Arms sector to benefit from new €30 billion EU market

THE Irish defence industry will find it easier to tender for business in the lucrative €30 billion a year military equipment market, under a new EU agreement.

The European defence equipment market will be launched on July 1, with 22 EU countries, including Ireland, taking part.

Ireland is not a producer of completed armaments but has a sizeable export industry in specific military and dual-use components.

Sources value exports at €26 billion since 1997.

The move was criticised by the Green Party which claimed the defence initiative would put pressure on the country to spend more on armaments in the future. The party demanded a full Dáil debate about the country’s involvement in the EU Defence Agency.

Deputy John Gormley, the party’s spokesperson on defence, said the Government had concealed the fact that Ireland was involved in the arms industry. “In a sense, this is Ireland coming out of the closet with the government pinning its colours to the mast.”

Until now, defence equipment was exempt from normal cross-border competition rules that operate for all other goods in the EU.

Now, defence ministers have agreed orders worth more than €1 million will be out to public tender and advertised on a website.