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What is the Strategic Compass of the EU?

The Strategic Compass guiding the EU’s security and defence cooperation was approved at the Foreign Affairs Council on 21 March 2022 by the EU’s defence and foreign ministers. The EU leaders endorsed the document at the European Council on 25 March 2022. The Compass can be characterised as the EU’s Defence Report, with a span of approximately the next five to ten years. Its aim is to specify the objectives of security and defence cooperation defined in the 2016 EU Global Strategy on Foreign and Security Policy, to enhance the implementation of the common level of ambition and to ensure a desired effect of the EU’s defence initiatives taken in recent years. The Compass is the first EU assessment and steering process in the field of security and defence cooperation. The negotiation process lasted nearly two years, and Russia’s invasion of Ukraine 24 February 2022 intensified the focus of the document in the last phase of the negotiations.

The Strategic Compass is divided into five content categories: 1) Description of the operating environment (the World We Face); 2) development of functional capacity (Act); 3) European protection (Secure); 4) capability development (Invest); and 5) partnerships (Partner). The document contains both strategic objectives and approximately 70 proposals for measures, including proposals for schedules.

The description of the operating environment is based on the EU Single Intelligence Analysis Capacity (SIAC), prepared on the basis of information produced by the civilian and military intelligence services of the Member States and compiled by the European Union Intelligence and Situation Centre (EU INTCEN).  It has been specified that the threat assessment should be made at least every three years from 2022 onwards.

Developing EU activities

The section on the development of functional capacity covers both crisis management and mutual assistance, with the objective to improve the capacity to act during crises. The EU’s preparedness for external action needs to be developed and the target level of action specified: the EU must be able to act faster, with more capability and more efficiently. With regard to mutual assistance within the EU, the decision-making exercises on armed attacks will be continued; these will concretise the implementation and coordination of the clause and the provision and reception of assistance.

One key measure is to update the planning principles and scenarios of military crisis management so that they correspond to the current operating environment on a threat-based basis. Other key objectives include developing the EU’s crisis management structures, funding, troops formation and rapid response. It is proposed that rapid reaction capabilities related to civilian crisis management be developed. The EU’s rapid response will be developed by 2025 in such a way that the EU Rapid Deployment Capacity (EU RDC) can be established on the basis of the updated Battle Group concept and other capabilities allocated by the Member States to form a capacity of maximum 5 000 troops. If necessary, the new Rapid Deployment Capability would include capabilities of the Army, Air Force and the Navy. In addition to joint forces, these would consist of capabilities allocated by the Member States for rapid deployment. Rapid Deployment LIVEX exercises, in particular, will become a regular practice. With regard to strengthening military mobility, the need for faster development of dual-use transport infrastructure and streamlining border crossing procedures will be taken into account. In addition, an analysis will be made of how the current transport infrastructure is suited to large-scale transport launched at short notice.

Secure Europe

Chapter three of the Compass deals with securing the Union and discusses themes central to crisis resilience, such as hybrid threats, cyber defence, maritime and space security.

Concrete measures proposed include a framework for a coordinated response to hybrid threats, a broader EU Hybrid Toolbox. This horizontal approach will combine existing and new tools for external action. The range of tools can be used to respond to different types of hybrid threats regardless of the sector. The text contains a division into preventive and restrictive measures. Finland has actively promoted the preparation of the Hybrid Toolbox, which is in line with Finland’s goals.

As regards the development of the cyber domain and cyber security, the Compass takes into account the need to strengthen the EU’s Cyber Diplomacy Toolbox and shared situational awareness as well as the need to develop the capacity of crisis management operations in cyber security issues. The cyber environment will be taken into account as part of the development of defence capabilities and the EU’s comprehensive measures. In cyber defence, the goal is to strengthen the EU’s cyber deterrence comprehensively, for example by developing capabilities, continuing regular exercises and improving information exchange and interoperability.

In the future, space will be an increasingly key operating environment, and the Compass presents the space strategy for security and defence and decision-making exercises related to the space environment to strengthen solidarity.         

Developing capabilities

With regard to the development of the EU’s capabilities, measures are proposed concerning defence expenditure, investments and  capability needs. Russia’s military aggression against Ukraine highlighted the importance of this area in a new way. A key objective is to develop the EU’s capabilities to better meet operational needs by strengthening European defence and the EU’s military and civilian crisis management. To achieve this, the most important measure proposed is to increase defence expenditure so that the EU can better address its security needs, improve efficiency, increase interoperability and a European approach, and make the use of the EU tools more efficient. The Commission is requested to provide new incentives for stronger joint action.

