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Tuesday, May 16, 2006

EU member states agree new rules on arms purchasing

EU defence ministers on Monday (15 May) agreed to put an end to member states' scrambling for lucrative defence industry deals, with most EU countries signing up to a code of conduct on defence procurement.

The code will come into force on 1 July and obliges signatories to publish tenders for planned defence equipment purchases on the internet, with European companies allowed to compete for most types of orders.

EU defence ministers from 24 EU member states - excluding Denmark which has a permanent opt-out on security and defence matters - met with the steering board of the European Defence Agency (EDA), to hammer out details on the voluntary code.

EDA chief Nick Witney said that opening up defence equipment for internal market competition rules would help small and medium sized companies benefit from extended trade on everything from boots and mini-vans to radar equipment and guns.

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