Revisiting Offset Practices in European Defence Procurement: The European Defence Agency's Code of Conduct on Offsets

Public Procurement Law Review, (2011) 20 Issue 1 pp. 29-42

28 Pages Posted: 2 Apr 2016

See all articles by Aris Georgopoulos

Aris Georgopoulos

University of Nottingham; University of Nottingham - School of Law

Date Written: December 10, 2010

Abstract

Offsets - otherwise known as industrial compensations - constitute a common feature of defence markets around the world. In the context of the EU and the internal market they have been considered as an obstacle in the effort to create a truly open European Defence Equipment Market (EDEM). One of the main reasons why offset practices have been left largely untouched and unchallenged until recently is their perceived politically sensitive nature. The Code of Conduct on Offsets of the European Defence Agency (EDA) is the first attempt to address this industrial phenomenon at EU level. The purpose of the present article is to present and analyse this instrument and to attempt to place it in its wider regulatory context. The article argues that the EDA’s Code of Conduct on Offsets constitutes an important initiative. However like any other “soft law” initiative the degree of success depends greatly on the willingness of participants to exercise self-restraint and comply with their commitments.

Keywords: Offsets, industrial compensations, code of conduct, Article 346 TFEU, defence procurement, defence, defense, security interests, armaments, procurement regulation, European integration, competition, countertrade

JEL Classification: F52, F59, H56, H57, K12, K23, K49

Suggested Citation

Georgopoulos, Aris (Aristeidis) and Georgopoulos, Aris (Aristeidis), Revisiting Offset Practices in European Defence Procurement: The European Defence Agency's Code of Conduct on Offsets (December 10, 2010). Public Procurement Law Review, (2011) 20 Issue 1 pp. 29-42, Available at SSRN: https://ssrn.com/abstract=2757378

Aris (Aristeidis) Georgopoulos (Contact Author)

University of Nottingham - School of Law ( email )

Law and Social Science Building
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University of Nottingham ( email )

University Park
Nottingham, Nottinghamshire NG7 2RD
United Kingdom
+44 (0) 115 8466307 (Phone)
+44 (0) 115 9515696 (Fax)

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