I. The development of EU Military Capabilities

1.In the pursuit of the objectives of the CFSP and in accordance with the conclusions of successive European Councils, at the Capability Conference in Brussels on 19 May 2003[1] Ministers for Defence welcomed progress made since the last Capability Improvement Conference in November 2001. New contributions from Member States based on refined analysis of revised requirements have reduced the number of shortfalls. In parallel, the first phase of the European Capability Action Plan (ECAP) concluded successfully, with 19 panels activated covering the vast majority of the most significant shortfalls and all Member States participating. This process is now shifting to a second more challenging phase.

2. At the Laeken European Council, it was agreed that the EU was capable of conducting some crisis management operations[2]; since Laeken, the EU has made further progress including the conclusion of permanent arrangements with NATO. Based on the Forces contributed to the Helsinki Force Catalogue 2003, the current military assessment of EU military capabilities is that the EU now has operational capability across the full range of Petersberg tasks, limited and constrained by recognised shortfalls. These limitations and/or constraints are on deployment time and high risk may arise at the upper end of the spectrum of scale and intensity, in particular when conducting concurrent operations. These limitations and constraints on full achievement of the Headline and Capability Goals could be alleviated if the recommendations on meeting the shortfalls are followed-up.

The impact of these limitations will need to be assessed case by case against the nature of each specific operation and its particular demands as well as envisaged contribution of required capabilities. Ministers therefore reaffirmed their strong commitment to reduce these limitations through all possible means. In this regard, the Member States will endeavour to:

· To provide more contributions from current inventories;

· To commit to deliver projects and initiatives within Member States’ current programmes ;
· To commit to deliver enhanced, new and additional capabilities through the ECAP process, by activating Project groups addressing the whole spectrum of capability shortfalls (see chapter II).

Ministers reaffirmed their personal involvement in this process.

3. Many of the EU significant shortfalls are already potentially addressed by Member States' current Projects and Initiatives, albeit presently outside the ECAP Process. It is therefore important that Member States implement the delivery of the already planned capabilities, whether they are short, medium or long term projects.

4. A new version of the Helsinki Headline Goal Catalogue, which defines the EU requirements for the fulfilment of the Headline Goal, was approved since the last Capability Conference. On this basis Member States have refined their contributions contained in the Helsinki Force Catalogue 2003 in order to further remedy the shortfalls. A new analysis of progress made in the development of the EU military capabilities was included in the Helsinki Progress Catalogue 2003.

5. The non-EU European NATO members and other countries which are candidates for accession to the EU have also helped to improve European military capabilities through the highly valuable additional contributions confirmed at the Ministerial Meeting on 19 May 2003. These are included in a supplement to the Helsinki Force Catalogue 2003.

6. In the light of the accession process modalities for the integration of the new Member States contributions in the Helsinki Force Catalogue will be considered in order to be able to start preparatory work prior to their accession.

7. Ministers encouraged the implementation of the document "Defining the EU Capability Development Mechanism (CDM)", which in accordance with the Nice mandate, specifies the details of the EU capabilities development mechanism and its interface with NATO.

8. The issue of the way ahead for the development of military capabilities will need to be addressed taking into account the possible evolution of the strategic context, of the political objectives and of technology in a dynamic process.

II. The European Capability Action Plan: way ahead

9. Ministers welcomed the results of the first phase of the ECAP. All 19 activated Panels have delivered their final reports, bringing the ECAP process to a new, more challenging phase. Many Panels have articulated options to acquire additional capability both by procurement and non-procurement initiatives. The ECAP will now shift from the identification of these possible options to the establishment of Project Groups focussed on the implementation of concrete projects, including solutions through acquisition or other solutions such as leasing, multinationalisation and considering possibilities for role specialisation. In order to support the ECAP process Personal Representatives of the Ministers of Defence will continue to meet.

10. On the procurement side, the Project Groups are expected to provide plans and programmes to enable participating Member States to implement new capabilities. Non-procurement initiatives will aim at maximising the effectiveness of current and planned capabilities. ECAP Panels reports contain options to enhance and improve structures and to develop procedures and doctrine.

11. In this context, Ministers welcomed Member States’ commitment to the Headline Goal in the following ECAP Project Groups:

-Air-to-Air Refuelling (AAR); options for capability improvement could include i.a. multinational and national procurement, modification of equipment and via contracting and leasing;
-Combat Search and Rescue (CSAR); options for capability improvement could include i.a development of equipment, doctrine and concepts, training and increased equipment interoperability;
- Headquarters (HQ); options for capability improvement could include i.a implementation of national HQ plans, identification and training of augmentees and installation of communications infrastructure;

 -Nuclear, Biological and Chemical (NBC) protection; options for capability improvement could include i.a development of doctrine and concepts and through training;
-Special Operations Forces (SOF);

 -Theatre Ballistic Missile Defence (TBMD); options for capability improvement could include i.a multinational and national procurement, training and further multinationalisation of headquarters;

 -Unmanned Aerial Vehicles (UAV); options for capability improvement could include i.a operational concept, certification in airworthiness and guidelines for procurement;
-Strategic Air Lift;

 -Space based assets;

 - Interoperability Issues and Working Procedures for Evacuation and Humanitarian Operations.

Ministers recalled that Member States participating to an ECAP Project Group should set and agree the objectives and milestones to be reached.

In addition, Member States are invited to consider the lead or participation in further Project Groups such as in the areas of Attack Helicopters, Support Helicopters, Cruise Missiles and Precision Guided Munitions, Strategic Sea Lift, Intelligence Surveillance Target Acquisition and Reconnaissance (ISTAR).

III. The setting-up of an intergovernmental defence capabilities development and acquisition agency

12. Ministers recalled para. 35 of the Presidency conclusions to the Brussels European Council on 20-21 March to undertake an analysis of the possible creation of an intergovernmental defence capabilities development and acquisition agency within the EU.
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[1] Denmark recalled the protocol on the position of Denmark annexed Treaty on the European union and to the Treaty establishing the European Community.
[2] Annex II to the Laeken conclusions. This assessment also refers to the ESDP civilian crisis management capabilities