence aspects into the planning and conduct of missions and operations has opened the door to increased cooperation in this domain.

Defence Capabilities

EU Member States and NATO Allies have one single set of forces. On defence capabilities, staffs are increasing efforts to ensure coherence of output between the NATO Defence Planning Process and the EU Capability Development Plan.

Exercises

Preparations for parallel and coordinated exercises are well advanced. For the first time, next autumn NATO and the EU staffs will exercise their response to a hybrid scenario in a parallel and coordinated way.

Supporting partners’ capacity building

Assisting partners in building their capacities and fostering resilience, in particular in the Western Balkans, and in our Eastern and Southern neighbourhood is our common objective. Cooperation on the ground and at Headquarters level in this respect has strengthened substantially. Key areas of interaction have been identified such as strategic communications, cyber, ammunition storage and safety in three pilot countries, namely Bosnia and Herzegovina, Republic of Moldova and Tunisia as a first step.

The Council agreed its stance on part of a package of proposals aimed at reducing risk in the banking industry. The Council closed excessive deficit procedures for Croatia and Portugal, confirming their deficits have dropped below the EU’s 3% of GDP reference value. 

Commissioner Margrethe Vestager, in charge of competition policy, said: “The French and German support will stimulate considerable private investment in this project. The support will help bring a new generation of innovative heavy helicopters to the market, without causing undue distortions of competition.”

Both France and Germany will provide public support for the development of Airbus’ X6 helicopter project. The support will amount to a total of €377 million in repayable advances granted over a period of eight years (€330 million by France and €47.25 million by Germany).

For the X6 helicopter project, Airbus will undertake significant research, development and innovation to develop an innovative and high-technology civil heavy duty helicopter. In particular, the twin-engine X6 helicopter will have a higher range of action, coupled with improved fuel efficiency, as compared to the current generation of helicopters. It aims to simplify access to platforms in the high seas, and also facilitate search and rescue, as well as humanitarian missions. The project is fully in line with the objectives set by the Europe 2020 flagship initiative for an Innovation Union.

The scope of the X6 helicopter project is such that the associated risks are high and the investments required exceed the self-financing capability of Airbus. The financial markets are also reluctant to finance such an ambitious research and development project for which a return on investment is only expected over a long period.

The Commission assessed the measures under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which allows state aid to facilitate the development of certain economic activities, where such aid does not adversely affect trading conditions to an extent that is contrary to the common interest.

The Commission found that:

• support for this project is likely to continue to stimulate further investment in a market that is expected to grow in the next decade, and where competitors continue to invest in order to bring new products to the market.
• the significant exposure of the X6 helicopter project to systemic and atypical risks, due to its high ambition in terms of breakthrough research and innovation, as well as the magnitude of the initial investment necessary to start the project, make self-financing in the absence of public support very unlikely.

On this basis, the Commission concluded that the French and German measures are in line with EU state aid rules, as they will significantly contribute to research and innovation in the EU without unduly distorting competition in the Single Market.

Background

The European Commission adopted in May 2014 state aid rules to facilitate the granting of aid measures by Member States in support of research, development and innovation (R&D&I) activities.

As a result of state aid in this field, companies allocate higher budgets to R&D&I and carry out a more ambitious range of research activities. At the same time, the public money invested in line with the rules supplements and does not replace (“crowd out”) private investment in R&D&I. By increasing (rather than replacing) private investment, new and otherwise unrealised innovative projects can be carried out in Europe. Thus, state aid rules relating to investment in R&D&I help to build and maintain the foundations of a competitive European economy.

The non-confidential version of this decision will be made available under the cases numbers SA.45183 and SA.45185 in the State Aid Register on the DG Competition website, once any confidentiality issues have been resolved. The electronic newsletter “State aid Weekly e-News” lists the most recent state aid decisions published in the Official Journal and on the website.

The Council agreed its stance on part of a package of proposals aimed at reducing risk in the banking industry. The Council closed excessive deficit procedures for Croatia and Portugal, confirming their deficits have dropped below the EU’s 3% of GDP reference value. 

This vital support will help the heroic Portuguese firefighters who are risking their lives to bring the fires under control. I encourage participating states to now also offer firefighters to Portugal, following their latest request for assistance. The EU continues to be ready to provide additional emergency support Portugal requires,” said Commissioner Stylianides.