Door opens to keep Britain in EU (security)

The EU’s new military pact should be opened up to countries outside the bloc — such as the U.S., Norway and the U.K. — after Brexit, according to a proposal to be discussed by European defense ministers next month.

The idea — put forward as a “food for thought paper” by Belgium, Luxembourg and the Netherlands — would, if implemented, erode the EU exclusivity of the military cooperation forum. But it offers another way besides NATO to keep Britain, in particular, engaged in European security structures after next year.

The U.K. is the biggest military spender of the current 28 EU countries and a rare one able to project force into distant combat zones. This proposal opens a path for Britain, or another so-called third country, to take a role in future EU military initiatives, including in an EU rapid reaction force.

The two-page document, titled “Third state participation in PESCO projects,” states: “Certain PESCO projects can benefit from participation by non-EU countries in terms of providing capacities, specific expertise or financial contributions that are useful for either capacity development or operations.”

It proposes that third countries “be invited by the participating Member States of a PESCO project acting unanimously and on a case-by-case basis.”

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PESCO, or Permanent Structured Cooperation, is the EU’s program of enhanced military cooperation among 25 of the 28 member countries that was launched last year and allows for combined procurement and a joint military force. Seventeen separate projects were announced under the program in December.

The document, which was obtained by POLITICO, has the backing of 10 other EU member countries: Lithuania, Estonia, Latvia, Poland, Slovakia, Czech Republic, Bulgaria, Portugal, Sweden and Finland.

On Wednesday, the British government released its vision for defense and security cooperation with the EU post Brexit, proposing a closer relationship than any other existing arrangements the EU has with third countries — including the U.K. potentially contributing troops to EU battlegroups and hosting operational headquarters.

U.K. Brexit Secretary David Davis said the EU had a choice: “They can treat us as a third country according to existing precedents, creating something that falls well short of our existing relationship, or they can take a more adaptable approach in which we jointly deliver the operational capability that we need to tackle the ever-evolving threats to our shared security.

“To protect our citizens’ security, we need to look beyond existing precedents and find a solution that allows us to continue to work together. There is no legal or operational reason why such an agreement could not be reached,” he said.

The Benelux proposal lays out conditions under which the participation of a non-EU country would be considered: specific expertise or assets, economies of scale, and a financial, operational or capacity contribution to the project. But it states that “a third state will not be involved in any decision making in relation to general PESCO matters.” The proposers want a “swift decision” as soon as possible after the Foreign Affairs Council meeting in June.

That timing may prove ambitious, however.

“Some member states, like France and Germany, want first to see how the future relationship [with the U.K. post Brexit] will be,” said a diplomat from one of the backing countries. Defense and security cooperation is just one part of a vast slew of topics for negotiation with the U.K., and it is an area where Britain feels it has strong cards to play in the talks because of its globally significant military.

A Dutch diplomat stressed, though, that the Benelux proposal is bigger than Britain or Brexit: “It’s not only the U.K. We work a lot with Norway that could contribute, but also the U.S., Canada or Switzerland.”

The first diplomat also said there have been diplomatic signals of interest from the U.S.

One major incentive for countries outside the EU is the prospect of their companies benefiting from lucrative contracts for building high-tech military kits. In its multiyear budget plan presented last week, the European Commission proposed creating a €13 billion European Defence Fund “to complement and catalyse national expenditure in research and capability development.”

Part of this money will be used for PESCO projects, although the European Parliament and member countries first have to agree on how the fund will operate.