Why does the EC deal with defence, which is an area of competence for member states?
The EC fully respects member states’ prerogatives in the field of defence. At the same time, however, the EC has the duty to ensure compliance with the treaty and the court’s case law, which have important implications for defence procurement. According to the European Court of Justice, the use of Article 296 of the treaty, which allows member states under certain conditions to exempt defence contracts from community rules, must be limited to exceptional cases. The new directive will make it easier for member states to comply with this. Since the new rules take into account the specificities of defence, national awarding authorities will be able to apply them to the majority of their defence procurement contracts. The use of Article 296 will still be possible, but less often necessary. This will enhance legal certainty for all stakeholders. At the same time, the procurement directive contributes to the progressive establishment of a European Defence Equipment Market (EDEM). Member stat