The Compass takes into account the newest types of crises and threats. The scenarios defining crisis management capabilities (Headline Goal Process) will be redefined as part of a broader update of the priorities in the EU’s Capability Development Plan (CDP), which takes into account the changed operating environment. The scenarios will be expanded to take into account hybrid threats, the EU’s access to strategic environments (oceans, cyber domain, space) and support from the armed forces to civilian authorities.

The commitments under Permanent Structured Cooperation (PESCO) must be fulfilled by 2025, after which the commitments will be updated. While the compatibility of the European Defence Fund (EDF) with other financial instruments will be developed, the Member States should also be prepared to allocate sufficient economic resources to the European Defence Fund in the longer term in line with the increased ambition at the EU level. The Compass presents a number of detailed performance projects in maritime, air, space and land operating environments. Efforts will be made to strengthen the coherence of defence initiatives by organising an annual meeting of defence ministers, with focus on the EU’s defence initiatives and capabilities.

The document pays attention to the security of supply of security and defence, supply and value chains, and the availability of critical technologies. With regard to new technologies and innovations, measures to secure critical technologies and to reduce strategic dependencies will be taken into account, for example by improving security of supply. Concrete proposals will be made, such as the establishment of the Defence Innovation Centre in the European Defence Agency (EDA), the jointly prepared analysis by the Commission and the EDA of the shortcomings in defence investment and the necessary measures to strengthen the European Defence Industrial Technology Base (EDITB).

Partnerships

Partnerships are discussed in chapter five of the Compass. The document presents a tailored approach to strengthen partnerships with NATO, the UN, regional organisations and bilateral partners. NATO’s role as a key partner to the EU and transatlantic cooperation have been taken into account comprehensively. Following Russia’s military aggression, the entries on the role of NATO and the transatlantic partnership have been underscored. The EU is developing its partnership with NATO in an ambitious and pragmatic manner. The EU-NATO relationship is discussed comprehensively, and the areas of cooperation include resilience, hybrid threats, space, maritime security, new technologies and military mobility. Joint exercises are proposed for military mobility. The document expresses a wish for the signing of a new joint declaration between the EU and NATO.

The section on bilateral relations emphasises the importance of developing partnerships with the United States, Norway and Canada and notes that the EU will remain open to an extensive and ambitious security and defence arrangement with the United Kingdom. The document emphasises the strategic importance of the EU-US partnership and takes note of the importance of the EU-US dialogue on security and defence.

Partnerships also play a key role in developing the EU’s global strategic role. The document proposes the launching of new dialogue on security and defence with partner countries in Africa. The use of the European Peace Facility and other EU instruments to improve partner capacity are called for. With regard to the UN Partnership, the emphasis is on strategic partnership in peacekeeping operations and the importance of the Women, Peace and Security agenda. 

The section on the EU’s eastern neighbourhood emphasises the development of the security environment and Russia’s hostile actions which has an impact on the stability and democratic processes in the region. The increased presence of the EU’s strategic competitors in the region extending from Sahel to the Horn of Africa will also be taken into account.

Finland’s perspectives

The Strategic Compass is in line with Finland’s positions and negotiating objectives. The Compass is a broad-based, sufficiently ambitious and concrete steering document that develops and strengthens the EU’s security and defence cooperation through the EU’s activities, protection of Europe, capability development and EU partnerships. The Strategic Compass meets the objective initially set by Finland to clarify the EU’s role as a security and defence policy actor. In line with Finland’s objectives, the document clarifies the objectives of the cooperation and describes the EU’s strategic vision.

The EU’s strong and unified response to Russia’s military aggression against Ukraine that started 24 February 2022 has shown that the EU is capable of diverse and rapid action in crisis situations, including security and defence policy. Close cooperation with the EU’s key partners, such as NATO, the United States, the UK and Norway, has played an important role. From the perspective of the EU’s credibility, it is of utmost importance that the EU implements without delay the clear objectives and measures set out in the Strategic Compass to strengthen security and defence cooperation. It is important that the European Council monitors implementation and strengthens the political commitment regularly.

For Finland, the EU’s ability to act in crises facing Europe is particularly important, which includes the promotion of the mutual assistance clause through concrete measures and the development of response to hybrid threats. These are well taken into account in the Strategic Compass. The Solidarity Clause (article 222, Treaty on the Functioning of the European Union) and Mutual Assistance Clause (article 42(7), Treaty on the European Union) strengthen the European Union as a security community and increase solidarity among the Member States.