The European Commission has taken decisive action against the Czech Republic over alleged breaches of EU directives in the procurement of military helicopters, issuing a formal statement yesterday. The Commission’s move underscores concerns regarding the transparency and fairness of the procurement process, particularly in relation to the Defence Procurement Directive and the Treaty on the Functioning of the European Union.

In response to the Commission’s statement, Prague has been formally notified of the breach and given a two-month window to address the highlighted shortcomings. The violations pertain to the acquisition of US military Venom and Viper helicopters, totaling approximately CZK 17 billion. The Commission’s scrutiny centers on whether the procurement procedure and conditions adhered to the principles outlined in EU legislation, ensuring fair competition and safeguarding the security interests of member states.

The Czech Defence Ministry has defended the helicopter purchase, asserting that it was undertaken in accordance with Czech security interests and aimed at reducing dependence on Russian military equipment. Former Defence Minister Lubomir Metnar, under whose tenure the decision was made, emphasized that the selection of US helicopters was endorsed by Czech army personnel and aligned with strategic national objectives.

However, the Commission’s investigation alleges potential abuse of the intergovernmental procurement exemption and highlights concerns over the lack of equal opportunity for EU companies to compete for the contract. This direct award of the contract without open competition has raised red flags regarding non-discrimination, equal treatment, and transparency, contravening EU procurement principles.

Despite the Czech Defence Ministry’s assertions of compliance, the Office for the Protection of Economic Competition levied a significant fine of CZK 550 million for breaches of public procurement law. The procurement saga, marked by intergovernmental agreements and subsequent negotiations, underscores the complexity and implications of defense acquisitions within the EU framework.

The outcome of the proceedings will have ramifications beyond the immediate procurement dispute, shaping future defense procurement practices and the relationship between EU member states and the European Commission. The Czech Republic’s response and efforts to rectify the alleged violations will be closely monitored as the EU seeks to uphold standards of transparency, fairness, and competition in defense procurement across its member states.

Article by Prague Forum