Follow the money


Jean-Pierre Audy MEP (a French Christian Democrat and member of the conservative PPE block) has drafted a report on the “mid-term review of the 7th Framework Programme for Research” for the European Parliament’s Committee on Industry, Research and Energy.

The draft report proposes:

that an ambitious European research plan for technology and defence be adopted between the Union and the Member States and receive significant initial financing from FP7 and the European Defence Agency on the basis of Article 45(d) of the EU Treaty, with a view to enhancing the industrial and technological base of the defence sector while at the same time improving the efficiency of military public spending (paragraph. 14)

The report also suggests that:

industry’s participation rates do not appear any higher than in previous FPs, particular under the ‘Cooperation’ chapter (paragraph. 15)

This is patently not the case with the EU’s Security Research Programme (ESRP), which has thus far been dominated by large multinationals from the defence industry (see the Report commissioned by the European Parliament’s Citizens’ Rights and Constitutional Affairs’ policy department, published last October).

The new draft Committee Report signals a worrying potential shift in the position of the European Parliament, which has traditionally opposed the outright militarisation of the EU.

The report also goes much further than what the European Commission apparently envisages for the next EU Framework Research programme. That is: limited cooperation between the European Defence Agency and the ESRP, which is already taking place in FP7 (for example in respect to UAVs/drones). See further the Commission’s “Background Paper” to the public consultation on security research (p.4). In contrast, the draft Audy report is much more closely aligned with the repeated demands of European defence industry lobbyists.

The European Parliament’s Committee on Industry, Research and Energy is scheduled to adopt the report at “first reading” on 12 April 2011 (see EP procedure file).

The European Commission has launched a public consultation entitled ‘Unleashing the potential of Europe’s security industry’. The consultation has the clear aim of fostering support for continued EU R&D subsidies to the security industry, and extending those subsidies to ‘dual use’ (military-security) research.

According to yesterday’s Commission Press Release (14.3.2011):

The EU security industry faces a highly fragmented internal market and a weak industrial base. National regulatory frameworks and standards differ widely and the market for security products is highly diversified, ranging from cameras to complex scanner systems. Therefore, it is essential to develop a fast-track system for approval of priority technologies; to make substantial further progress on harmonisation, standardisation; to consider coordinated public procurement; and to accelerate R&D on security technologies including dual-use. To promote this industry the Commission has launched today a public consultation to invite all interested parties to share their views on the best policy measures to be taken to make Europe’s security industry a world leader.

European Commission Vice-President Antonio Tajani, responsible for Industry and Entrepreneurship, said: “The security industry is an integral part of the proper functioning of our society. Therefore, the current fragmented market should be overcome. It weakens the competitiveness of Europe’s security industry and endangers its ability to provide technologies necessary to ensure the security of the European citizens. This needs to be changed.”

These assertions are at odds with research commissioned by the EU under the European Security Research Programme, which suggest that the security market is already worth between 60-100 billion Euros annually. According to the 178 page ‘Survey of the European security market‘ produced by the EUSECON project:

As we have seen, the security market in Europe cannot be considered fragmented by national borders, yet barriers exist that impede a  stronger competition such as differences in national regulations and standards and the traditional preference of national suppliers in large public purchases… A wider market will create incentives for industrial concentration to achieve a European dimension, a desirable feature since it is also recognised that the number of companies operating in the sector is often too high… The increasing competition across EU Member States will lead to the concentration of sales in the hands of the largest and more efficient firms. Such transformation could involve market restructuring.  While long-term benefits will be positive, the restructuring process may create short-term imbalances in terms of plant closures and job losses of the less efficient firms (page 163).

According to the Commission, the aim of the public consultation ‘is to provide the Commission with an overview of the perspectives of the relevant stakeholders, from public administration, to industry, NGO and citizens’. The consultation thus ‘focuses on three aspects’:

  • Means to overcome the market fragmentation (i.e. certification and standardisation procedures).
  • Reinforcing the security industrial base (i.e. access to international markets, synergies between civil and military technologies and liability related issues).
  • Closer cooperation between manufacturers, system integrators, and service providers on one side and with clients on the other.
  • The societal dimension of security - i.e. ensuring the privacy compliance of security technologies (data protection).

The fourth issue – ‘societal impacts’ – was clearly inserted into the consultation documents at a rather late stage, reflecting growing disquiet both inside and outside the EU institutions about the kind of technology R&D that is being funded under the European Security research Programme.

The public consultation runs from the 14th of March to the 13th of May 2011 on the “Your Voice in Europe” website. See also background document on ‘Public Consultation on the preparation of a new Communication on an Industrial Policy for the Security Industry’.

A broader consultation on the future of the entire EU Framework Research programme was launched in February. It runs until the 20th May 2011.

