European Commission and OCCAR Sign Financial Framework Partnership Agreement to Strengthen EU Defence Cooperation

The European Commission, represented by Directorate-General for Defence Industry and Space (DG DEFIS), and the Organisation for Joint Armament Cooperation (OCCAR) have signed a Financial Framework Partnership Agreement (FFPA), marking a significant step forward in the European Union's vision for a stronger and more unified European defence landscape. This landmark agreement, a result of extensive collaboration and negotiations between the two organizations, will streamline the implementation of EU defence projects under indirect management.

In the presence of DG DEFIS’ Director-General Timo Pesonen and OCCAR Director Joachim Sucker, the agreement was co-signed on behalf of Executive Vice-President Margrethe Vestager. This agreement formalizes the working procedures between the European Commission and OCCAR, laying a robust foundation for future cooperation in European Defence Programmes.

A Milestone in European Defence Collaboration

The new FFPA aims to simplify and synchronize processes for transferring EU-funded defence projects to OCCAR under indirect management, an arrangement that has seen considerable success with projects under both the European Defence Industrial Development Programme (EDIDP) and the European Defence Fund (EDF). To date, OCCAR has been entrusted with the management of six major projects, representing a total EU funding investment of €442 million. Another high-impact project, valued at over €150 million, is slated for inclusion shortly.

This agreement makes OCCAR the first entity formally entrusted by DG DEFIS to manage EU-funded defence actions under such a partnership framework. Through this FFPA, the procedures governing indirect management of EU-funded defence initiatives will be streamlined, improving efficiency across the board for all future European Defence Programmes that adopt this model.

Strengthening the Framework for Future Defence Programs

A major highlight of the agreement is its forward-looking structure, which will not only encompass projects funded by the European Defence Fund (EDF) but also apply to future European Defence Industrial Programmes where indirect management by OCCAR is feasible. The agreement provides for close coordination between DG DEFIS and OCCAR, establishing a foundation of standardized procedures that will stabilize contractual terms for future projects.

One essential aspect of the FFPA is that it guarantees observer status for the European Commission in OCCAR-led projects, specifically for activities directly tied to the implementation of entrusted tasks. This arrangement ensures transparency and alignment, helping to maintain high standards in both project management and strategic oversight.

Streamlining Project Implementation for Greater Efficiency

To implement the FFPA in practice, specific Contribution Agreements will need to be signed between the Commission and OCCAR for each project. However, the efficiency gains expected under this agreement are significant. Contribution Agreements will now follow templates co-developed by DEFIS and OCCAR, reducing administrative overhead and expediting the signing process, which has traditionally required time-consuming negotiation for each new project.

By entrusting OCCAR with the responsibility for project implementation, the EU is also creating smoother coordination pathways between its grant agreements and any associated procurement contracts. This approach supports faster and more efficient deployment of EU resources, with OCCAR managing complex procurement and project execution, while DG DEFIS focuses on strategic oversight.

Building on Proven Success in European Defence Projects

The FFPA formalizes an already successful partnership that has produced impressive results under the European Defence Industrial Development Programme (EDIDP) and the European Defence Fund (EDF). Notable projects under OCCAR’s management include ESSOR, MALE RPAS under EDIDP, and EPC, EU HYDEF, E-NACSOS, and HYDIS² under EDF, with more significant projects expected in the near future.

With the FFPA in place, the partnership will continue to evolve, creating new opportunities to bolster Europe’s strategic autonomy and defence capabilities in an increasingly complex security landscape.

A Commitment to Excellence in the EU Defence Industry

Among his remarks, DG Pesonen thanked the dedicated teams at DG DEFIS and OCCAR who made this landmark agreement a reality, emphasizing the importance of cooperation in achieving EU defence industrial ambitions. 

“This agreement is testament to the spirit of collaboration that exists between OCCAR and DEFIS. I am confident that this partnership will continue to flourish, supporting Europe's capacity to meet its future defence needs with efficiency, transparency, and excellence."

OCCAR-EA Director, Joachim Sucker further added: 

“This agreement not only significantly enhances our ability to cooperate with one another, but more importantly, this agreement between the European Union and OCCAR, proves that strategic European Defence policy can be turned into tangible technologies and capabilities of European origin. OCCAR is determined to continue on this path, further strengthening and contributing, as a key bridgebuilder, for European Defence in Europe and beyond."

With the signing of the FFPA, DG DEFIS and OCCAR embark on a strengthened path of cooperation, laying the groundwork for enhanced capabilities and a secure, autonomous Europe. This partnership will play a pivotal role in the years to come, as Europe rises to meet the challenges of a rapidly evolving global defence landscape.