Permanent Structured Cooperation

In 2009 the Treaty of Lisbon (signing depicted) entered into force, enabling permanent structured cooperation in defence between a subset of willing member states.

PESCO was first written into the European Constitution under Article III-312, which failed ratification, and then into the Treaty of Lisbon of 2009. It added the possibility for those members whose military capabilities fulfil higher criteria and which have made more binding commitments to one another in this area with a view to the most demanding missions shall establish permanent structured cooperation (PESCO) within the EU framework. PESCO was seen as the way to enable the common defence foreseen in Article 42, but the scepticism towards further integration that had arisen around the rejection of the European Constitution meant its activation was unlikely. It was termed, by President Jean-Claude Juncker, the Lisbon Treaty's "sleeping beauty".[3][4]

In the 2010s, the geopolitical landscape around the EU began to change, triggering a series of crises. The Libyan Civil War, the Syrian Civil War and the rise of the Islamic State of Iraq and the Levant caused the European migrant crisis. Russia intervened in Ukraine in 2014, annexing Crimea and triggering an ongoing conflict in the country over the Ukraine–European Union Association Agreement. In 2016, Donald Trump who was elected as President of the United States has been critical of NATO allies, even refusing on several occasions to back the mutual defence clause; and the United Kingdom, one of the EU's two largest military powers, voted in a referendum to withdraw from the EU.[4][5]

This new environment, while very different from the one PESCO was designed for, gave new impetus to European defence cooperation. The withdrawal of the UK, historically an opponent of that cooperation, gave further hope of success. At a rally in Bavaria, Angela Merkel argued that: “The times in which we could completely depend on others are, to a certain extent, over ... I’ve experienced that in the last few days. We Europeans truly have to take our fate into our own hands.” In late 2016, the EU put defence co-operation on its post-Brexit Bratislava and Rome declarations.[4][5]

There was some disagreement between France and Germany about the nature of PESCO. France foresaw a small but ambitious group with serious capabilities making major practical leaps forward; while Germany, weary of further divisions in the EU, wanted a more inclusive approach that could potentially include all states, regardless of their military capability or willingness to integrate. Further, for Germany, it was about building capabilities and giving a post-Brexit signal of unity, whereas France was focused on operations and looking for help for its overstretched African deployments. Their compromise was to re-imagine PESCO as a process. PESCO would be inclusive, but not all states had to take part in all projects and progress would be phased allowing the development of new, common capabilities without having to resolve larger differences on end-goals first. Further, states would not need to already have capabilities, but merely pledge to work towards them. This allowed France's idea of improving military capabilities without shutting out states who did not already attain the threshold.[6][7]

On 13 November 2017, Foreign and Defence Ministers from 23 EU states signed the Joint notification on setting up PESCO in a Foreign Affairs Council chaired by the High Representative for Foreign Affairs, Federica Mogherini.

On 7 September 2017, an agreement was made between EU foreign affairs ministers to move forward with PESCO with 10 initial projects.[8][9][1][10] The agreement was signed on 13 November by 23 of the 28 member states. Ireland and Portugal notified the High Representative and the Council of the European Union of their desire to join PESCO on 7 December 2017[11] and PESCO was activated by the 25 states on 11 December 2017 with the approval of a Council Decision.[12][13] Denmark did not participate as it has an opt-out from the Common Security and Defence Policy, nor did the United Kingdom, which is scheduled to withdraw from the EU in 2020.[14][15] Malta opted-out as well.[16][17]

PESCO includes four of the five EU states that describe themselves as neutral (Austria, Finland, Ireland, and Sweden), and is designed to be as inclusive as possible by allowing states to opt in or out as their unique foreign policies allow. Some members of the Irish Parliament considered Ireland joining PESCO as an abandonment of neutrality. The measure was passed, with the government arguing that its opt-in nature allowed Ireland to "join elements of PESCO that were beneficial such as counter-terrorism, cyber security and peace keeping ... what we are not going to be doing is buying aircraft carriers and fighter jets."[21] While critics of Ireland's participation point to the commitment to increase defence spending, the government has made clear that the 2% commitment is collective, and not for each state individually. The Irish government has made clear that any defence spending increase by Ireland would be minor.[22] Malta, the only neutral state not to participate, argued that it was going to wait and see how PESCO develops, in order to see whether it would compromise Maltese neutrality.[18]

  States only in PESCO

  States in both PESCO and NATO

  States only in NATO

About four-fifths of PESCO members are also member states of NATO, and one EU state (Denmark) that is a member of NATO but not a member of PESCO.[23] While PESCO was formed in part due to doubts over US commitment to NATO,[3] officials stress that PESCO will be complementary to NATO security rather than in competition with it. NATO is still viewed as the main guarantor of Europe's defence, while PESCO focuses on crisis deployments. NATO Secretary General Jens Stoltenberg also highlighted how Military Mobility is a key example of NATO and EU co-operation.[24][25]

The European Defence Agency and External Action Service will act as PESCO's secretariat.[26]

PESCO projects will be incentivised by the European Commission’s newly established European Defence Fund.

The first PESCO projects started with a list of 50 ideas and was whittled down to provide a short list of small-scale projects. Major armament projects are intended in the future (EU forces use 178 different weapon systems compared to 30 in the US), but initially PESCO is to be focused on smaller operations to lay groundwork.[7]

Thirteen projects were adopted in 2017, a further 17 in 2018 and another 13 in 2019[27]

Potential future PESCO projects include the following existing intergovernmental cooperations between member states' militaries, presently outside the CSDP framework:

Forces and command centres:

• European Corps
• European Gendarmerie Force
• European Air Transport Command
• European Maritime Force
• Movement Coordination Centre Europe

Bodies fostering integration:

• European Air Group
• Finabel
• Organisation for Joint Armament Cooperation
• European Personnel Recovery Centre