investment expenditure on defence equipment, and regularly review these objectives, in the light of the security environment and of the

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1 Binding Common the contribution to the attainment of the commitments (a) cooperate, as from the entry into force of the Treaty of Lisbon, with a view to achieving approved objectives concerning the level of investment expenditure on defence equipment, and regularly review these objectives, in the light of the security environment and of the Initial parameters in Envisaged national contribution to the attainment of the Indicative Commitments the attainment of the commitments preliminary commitments remarks regarding Union s international responsibiities. The new government recently agreed upon this increase in defence spending. By 2021, the Netherlands will spend an additional 1,51 billion Euros on defence annually. In 2021 our defence budget will amount to 10,5 billion Euros. This will be (based on current estimates) 1,29% GDP. 1 Calculations on defence spending as percentage of GDP are based on the budgets, as presented to parliament on September 19, 2017, including the increase in defence spending as proposed by the new government. The GDP is based on the latest forecasts by the Dutch Netherlands Bureau for Economic Policy Analysis (CPB), dated September PESCO National Implementation Plan The Netherlands, December 2017 Based on the collective benchmarks identified in 2007, participating Member States subscribe to the followirig_commitments: 1. Regularly increasing Defence budget 2017: Structural The development of defence budgets in real 8,96 billion Euros the budget is terms, in order to reach (1,16% GDP 1) dependent on next agreed objectives. governments. Defence budget 2018: 10,1 billion Euros (1,29% GDP) Increase in defence spending in and structurally in millions of Euros

2 2 2. Successive medium- Total: 2 billion Euros The development of term increase in defence (26% of defence the budget is investment expenditure spending) Defence investment 26% 28 h 27 h 26% 25% dependent on next to 20% of total defence Equipment governments.. expenditure planned spending (collective procurement: 1,5 billion. or in,o benchmark) in order to Euros fili strategic capability R&D: about 63 million of total defence gaps by participating in Euros spending defence capabilities R&T: n/a projects in accordance with CDP and These numbers include the increase in defence spending as was Coordinated Annual agreed upon recently by the new government. Review (CARD). 3. Increasing joint and In 2016: (based on Participation in Belgium-Dutch project MCM semi-autonomous collaborative strategic current available data) underwater systems, MRTT and in F-35 programme. defence capabilities around 30,5% of NL projects. Such joint and projects in area of collaborative projects collaborative strateg ic should be supported defence capabilities was through the European with >50 h European Defence Fund if required cooperation. and as appropriate. Belgium-Dutch (Belgium lead nation) project MCM semi autonomous underwater systems for EDIDP-support. 4. Increasing the share of We have identified We have identified a structural expenditure of about 63 million euros expenditure allocated to about 63 million Euros on R&D, but expect this to increase significantly when we have defence research and to be spent on R&D, identified all of R&D and R&T spending in the defence budget. technology with a view this is about 0,7% of to nearing the 2% of total defence spending. total defence spending We are currently (collective benchmark). identifying all our R&D and R&T expenditures in the defence budget and expect this number to increase significantly.

3 5. (b) bring their defence apparatus into line with each other as far as possible, particularly by harmonising the identification of their military needs, by pooling and, where appropriate, specialising their defence means and capabiities, and by encouraging Establishment of a Yearly, as stated in the Yearly, as stated in the notification. Yearly, as stated in regular review of these notification. the notification. commitments (with the aim of endorsement by the Council) cooperation in the fields of training and logistics. 6. Playing a substantial Above average Continuation of active participation. role in capability participation in EDA development within the projects in support of EU, inciuding within the CDP/OSRA/KSA: 23 framework of CARD, in projectsfad hoc working order to ensure the groups. availability of the necessary capabilities Lead nation for EDA for achieving the level of projects: MRTT, JDEAL, ambition in Europe. EU Multimodal Transport Hubs, Sharing of Spare Parts, Cross-border military transportation. 7. Commitment to support Maximum possible Maximum possible participation and contribution of relevant the CARD to the participation and information in the CARD exercise, starting in 2019 and maximum extent contribution of relevant To that end, inviting EDA to NATO bilateral consultations. possible acknowledging information required the voluntary nature of under the CARD trial the review and run. individual constraints of participating Member States. 8. Commitment to the Belgium-Dutch Not yet dear which project proposals will be presented or selected for intensive involvement of (Belgium lead nation) EDF-funding. NL will continue to monitor project development and a future European project MCM semi- participation. Defence Fund in autonomous multinational underwater systems for procurement with EDIDP-support. identified EU added value. 3

