European Union officials in Brussels are setting up a labyrinth of rules for non-bloc countries and their companies to join defense-cooperation projects under the PESCO framework.
The agreement is the product of efforts by Germany, which holds the rotating presidency of the Council of the European Union, to force a compromise on an issue that had been simmering for years. The idea is to preserve the intent of PESCO – improving defense cooperation among member states and protect companies here – while keeping the door open for outsiders, especially NATO countries, to partake.
In the end, the agreement text leans heavily in the direction of making third-party participation an exceptional affair, with a heavy dose of subjectivity involved in pre-selecting partners and the requirement for unanimous approval by all members to eventually grant an invitation.
The PESCO framework envisions groups of countries working together – three, at least – to solve defense problems that range from military logistics to cyber warfare. There are currently 47 such projects on the books. Approved projects can apply for subsidies through the multibillion-dollar European Defence Fund.
According to the German defense ministry, third-party states can strive to play a role “as of today.” Individual companies vying for contracts stemming from their governments’ participation must wait until 2026, the agreement text states.