Assessment in relation to Article 346 TFEU
When the Danish defence acquires defence material or services for more than 50M DKK from a foreign supplier, the Danish Ministry of Defence and the Danish Business Authority makes an individual assessment based on the guidelines.
The Danish Defence Acquisition and Logistics Organisation (DALO) is responsible for the planning of defence acquisitions. When a new defence acquisition is planned, the Danish Business Authority and the Ministry of Defence conducts an assessment on whether to require an action for the protection of Denmark’s essential security interests in relation to the specific acquisition based on Article 346 in the Treaty for the Functioning of the European Union.
Not all acquisitions require an action for the protection of Denmark’s essential security interests. Every single decision is made based on a specific, individual assessment by the Danish Business Authority and the Ministry of Defence.
The assessment consists of three separate parts:
- For each individual acquisition of defence equipment and defence services, the Ministry of Defence must assess whether it is necessary to take action to ensure a defence industrial effect for the purpose of protecting Denmark’s essential national security interests.
- The Danish Business Authority and the Ministry of Defence jointly assess which type of action can secure the defence industrial effect with minimum disruption.
- The Danish Business Authority assesses whether the implementation of the contemplated action entails a disproportionately high risk of unintended consequences that could adversely affect the conditions for competition in the internal market regarding products not intended specifically for military purposes.
On this basis, the Danish Business Authority decides whether to require an action for the protection of Denmark’s essential security interests. The Danish Business Authority informs the relevant authorities of the decision.
If the acquisition is covered by a requirement for industrial co-operation, this will be administered by the Danish Business Authority.