Industrial Cooperation Programs

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1 Implementation of the Directive 2009/81/EC in the Czech Republic and the way forward

2 Main Goals of Industrial Cooperation Programs to support export promotions to support transfer of technologies and know-how to create conditions for new forms of long-term cooperation between Czech and foreign partners including integration of Czech companies into international supply chains

3 Management of Offset activities Ministry of Industry and Trade provides methodology and tutorial activity connected with preparation, implementation and supervision of ICPs in close cooperation with contractual partners in each ICP Offset agreements are concluded between contractual partners of the main contract

4 Offsets - specifics The Czech government doesn t stipulate any specific requirements (regional, sectoral etc.) both for each ICP and/or Offset transactions Offset multipliers, which enhances the value of Offset transactions are not used in Czech methodology A penalty for not delivering the total value of the Program must be always applied - amount to at least 5 percent of the undelivered value

5 Industrial cooperation programs in the Czech Republic 1. PEGAS communication system for IRS, MOI CR EADS, EUROCOPTER police helicopters, MOI CR Eurocopter, GRIPEN supersonic aircrafts JAS 39 Gripen, MOD CR - Gripen International, ARTHUR radiolocation system, MOD CR SAAB, RBS multifuction rocket system, MOD CR - SAAB Bofors, AIRBUS transport planes, MOD CR EADS, KOT armored wheeled vehicles, MOD CR GD European Land Systems-Steyr, CASA transport planes, MOD CR EADS, LOV light armored vehicles, MOD CR IVECO, 2010

6 Legislation for Industrial Cooperation Programs in the Czech Republic The Government adopted by its Resolution No. 499, dated June 28, 2010 the Principles of the Implementation of Industrial Cooperation Programs - ICPs Provision No. 19/2010 of the Minister of Industry and Trade concerning the realization of the Programs for Industrial Cooperation Transposition of Directive 2009/81/EC on Defence and Security procurement 12. August 2011 (leg. Act No. 258/2011)

7 Legislation for Industrial Cooperation Programs in the Czech Republic The Government Resolution No. 594, dated August 15, 2012 II. a s s i g n s to Members of the Government henceforth not to apply within the preparation of contracts for the supply of goods, services and works from foreign suppliers, financed from the state budget of the Czech Republic, as a condition for applicants their implementation of industrial cooperation by the Principles; within the preparation of contracts for the supply of military equipment specific conditions for applicants might be applied only on a case-by-case basis in accordance to Article 346 of the Treaty on the Functioning of the European Union

8 Present day Industrial cooperation programs (as they were) are no longer possible in the Czech Republic Also - from the European Commision point of view, offsets are no longer possible in the whole EU

9 Present day European Commission Communication on Defence Industry and Market Restrictive aplication of an Art. 346/TFEU Rapid phasing-out of Offsets Establishing dialogue with non-eu countries regarding offset policy

10 Future ahead Application of Industrial policies possible only under specific conditions and circumtances mentioned in the Art. 346/TFEU Because Offsets are globaly specific, some level of industrial participation will always be present

11 Thank you for your attention Technical Education and Defence Industry Unit Na Františku 32, Prague 1 Czech Republic