Recital (21)

The objectives pursued under the Programme to increase the competitiveness and readiness of the EDTIB by initiating and accelerating the adjustment of industry to structural changes imposed by the evolving security environment, including with a view to ensuring security of supply of defence products throughout the Union, can contribute to promoting the Union’s economic, social and territorial cohesion as foreseen under Regulation (EU) 2021/241 of the European Parliament and of the Council. Therefore, provision should be made to allow for Member States’ contributions supported by the Recovery and Resilience Facility to be used for the purpose of supporting industrial reinforcement actions under this Regulation. That possibility should be used to the extent that it contributes to achieving the objectives set out in Article 4 of Regulation (EU) 2021/241. The application of the principle of do no significant harm within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council is essential to ensure that the reforms and investments undertaken under the Recovery and Resilience Facility are implemented in a sustainable manner. All measures supported by the Recovery and Resilience Facility are to be undertaken in compliance with the applicable Union and national environmental acquis, in particular relating to environmental impact assessment and nature protection. At the same time, some defence end-products are, by their very nature, likely to directly or indirectly harm the environment. Therefore, the application of the principle of do no significant harm to Member States’ contributions supporting industrial reinforcement actions which concern those products might not be feasible. In addition, it could be appropriate not to apply the principle of do no significant harm where the supported industrial reinforcement action concerns defence products, or components or raw materials intended or used wholly for the production of defence products. Indeed, the Union is confronted with a stark deterioration of its security context which has increased the level of threat to the Union. This necessitates immediate and massive investments in and support to the resilience and scaling up of the EDTIB to strengthen its ability to prepare for future supply crises and ensure the timely availability and supply of defence products across the Union. This represents, in the present situation, an overriding objective of public security which takes precedence over other considerations. In this context, it is necessary to prevent any disruption along defence supply chains, in particular by allowing industrial reinforcement actions concerning defence products, components and raw materials to be supported, where appropriate, without restrictions related to the application of the principle of do no significant harm. Therefore, where Member States use their voluntary contribution supported by the Recovery and Resilience Facility in favour of industrial reinforcement actions under this Regulation, those actions should not be subject to the application of the principle of do no significant harm, provided that the Member State concerned justifies in the contribution agreement with the Commission that it is not feasible or appropriate to ensure that the type of activities intended to be supported under this Regulation comply with the principle of do no significant harm.