As announced in January, BLOMSTEIN is publishing a series of briefings introducing into European and German legal defence matters. In our last briefing, we have provided some insight into the regulatory framework for the defence industry to produce and sell from the EU.

The cooperation of EU Member States regarding defence and security policy and activities ranks high on the European Union’s agenda. This includes EU Member States’ joint procurement of military and sensitive equipment within the meaning of Directive 2009/81 on procurements in the fields of defence and security. Advantages of such joint procurements to national procedures are manifold, including cost reductions through scale economies, facilitated in-use collaboration due to increased interoperability of material and a strengthening of allies.

This briefing gives an overview over the legal framework of such joint procurements. In practice, EU Member States assign the task of procuring equipment from suppliers (mainly private companies) to a single entity (Executive Entity), which, in turn, conducts the procurement for (the benefit of) all participating EU Member States. Candidates for the role as Executive Entity are, firstly, states – participating EU Member States or third countries – acting as a “lead nation”. However, multinational institutions such as the European Defence Agency (EDA), NATO Support and Procurement Agency (NSPA) or Organisation Conjointe de Coopération en Matière d’Armement (OCCAR) can also take on this role.

As announced in January, BLOMSTEIN is publishing a series of briefings introducing into European and German legal defence matters. In our last briefing, we shared some insight into the Bundestag’s ominous requirement (and its legality) to separately approve any defence procurement with a volume above EUR 25 Mio.

Today’s topic concerns export controls on the defence and arms industry. They are a critical component of national and international security efforts. They involve strict legal frameworks and regulatory mechanisms to ensure that the export of certain goods remains in line with the interests of the nations from which the goods originate. This overview provides an insight into the basic components of the legal framework established in Germany.

As announced in January, BLOMSTEIN is publishing a series of briefings introducing into European and German legal defence matters. In our last briefing, we discussed when and how to challenge unlawful single source contracts in the EU.

Today’s topic concerns the relationship between public procurement, constitutional law and the division of powers in the German Government:

As announced mid-January, BLOMSTEIN is publishing a series of briefings introducing into European and German legal defence matters. In our last briefing, we discussed the far-reaching impact CBAM will have on the defence industry in Europe.

"Faster, more effective and less bureaucratic" is the motto proclaimed by German Defence Minister Boris Pistorius when outlining his goals for defence procurement. One method – the so-called “direct award” – has always been an attractive option for contracting authorities interested in accelerating its procurement. Companies covet such awards because they avoid complicated and time-consuming procedures. On the other hand, those businesses that come away empty-handed often seek a way to challenge the legality of direct awards. This briefing will give an introduction to the strict conditions under which the law allows contracting authorities in Europe and Germany in particular to dispense with competitive tendering, and the particularities of the remedies available to competitors.

As announced mid-January, BLOMSTEIN is publishing a series of briefings introducing into European and German legal defence matters. In our last briefing, we discussed the relevance of merger control in the European consolidation of the defense industry.

The Carbon Border Adjustment Mechanism (CBAM) represents a pivotal shift in the European Union's approach to mitigating climate change by imposing a carbon price on imports of certain goods from outside the EU. It aims to prevent carbon leakage by ensuring that ambitious climate efforts within the EU do not lead to the relocation of carbon-intensive production to countries with less stringent emissions standards. The CBAM is designed to complement the EU's Emissions Trading System (ETS) by applying a similar carbon cost to imports, thus leveling the playing field for EU producers.

On December 12, 2023, an agreement was reached in the European Parliament on a draft of the EU Critical Raw Materials Act (CRMA), paving the way for its timely adoption. This raises the threat of further regulatory obligations for companies that produce with critical raw materials.

BLOMSTEIN has kicked-off a series of briefings on current legal topics in the defence sector. In our last briefing, we discussed our take on how to get direct awards. Today, we focus on the recent merger clearance of the German Federal Cartel Office (FCO) for the acquisition of ESG Elektroniksystem- und Logistik-GmbH by Hensoldt Holding Germany GmbH. This merger clearance underscores a pivotal moment in defence industry consolidation. The merger is set against a backdrop of geopolitical shifts and heightened defence investment. ESG's expertise as a system integrator focused on the development, integration, and support of third-party electronic systems complements Hensoldt, a leading manufacturer of defence electronics, including radars and optoelectronic systems. This briefing explores the antitrust law implications and the unique characteristics of the defence market, particularly in the context of the current geopolitical climate marked by the urgency of strengthening defence capabilities through innovation and investment and the rapid digitalization of the battlefield.

As announced mid-January, BLOMSTEIN is publishing a series of briefings introducing into European and German legal defence matters. In our last briefing, we discussed our take on hot legal topics for the defence industry for the year 2024.

As announced last week, BLOMSTEIN is publishing a series of briefings introducing into European and German legal defence matters. In preparation for the new year, our defence team got together and identified the topics that we believe will be relevant for companies in the security and defence industry in the EU and Germany in international trade law, ESG, antitrust law and public procurement law:

The Russian invasion of Ukraine has not only turned the European security architecture upside down. It has also triggered a massive and ongoing rethink of security and defence within the European Union as a whole and its Member States individually. With conflicts flaring up in the Middle East and the future of peace in the Far East uncertain, Europe now faces a host of additional challenges for its foreign and security policy, as well as controversial decisions about meaningful consequences for its internal defence and security industries. The impact will be felt not only by the EU and its Member States, but also by any defence company operating or wishing to operate in the EU market.