4 9. Commitment to drawing Recently harmonized Harmonised requirements are planned to be drawn up with Germany up harmonised requirements were for cooperation in the field of tactical radio communication. requirements for all drawn up with Belgium capability development for the Belg ium-dutch projects agreed by project MCM semi participating Member autonomous States. underwater systems. In the past NL and partners drew up harmonized requirements for the MRTT-project. 10. Commitment to NL enjoys extensive NL will continue and further enhance the bilateral and multilateral NL will continue and considering the joint use cooperation with cooperation on multiple fronts. further enhance the of existing capabilities in Belgium, Germany, bilateral and order to optimize the United Kingdom, France NL will look into potential future participation in the Centre of multilateral available resources and and Norway and in Excellence (C0E) for hybrid warfare. cooperation on improve their overall multinational structures multiple fronts. effectiveness. by which the NL makes full joint use of existing capabilities in order to optimize the available resources and improve their overall effectiveness. NL participates in 15 (c) take concrete measures to enhance the avallabiity, interoperability, flexibiity and of forces, in particular by identifying common objectives regarding the commitment of forces, inciuding possibly reviewing their national decision -making Centres of Excellence (C0E s). 11. Commitment to ensure Full participation in Continuation active and passive participation in projects: cyber increasing efforts in the cyber defence-related ranges, CySAP, Deployable Cyber Evidence Collection and Evaluation cooperation on cyber collaborative projects Capacity (DCEC2), MASFAD-Il, defence, such as and activities, i.e. EU CD E&T, DeP0CyTE Cyber Defence Training & Exercises information sharing, participation in Project Coordination Platform (CD TEXP). training and operational Team Cyber. support. deployabiity their 4 procedures.

5 NL has formations that are strategically deployable. NL will consider its contributions to EU o pe rations/miss i ons on a case by case basis. What can be made available will depend on the overall number of commitments that NL has at that moment in time. NL has not offered any capabilities to the EU Military Rapid Response Database (EUMS) because NL doesn t have generically available rapidly deployable forces. NL will only make rapidly deployable forces available for specific tasks such as EUBG, JEF, VJTF or NRF. 5 With regard to availability and deployability of the forces, the participating Member States are committed to: Making available formations, that are strategically deployable, for the realization of the EU LoA, in addition to a potential deployment of an EUBG. This commitment does neither cover a readiness force, a standing force nor a stand by force. Developing a solid instrument (e.g. a data base) which will only be accessible to participating Member States and contributing nations to record available and rapidly deployable capabilities in order to facilitate and accelerate the Force Generation Process. NL has formations that are strategically deployable. NL will consider its contributions to EU operations/missions on a case by case basis. What can be made available will depend on the overall number of commitments that NL has at that moment in time. NL has not offered any capabilities to the EU Military Rapid Response Database (EUMS) because NL doesn t have generically available rapidly deployable forces. NL will only make rapidly deployable forces available for specific tasks such as EUBG, JEF, VJTF or NRF. NL has formations that are strategically deployable. NL will consider its contributions to EU operations/missions on a case by case basis. What can be made available will depend on the overall number of commitments that NL has at that moment in time. NL has not offered any capabilities to the EU Military Rapid Response Database (EUMS) because NL doesn t have generically available rapidly deployable forces. NL will only make rapidly deployable forces available for specific tasks such as EUBG, JEF, VJTF or NRF. Aiming for fast-tracked NL has a political commitment at comprehensive national level, including parliamentary decision possibly reviewing their making procedure in national decision- relation to missions and making procedures. operations, based on article 100 of the constitution. It was most recently reviewed in 2014.

6 6 Providing substantial support within means and capabilities to CSDP operations (e.g. EUFOR) and missions (e.g. EU Training Missions) - with personnel, materiel, training, exercise support, infrastructure or otherwise - which have been unanimously decided by the Council, without prejudice to any decision on contributions to CSDP operations and without prejudice to any constitutional constraints. Substantially contributing to EU BG by confirmation of contributions in principle at least four years in advance, with a stand by period in line with the EU BG concept, obligation to carry out EU BG exercises for the EU BG force package (framework nation) and/or to participate in these exercises (all EU Member States oarticioatina in EU BG). NL will consider its contributions to EU operations/missions on a case by case basis. What can be made available will depend on the overall number of commitments that NL has at that moment in time. NL calls for integral view on CSDP missions and operations. NL is contributing to EUBG 2018 together with Belgium, Austria and Germany. NL will consider its contributions to EU operations/missions on a case by case basis. What can be made available will depend on the overall number of commitments that NL has at that moment in time. NL calls for integral view on CSDP missions and operations. NL intends to contribute to the German led EUBG NL will consider its contributions to EU operations/missions on a case by case basis. What can be made available will depend on the overall number of commitments that NL has at that moment in time. NL calls for integral view on CSDP missions and 0 pe rati ons. Simplifying and NLlead nation of this Active and stimulating role in enhancing cross-border military mobility Active and standardizing cross initiative in general and in the EU. stimulating role in border military transport of PESCO-project on Continue work in various work strands in PESCO-project on cross- enhancing cross in Europe for enabling military mobility. To border military mobility. border military rapid deployment of that end, NL will work mobility in the EU, if military materiel and on a national action NL strives for involvement of all parties, including NATO and third and where