In November last year, Ben Hayes of Statewatch provided written and oral testimony to the London session of the Russell Tribunal on Palestine.

The Tribunal heard how the EU is providing research grants to Israeli military and security companies that may be complicit in Israel’s violations of international humanitarian law and international human rights law.

See the following pages for more information:

- Written evidence submitted to the London session (see page 101)
- Video proceedings of the London session
Findings of the London session

You can watch Ben Hayes’ oral testimony by clicking on the link below.

ZDNet reports that the UK Border Agency is planning a network of booths to take foreigners’ fingerprints and photos. The Home Office agency has advertised for a single contractor to provide booths that are secure and private where overseas nationals can register for biometric residence permits by having fingerprints and a photo taken.

The successful bidder will also be expected to provide services to the public, as well as scanning and sending documents and dealing with payments from applicants. Equipment to video record each applicant, back office IT systems to collate and transmit enrolment data, and document scanning will be delivered under the deal.

A tender notice in the Official Journal of the European Union says the contract will be available to other government departments and agencies, including the Home Office and the Identity and Passport Service.

The Open Source Intelligence (OSINT) industry has grown rapidly over the past decade. Private companies and state agencies are now collecting and analysing “publicly available” data on a vast scale.

This article by Ben Hayes, published in the Statewatch Journal last year, looks at the evolution, theory and practice of OSINT; its use by police and security agencies; the rapidly developing OSINT industry; the blurring of the boundaries between OSINT and covert surveillance; and the embrace of OSINT by the EU.

The full article is available here (pdf). It concludes:

Writing recently in the Guardian, Professor John Naughton observed:

[T]he internet is the nearest thing to a perfect surveillance machine the world has ever seen. Everything you do on the net is logged – every email you send, every website you visit, every file you download, every search you conduct is recorded and filed somewhere, either on the servers of your internet service provider or of the cloud services that you access. As a tool for a totalitarian government interested in the behaviour, social activities and thought-process of its subjects, the internet is just about perfect.

The present threat to civil liberties, however, comes neither from the internet nor totalitarian governments, but from a neo-McCarthyite witchhunt for “terrorists” and “radicals”, and a private security industry bent on developing the “perfect surveillance” tools to find them. For all the concern about Facebook’s privacy policy, that company is no more responsible for its users’ wishes to ‘broadcast themselves’ than travel agents are for tourism. Of course Facebook should offer maximum privacy protection for its users, but those of us concerned with freedom and democracy need to see the bigger picture in terms of who is doing the watching, how, and why. We must then develop the tools and communities needed to bring them under democratic control.

The USA’s Secure Border Initiative, a complex network of high-tech surveillance equipment to police the entire northern border (with Canada) and southern border (with Mexico), has been cancelled.

While agents in the field were said to “love the gear”, Janet Napolitano (US Homeland Security Secretary) testified before Congress that the project “has been plagued with troubles from day one… It has never met a deadline, it hasn’t met its operational capacities, and it doesn’t give us what we need to have”.

Instead of fulfilling lucrative contracts with Boeing and Raytheon, the USA will instead procure surveillance systems, UAVs, thermal imaging and other equipment from the commercial market.

Defence Industry Daily has published a detailed dossier describing all the goings on.

Further evidence of arms industry diversification into criminal intelligence and investigations as BAE Systems offers £184 million for Norkom, an Ireland-based counter-fraud and anti-money laundering solutions provider that employs around 350 people.

BAE already owns Detica, a company specialising in “collecting, managing and exploiting information to reveal actionable intelligence”.

Ian King, chief executive of BAE Systems, said: “Countering financial crime is a priority for governments and financial institutions. There is a compelling logic to the combination of Detica’s NetReveal product and the complementary capabilities and customer reach of Norkom.”

See BAE press release, 14 January 2011.

Article by Dave Cronin for IPS, quoting Ben Hayes of Statewatch, reproduced in full.

Arms traders are seeking to convince the European Union that publicly-funded scientific research grants should help develop weapons for future wars.

In a series of secret discussions, Brussels officials and representatives of the arms industry are examining if the EU’s multi-billion euro “framework programme” for research can be used for projects of a military nature.

Since the Sep. 11 attacks in Washington and New York, senior policy-makers in the European Commission, the EU’s executive wing, have been eager to ensure a greater involvement of arms manufacturers in the programme. Yet because of the reluctance of some EU governments to give the Commission a greater say in military matters, the scope of “security research” has so far been limited to projects that, according to EU officials, can be categorised as “civilian” and “non-lethal”.

About 1.4 billion euros (1.85 billion dollars) have been allocated to the “security” theme of the current framework programme, which runs from 2007 to 2013 and has an overall budget of 53 billion euros. With planning already under way for the next phase of the programme – from 2014 to 2020 – the arms industry is pushing for projects of a more explicit military nature to be funded.

