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<p>The aim of the EU's Permanent Structured Cooperation (PESCO) is to strengthen EU
Member States' cooperation in military matters. Under PESCO, groups of participating
Member States can work together to pursue specific capability projects. PESCO is voluntary
and works on an opt-in basis. It is not a Common Security and Defence Policy operation
or mission and there is no operational headquarters.</p><p>At the 13 November Foreign
Affairs Council with Defence Ministers, 23 Member States signed a notification letter
as the first step in the establishment of PESCO. It is expected that PESCO will be
launched at the Foreign Affairs Council in December but there are several details
yet to be decided including funding arrangements, and prioritisation and governance
arrangements for PESCO projects.</p><p>The UK did not sign the notification letter
but the Government supports the ambition to develop military capabilities that address
the shortfalls in EU and NATO contexts. We welcome PESCO as a tool to support the
development of capabilities that Europe needs for its security, provided it remains
complementary to NATO and encourages EU-NATO cooperation.</p><p>Our bilateral Defence
cooperation with Member States, including France through the Lancaster House Treaties,
is in the interest of the whole of Europe, and PESCO will not change that. We believe
that PESCO must be designed in a way that promotes an open and competitive European
Defence industry. We are encouraging Member States to develop PESCO to be open to
third country participation where there is clear value in doing so. Projects carried
out under PESCO arrangements should remain Member State-owned and the capabilities
delivered should be available not only to the EU but can also be used in support of
NATO and UN operations. PESCO does not affect independent organisations such as the
European Air Group.</p><p>We continue to engage in the development of PESCO and our
approach reflects our commitment to European defence and security, and protecting
the interests of UK industry.</p>
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