7 - Commitment 7 personnel. plan in 2018 and will parties. appropriate. contribute to the roadmap(s) to be drawn-up in With regard to interoperability of forces, the participating Member States are committed to: Developing the NL commits to agreed NL commits to agreed common evaluation and validation criteria as NL commits to interoperability of their common evaluation and long as these do not deviate from NATO criteria. agreed common forces by: validation criteria as to agree long as these do not evaluation and validation criteria as on common evaluation deviate from NATO long as these do not and validation criteria criteria. for the EU BG force package aligned with NATO standards while maintaining national certifi cation. deviate from NATO criteria. Developing the NL commits to forces NL commits to providing forces that meet agreed common technical NL commits to interoperabilityoftheir that meet agreed and operational standards as long as these do not deviate from NATO providing forces that forces by: corn mon technical and sta ndards. meet agreed Commitment to agree operational standards common technical on common technical as long as these do not and operational and operational deviate from NATO standards as long as standards of forces standards. acknowledging that they need to ensure interoperability with NATO. these do not deviate from NATO standards. Optimizing multinational NL participation in NL intends to continue its participation in EUROGENDFOR, MCCE, NL intends to structures: participating EUROGENDFOR, MCCE, ATARES, SEOS, EATC, MSSC, MRTT and SAC C-17. continue its Member States could ATARES, SEOS, EATC, commit to joining and MSSC, MRTT and SAC playing an active role in C-17. the main existing and possible future structures partaking in European external action in the military field (EUROCORPS, EUROMARFOR, participation in EUROGENDFOR, MCCE, ATARES, SEOS, EATC, MSSC, MRTT and SAC C-17.

8 14. (d) work together to ensure that they take the necessary measures to make good, inciuding through multinational approaches, and regard within the North Atlantic Treaty Organisation, the shortfalls perceived in the framework Participating Member NL proponent of more NL proponent of more common financing of EU missions and NL proponent of States will strive for an common financing of operations (mcl. EU Battlegroup) through the Athena-mechanism. more common ambitious approach to EU missions and financing of EU common funding of operations (mcl. EU missions and military CSDP Battiegroup) through operations (mcl. EU operations and the Athena-mechanism. Battlegroup) through missions, beyond what the Athena will be defined as mechanism. common cost according to the Athena council decision. without prejudice to undertakings in this of t,e Capabiity Developm nt Mechanism. 15. Help to overcome NL is taking capability shortcomings measures/undertaking identified under the projects to, amongst Capability Development others, enhance the Plan (CDP) and CARD. logistical chain, JSIR, These capability projects SOF, CS and CSS. shall increase Europe s strategic autonomy and strengthen the European Defence Technological and Industrial Base (EDTIB). 16. Consider as a priority a In 2016: (based on European collaborative current available data) approach in order to fl11 around 30,5% of NL capability shortcomings projects in area of identified at national collaborative strategic level and, as a general defence capabilities was rule, only use an with >50% European exclusively national cooperation. approach if such an examination has been alreacly carried out. 8 EUROGENDFOR, MCCE/ATARES/SEOS).

9 - Network - European - European - Cyber Continuation of active participation Take part in at least one project under the PESCO which develops or provides capabilities identified as strategically relevant by Member States. - Military mobility of logistic Hubs in Europe and support to Operations - European Medical Command Secure Software defined Radio (ESSOR) Union Training Mission Competence Centre (EU TMCC) - MCM Maritime (semi-) Autonomous Systems for Mme Countermeasures (MAS MCM) (together with Belgium lead nation) Rapid Response Teams and Mutual Assistance in Cyber Security (e) take part, where appropriate, in the development of major joint or European equipment programmes in the framework of the European Defence Agency. 18. Commitment to the use of EDA as the European forum for joint capability development and consider the OCCAR as the preferred collaborative program managing organization. Above average participation in EDA projects in support of CDP/OSRA/KSA: 23 projects/ad hoc working g ro u p5. Lead nation for EDA projects: MRTT, JDEAL, EU Multimodal Transport Hubs, Sharing of Spare Parts, Cross-border military transportation. Continuation of active participation.

10 which Ensure that all projects Belgium-Dutch Not yet dear which project proposals will be presented or selected for with regard to (Belgium lead nation) EDF-funding. NL will continue to monitor project development and capabilities led by project MCM semi- participation. participating Member autonomous States make the underwater systems for European defence EDIDP-support. industry more competitive via an appropriate industrial policy which avoids unnecessary overlap. 20. Ensure that the Belgium-Dutch Not yet dear which project proposals will be presented or selected for cooperation (Belgium lead nation) EDF-funding. NL will continue to monitor project development and programmes - project MCM semi- participation. must only benefit autonomous entities which underwater systems for demonstrably provide EDIDP-support. added value on EU territory - and the acquisition strategies adopted by the participating Member States will have a positive impact on the EDTIB.