Many arms industry lobbyists view the research programme as an important source of money at a time when military expenditure is being reduced throughout Europe. While the North Atlantic Treaty Organisation (NATO) advocates that its members should devote at least 2 percent of their gross domestic product to the military, France, Greece and Britain are the only EU countries that have met that target.

The secret talks on how science grants may aid the military are being organised by a network called SANDERA (Security and Defence policies in the European Research Area).

Burkhard Theile, a German arms industry lobbyist who is joning the talks, said he wishes to see EU research grants being used for developing new pilotless drones (also known as unmanned air vehicles, UAVs). Such weapons were used extensively by Israel to kill and injure civilians in Gaza during 2008 and 2009. They are also being used by the U.S. in carrying out extrajudicial executions – which frequently result in civilian deaths – in Pakistan, Afghanistan, Somalia and Yemen.

“UAVs have both civilian and military uses and they should be funded by the Union,” Theile told IPS. “They can equally be used for border patrol or for missions like the one we have in Afghanistan.” Formerly a vice-president of Rheinmetall, a maker of tanks and warplanes, Theile now runs his own consulting firm for the arms trade.

Andrew James, a lecturer in Manchester Business School and coordinator of Sandera, acknowledged that giving the European Commission a greater say in scientific research may encounter resistance from EU governments. He said: “A number of powerful and influential stakeholders in Brussels and beyond would like to see defence in some form take funding more broadly than it does at the moment, not least because defence spending among (EU) member states is obviously declining. This is politically controversial. Not all member states would be comfortable to see the Commission getting involved in defence research.”

Rather than being financed as a “security” project, the work of Sandera is covered by the section of the EU’s research programme reserved for social science and humanities.

Academics from the Free University in Berlin have expressed concern that the research programme is focusing less on issues of a genuinely social nature. A paper drawn up by Tanja Boerzel, a professor at the university, laments how EU-financed social science projects are often driven by the interests of private companies. Although about half of all academic staff at leading European universities work in social sciences, only 2 percent of the EU’s research programme is allocated to this field, the paper says.

Ben Hayes, a campaigner with the civil liberties organisation Statewatch, argued that the research programme should concentrate more on social than on military issues. “There is a huge conflict of interest in allowing the military and security lobby to set the research agenda, to be able to define the priorities and then to apply for the funding on offer,” he said. “They are developing their wares with taxpayers’ money and then selling them back to the state. This is a hugely misdirected allocation of taxpayers’ money and scarce resources.”

Mark English, the European Commission’s spokesman on science, said that the EU executive expects to increase the amount of grants given to social research from 84 million euros next year to almost 111 million euros in 2013. He also denied that there are discussions taking place about using EU grants for military purposes.

But a study published in October by the European Parliament, the EU’s only directly elected institution, concluded that the arms industry is already adept at drawing down funds from the Union’s budget. The report said that it is “mostly large defence companies, the very same who have participated in the definition of EU-sponsored security research which are the main beneficiaries.” The leading recipients of these grants to date include Verint, an Israeli maker of surveillance equipment, and the German and French firms Fraunhofer and Thales.

Although Israel is not formally a member of the European Union, it has been a participant in the EU’s science activities since the 1990s. A recent paper by the Quaker Council on European Affairs noted that Israel “appears to be standing out” in its ability to receive funding earmarked for security research. The Quakers expressed concern about how companies that have supplied weapons used against Palestinians and provided services to illegal settlements in the West Bank are among the recipients of EU research grants. The report said: “Israeli industries that profit from the occupation in Palestine should not be eligible to apply for EU funding.”

The original text of this article can be found here.

The Security Research Division of the Federal Ministry of Education and Research (BMBF) has published a brochure detailing cooperation between Germany and Israel in the area of civil security. It features research projects covering transport security, preparation for CBRN attacks, detection technologies, transport security, crisis management and surveillance.

Click here to view the brochure (pdf).

As with the EU Security Research Programme, in which Israel is also deeply involved, the research has the twin objectives of enhancing security and developing technologies that can be profitably brought to the rapidly expanding Homeland Security market.

As the foreword to brochure notes:

“The BMBF now funds a diverse spectrum of German-Israeli research projects… These projects thus form an important foundation for the further development of international markets for security solutions and for future collaboration in research. Productive exchange in these German-Israeli projects makes an indispensable contribution to further raising the security standards in the two countries for the benefit of the citizens”.

Unlike the EU security research programme, which also claims to be wholly focussed on “civil” security, Israel’s largest military contractors do not appear to be directly involved.

More information on EU research subsidies for Israeli military and security contractors will follow shortly…

Statewatch and TNI’s “Neoconopticon” report has now been downloaded more than 200,000 times from www.statewatch.org.

This figure does not include downloads from TNI or other websites hosting the document.

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